Glossary: Basic account
A no-frills vanilla bank account that allows you to have your salary paid in, to set up direct debits and standing orders for money going out and online access, but won’t allow you an overdraft, cheque book, interest earned on the balance or paper statements.
An overdraft is an agreement with your bank that authorises you to withdraw more funds from your account than you have deposited in it. Many banks charge for this privilege either as a fixed fee or charge interest on the money overdrawn at a special high rate. Some banks charge a fee and interest. And other banks offer a free overdraft but impose very high charges for exceeding the agreed limit of your overdraft.