Know About Interest and Repayment of Overdraft - YouTube

This video deals with interest and repayment in case of overdrafts

Bhanuchandra A has asked how to repay the overdraft amount

You can repay the money by depositing it in the overdraft account

It will get reflected in the credit balance after deposit of the money

You can use the overdraft (OD) facility again

The interest is calculated on the daily debit balance and the interest is charged at the end of every month

You can close the OD account any time by paying the outstanding balance including the interest

On closure, the bank will remove the lien on the fixed deposits (FD) and will hand over the FD to you

In case you don't close the OD account, on maturity of the OD,

If there is any debit balance in the OD account will be adjusted from the maturity amount and the balance adjusted and paid to you