What does overdraft protection provide?

Overdraft protection is a financial service that helps ensure that transactions can be completed even if there are insufficient funds in a bank account. It covers transactions that exceed your account balance, allowing you to make purchases or withdrawals without worrying about getting declined for lack of funds. This can help you avoid the inconvenience of bounced checks or declined debit card payments, providing peace of mind in managing your cash flow.

The other options do not accurately represent the purpose of overdraft protection. Increased account balance refers to having more funds available, which overdraft protection does not provide. Direct deposit options relate to how money is deposited into an account, not protecting against overdrafts. Free ATM withdrawals are about accessing your funds without fees, which is separate from the concept of overdraft protection.