Simple definitions of a bank overdraft and a term deposit?

Question

Simple definitions of a bank overdraft and a term deposit?

Answer 1

Overdraft means trying to withdraw more money than there is in the account, usually by writing a check.

Term deposit means money deposited in a bank for a specified period of time or term, with penalties imposed for early withdrawal.

Another name for the same thing is "Certificate of Deposit" or CD.

Common time periods are 6 and 12 months, but they can be as

short as one week and as long as 5 years.