Don’t let financial setbacks get the better of you

We’ve all been there. Your budget is set, and you’ve followed it diligently. You’re tracking your expenses and savings, and you’ve even topped up  your short-term savings account. But then…  your geyser blows up and now you need extra cash that you haven’t budgeted for, and that you probably don’t have. A loan could help you out, but it wouldn’t exactly help your credit score.

When you’re in a tough spot like this, you need relief until you’re back on track – a  short-term solution. Consider an overdraft as a short-term and temporary solution to your budgeting challenges.

What is a bank overdraft and how does it impact your finances?

An overdraft facility is a credit facility that allows you to withdraw more money than what you have in your MyWORLD Account – up to an approved limit. In this case, your MyWORLD Account can have a debit, or negative balance.

An overdraft can help you cover yourself when your budget is tight, and you need:

• Money for mid-month emergency expenses.
• Access to cash before payday.
• Cover for rainy days when you are short on cash.

It helps you manage your monthly cash flow and provides protection from unpaid debit orders when your salary runs out.

Sounds like a loan to me!

Not exactly.

An overdraft provides access to additional funds up to a predetermined amount, and it’s available for use on your MyWORLD Account. There’s no transfer of funds into your bank account; rather, a facility limit is loaded, increasing the available funds in your account.  

So, do I need a MyWORLD Account to apply for an overdraft?

Yes, you can add an overdraft facility to your MyWORLD Account, which you can open online on your African Bank App, or at your nearest branch. Remember that your overdraft facility is only available on the MyWORLD Account, and not on your MyWORLD Pockets. Once you open your account and your overdraft is approved, you can manage your account and view your current and available balances, limits, and statements on your online banking profile or the African Bank App.

You can open your MyWORLD Account online, after downloading the African Bank App, or at your closest African Bank branch.