Insufficient Funds
A situation in which an individual or institution does not have enough money in their account to cover a transaction or withdrawal.
More Details
Insufficient funds refers to a situation in which a person or entity does not have enough money in their account to cover a transaction or meet a financial obligation. This can occur when the account balance is lower than the amount of the transaction, or when there are not enough available funds to cover the required amount.
Example
If you have a checking account with a balance of $100 and you try to make a purchase for $150 at a store, the transaction will likely be declined because you have insufficient funds in your account to cover the purchase.
Related Terms
Individual Retirement Account (IRA)
A type of savings account designed to help individuals save for retirement.
Co-Signer
A person who signs a loan or credit application with the primary borrower, accepting responsibility for the debt if the primary borrower defaults.
Overdraft Fee
A charge that is assessed when a check or electronic transaction is processed for more money than is available in a checking account.

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