# Overdraft account

### Create Overdraft Account

Select Products from the welcome page and click on **Savings Product**

1\) Go to the specific Client and click on ![](https://mifosforge.jira.com/wiki/download/thumbnails/112296110/66.png?version=1\&modificationDate=1453457988555\&cacheVersion=1\&api=v2\&width=80)  

2\) New savings applications page opens, Select savings product >> Defined overdraft product. 

An example of overdraft product is shown below:-  

\>> Nominal annual interest rate is defined as 8%. 

\>> Is overdraft allowed is True (Enabled) 

\>> Maximum Overdraft limit is set as 100000

\>> Nominal annual interest rate for overdraft is 12%

\>> Minimum overdraft required for interest calculation is set as 0. 

![](https://mifosforge.jira.com/wiki/download/thumbnails/112296110/Screenshot%20from%202019-06-28%2022-53-05.png?version=1\&modificationDate=1561758938890\&cacheVersion=1\&api=v2\&width=850)

3\) Fill up all the required details below showing an example of the shown selected product with default values.

![](https://mifosforge.jira.com/wiki/download/thumbnails/112296110/69.png?version=1\&modificationDate=1453457988525\&cacheVersion=1\&api=v2\&width=800)

Then click on submit. 

4\)Next, the Overdraft Account needs to be approved and activated with specified date. 

5\) Overdraft Account gets created with active status. 

### To Deposit 

Click on ![](https://mifosforge.jira.com/wiki/download/attachments/112296110/71.png?version=1\&modificationDate=1453457988486\&cacheVersion=1\&api=v2) button to make deposits. 

<div align="left"><img src="https://mifosforge.jira.com/wiki/download/thumbnails/112296110/73.png?version=1&#x26;modificationDate=1453457988461&#x26;cacheVersion=1&#x26;api=v2&#x26;width=347" alt=""></div>

Provide Transaction date, amount payment type and click on **submit** button.&#x20;

### To Withdraw&#x20;

Click on ![](https://mifosforge.jira.com/wiki/download/attachments/112296110/72.png?version=1\&modificationDate=1453457988436\&cacheVersion=1\&api=v2) button to make withdrawals.

<div align="left"><img src="https://mifosforge.jira.com/wiki/download/thumbnails/112296110/74.png?version=1&#x26;modificationDate=1453457988399&#x26;cacheVersion=1&#x26;api=v2&#x26;width=362" alt=""></div>

### Transactions&#x20;

An example of transaction is shown below.&#x20;

As you could see transaction type:

\>>As Interest posting is calculated on the positive balance, 8% of 20,000 and it has posted interest accordingly.&#x20;

\>> As Overdraft interest is calculated on the negative balance, 12% of -29779.64 and interest is accordingly.&#x20;

![](https://mifosforge.jira.com/wiki/download/thumbnails/112296110/70.png?version=1\&modificationDate=1453457988511\&cacheVersion=1\&api=v2\&width=810)

### Related articles <a href="#overdraftaccount-relatedarticles" id="overdraftaccount-relatedarticles"></a>

* Page:[Overdraft Product](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/overdraft-product)
* Page:[Overdraft account](https://docs.mifos.org/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/overdraft-account)
* Page:[How to create overdraft account (Draft)](https://docs.mifos.org/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/deposit-accounts/mifos-x-saving-accounts/how-to-create-overdraft-account-draft)
* Page:[Account Number Preferences](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/system/account-number-preferences)