What happens if a consumer opts in for overdraft protection?

When a consumer opts in for overdraft protection, they gain the ability to overdraw their account. This means that they can make transactions that exceed their available account balance, allowing greater flexibility and helping to prevent bounced checks or declined transactions. Overdraft protection serves as a safety net for consumers, providing them with access to additional funds when they may not have enough available in their checking account to cover expenses.

This option aligns with the intended purpose of overdraft protection, which is to ensure seamless transactions even when a consumer's account is low on funds. Other options may sound plausible but do not accurately reflect what occurs when a consumer chooses to opt in. For instance, being charged immediately does not occur upon opting for the service, as charges may depend on the specific transactions that lead to overdrawing the account. Similarly, opting in does not result in a loss of depositor rights or a requirement to maintain a minimum balance; these conditions are influenced by different policies and service agreements that are not inherently tied to the overdraft protection choice.