Most Swiss, German, French and Italian banks offer overdrafts on current accounts. The agreed limit is usually two to three times monthly net salary. As long as you stay within the limit the bank simply charges interest — typically 9–14% annual rate in Switzerland and 7–12% in Germany — on the negative balance, calculated daily.
An overdraft is the most expensive routine form of credit. Going CHF 2,000 into the red for one month at 12% interest costs about CHF 20 — modest in absolute terms, but a 144% annualised cost if used continuously. For anything beyond a few days, a personal loan, a 0% credit-card promotion or a margin loan against an investment portfolio will be cheaper.
Use overdraft as a true buffer, not as financing. Banks may withdraw the facility at any time, particularly if your salary stops landing in the account. A persistent negative balance also hurts your credit score and can trigger demands for full repayment. If you find yourself relying on overdraft every month, the structural fix is to align spending and saving with income, or to convert the overdraft into a cheaper instalment loan.
A freelancer with a CHF 5,000 overdraft limit covers a CHF 3,200 emergency car repair on the 10th of the month. Her salary lands on the 25th and clears the balance. Interest cost: about CHF 16 (CHF 3,200 × 12% × 15/365). A credit card with a 0% balance-transfer promo would have cost zero.