Bank of America allows overdrafts, but only if you opt in—and the bank charges a fee each time you go negative
Bank of America does not automatically prevent you from spending more than you have. If you have a checking account with them, you can overdraw it, but only if you have enrolled in their overdraft protection service. Without it, transactions will simply be declined at the point of sale or ATM. If you do have overdraft protection turned on and you spend more than your balance, Bank of America charges an overdraft fee—currently $35 per transaction that overdraws your account.
The key distinction: Bank of America will not stop you from going negative if you have opted into overdraft coverage, but they will charge you for the privilege. You can turn this protection on or off yourself through your online account or by calling their customer service line.
Key Takeaways
- Bank of America overdraft protection is optional and must be turned on by you; without it, transactions that would overdraw your account are declined instead.
- Each transaction that overdraws your account costs $35, and the bank can charge multiple fees in a single day if several transactions post while your account is negative.
- Overdraft fees are separate from any interest charges; the bank does not charge interest on negative balances, only flat fees per overdraft event.
- You can enable or disable overdraft protection anytime through your Bank of America online account or by phone, and the change takes effect immediately for most transaction types.
- Overdraft protection does not cover all transaction types equally—ATM withdrawals and recurring bill payments may have different rules than debit card purchases.
How Bank of America overdraft protection works
When you enroll in overdraft protection, Bank of America covers transactions that would otherwise be declined. This means a debit card purchase, check, or ACH transfer can go through even if your account balance is zero or negative. The bank then charges you $35 for each transaction that causes the overdraft. If your account is already negative and another transaction posts, you pay another $35.
The overdraft fee applies per transaction, not per day. If you have $50 in your account and three debit card purchases of $40 each post on the same day, you will owe three overdraft fees—$105 total—plus the $70 you overspent. Bank of America does not charge interest on the negative balance itself, only these flat per-transaction fees.
Overdraft protection is not the same as a line of credit or overdraft loan. The bank is not lending you money; they are simply allowing the transaction to complete and then charging you a fee for doing so. You must repay the full negative amount to bring your account back to zero.
Which transactions can overdraw your account
Debit card purchases, checks, and ACH transfers (like bill payments set up through your bank) can trigger overdraft fees if overdraft protection is on. ATM withdrawals can also overdraw your account, though Bank of America's rules for ATM overdrafts are slightly different—the bank may decline the withdrawal rather than charge a fee, depending on the ATM type and your account history.
Recurring bill payments and automatic transfers are treated as standard transactions for overdraft purposes. If a payment is scheduled to post and your balance is insufficient, the payment will go through if overdraft protection is enabled, and you will be charged the $35 fee.
Some transactions, like wire transfers or certain online bill payments, may not be covered by overdraft protection and will be declined instead. Check your account settings or contact Bank of America directly if you are unsure whether a specific payment type is covered.
How to turn overdraft protection on or off
You control overdraft protection yourself through your Bank of America online account. Log in, go to your checking account settings, and look for "Overdraft Protection" or "Overdraft Options." You will see a toggle or checkbox to enable or disable the service. The change typically takes effect immediately for new transactions, though some pending transactions may still process under the old setting.
If you prefer to make the change by phone, call Bank of America's customer service number on the back of your debit card. A representative can turn overdraft protection on or off for you in minutes. There is no fee to change this setting, and you can change it as many times as you want.
Bank of America does not automatically enroll new customers in overdraft protection. Most accounts start with it off, meaning transactions will be declined if you do not have sufficient funds. However, if you have had overdraft protection on for a long time, it may remain on even if you do not actively use it.
What happens if you overdraw without protection enabled
If overdraft protection is off and you attempt a transaction that would overdraw your account, the transaction is simply declined. You will not be charged a fee, and your account balance will not go negative. The merchant or biller will receive a "declined" or "insufficient funds" message, and the transaction will not complete.
This can be inconvenient—a debit card purchase might be rejected at checkout, or a bill payment might fail to post—but it protects you from overdraft fees. Many people choose to keep overdraft protection off for this reason, especially if they live paycheck to paycheck and cannot afford the $35 fees.
Overdraft fees and how they add up
A single $35 overdraft fee is steep, but the real damage happens when multiple fees stack up. If your account is negative and several transactions post over a few days, you can accumulate $70, $105, or more in fees before you realize what has happened. Bank of America caps the number of overdraft fees you can be charged in a single day—currently five fees maximum—but this limit still means you could owe $175 in fees in one day alone.
The fees are charged regardless of how small the overdraft amount is. Overdrawing your account by $1 costs the same $35 as overdrawing it by $100. This makes small overdrafts particularly expensive relative to the amount you actually overspent.
Once you have paid back the negative balance, the overdraft fees do not disappear from your account history, but they do not accrue additional charges either. You simply owe the bank the full amount—the overspent funds plus all the fees—and you must deposit money to cover it.
How to avoid overdraft fees
The simplest way to avoid overdraft fees is to keep overdraft protection off. This means transactions will be declined if you do not have the funds, but you will not be charged fees for going negative. You can turn it back on temporarily if you know you need it for a specific transaction, then turn it off again.
If you keep overdraft protection on, monitor your balance regularly. Check your account before making large purchases or scheduling bill payments. Bank of America offers balance alerts through their app and online banking—you can set up notifications when your balance drops below a certain amount, giving you time to deposit money before overdrafts occur.
Link a savings account to your checking account for overdraft protection instead of allowing the bank to charge fees. Some banks offer this as an alternative to overdraft fees, though Bank of America's overdraft protection service does not automatically transfer funds from savings—you must set up a separate transfer or use a different protection method.
Recovering from overdraft fees
If you have been charged overdraft fees and believe they were unfair or the result of a bank error, you can request a refund. Call Bank of America's customer service and explain the situation. The bank may reverse one or two fees, especially if you have a good account history or if this is your first time requesting a reversal. There is no may provide, but it is worth asking.
If you have been charged multiple overdraft fees in a short period and your account has been negative for an extended time, the bank may offer a one-time courtesy reversal. This is not automatic, and the bank is under no obligation to do it, but many customers have had success requesting this when they contact customer service directly.
To prevent future overdrafts, deposit money as soon as possible to bring your account back to a positive balance. Once your account is positive, the overdraft fees stop accruing, though you still owe the fees that were already charged.
Frequently Asked Questions
Can Bank of America charge me overdraft fees if I did not opt in?
No. Overdraft protection is optional, and you must actively turn it on. If it is off, transactions will be declined instead of overdrawing your account. Check your account settings to confirm whether overdraft protection is currently enabled.
How many overdraft fees can I be charged in one day?
Bank of America limits overdraft fees to five per day, meaning the maximum you can be charged in a single day is $175. However, this limit applies only to overdraft fees, not to other charges or interest.
Do I pay interest on a negative balance?
No. Bank of America charges flat $35 overdraft fees per transaction, not interest on the negative balance. Once you repay the overdraft amount, no additional charges accrue.
What if a check I wrote overdrafts my account?
If overdraft protection is on, the check will clear and you will be charged a $35 overdraft fee. If overdraft protection is off, the check may bounce, and you could face a returned check fee from the bank plus fees from the person or business you wrote the check to.
Can I turn overdraft protection back on after I turn it off?
Yes. You can enable or disable overdraft protection anytime through your online account or by calling customer service. Changes typically take effect immediately for new transactions.