Yes, you can overdraft at Bank of America, but only if you have overdraft protection turned on
Bank of America allows overdrafts on checking accounts, but the bank does not automatically cover them. You have to opt in to overdraft protection, which means the bank will pay transactions that would otherwise bounce. Without it enabled, your debit card and ATM withdrawals will be declined if your balance is too low. Checks and ACH transfers may still overdraft even without protection turned on — those go through a different system.
Overdraft protection comes in two forms at Bank of America: overdraft coverage (which uses your own linked savings account or line of credit) and overdraft protection transfers (which pulls money from another account you own). The bank also offers a standard overdraft service that charges a fee each time you go negative, even by a dollar.
Key Takeaways
- Bank of America charges $35 per overdraft transaction if you do not have overdraft protection linked to another account.
- You can link a savings account, money market account, or line of credit to cover overdrafts automatically at no charge.
- The bank will not charge overdraft fees on the same transaction twice, but multiple transactions in one day can each trigger a separate fee.
- Opting out of overdraft protection stops the bank from covering debit card and ATM transactions, but does not stop checks or ACH payments from overdrafting.
How overdraft fees work at Bank of America
When you overdraft without protection, Bank of America charges $35 per transaction that puts your account below zero. This is called an overdraft item fee. The bank will pay the transaction and then charge you the fee — so if you spend $5 when you have $0, you end up at -$35, not -$5.
The bank caps overdraft fees at a maximum of four per day, meaning you cannot be charged more than $140 in overdraft fees in a single day. However, each separate transaction counts as its own overdraft item. If you make five debit card purchases in one day and your account goes negative after the first one, the second through fifth purchases will each be charged $35 — up to the four-fee daily limit.
You also will not be charged twice for the same transaction. If a transaction is declined and then resubmitted, Bank of America counts it as one overdraft item, not two.
Setting up overdraft protection with a linked account
The cheapest way to handle overdrafts is to link another account you own to your checking account. Bank of America will automatically transfer money from that account to cover overdrafts at no charge. You can link a savings account, money market account, or a Bank of America line of credit.
To set this up, log into your Bank of America account online or through the mobile app, go to settings, and look for overdraft protection or transfer options. You can choose which account to link and set a minimum balance — for example, you can tell the bank not to transfer if it would drop your linked account below $100. If the linked account does not have enough money when an overdraft happens, the transaction will still overdraft and you will be charged the $35 fee.
Transfers from a linked account happen instantly for debit card and ATM transactions. For checks and ACH payments, the timing depends on when the transaction clears.
What happens if you do not opt into overdraft protection
If you turn off overdraft protection, debit card and ATM transactions will simply be declined when your balance is too low. You will not be charged a fee, and the transaction will not go through. This is the safest option if you want to avoid overdraft fees entirely.
However, opting out does not stop all overdrafts. Checks and ACH transfers (including bill payments and direct deposits going out) can still overdraft your account even without protection enabled. These transactions are processed through different systems and are not subject to the same opt-out rules. If a check or ACH payment causes an overdraft, you will be charged the $35 fee.
You can opt out of overdraft protection through your online account settings or by calling Bank of America customer service at the number on the back of your card.
Overdraft fees and the daily negative balance
Once your account goes negative, Bank of America may charge an additional fee if you stay overdrawn. This is separate from the overdraft item fee. The bank charges $12 per day if your account remains negative for more than five consecutive business days. This daily fee continues until your balance goes positive again.
For example: you overdraft on a Monday and are charged $35. If your account is still negative on Friday (five business days later), you will be charged $12 on that day. If you remain negative through the following Monday, you will be charged another $12. These daily fees stack up quickly, so getting your account back to positive is important.
The daily fee caps at $60 per month, meaning you cannot be charged more than $60 in daily fees in a calendar month, even if you stay negative for weeks.
How to avoid overdraft fees
The most reliable way to avoid overdraft fees is to link a savings account or line of credit to your checking account. This way, overdrafts are covered automatically at no cost. Set a reminder to transfer money back to the linked account so it stays funded.
If you do not want to use overdraft protection, monitor your balance regularly through the mobile app or online banking. Bank of America sends low balance alerts if you set them up in your account settings. You can also turn on text or email notifications when your balance drops below a certain amount.
Another option is to use a Bank of America SafeBalance account, which is designed for people who want to avoid overdrafts entirely. This account type does not allow overdrafts at all — transactions are simply declined if your balance is too low. There is no monthly fee, but it has lower ATM access and fewer features than a standard checking account.
What to do if you have been charged 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 customer service or visit a branch with your account statement showing the fees. The bank will review the transactions and may reverse one or more fees, especially if this is your first time requesting a reversal or if there are extenuating circumstances.
Bank of America does not have a formal overdraft fee forgiveness program, but customer service representatives have discretion to reverse fees in certain situations. Being polite and explaining your situation clearly increases the chances of a reversal. If the bank declines your request, you can escalate to a supervisor or file a complaint with the Consumer Financial Protection Bureau.
Frequently Asked Questions
Can I overdraft my Bank of America account if I do not have overdraft protection?
Debit card and ATM transactions will be declined if you do not have overdraft protection. However, checks and ACH transfers can still overdraft your account and trigger a $35 fee, even without protection enabled. These transactions process through different systems that are not subject to opt-out rules.
How much does it cost to overdraft at Bank of America?
Each overdraft transaction costs $35. If your account stays negative for more than five business days, you are charged an additional $12 per day, capped at $60 per month. The bank limits overdraft fees to four per day, so the maximum daily charge is $140.
Does Bank of America charge overdraft fees on transfers from a linked account?
No. If you link a savings account or line of credit to your checking account, Bank of America transfers money automatically at no charge when an overdraft occurs. You are only charged a fee if the linked account does not have enough money to cover the overdraft.
Can I get my overdraft fees refunded?
Bank of America may reverse overdraft fees if you request a refund, especially if it is your first time asking or if there are special circumstances. Call customer service or visit a branch with your account statement. The bank has no formal forgiveness program, but representatives have discretion to reverse fees.
What is the difference between overdraft protection and opting out?
With overdraft protection, the bank covers transactions that would overdraft your account and charges a fee. If you opt out, debit card and ATM transactions are declined instead. Checks and ACH transfers can still overdraft regardless of your choice, because they process through different systems.