Bank of America lets you overdraw through overdraft protection, which automatically transfers money from a linked account or credit line when your checking account balance drops below zero

Bank of America offers two main ways to overdraw: overdraft protection, which moves money from another account you own or a credit line to cover the shortfall, and overdraft fees, which the bank charges when a transaction posts against insufficient funds. The first is automatic if you set it up; the second happens whether you want it or not. You need to understand which one applies to your account and what each costs.

Overdraft protection is not free. If you transfer from a linked savings account, there is no fee for the transfer itself, but you lose the interest that money would have earned. If you use a credit line or overdraft line of credit, Bank of America charges interest on the borrowed amount, typically at a higher rate than a regular loan. Overdraft fees—charged when a transaction posts against insufficient funds—run $35 per transaction as of 2024, though this varies by account type and can change.

Key Takeaways

  • Overdraft protection requires you to link a savings account, money market account, or credit line to your checking account before it activates.
  • Bank of America charges $35 per overdraft transaction if you do not have protection set up, and you can be charged multiple times in a single day.
  • Overdraft protection from a linked account transfers money automatically but does not prevent you from overdrawing that account too.
  • You can turn overdraft protection on or off through your online banking portal or by calling Bank of America customer service.
  • Repeated overdrafts may trigger account closure or restrictions, even if you pay the fees.

Setting up overdraft protection with a linked account

To use overdraft protection, you must link another Bank of America account you own—typically a savings account, money market account, or sweep account—to your checking account. Log into your online banking portal, go to the account settings for your checking account, and look for "Overdraft Protection" or "Linked Accounts." Select the account you want to link and confirm. Bank of America will then automatically transfer funds from that linked account to your checking account when a transaction would otherwise overdraw you.

The transfer happens in real time or within hours, depending on the transaction type. Debit card purchases and ATM withdrawals typically trigger the transfer immediately. Checks and ACH transfers may take longer because they process on a delay. If your linked account does not have enough money to cover the overdraft, the transfer fails and you are charged an overdraft fee instead. You remain responsible for replenishing both accounts afterward.

Overdraft fees and how they stack up

If you do not have overdraft protection set up, or if your linked account runs dry, Bank of America charges $35 per transaction that posts against insufficient funds. This is called an overdraft fee or NSF (non-sufficient funds) fee. The bank can charge you multiple times in a single day—one fee per transaction—so a day with five debit card purchases could result in five separate $35 charges, totaling $175.

Bank of America caps overdraft fees at four per day for debit card transactions and ATM withdrawals, but does not cap fees for checks or ACH transfers. This means you could theoretically be charged $140 in a single day from debit transactions alone ($35 × 4), plus additional fees from checks or transfers. The fees post to your account within one to two business days and make your negative balance worse, which can trigger more overdrafts.

Using a Bank of America credit line for overdraft protection

Bank of America also offers overdraft line of credit, a separate credit product linked to your checking account. Instead of transferring from savings, the bank lends you money at a set interest rate when you overdraw. You must be approved for this line first, and approval depends on your credit score and banking history with Bank of America. The interest rate is typically higher than a personal loan but lower than a credit card.

If you use the overdraft line, you pay interest on the borrowed amount, not a flat fee per transaction. The interest accrues daily and is added to your bill. You can repay it on your own schedule, but the longer you carry the balance, the more interest you owe. This option is useful if you overdraw frequently and want to avoid stacking multiple $35 fees, but it only works if you have been approved for the line and it is active on your account.

Turning overdraft protection on or off

You can manage overdraft protection through your Bank of America online banking account. Log in, select your checking account, go to "Account Settings" or "Overdraft Protection," and toggle the feature on or off. You can also change which linked account the bank pulls from if you have multiple options. Changes take effect immediately, though pending transactions may still process under the old settings.

If you want to disable overdraft protection entirely, you can do that too—but understand that transactions will then be declined or charged overdraft fees if your balance is insufficient. Calling Bank of America customer service at the number on the back of your card is another way to make changes, and a representative can walk you through the options or help troubleshoot if the online portal is not working.

What happens if you repeatedly overdraw

Bank of America monitors account activity and may close your account or restrict it if you overdraw repeatedly, even if you pay all the fees. The bank's policy is not public, but accounts with five or more overdrafts in a rolling 12-month period are at higher risk. Closure can happen without warning, and once an account is closed, you may be reported to ChexSystems, a banking history database that other banks check before opening new accounts.

If your account is closed, you lose access to your funds temporarily while the bank processes the closure and any remaining fees. Checks you have written may bounce. Direct deposits may fail. You will need to open a new account elsewhere, and some banks will decline you if you are in ChexSystems. The best way to avoid this is to stop overdrawing: set up alerts for low balances, link a savings account with a cushion, or reduce spending until your income and expenses align.

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 reversal. Call Bank of America customer service or visit a branch and ask to speak with a manager. The bank may reverse one or two fees if you have a good account history and this is your first request, but there is no may provide. Reversals are discretionary, and the bank is not obligated to grant them.

Document everything: the date of the transaction, the amount, and why you believe the fee was in error. If the overdraft resulted from a delayed deposit or a processing error on the bank's side, mention that. If you simply spent more than you had, the bank is less likely to reverse the fee, but asking costs nothing. Some customers have success requesting a reversal once per year if they maintain good standing otherwise.

Frequently Asked Questions

Can I overdraw my Bank of America account without overdraft protection?

Yes, but you will be charged $35 per transaction that posts against insufficient funds. The bank does not decline the transaction; it processes it and charges you a fee. Overdraft protection prevents this by automatically transferring money from a linked account, but it requires setup beforehand.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is a service you set up in advance that automatically transfers money from another account to prevent overdrafts. Overdraft fees are charges the bank imposes when a transaction posts against insufficient funds. Protection stops fees from happening; fees happen when protection is not in place or fails.

How long does it take for overdraft protection to transfer money?

Transfers from a linked savings account happen in real time or within hours for debit card and ATM transactions. Checks and ACH transfers may take longer because they process on a delay. If the transfer does not complete before the transaction posts, you may still be charged an overdraft fee.

Will Bank of America close my account if I overdraw too many times?

Yes. Accounts with five or more overdrafts in a rolling 12-month period are at risk of closure. The bank may close your account without warning and report you to ChexSystems, which makes it harder to open accounts at other banks.

Can I get overdraft fees reversed?

Bank of America may reverse one or two fees if you have a good account history and ask politely, but reversals are not may provide and are at the bank's discretion. Call customer service or visit a branch and ask to speak with a manager. Document the transaction details and explain why you believe the fee was unfair.