Bank of America's overdraft limits depend on your account history and balance

Bank of America does not publish a fixed overdraft limit that applies to all customers. Instead, the bank sets an individual overdraft limit based on factors like how long you have banked with them, your account balance history, direct deposit patterns, and past overdraft behavior. Some accounts have no overdraft protection at all, while others may be allowed to go negative by several hundred dollars.

The bank does not tell you your specific overdraft limit upfront. You discover it by attempting a transaction that would take your account below zero. If the transaction is approved, you have overdraft protection; if it is declined, you do not. The only way to know your actual limit is to contact Bank of America directly or check your account agreement.

Bank of America charges an overdraft fee each time you overdraft, regardless of how much over you go. As of 2024, this fee is $35 per transaction. If multiple transactions post on the same day and multiple overdrafts occur, you can be charged multiple fees in a single day.

Key Takeaways

  • Bank of America sets overdraft limits individually for each account based on banking history and balance patterns, not a standard amount for all customers.
  • The bank charges $35 per overdraft transaction, and multiple overdrafts on the same day result in multiple fees.
  • You can request to opt out of overdraft protection, which means transactions will be declined rather than approved when your balance is insufficient.
  • Overdraft fees can be waived if you contact the bank within a reasonable time and have a clean account history, though the bank is not required to reverse them.
  • Bank of America offers overdraft protection linked to savings accounts or credit lines as an alternative to standard overdraft coverage.

How Bank of America decides your overdraft limit

Bank of America uses an internal scoring system that weighs several factors. Customers with longer account histories, consistent direct deposits, and higher average balances typically receive higher overdraft limits. Customers who have overdrafted frequently in the past, or who maintain very low balances, may have lower limits or no overdraft protection at all.

The bank does not disclose the exact formula or thresholds it uses. This means two customers with similar account profiles may have different limits. New customers often have no overdraft protection initially; it may be added after several months of account activity.

Your limit can change without notice. If you overdraft repeatedly, the bank may lower your limit or remove overdraft protection entirely. Conversely, if your account improves over time, the bank may increase your limit.

What happens when you overdraft

When a transaction would take your account below zero, Bank of America decides in real time whether to approve or decline it. If approved, your account goes negative and you are charged a $35 overdraft fee. The fee posts to your account separately from the transaction itself, which means it can trigger additional overdrafts if your balance is already low.

Transactions do not always post in the order they were made. Bank of America typically posts transactions in order of highest amount first, which can cause multiple overdrafts on a single day even if you made only one large purchase. For example, if you have $100 in your account and make a $50 purchase and a $75 purchase on the same day, the bank may post the $75 first, triggering an overdraft, then post the $50, triggering another overdraft and another fee.

You have until the end of the business day to bring your account back to zero or positive. If your account remains negative overnight, you may be charged additional fees or have your account closed by the bank.

Opting out of overdraft protection

You can request that Bank of America decline transactions rather than approve overdrafts. This is called opting out of overdraft protection. When you opt out, any transaction that would overdraft your account is simply declined at the point of sale or ATM, and you are not charged a fee.

To opt out, contact Bank of America by phone, in person at a branch, or through your online account settings. The change takes effect within one to two business days. You can opt back in at any time using the same methods.

Opting out protects you from overdraft fees but means your debit card may be declined in stores or your checks may bounce. Some customers choose to opt out to avoid fees; others keep overdraft protection as a safety net for emergencies.

Overdraft protection through linked accounts or credit lines

Bank of America offers overdraft protection as a separate service that links your checking account to a savings account or credit line. If your checking account would overdraft, the bank automatically transfers money from the linked account to cover the shortfall. This service typically costs $10 per transfer, which is less than a standard overdraft fee but still a cost.

To set up overdraft protection, you must have both a checking account and either a savings account or a Bank of America credit line. You can set a minimum balance threshold—for example, if your checking account drops below $500, the bank will transfer money from savings to bring it back to $500.

This option is useful if you have savings available and want to avoid overdraft fees, but it requires you to maintain a separate account and monitor transfers. Some customers use it as a backup for occasional shortfalls; others use it as their primary overdraft strategy.

Overdraft fees and how to dispute them

Each overdraft transaction costs $35. If you overdraft three times in one day, you are charged $35 three times, for a total of $105 in fees. The fees post to your account within one to two business days of the overdraft.

Bank of America may reverse one or two overdraft fees if you contact the bank within a reasonable time (usually within 30 days) and have a clean account history. The bank is not required to reverse fees, and repeat requests are less likely to be granted. To request a reversal, call the customer service number on the back of your card or visit a branch in person.

If you dispute a fee and the bank denies your request, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees bank practices. The CFPB does not reverse fees directly but investigates whether the bank violated regulations.

Recovering from repeated overdrafts

If you overdraft frequently, the first step is to understand why. Common causes are irregular income, unexpected expenses, or not tracking your balance closely. Once you identify the cause, you can take action: set up automatic bill pay to match your paycheck schedule, use a budget app to track spending, or reduce discretionary expenses.

If you cannot stop overdrafting, consider switching to a bank account with no overdraft fees or lower fees. Some online banks and credit unions offer accounts that decline transactions rather than charging fees, or that charge lower overdraft fees than Bank of America.

If your account has been closed due to repeated overdrafts, you may be reported to ChexSystems, a banking history database. This can make it difficult to open a new account at other banks for up to five years. If this happens, you can request a copy of your ChexSystems report and dispute inaccuracies.

Frequently Asked Questions

Can I find out my overdraft limit before I overdraft?

Bank of America does not publish individual overdraft limits. You can call customer service and ask, but the bank may not give you a specific number. The only reliable way to know is to attempt a small transaction that would overdraft your account and see if it is approved.

What if I overdraft and cannot pay it back immediately?

Contact Bank of America as soon as possible. If you bring your account positive within a few days, you may avoid additional fees. If your account remains negative for an extended period, the bank may close your account and refer you to a collections agency.

Does overdraft protection cost money if I do not use it?

Standard overdraft protection (the automatic coverage) costs nothing unless you actually overdraft. Overdraft protection linked to a savings account or credit line costs $10 per transfer only when a transfer occurs.

Will overdrafting hurt my credit score?

Overdrafting itself does not appear on your credit report. However, if your account is sent to collections or reported to ChexSystems, it can affect your ability to open new accounts and may impact your credit indirectly.

Can the bank close my account for overdrafting?

Yes. If you overdraft repeatedly or maintain a negative balance for an extended period, Bank of America can close your account without notice. The bank will send you a final statement and any remaining balance, but you will no longer be able to use the account.