Bank of America's overdraft fees

Bank of America charges $35 per overdraft transaction if your account goes negative and the transaction is approved. This fee applies each time a transaction posts to your account after it has already gone below zero. If multiple transactions post on the same day after your account is overdrawn, you can be charged $35 for each one, up to a maximum of four overdraft fees per day — meaning you could owe $140 in a single day.

The fee structure depends on whether you have opted into overdraft protection. If you have not opted in, Bank of America will typically decline transactions that would overdraw your account, and you will not be charged an overdraft fee. If you have opted in, the bank will allow the transaction to go through and charge you the $35 fee.

Bank of America also charges a $35 non-sufficient funds (NSF) fee when a check, ACH transfer, or other payment is returned because there is not enough money in your account. This is separate from the overdraft fee and applies to the returned item itself, not to subsequent transactions.

Key Takeaways

  • Bank of America charges $35 for each transaction that overdrafts your account if you have opted into overdraft protection.
  • You can be charged up to four overdraft fees in a single day, for a maximum of $140, if multiple transactions post after your account goes negative.
  • If you have not opted into overdraft protection, transactions that would overdraw your account will be declined and you will not be charged a fee.
  • Returned checks and ACH transfers incur a separate $35 NSF fee when there are insufficient funds.
  • Bank of America does not charge a fee if your account goes negative by $1 or less, or if the negative balance is caused only by a fee itself.

How overdraft protection works at Bank of America

Overdraft protection is an opt-in service. When you open a checking account at Bank of America, you can choose whether to allow the bank to cover transactions that would otherwise be declined. If you opt in, the bank will process the transaction and charge you $35. If you opt out, the transaction will be declined at the point of sale or ATM, and you will not incur a fee.

You can change your overdraft protection status at any time through your online banking portal, the mobile app, or by calling Bank of America customer service. The change typically takes effect within one business day. If you have overdraft protection turned on and want to turn it off, do so before you make purchases or withdrawals that might overdraw your account.

Bank of America also offers overdraft line of credit as an alternative. This is a separate credit line linked to your checking account that automatically covers overdrafts. The interest rate and terms depend on your creditworthiness, and you pay interest on the amount borrowed rather than a flat fee. This option may cost less if you overdraw frequently, but it requires a credit check and approval.

When Bank of America does not charge an overdraft fee

Bank of America waives the overdraft fee in a few specific situations. If your account goes negative by $1 or less, no fee is charged. If the only reason your account is negative is because a fee itself posted to your account, that fee is not charged. For example, if a monthly maintenance fee would push your account into the negative, Bank of America will not charge that fee.

Additionally, if you link a savings account or money market account to your checking account, Bank of America can transfer funds automatically to cover overdrafts. This is called overdraft transfer protection and does not incur a fee — though the transfer itself may be subject to savings account withdrawal limits depending on your account type.

If you have a Bank of America credit card or line of credit, you can also set up a transfer from that account to cover overdrafts, though this will incur interest charges on the borrowed amount rather than a flat overdraft fee.

How to avoid overdraft fees

The most direct way to avoid overdraft fees is to turn off overdraft protection. Once it is disabled, transactions that would overdraw your account will simply be declined. You will not be charged a fee, and you will know immediately that you do not have enough money for that purchase.

Set up account alerts through your Bank of America mobile app or online banking. You can receive notifications when your balance falls below a threshold you choose — for example, $100 or $500. These alerts give you time to deposit money or adjust your spending before you risk an overdraft.

Link a savings account to your checking account and enable overdraft transfer protection. When your checking account would go negative, Bank of America will automatically transfer money from savings to cover it. This costs nothing and keeps your account in the positive. Be aware that savings accounts have withdrawal limits, so this works best if you maintain a buffer in savings.

Track your spending in real time using the Bank of America app, which shows pending transactions as well as posted ones. Pending transactions are not yet final but will post within one to three business days. Knowing what is coming helps you avoid overdrafting.

Overdraft fees and timing

Overdraft fees are charged based on when transactions post to your account, not when you make them. A debit card purchase you make on Monday might not post until Wednesday. An ATM withdrawal posts immediately, but a check might take three to five business days. This timing gap is why you can overdraft unexpectedly — you may think you have enough money based on your available balance, but pending transactions will post later and push you negative.

Bank of America processes overdrafts in a specific order each day. Debit card transactions and ATM withdrawals typically post first, followed by checks and ACH transfers. This order can affect how many overdraft fees you incur. If you have multiple transactions pending, the order in which they post determines which ones trigger the fee.

The maximum of four overdraft fees per day means that even if ten transactions post after your account goes negative, you will only be charged $140 total. However, this cap applies only to overdraft fees, not to NSF fees on returned items.

Disputing an overdraft fee

If you believe an overdraft fee was charged in error, you can dispute it with Bank of America. Call the customer service number on the back of your debit card or log into your online banking account and submit a dispute through the resolution center. Explain why you think the fee should not have been charged — for example, if you had overdraft protection disabled and a transaction was still approved, or if the fee was charged twice for the same transaction.

Bank of America will review your account history and the transaction in question. If the bank determines the fee was charged correctly according to your account terms, it will not be reversed. However, if there was an error — such as a system glitch or a transaction posted in the wrong order — the bank may refund the fee as a courtesy. Some customers report success disputing one or two fees per year, especially if they have maintained a good account history.

If you are a frequent overdraft victim, ask a Bank of America representative about fee forgiveness programs or whether you may have access to for a different account type with lower fees. Some customers have had overdraft fees waived after speaking directly with a banker about their situation, though this is not may provide.

Frequently Asked Questions

Can I get an overdraft fee refunded?

You can request a refund by calling customer service or disputing the fee through your online banking account. Bank of America may refund the fee if there was an error, or as a one-time courtesy if you have a good account history. There is no may provide, but it is worth asking, especially if the fee was charged unexpectedly.

What is the difference between an overdraft fee and an NSF fee?

An overdraft fee is charged when a transaction is approved even though your account does not have enough money. An NSF (non-sufficient funds) fee is charged when a transaction is declined because there is not enough money — typically for checks or ACH transfers. Both cost $35 at Bank of America.

Does overdraft protection cost anything?

Overdraft protection itself does not cost anything to set up or maintain. However, if you use it and your account goes negative, you will be charged a $35 fee for each transaction that overdrafts. If you use overdraft transfer protection (moving money from savings), there is no fee for the transfer itself.

How long does it take for a transaction to post and trigger an overdraft fee?

Debit card transactions and ATM withdrawals post within one business day. Checks and ACH transfers can take three to five business days. Overdraft fees are charged the day the transaction posts, not the day you make it. This is why your available balance may differ from your actual balance.

Can I opt out of overdraft protection for just debit cards?

Bank of America allows you to disable overdraft protection for debit card transactions and ATM withdrawals separately from checks and ACH transfers. You can manage these settings through your online banking account or by calling customer service. This gives you more control over which types of transactions can overdraft your account.