Bank of America lets you overdraft, but only if you have overdraft protection turned on, and you will pay a fee each time you do

Bank of America does not automatically prevent transactions that would take your account below zero. If you have overdraft protection enabled, the bank will let the transaction go through and charge you an overdraft fee — currently $35 per transaction at most Bank of America branches. Without overdraft protection, transactions that would overdraft your account are straightforward declined at the point of sale.

The choice between these two outcomes is yours to make. Many people turn overdraft protection off specifically to avoid surprise fees. Others keep it on because they would rather pay a fee than have a debit card declined in public or have a check bounce. Neither choice is automatic — you control this setting through your online banking portal, your mobile app, or by calling the bank.

Key Takeaways

  • Overdraft protection is optional and turned on by default for most checking accounts, but you can disable it in your online banking settings at any time.
  • Each overdraft transaction costs $35, and the bank can charge multiple fees in a single day if you make multiple transactions that overdraft your account.
  • Bank of America offers overdraft transfers from a linked savings account as an alternative to overdraft fees, though this only works if you have sufficient funds in savings.
  • If your account stays negative for an extended period, the bank may close your account and report you to ChexSystems, which affects your ability to open accounts elsewhere.
  • Opting out of overdraft protection does not prevent you from going negative — it only prevents individual transactions from being approved when they would cause an overdraft.

How overdraft fees work at Bank of America

When you make a transaction — a debit card purchase, ATM withdrawal, or check — that would take your account below zero, and you have overdraft protection enabled, Bank of America covers the transaction and charges you $35. This happens per transaction, not per day. If you make five transactions that each overdraft your account on the same day, you could be charged $175 in overdraft fees.

The bank does not charge a fee for being overdrawn by a small amount or for a short time. The fee is tied to the transaction itself. However, if your account remains negative for more than a few days, Bank of America may charge an additional fee for maintaining a negative balance, though this is less common than the per-transaction fee.

Overdraft protection applies to debit card transactions, ATM withdrawals, and checks. It does not explore to ACH transfers or bill payments set up through your online banking — those are straightforward declined if you do not have the funds.

Turning overdraft protection on or off

You can change your overdraft protection setting through your Bank of America online banking account or mobile app. 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 it. The change takes effect when ready, though it may take a few hours to reflect across all channels.

If you prefer to speak with someone, you can call Bank of America customer service at 1-800-432-1000 and ask them to turn off overdraft protection. They will confirm the change and may ask why you are making it, but they cannot refuse.

Many people disable overdraft protection to avoid fees entirely. If a transaction would overdraft your account, it will straightforward be declined. You will not be charged a fee, but you also will not be able to complete that purchase or withdrawal at that moment.

Overdraft transfers from savings as an alternative

Bank of America offers overdraft transfers, which automatically move money from a linked savings account to cover a transaction that would overdraft your checking account. If this feature is enabled and you have sufficient funds in savings, the bank transfers the amount needed to cover the transaction. You are not charged an overdraft fee — instead, you are charged a transfer fee, which is typically lower than an overdraft fee, or no fee at all depending on your account type.

This option only works if you have a linked savings account with available funds. If your savings account is also empty or does not have enough to cover the transaction, the overdraft transfer will not go through and you will be charged an overdraft fee instead.

To set up overdraft transfers, log into your online banking account and link your savings account to your checking account under overdraft protection settings. You can specify which account to transfer from and set a minimum balance that must remain in savings after the transfer.

What happens if you stay overdrawn for a long time

If your account remains negative for more than a few days, Bank of America will begin sending you notices asking you to bring the account current. The bank charges a monthly fee for maintaining a negative balance — this varies but is typically $10 to $15 per month in addition to any overdraft fees you have already incurred.

If you do not resolve the negative balance within 30 to 60 days, Bank of America may close your account. When an account is closed due to a negative balance, the bank reports this to ChexSystems, a banking history database. This report makes it difficult to open a new checking account at most banks for up to five years, because other banks use ChexSystems to screen applicants.

If your account is closed and you owe money, Bank of America may also pursue collection action or sell the debt to a third-party collector. This can result in calls from debt collectors and damage to your credit report.

Overdraft fees and your rights

Bank of America is required to obtain your permission before charging overdraft fees on debit card transactions and ATM withdrawals. This permission is what "overdraft protection" means — you are explicitly opting in to allow the bank to charge you fees rather than decline transactions. Checks and ACH transfers do not require this permission; the bank can charge overdraft fees on those without your consent.

If you believe you were charged an overdraft fee in error — for example, if you had disabled overdraft protection but were still charged — you can dispute the fee by calling customer service or visiting a branch. Bank of America will review the transaction and may reverse the fee if you can show that overdraft protection was disabled at the time.

Some customers have had success requesting that Bank of America reverse one or two overdraft fees as a courtesy, particularly if they have been a customer for a long time or if the overdraft was caused by a processing delay on the bank's end. There is no may provide, but it is worth asking.

Preventing overdrafts before they happen

The most reliable way to avoid overdraft fees is to keep a buffer in your checking account — money you do not spend and that sits there as a cushion. Even $100 or $200 can prevent most accidental overdrafts. Many people set a personal rule to never let their balance drop below a certain amount.

Bank of America also offers low balance alerts, which send you a notification when your account balance falls below a threshold you set. You can set these up in your online banking settings and choose to receive alerts via text, email, or app notification. These alerts do not prevent overdrafts, but they give you a chance to transfer money in or adjust your spending before a transaction overdrafts your account.

If you struggle with overdrafts regularly, disabling overdraft protection is often the better choice. Yes, a transaction will be declined, but that is less costly than paying $35 per overdraft. A declined transaction is inconvenient in the moment but does not damage your finances the way repeated overdraft fees do.

Frequently Asked Questions

Can I overdraft my Bank of America account at an ATM?

Yes, if you have overdraft protection enabled. You can withdraw more than your current balance, and the bank will charge you $35 per transaction. ATM overdrafts work the same way as debit card overdrafts. If you have overdraft protection disabled, the ATM will straightforward decline the withdrawal.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is the setting that allows transactions to go through even when your balance is insufficient. Overdraft fees are the charges you pay when that happens. You control whether overdraft protection is on or off; the fee is what you pay if it is on and you overdraft.

If I turn off overdraft protection, can I still go negative?

No. With overdraft protection disabled, individual transactions that would take your account negative are declined. Your account balance cannot go below zero. However, ACH transfers and bill payments are not covered by overdraft protection settings and can still cause your account to go negative if the bank processes them before deposits clear.

How long does it take for an overdraft fee to show up?

Overdraft fees typically appear in your account within one to three business days of the transaction that caused the overdraft. The transaction itself posts when ready or within one business day, but the fee may lag slightly behind.

Can Bank of America reverse an overdraft fee?

Bank of America can reverse overdraft fees, and they sometimes do as a courtesy, particularly if you have been a long-term customer or if the overdraft was caused by a processing error on the bank's end. Call customer service and explain the situation. There is no may provide, but asking costs nothing.