Bank of America allows overdrafts, but charges a fee each time your account goes negative

Yes, you can overdraw a Bank of America checking account. When you spend more money than you have, the bank can cover the difference — but it will charge you a fee for doing so. This is not information programs. Each overdraft costs you, and multiple overdrafts in a short time can add up quickly.

Bank of America offers two ways this can happen: overdraft protection, which you set up in advance to link another account or credit line, and overdraft fees, which the bank charges when it covers a transaction and your balance goes negative. Understanding which one applies to your account matters, because the costs and rules are different.

Key Takeaways

  • Bank of America charges an overdraft fee (currently $35 per transaction) when your account goes negative, unless you have overdraft protection set up.
  • Overdraft protection links your checking account to a savings account or credit line so transfers happen automatically when you overdraw, usually with a smaller fee or interest charge instead.
  • The bank will not cover all overdrafts — checks and ACH transfers may be declined if your balance is too low, even if debit card purchases go through.
  • You can turn off overdraft coverage for debit card and ATM transactions through your online account or by calling the bank, which prevents fees but may result in declined transactions.
  • If you overdraw repeatedly, the bank may close your account, so monitoring your balance and setting up alerts is important.

How overdraft fees work at Bank of America

When you make a purchase, withdraw cash, or pay a bill and your account balance is not enough to cover it, Bank of America can pay the transaction anyway. For doing this, they charge you an overdraft fee. As of now, that fee is $35 per transaction. If you overdraw multiple times in one day, you can be charged multiple fees — the bank typically allows up to four overdraft fees per day, though this can vary.

The bank does not charge the fee when ready. Instead, they process the transaction, your balance goes negative, and the fee appears later — usually within one or two business days. This means you might not realize you have overdrafted until after the fact, which can make the problem worse if you continue spending.

Not every transaction can be overdrafted. Debit card purchases and ATM withdrawals can be covered by overdraft fees. Checks and ACH transfers (electronic bill payments) may be declined instead, leaving you short without a fee — though some banks, including Bank of America, may still charge a fee for the declined transaction itself.

Overdraft protection: linking another account or credit line

Overdraft protection is a service you set up in advance. Instead of paying an overdraft fee, the bank automatically transfers money from another account (usually a savings account you own) or draws from a credit line to cover the shortfall. This prevents your checking account from going negative in the first place.

If you link a savings account, Bank of America typically charges a small transfer fee (usually $1 to $3 per transfer) rather than the $35 overdraft fee. If you link a credit line, such as a Bank of America credit card or line of credit, you pay interest on the amount borrowed instead — the rate depends on the credit product. Either way, you avoid the overdraft fee, but you are still paying for the service.

To set up overdraft protection, you log into your Bank of America online account, go to the account settings, and link the account or credit line you want to use. You can choose which account to draw from first, and you can remove the protection at any time. If you do not have another account or credit line with the bank, you cannot use this service.

Opting out of overdraft coverage for debit cards and ATMs

Bank of America allows you to turn off overdraft coverage for debit card purchases and ATM withdrawals. If you do this, the transaction will be declined instead of going through and charging you a fee. This protects you from overdraft fees on everyday spending, though it means your card may not work when you expect it to.

Checks and ACH transfers are not affected by this choice — the bank can still cover those and charge a fee, or decline them. To change this setting, log into your online account, find the overdraft settings (usually under "Account Services" or "Preferences"), and toggle off overdraft coverage for debit and ATM transactions. You can turn it back on at any time.

Many people choose this option because it forces them to stay aware of their balance. If your card is declined at the checkout, it is a signal to check your account and adjust your spending. This is often less expensive than paying overdraft fees without realizing it.

What happens if you overdraw repeatedly

Overdrawing your account once or twice is not ideal, but the bank will not close your account when ready. However, if you overdraw frequently — especially if you do not pay back the negative balance — Bank of America may close your account. The bank reports closed accounts to ChexSystems, a banking history database, which can make it harder to open accounts at other banks for up to five years.

Beyond account closure, repeated overdrafts damage your finances in two ways. First, the fees add up: five overdrafts in a month costs $175 in fees alone. Second, overdrafting means you are spending money you do not have, which puts you further behind. If you find yourself overdrawing regularly, it is a sign that your spending is outpacing your income, and fees are making the problem worse.

How to avoid overdrafts

The simplest way to avoid overdrafts is to keep a buffer in your checking account — money you do not spend. Even $100 or $200 can prevent accidental overdrafts from small unexpected costs. You can also set up low-balance alerts through your Bank of America online account, which sends you a notification when your balance drops below a number you choose.

Check your balance before making large purchases or paying bills. Bank of America's app and website update in real time for most transactions, though some payments (especially checks) take longer to clear. If you are not sure whether a transaction has posted, assume it has not and leave that money untouched.

If you have overdraft protection set up, monitor it too. Automatic transfers from a linked savings account can drain that account without you noticing, leaving you with no emergency cushion. Review your account activity regularly — the bank's app makes this straightforward — so you catch problems early.

Frequently Asked Questions

Can Bank of America refuse to cover an overdraft?

Yes. The bank is not required to cover overdrafts, even if you have overdraft coverage turned on. Large overdrafts, repeated overdrafts, or overdrafts on certain transaction types (like checks) may be declined. If the bank declines a check, it bounces, and you may face fees from both the bank and the person or business you wrote it to.

What is the difference between an overdraft fee and a non-sufficient funds fee?

An overdraft fee is charged when the bank covers a transaction and your balance goes negative. A non-sufficient funds (NSF) fee is charged when the bank declines a transaction because you do not have enough money. Bank of America may charge either one depending on the transaction type and your account settings.

If I overdraw, how long do I have to pay it back?

There is no official important date, but the longer your account stays negative, the more likely the bank will close it. Pay back any negative balance as soon as you can. If you cannot, contact the bank to discuss options — some banks offer hardship programs, though Bank of America's policies vary by situation.

Does overdrafting hurt my credit score?

Overdrafting itself does not appear on your credit report. However, if the bank closes your account due to repeated overdrafts and reports it to ChexSystems, it can make it harder to open accounts elsewhere. If an overdraft leads to a check bouncing and the business reports it to a collection agency, that can hurt your credit.

Can I get overdraft fees refunded?

Bank of America may refund one or two overdraft fees if you call and ask, especially if you have been a customer for a long time and it is your first time asking. There is no may provide, and the bank is not required to refund fees. If you have been charged multiple fees, it is worth calling to explain your situation.