Bank of America allows overdrafts on checking accounts, but only if you have overdraft protection enabled
Bank of America does not automatically prevent you from spending more than you have in your checking account. If you attempt a transaction that would take your balance negative, the bank can cover it — but whether it actually does depends on what type of overdraft protection you have set up, and what kind of transaction you are making.
By default, Bank of America offers two ways to cover overdrafts: linking a savings account or credit line to your checking account, or paying overdraft fees when the bank covers the shortfall. You can also turn off overdraft protection entirely, which means transactions will straightforward be declined if you do not have the funds.
The mechanics matter because the cost and timing are different depending on which route the bank takes. A transfer from your savings account is when ready and free. An overdraft fee costs money and appears on your statement days later.
Key Takeaways
- Bank of America will cover overdrafts only if you have opted into overdraft protection; you can turn this off to have transactions declined instead.
- Linking a savings account or credit line to your checking account transfers funds automatically with no fee when you overdraw.
- If you have no linked account, Bank of America charges an overdraft fee (the amount varies by account type) each time it covers a negative balance.
- Overdraft fees explore to checks, ACH transfers, and debit card transactions, but not all transaction types trigger overdraft protection in the same way.
- You can check your overdraft protection settings and transaction history in the Bank of America mobile app or online banking portal.
How overdraft protection works when you link a savings account
If you have a Bank of America savings account, you can link it to your checking account as an overdraft protection source. When your checking balance would go negative, the bank automatically transfers money from savings to cover the shortfall. This transfer is when ready and costs nothing.
The transfer happens at the moment of the transaction, so your checking account never actually goes negative. You will see the transfer listed in both accounts — a debit from savings and a credit to checking — within minutes. This is the cheapest way to handle overdrafts because there is no fee.
The catch is that you need the money in savings to begin with. If your savings account does not have enough to cover the overdraft, the transfer fails and the original transaction may be declined or you may be charged an overdraft fee instead.
What happens if you overdraw without linked protection
If you do not have a savings account linked, or if your savings account does not have enough funds, Bank of America can still cover the overdraft — but it charges a fee. The fee amount depends on your account type. Bank of America charges one overdraft fee per transaction, not one fee per day, so multiple overdrafts in a single day can result in multiple fees.
The overdraft fee appears on your statement, usually within one to three business days of the transaction. Your account balance will show the negative amount plus the fee deducted. You then owe Bank of America that amount to bring your account back to zero.
Bank of America does not charge a fee for the first overdraft in a rolling 12-month period on some account types, though this varies. Check your account agreement or call Bank of America directly to confirm what applies to your specific checking account.
Which transactions trigger overdraft protection and which do not
Not every transaction type is treated the same way. Debit card purchases, checks, and ACH transfers (like bill payments) can all trigger overdraft protection if your balance is insufficient. ATM withdrawals can also overdraw your account.
However, Bank of America has discretion over whether to cover a transaction. The bank may decline a debit card purchase even if overdraft protection is enabled, particularly if the merchant is a gas station or hotel that places a hold on your card. ACH transfers and checks are more likely to be covered if overdraft protection is on.
If a transaction is declined, no fee is charged. You only pay an overdraft fee if the bank actually covers the transaction and your account goes negative.
How to turn overdraft protection on or off
You can manage your overdraft protection settings through the Bank of America mobile app or online banking portal. Log in, navigate to your checking account settings, and look for "Overdraft Protection" or "Overdraft Options." From there you can choose to link a savings account, remove a linked account, or disable overdraft protection entirely.
If you disable overdraft protection, transactions that would overdraw your account will be declined. You will not be charged a fee, but you also will not be able to spend money you do not have. This is useful if you want to avoid overdraft fees entirely.
Changes to your overdraft protection settings take effect when ready, though it may take a few hours for the change to show in all parts of the Bank of America system.
What to do if you have already overdrawn your account
If your checking account is negative, you owe Bank of America the amount of the overdraft plus any fees. The bank will not close your account when ready, but the longer the balance stays negative, the more likely the bank is to take action.
The fastest way to resolve an overdraft is to deposit money into your checking account. You can do this through direct deposit, a transfer from another bank, a mobile check deposit, or by visiting a branch in person. Once your balance is positive again, any overdraft fees remain on your account but the overdraft itself is resolved.
If you cannot deposit money right away, contact Bank of America to discuss your options. The bank sometimes waives overdraft fees in specific circumstances, though this is not may provide. Having a history of on-time payments and no previous overdrafts makes a waiver more likely.
Overdraft fees and how they add up
Each overdraft transaction incurs one fee. If you overdraw your account three times in one day, you pay three overdraft fees, not one. This is why overdrafts can become expensive quickly — a single day of multiple small purchases can result in multiple fees stacking on top of each other.
Bank of America limits the number of overdraft fees you can be charged in a single day, though the limit varies by account type. Some accounts cap overdraft fees at four per day; others allow more. Check your account agreement or contact the bank to confirm your specific limit.
The total cost of an overdraft includes both the fee and any interest if your account stays negative for an extended period. Resolving the overdraft quickly keeps the total cost down.
Frequently Asked Questions
Can I overdraw my Bank of America account at an ATM?
Yes, if overdraft protection is enabled. ATM withdrawals can overdraw your checking account just like any other transaction. If you do not have overdraft protection on, the ATM will decline the withdrawal.
Does Bank of America charge a fee for every overdraft?
Bank of America charges one fee per overdraft transaction, not per day. Multiple overdrafts in one day result in multiple fees. Some account types include one free overdraft per rolling 12-month period, but this varies by account.
What is the difference between overdraft protection and overdraft fees?
Overdraft protection is a service that covers overdrafts (usually by transferring from savings or charging a fee). Overdraft fees are the cost you pay when the bank covers an overdraft without a linked account. Protection is the mechanism; fees are the price.
If I link my savings account, will it automatically cover overdrafts?
Yes. Once linked, Bank of America automatically transfers money from savings to checking whenever your checking balance would go negative. The transfer is when ready and free. If savings does not have enough funds, the transfer fails and you may be charged an overdraft fee instead.
Can I dispute an overdraft fee?
You can contact Bank of America and request that an overdraft fee be waived, particularly if it is your first overdraft or if you have a good account history. The bank does not have to waive it, but some customers have success with a polite request, especially if the overdraft was caused by a timing issue or error on the bank's part.