Yes, you can overdraft at Bank of America, but it requires you to opt in first
Bank of America allows overdrafts on checking accounts, but only if you turn on overdraft protection or overdraft coverage. Without it, transactions that would take your balance below zero are straightforward declined. If you opt in, the bank will cover the shortfall — and charge you a fee for doing so.
The key difference is choice. Bank of America does not automatically overdraft your account. You have to actively request it. Once you do, any transaction that would overdraw your account goes through, and you pay a fee per overdraft.
How much you can overdraft depends on your account history and the bank's assessment of your account. There is no fixed limit published by the bank — it varies by customer.
Key Takeaways
- Overdraft protection is optional at Bank of America and must be turned on in your account settings or by calling the bank.
- Each overdraft transaction costs $35, and the bank can charge up to three overdraft fees per day, though limits vary by account type.
- You can link a savings account, money market account, or line of credit to cover overdrafts instead of paying fees.
- Transactions are processed in a specific order — checks and ACH payments first, then debit card and ATM withdrawals — which affects how many overdrafts you incur.
- Opting out of overdraft protection means declined transactions instead of fees, but some transactions like checks may still overdraft your account.
How to turn overdraft protection on or off
You can manage overdraft settings through the Bank of America mobile app, online banking, or by calling customer service at 1-800-432-1000. In the app or online, look for account settings under your checking account details — the option is usually labeled "Overdraft Protection" or "Overdraft Coverage."
When you turn it on, you choose how overdrafts are covered. Bank of America offers two main routes: pay a fee per overdraft, or link another account (savings, money market, or a line of credit) to transfer funds automatically when you overdraft. If you link an account, you may avoid the fee, though some transfers may incur a small charge depending on the account type.
If you turn overdraft protection off, the bank will decline transactions that would overdraw your account — with one exception. Checks and ACH payments (automatic bill payments) may still overdraft your account even without protection turned on, because the bank processes them differently than debit card or ATM transactions.
What overdraft fees cost and how many you can incur
Bank of America charges $35 per overdraft transaction. The bank can charge up to three overdraft fees per day, meaning a maximum of $105 in fees in a single day if you overdraft three separate times. However, some account types have different limits — check your account terms or call the bank to confirm your specific cap.
The fee applies each time a transaction overdrafts your account, not each day you are overdrawn. If you overdraft by $50 and stay overdrawn for a week, you pay one $35 fee, not seven. But if you make three separate transactions that each overdraft your account on the same day, you pay $105.
Bank of America also charges an overdraft item fee if an overdraft transaction is returned unpaid — meaning the bank tried to cover it but could not. This is a separate $35 charge on top of the overdraft fee itself.
The order transactions are processed and why it matters
Bank of America processes transactions in a specific sequence, and this order determines how many overdraft fees you pay. Understanding the order helps you predict which transactions will overdraft your account.
The bank processes transactions in this order: checks and ACH payments first (in the order received), then debit card and ATM withdrawals (in the order they post, not the order you made them). This means if you have a check pending and you make a debit card purchase, the check clears first — even if you made the purchase first.
Example: Your balance is $100. You swipe your debit card for $80, then a check for $50 clears. The check processes first and overdrafts your account by $50 (one $35 fee). Then the debit card processes and overdrafts by $30 (another $35 fee). You pay $70 in fees, not $35, because of the processing order.
Linking another account to avoid overdraft fees
Instead of paying $35 per overdraft, you can link a savings account, money market account, or line of credit to your checking account. When you overdraft, the bank automatically transfers funds from the linked account to cover the shortfall.
If you link a savings account or money market account, the transfer is usually free. If you link a line of credit, the bank may charge interest on the borrowed amount, but there is no overdraft fee. This route works best if you have another account with a balance you can draw from, or if you have a line of credit available.
You set up linked accounts through the same overdraft settings in the app or online banking. You can link multiple accounts and choose which one the bank uses first.
What happens if you stay overdrawn for more than a few days
If your account stays overdrawn for several days, Bank of America may charge an additional fee called a sustained overdraft fee or extended overdraft fee. This fee applies if your account remains negative for five or more consecutive business days. The amount varies, but it is typically $35 and charged once per statement cycle.
The bank may also close your account if you repeatedly overdraft or carry a negative balance for an extended period. Bank of America does not publish a specific threshold, but accounts with chronic overdrafts are at higher risk of closure.
If you know you will be overdrawn for a while, contact the bank directly. Some customers have negotiated fee waivers or payment plans, especially if the overdraft was caused by a bank error or a one-time emergency.
Opting out of overdraft protection for debit and ATM transactions
You can turn off overdraft protection for debit card and ATM withdrawals specifically, while keeping it on for checks and ACH payments. This is called opting out of overdraft coverage for point-of-sale transactions.
If you opt out, debit card and ATM transactions will be declined if they would overdraft your account. Checks and ACH payments will still overdraft if overdraft protection is on, because federal rules treat them differently — the bank cannot decline them the same way.
This option is useful if you want to avoid overdraft fees on everyday purchases but still want protection for bills and checks. You can change this setting in your account preferences or by calling customer service.
Frequently Asked Questions
Can Bank of America overdraft my account without my permission?
No, not for debit card and ATM transactions. You must opt in to overdraft protection first. However, checks and ACH payments may overdraft your account even without overdraft protection turned on, because the bank processes them under different rules. If you want to prevent all overdrafts, you must opt out of overdraft coverage entirely.
What is the difference between overdraft protection and overdraft coverage?
Bank of America uses these terms interchangeably. Both refer to the same thing: the bank's willingness to cover transactions that would overdraw your account and charge you a fee. The terms do not mean different products.
If I link a savings account, will I get charged a fee?
No, transfers from a linked savings or money market account are usually free. If you link a line of credit, you may pay interest on the borrowed amount but not an overdraft fee. Check your account terms or call the bank to confirm whether your specific accounts have transfer fees.
Can the bank charge me more than one overdraft fee per transaction?
No, you pay one $35 overdraft fee per transaction, even if the transaction overdrafts your account by a large amount. However, if you make multiple transactions that each overdraft your account, you pay a fee for each one — up to three fees per day.
What happens if I ignore an overdraft and do not pay it back?
The bank will attempt to collect the overdrawn amount. If your account stays negative for an extended period, Bank of America may close your account and report it to ChexSystems, a banking history database. This can make it difficult to open accounts at other banks. Contact the bank as soon as possible if you cannot pay back an overdraft.