Yes, Bank of America allows overdrafts, but the mechanics depend on which account type you have and what protections you've set up

Bank of America permits overdrafts on most checking accounts, meaning the bank will cover a transaction even when your balance would go negative. However, you will pay a fee for this service — currently $35 per overdraft transaction at most Bank of America locations, though this varies slightly by account type and state. The bank does not automatically prevent you from overdrawing; instead, it processes the transaction and charges you after the fact.

Whether your account actually overdrafts depends on three things: your account type, whether you have opted into overdraft coverage, and whether the transaction is may be able to access. A debit card purchase at a store works differently from a check or an automatic bill payment. Understanding which transactions the bank will cover — and which it will decline — saves you from unexpected fees.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction on most checking accounts, and you can overdraft multiple times per day.
  • You must opt into overdraft coverage for debit card and ATM transactions; checks and automatic payments overdraft by default unless you turn that off.
  • The bank processes overdrafts in a specific order each day, which can cause multiple fees if several transactions hit your account at once.
  • Bank of America offers overdraft protection through linked savings accounts, which transfers money automatically instead of charging a fee.

What transactions can overdraft and which ones cannot

Bank of America treats different payment methods differently. Checks, automatic bill payments (ACH transfers), and wire transfers will overdraft your account by default — the bank will process them even if you do not have enough money, then charge you the overdraft fee. These are considered "critical" payments that the bank prioritizes.

Debit card purchases and ATM withdrawals are different. The bank will decline these transactions by default to protect you from overdraft fees. If you want the bank to allow debit card overdrafts instead of declining them, you must opt in to overdraft coverage. This is a choice you make in your account settings or by calling the bank. Once you opt in, debit purchases and ATM withdrawals can overdraft just like checks do.

Mobile and online transfers between your own Bank of America accounts do not overdraft — the bank will decline them if you do not have the funds. The same applies to external transfers to other banks.

How Bank of America orders and charges overdrafts

The order in which transactions post to your account matters because it determines how many overdraft fees you pay. Bank of America processes transactions in this sequence each day: checks and other paper items first, then automatic payments and transfers, then debit card transactions and ATM withdrawals. Transactions within each category post in the order they arrive at the bank, not the order you made them.

This means if you have $100 in your account and three debit purchases of $50 each hit on the same day, the bank might process them in a different order than you made them — and you could pay three overdraft fees ($105 total) instead of one. The bank does not reorder transactions to minimize your fees; it follows its standard posting order.

Bank of America caps overdraft fees at a certain number per day. Currently, the bank allows up to four overdraft fees per day on consumer checking accounts, though this limit can change. After you hit that limit, further transactions are declined rather than overdrafted.

Overdraft protection through a linked savings account

Instead of paying overdraft fees, you can link a Bank of America savings account to your checking account and turn on overdraft protection. When your checking account would overdraft, the bank automatically transfers money from your savings account to cover it. There is no fee for this transfer — you only pay the overdraft fee if the transfer itself fails because your savings account does not have enough money.

You set up overdraft protection in your online banking settings or by visiting a branch. The bank transfers in increments (usually $100 or $500, depending on your account) each time your checking account needs it. This is useful if you have savings you want to keep separate but accessible in emergencies, but it does not prevent overdrafts entirely — it just replaces the fee with an automatic transfer.

If you have a Bank of America credit card, you cannot link it to overdraft protection. Overdraft protection only works with savings accounts at the same bank.

Overdraft fees and daily limits

Each overdraft transaction costs $35 on most Bank of America checking accounts. This is the standard fee, though some account tiers (like Preferred Rewards accounts) may have different terms. The fee posts to your account within one or two business days of the overdraft.

You can overdraft multiple times in a single day. If you make five debit purchases that each overdraft your account, you pay five fees — up to the daily cap of four fees. Once you hit the cap, remaining transactions are declined. The cap resets each calendar day at midnight.

Bank of America does not charge a fee if a transaction is declined because you do not have enough money and you have not opted into overdraft coverage. You only pay the fee if the bank actually processes the overdraft.

How to turn overdraft coverage on or off

Log into your Bank of America online banking account and navigate to your checking account settings. Look for "Overdraft Coverage" or "Overdraft Protection" — the exact wording varies by account type. You will see options to opt in or out of overdraft coverage for debit transactions and ATM withdrawals. Checks and automatic payments cannot be turned off; they overdraft by default.

You can also call Bank of America customer service at the number on the back of your debit card to change your overdraft settings. A representative can turn coverage on or off when ready. Changes usually take effect within one business day.

If you want to prevent overdrafts entirely, you can opt out of overdraft coverage for debit and ATM transactions, and you can also turn off automatic bill payments or move them to a different account. However, you cannot prevent checks from overdrafting — if someone deposits a check against your account and you do not have the funds, the bank will cover it and charge you.

What happens if you repeatedly overdraft

Bank of America does not close accounts for occasional overdrafts, but repeated overdrafting can trigger account review. If you overdraft frequently (the bank does not publish a specific threshold), the bank may contact you to discuss your account or require you to bring it current. In rare cases, repeated overdrafting combined with other account issues can lead to account closure, but this is not automatic.

Overdraft fees do not appear on your credit report and do not affect your credit score. However, if you do not pay overdraft fees and your account goes into the negative, the bank may eventually send the debt to collections, which does affect your credit.

If you are struggling with overdrafts, the fastest solution is to opt out of overdraft coverage for debit transactions so the bank declines purchases instead of charging fees. This forces you to stay within your balance but prevents the fee spiral.

Frequently Asked Questions

Can Bank of America overdraft my account without my permission?

Yes, for checks, automatic bill payments, and wire transfers — these overdraft by default. For debit card and ATM transactions, the bank will only overdraft if you have opted into overdraft coverage. You can opt out at any time to prevent debit overdrafts.

How long do I have to pay back an overdraft?

Bank of America does not require you to repay an overdraft by a specific date. However, your account remains negative until you deposit enough money to cover it. If your account stays negative for an extended period (usually 60 days or more), the bank may close the account and send the debt to collections.

Will Bank of America reverse an overdraft fee if I ask?

Bank of America may reverse one overdraft fee if you have a good account history and ask politely, but this is not may provide. The bank is more likely to reverse a fee if it was caused by a system error rather than your transaction. Call customer service and explain the situation; they have discretion to reverse fees in some cases.

What is the difference between overdraft and insufficient funds?

Overdraft means the bank processed a transaction even though you did not have enough money, then charged you a fee. Insufficient funds means the bank declined the transaction because you did not have enough money. With overdraft coverage on, you get overdrafts and fees. With it off, you get declined transactions instead.

Can I overdraft a Bank of America savings account?

No. Savings accounts do not overdraft. If you try to withdraw more than your balance, the bank declines the transaction. However, you can link a savings account to your checking account for overdraft protection, which transfers money from savings to checking automatically.