Yes, you can overdraw your account, but Bank of America charges a fee when you do

Bank of America allows your account to go negative — meaning you can spend more money than you have in it. When this happens, the bank covers the difference temporarily, but charges you an overdraft fee for doing so. The fee is currently $35 per overdraft transaction, though this can change. You are responsible for paying back the negative balance plus the fee.

The key thing to understand is that overdrawts are not information programs. The bank is lending you that money for a short time, and they charge you for it. If you overdraw regularly, these fees add up quickly and can make your account situation worse, not better.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction when your account goes negative, though you can turn off overdraft protection to prevent this.
  • The bank covers overdrafts on debit card purchases and ATM withdrawals only if you have overdraft protection turned on; checks and automatic payments may still go through even without it.
  • Multiple overdrafts in one day can each trigger a separate $35 fee, so a single shopping trip could result in several charges.
  • You can avoid overdraft fees by setting up low-balance alerts, linking a savings account as backup, or straightforward declining overdraft protection.

What triggers an overdraft fee at Bank of America

An overdraft happens when a transaction brings your account balance below zero. Bank of America charges $35 each time this occurs. If you make multiple transactions that overdraw your account on the same day, you can be charged $35 for each one — not just once per day. This means a grocery trip with several card swipes could result in multiple fees.

The bank processes transactions in a specific order, which can affect how many overdraft fees you incur. Larger transactions are often processed before smaller ones, even if you made the smaller purchase first. This sequencing can cause more transactions to overdraw than would have if they were processed in the order you made them.

How to turn off overdraft protection

Bank of America has a feature called overdraft protection that allows debit card transactions and ATM withdrawals to go through even when your balance is insufficient. You can turn this off so that transactions are straightforward declined instead of overdrawing your account.

To manage your overdraft settings, log into your Bank of America online account or mobile app, go to Account Settings, and look for "Overdraft Protection" or "Overdraft Services." You can choose to keep overdraft protection on for checks and automatic payments (which may still go through) while turning it off for debit card and ATM transactions. This gives you more control over when the bank covers a shortfall.

If you turn off overdraft protection entirely, transactions that would overdraw your account will straightforward be declined at the point of sale. This prevents fees but means your card may be rejected when you try to pay.

Alternatives to overdraft fees

Bank of America offers overdraft line of credit, which is different from standard overdraft protection. This is a small loan tied to your checking account that kicks in if you overdraw. You pay interest on the amount borrowed, but the interest rate is often lower than the flat $35 overdraft fee — especially if you only borrow a small amount for a short time. You can request this through your bank or during a visit to a branch.

Another option is to link your Bank of America savings account to your checking account as a backup. If your checking account goes negative, the bank can automatically transfer money from savings to cover it. This usually costs nothing or a small transfer fee, making it cheaper than an overdraft fee. You can set this up in your online account under transfer settings.

Setting up low-balance alerts is free and helps you catch problems before they happen. You can receive a text, email, or app notification when your balance drops below a certain amount — say $50 or $100. This gives you time to deposit money or adjust your spending before an overdraft occurs.

What happens after you overdraw

Once your account goes negative, you have a window to bring it back to zero or positive. Bank of America typically allows a few business days before the overdraft becomes a serious problem. During this time, any deposits you make go toward covering the negative balance first, then toward your regular account balance.

If you do not cover the overdraft within a reasonable time — usually around five business days — the bank may close your account and report you to ChexSystems, a banking history database. This can make it harder to open accounts at other banks in the future. Repeated overdrafts can also result in your account being closed without warning.

How overdraft fees compare to other banking costs

Bank of America's $35 overdraft fee is in line with many large banks, though some banks charge less and some charge more. Credit unions and smaller banks sometimes charge $25 or less per overdraft. Online banks often do not charge overdraft fees at all because they decline transactions instead.

The real cost of overdrafts is not just the single fee — it is the compounding effect. If you overdraw once a month, that is $420 per year. If you overdraw multiple times per month, the cost becomes substantial. For people living paycheck to paycheck, overdraft fees can push an already tight budget into crisis.

Frequently Asked Questions

Can Bank of America overdraft fees be 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 or if the overdraft was caused by a bank error. There is no may provide, and the bank is not required to refund fees. Your best approach is to call the customer service number on the back of your card and explain your situation.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is a service that allows transactions to go through even when your balance is negative. Overdraft fees are the charges the bank levies when this happens. You can have overdraft protection turned on but still avoid fees by keeping your balance positive or by using a linked savings account as backup.

Do checks and automatic payments trigger overdraft fees the same way debit card purchases do?

Checks and automatic payments are treated differently than debit card transactions. The bank may honor them even without overdraft protection turned on, which means they can still trigger overdraft fees. Debit card transactions and ATM withdrawals, however, can be declined if you turn off overdraft protection.

What happens if I overdraw my account multiple times in one day?

Each transaction that overdrafts your account triggers a separate $35 fee. If you make five purchases that each overdraw your account on the same day, you could be charged $175 in fees total. This is why transaction sequencing matters — larger purchases processed first can cause more smaller purchases to overdraw.

Is there a limit to how many overdraft fees I can be charged in one day?

Bank of America does not publicly state a daily cap on overdraft fees, meaning you could theoretically be charged multiple times in a single day. However, the bank may decline transactions if your account becomes severely negative, which would naturally limit the number of fees. Turning off overdraft protection is the most reliable way to prevent multiple fees.