Yes, Bank of America charges overdraft fees, but the amount and when they explore depend on your account type and how you use it
Bank of America charges $35 per overdraft transaction on most checking accounts when you spend more money than you have available. However, the bank has made some changes to how and when these fees kick in. If you overdraw your account, you typically have until the end of the next business day to bring your balance back to zero without being charged. This grace period is sometimes called an "overdraft grace period" or "courtesy buffer."
The fee applies each time a transaction posts to your account that would make your balance negative. If you have five transactions that overdraw your account on the same day, you could face five separate $35 fees — though Bank of America does cap overdraft fees at a maximum of four per day.
Not all accounts are charged the same way. Student checking accounts and some other specialized accounts may have different overdraft policies, so it matters which specific account you hold.
Key Takeaways
- Bank of America charges $35 per overdraft transaction on most checking accounts, with a maximum of four fees per day.
- You have until the end of the next business day to bring your account balance back to zero and avoid the fee.
- The fee applies to each transaction that posts negative, not just once per day, so multiple purchases can result in multiple charges.
- You can opt out of overdraft protection, which means transactions will be declined rather than charged a fee, though this may affect your ability to make purchases.
- Different account types, such as student or premier accounts, may have different overdraft policies.
How the grace period works
Bank of America gives you one business day to fix an overdraft before charging the fee. If your account goes negative on a Monday, you have until the end of Tuesday to deposit money and bring it back to zero. If you do, no fee is charged. This applies whether the overdraft happened because of a debit card purchase, a check, an automatic payment, or a transfer.
The grace period does not mean you can stay overdrawn indefinitely. It is a one-time buffer. Once the business day ends and your balance is still negative, the $35 fee posts to your account. If your balance remains negative after that, additional fees can be charged on subsequent days.
Keep in mind that "business day" means Monday through Friday, excluding federal holidays. Weekend overdrafts have until the end of Monday to be corrected.
When overdraft fees do and do not explore
Overdraft fees explore to most transactions that make your account negative: debit card purchases, checks, automatic bill payments, and transfers to other accounts. However, some transactions are treated differently. ATM withdrawals and transfers between your own Bank of America accounts typically do not trigger overdraft fees — the transaction is straightforward declined if you do not have the funds.
Bank of America also does not charge overdraft fees on transactions under $1. This means a small purchase that would overdraw your account by less than a dollar will go through without a fee, though your account will still be negative.
If you have linked a savings account to your checking account, Bank of America may automatically transfer money from savings to cover the overdraft before a fee is charged. This is called overdraft protection, and it prevents the fee but may come with its own transfer fees depending on your account type.
Opting out of overdraft protection
You can tell Bank of America that you do not want overdraft protection. If you opt out, transactions that would overdraw your account will straightforward be declined instead of going through and charging a fee. This means you cannot accidentally spend money you do not have, but it also means your debit card or check may be rejected at the point of sale.
To opt out, you can call Bank of America customer service, visit a branch, or make the change online through your account settings. The process takes a few minutes, and the change typically takes effect within one business day.
Opting out does not affect checks or automatic payments — those can still overdraw your account and trigger fees. If you want to prevent overdrafts entirely, you would need to monitor your balance carefully or set up low-balance alerts.
Setting up alerts to avoid overdrafts
Bank of America offers low-balance alerts that notify you by text, email, or app notification when your account balance drops below a threshold you set. This is free and can help you catch a potential overdraft before it happens. You can set multiple alerts at different balance levels — for example, one at $500 and another at $100.
The alerts are sent in real time or near real time, depending on how the transaction posts. Debit card purchases typically trigger alerts quickly, while checks and automatic payments may take longer to appear in your account.
Setting up alerts does not prevent overdrafts, but it gives you a chance to deposit money or move funds before a transaction posts that would make your account negative.
What happens if you stay overdrawn
If your account remains negative after the grace period ends, Bank of America can charge additional overdraft fees on subsequent days. The bank can also close your account if you remain overdrawn for an extended period or if you have a pattern of overdrafts. A closed account will be reported to ChexSystems, a banking history database, which can make it harder to open accounts at other banks.
If you owe Bank of America money from an overdrawn account, the bank can also pursue collection efforts or report the debt to a credit reporting agency. This can affect your credit score and your ability to borrow money in the future.
If you find yourself repeatedly overdrawn, it may be worth speaking with a Bank of America representative about switching to a different account type or exploring other options to manage your money.
Comparing overdraft fees across account types
Bank of America offers several checking account types, and overdraft policies vary slightly. Standard checking accounts are charged $35 per overdraft. Student checking accounts have different rules — they typically do not charge overdraft fees on debit card transactions, though other transaction types may still be subject to fees. Premier accounts and other premium tiers may offer overdraft protection or waived fees as part of their benefits.
If you are considering switching accounts, it is worth asking a Bank of America representative about the overdraft policy for each account type you are interested in. The difference in fees could add up over time if you occasionally overdraw your account.
Frequently Asked Questions
Can Bank of America reverse an overdraft fee if I ask?
Bank of America may reverse one overdraft fee if you contact them and ask, particularly if it is your first overdraft or if you have been a customer for a long time. There is no may provide, and the bank is not required to reverse fees. Calling customer service and explaining your situation is worth trying, but do not count on it.
What is the difference between overdraft fees and non-sufficient funds fees?
Bank of America uses the term "overdraft" for both situations. The fee is the same ($35) whether your account goes negative or whether a transaction is declined because you do not have enough funds. The key difference is that an overdraft fee means the transaction went through and your account is now negative, while a declined transaction means the purchase did not happen.
Do I get charged a fee if I go negative by just a few cents?
No. Bank of America does not charge overdraft fees on transactions under $1. However, your account is still technically overdrawn, and you should deposit money to bring it back to positive as soon as possible.
How long does it take for an overdraft fee to post?
The fee typically posts within one to two business days after your account goes negative and the grace period ends. You will see it listed as a separate charge in your account. The exact timing depends on when the transaction that caused the overdraft posted to your account.
Can I set up overdraft protection with a savings account at another bank?
No. Overdraft protection through Bank of America only works if you link a Bank of America savings account to your checking account. If you want overdraft protection from another bank, you would need to open a savings account at Bank of America or switch banks entirely.