Bank of America lets you overdraft through three separate mechanisms, each with different fees and limits

Bank of America does not automatically prevent transactions that would take your account negative. Instead, the bank charges you a fee when you spend more than you have. The fee is $35 per overdraft transaction, and the bank can charge up to three fees per day. You can also set up Overdraft Protection, which links your checking account to a savings account or line of credit and moves money automatically when you would otherwise overdraft. A third option is a Bank of America credit card, which some customers use for purchases when their checking account is low, though this is technically a separate product.

The key difference between these routes is what happens to your account balance and how much it costs you. A standard overdraft fee hits your account when ready and makes the negative balance worse. Overdraft Protection prevents the fee by moving money first, but only if you have set it up beforehand. Most people discover overdraft fees after the fact, when the transaction has already posted.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction when you spend more than your balance, with a maximum of three fees per day.
  • Overdraft Protection links your checking account to savings or a line of credit and moves money automatically to prevent overdrafts, but you must set it up in advance.
  • The bank processes transactions in a specific order that can create multiple overdrafts from a single day of spending, so timing matters.
  • You can request a one-time reversal of an overdraft fee by calling customer service, though the bank does not may provide approval.

How overdraft fees work when you spend more than your balance

When a transaction posts to your Bank of America checking account and your balance would go negative, the bank allows the transaction to go through and charges you $35. This happens regardless of whether the transaction was a debit card purchase, a check, an ATM withdrawal, or a bill payment. The fee itself is deducted from your account, making your balance even more negative.

Bank of America can charge up to three overdraft fees in a single day. This means if you make five purchases on a day when your balance is low, you could be charged $105 in fees ($35 × 3). The bank does not charge a fee for each transaction over the limit—it charges a fee for each transaction that causes an overdraft, up to three per day. Transactions that post after you have already been charged three fees that day do not incur additional fees, though your balance remains negative.

The order in which transactions post matters. Bank of America processes transactions in this sequence: checks and electronic bill payments first (in the order received), then debit card transactions and ATM withdrawals (largest to smallest). This means a large debit card purchase can post before smaller ones, potentially triggering overdraft fees on transactions that occurred earlier in the day. This reordering is legal, but it can create more fees than you might expect.

Setting up Overdraft Protection to prevent fees

Overdraft Protection is a service that links your checking account to another account—either a Bank of America savings account, money market account, or line of credit—and automatically transfers money when you would overdraft. You set this up through your online banking portal or by calling Bank of America customer service at 1-800-432-1000. The transfer happens before the overdraft fee is charged, so you avoid the $35 fee entirely.

The cost of Overdraft Protection is the interest you pay on the transferred amount if you use a line of credit, or nothing if you link it to a savings account. A transfer from savings is free, but you need to have the money available in that account. A transfer from a line of credit charges interest at the rate set for that line, which varies by customer and credit history. Bank of America typically charges between 18% and 24% annual interest on overdraft lines of credit, though your rate may differ.

Overdraft Protection only works if you set it up before you overdraft. If you do not have it enabled and you overdraft, you cannot retroactively set it up to avoid the fee. You also need to maintain the linked account—if your savings account is empty or your line of credit is maxed out, Overdraft Protection cannot transfer money and you will be charged an overdraft fee instead.

Requesting a fee reversal from Bank of America

If you have been charged an overdraft fee, you can request that Bank of America reverse it by calling customer service at 1-800-432-1000 or visiting a branch in person. The bank does not have a formal policy that guarantees reversal, but customer service representatives have the authority to reverse one fee per year for customers in good standing. "Good standing" typically means you have not had multiple overdrafts in the past 12 months and you have maintained an active account.

When you call, explain the situation clearly: what caused the overdraft, whether it was unusual for your account, and whether you have had reversals before. The representative will look at your account history and decide whether to reverse the fee. If you have had overdrafts regularly, the bank is less likely to reverse the fee. If this is your first overdraft in years, you have a better chance. Be prepared to hear "no"—the bank is not required to reverse fees, and some representatives will decline.

A reversal takes one to three business days to post to your account. If the reversal is approved, the $35 fee will be removed and your balance will be corrected. If you are denied, you can ask to speak to a supervisor, though the outcome is unlikely to change. Some customers have better luck requesting a reversal in person at a branch, where a manager may have more discretion.

The difference between overdraft fees and non-sufficient funds fees

Bank of America distinguishes between an overdraft (a transaction that posts even though your balance is negative) and a non-sufficient funds or NSF event (a transaction that is declined because you do not have enough money). Both result in a $35 fee, but they happen in different situations. A debit card purchase typically overdrafts because the bank allows it to post. A check or ACH transfer might be declined as NSF if the bank rejects it before it posts.

From your perspective, both fees hurt the same way: your account balance goes more negative. The distinction matters mainly for how the bank categorizes the event in your account history. Some customers find it useful to know which type of fee they were charged, because it affects whether Overdraft Protection would have prevented it (Overdraft Protection prevents overdrafts but not all NSF events).

When Bank of America will not allow an overdraft

Bank of America does not allow unlimited overdrafts. The bank sets an overdraft limit based on your account history and creditworthiness. For most checking accounts, this limit is between $100 and $1,000, though some customers have higher limits. Once you reach your overdraft limit, the bank will decline further transactions rather than allowing them to post.

If a transaction is declined because you have hit your overdraft limit, you will not be charged an overdraft fee for that specific transaction. However, you may be charged an NSF fee if the bank attempted to process it and then rejected it. The best way to find out your overdraft limit is to call customer service or log into your online banking account and look under account settings.

Overdraft limits are not the same as Overdraft Protection. An overdraft limit is the maximum negative balance the bank will allow. Overdraft Protection is a service that prevents you from going negative in the first place by transferring money from another account.

Frequently Asked Questions

Can I set up Overdraft Protection on a savings account I do not have yet?

No. Overdraft Protection must be linked to an account you already own at Bank of America. You can open a savings account first, then set up the link, but you cannot set up protection before the account exists. The process takes a few minutes once both accounts are open.

What happens if I overdraft and then deposit money the next day?

The overdraft fee is not reversed automatically. Your account balance will improve once the deposit posts, but the $35 fee remains charged. You would need to request a reversal from customer service if you want the fee removed. The deposit does not undo the fee—it only brings your balance back to positive.

Does Bank of America charge overdraft fees on ATM withdrawals?

Yes. An ATM withdrawal that takes your balance negative is treated the same as a debit card purchase and incurs a $35 overdraft fee. Some other banks waive overdraft fees for ATM withdrawals, but Bank of America does not.

Can I turn off overdraft protection entirely so I cannot overdraft?

You can decline overdraft coverage, which means transactions will be declined instead of allowed to post. This prevents overdraft fees but also means your card or check may be rejected at the point of sale. Contact Bank of America customer service to opt out of overdraft coverage.

How long does an overdraft fee stay on my account?

An overdraft fee is permanent unless you request a reversal. It does not expire or disappear after a certain number of days. The fee reduces your account balance indefinitely until you either pay it back or have it reversed.