Bank of America lets you overdraw through overdraft protection, which links your checking account to a savings account or credit line

Bank of America offers overdraft protection, a service that covers transactions when your checking account balance drops below zero. The bank connects your checking account to another account—usually a savings account, money market account, or Bank of America credit card—and automatically transfers money to cover the shortfall. Without this protection enabled, transactions will straightforward decline.

You can also overdraw without protection if you have a history of positive account standing. Bank of America may allow certain customers to go negative on their checking account, though this triggers overdraft fees and comes with consequences. The difference matters: overdraft protection is a deliberate choice you set up in advance, while an unprotected overdraft is something the bank permits after the fact.

Key Takeaways

  • Overdraft protection requires you to link your checking account to another Bank of America account or credit line before you need it.
  • If you overdraw without protection, Bank of America charges an overdraft fee (currently $35 per transaction, though this varies) and may decline the transaction instead.
  • You can set up overdraft protection through your online banking dashboard or by visiting a branch, and you can turn it off at any time.
  • Overdrafts do not appear on your credit report unless the account goes to collections, but repeated overdrafts can lead to account closure.

Setting up overdraft protection through your Bank of America account

Log into your Bank of America online banking account or the mobile app and navigate to the account settings or account management section. Look for "Overdraft Protection" or "Transfer Services"—the exact label depends on which version of the interface you are using. You will be asked to select which account to link as your backup source (savings, money market, or credit line) and confirm the connection.

If you prefer to set this up in person, visit any Bank of America branch with your ID and ask to enable overdraft protection. A representative can walk you through which accounts are available to link and answer questions about fees. The setup is when ready, though it may take one business day for the protection to become active on new accounts.

You can also call Bank of America customer service at the number on the back of your debit card. They can enable overdraft protection over the phone, though you will still need to confirm the linked account and any terms through your online account afterward.

What happens when you overdraw with protection enabled

When a transaction would push your checking account below zero, Bank of America automatically transfers money from your linked account to cover it. The transfer happens in real time for most transactions, though some transfers may take one business day to post. You will see the transfer reflected in both accounts—a debit from the linked account and a credit to your checking account.

Bank of America does not charge a fee for using overdraft protection itself. However, if your linked account is a savings account, you may face a savings withdrawal fee if you exceed the federal limit on transfers from that account in a single month (currently six per month, though this limit has been suspended at various times). Check your account terms to see whether this applies to you.

If your linked account does not have enough money to cover the overdraft, the transaction will decline and you will be charged an overdraft fee instead. This is the same fee you would pay if you had no protection at all.

Overdraft fees and what they cost

Bank of America charges an overdraft fee each time a transaction overdraws your account and the bank covers it. The current fee is $35 per transaction, though Bank of America has changed this amount in the past and may do so again. The fee applies whether the overdraft is $1 or $100—the amount overdrawn does not change the cost.

Multiple transactions on the same day can result in multiple fees. If you make five purchases that each overdraw your account on a Tuesday, you will be charged five overdraft fees. Bank of America does cap the total overdraft fees you can be charged in a single day (currently four fees per day, though this has varied), but this still means a single day of overdrafts can cost $140.

The bank also charges a fee if a transaction is declined because of insufficient funds, though this fee is lower than the overdraft fee. Returned item fees (charged when a check bounces or an automatic payment fails) are separate and may be charged by both Bank of America and the merchant or payee.

Overdrafting without protection and the consequences

If you do not have overdraft protection enabled, Bank of America may still allow certain transactions to overdraw your account, depending on your account history and the bank's assessment of your account standing. Debit card transactions and ATM withdrawals are more likely to be declined than checks or automatic bill payments. When the bank does permit an unprotected overdraft, you pay the overdraft fee when ready.

Repeated overdrafts can trigger account closure. Bank of America reviews accounts with frequent overdraft activity and may decide to close your checking account without warning. Once closed, you will be unable to use that account, and the bank may report the closure to ChexSystems, a banking history database that other banks check before opening new accounts for you.

Overdrafts do not directly damage your credit score because they do not appear on your credit report. However, if your account goes unpaid and is sent to a collection agency, that collection account will appear on your credit report and harm your score significantly. This is rare but possible if you overdraw and do not pay the negative balance.

Turning off overdraft protection or switching linked accounts

You can disable overdraft protection at any time through your online banking account. Go to the same account settings or transfer services section where you enabled it, find the overdraft protection option, and select "Turn Off" or "Remove Protection." The change takes effect when ready, though transactions already in process may still be covered by the old protection.

If you want to keep overdraft protection but switch to a different linked account, you can change the source account in the same settings menu. For example, you might move from a savings account to a credit line if your savings balance is low. The new account becomes the backup source for future overdrafts.

If you disable overdraft protection and then change your mind, you can re-enable it using the same process. There is no penalty for turning it on and off, and you can do this as often as you need to.

Alternatives to overdraft protection

Some people choose not to use overdraft protection because they prefer to have transactions declined rather than pay fees. This approach prevents you from spending money you do not have, though it can be inconvenient if a necessary payment is declined at the point of sale.

Another option is to maintain a buffer in your checking account—keeping an extra $200 or $500 on hand so that small mistakes do not trigger overdrafts. This requires discipline but eliminates the need for overdraft protection altogether.

You can also set up balance alerts through your Bank of America account. The bank will send you a text or email notification when your balance drops below a threshold you choose (for example, $100). This gives you a chance to transfer money in or adjust your spending before an overdraft happens.

Frequently Asked Questions

Can I overdraw my Bank of America account at an ATM?

ATM withdrawals are less likely to be permitted as overdrafts than other transactions. If you have overdraft protection enabled, the bank will attempt to cover the withdrawal from your linked account. If you do not have protection or the linked account is empty, the ATM will decline the withdrawal.

Does overdraft protection affect my credit score?

Overdraft protection itself does not appear on your credit report and does not affect your credit score. However, if you overdraw and do not pay the negative balance, and the account is sent to collections, that collection account will damage your score.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is a service you set up to prevent overdrafts by automatically transferring money from another account. Overdraft fees are charges the bank imposes when you overdraw without protection or when protection cannot cover the full amount.

Can Bank of America close my account for too many overdrafts?

Yes. Bank of America monitors accounts for frequent overdraft activity and may close your account without notice if the pattern continues. Once closed, you may have difficulty opening accounts at other banks if the closure is reported to ChexSystems.

How long does it take for an overdraft transfer to post?

Most overdraft protection transfers happen in real time, meaning the money moves from your linked account to your checking account when ready. Some transfers may take one business day to appear in both accounts, depending on the type of transaction and the accounts involved.