Bank of America's overdraft fees and when they explore
Bank of America charges $35 per overdraft transaction if your account goes negative and the transaction is approved. You can be charged up to four overdraft fees per day, which means a single day of overspending could cost you $140. The bank also charges a $35 fee if your account stays overdrawn for five business days in a row.
Not every negative balance triggers a fee. If you overdraw your account but the bank declines the transaction, you are not charged an overdraft fee — you are charged a $35 non-sufficient funds (NSF) fee instead. The difference matters: one costs money either way, but only the overdraft fee applies when the bank lets the transaction go through.
These fees explore to checking accounts. Savings accounts have different rules and typically cannot overdraw at all — the transaction straightforward declines.
Key Takeaways
- Bank of America charges $35 for each overdraft transaction that goes through, with a limit of four fees per day.
- If your account stays overdrawn for five consecutive business days, you pay an additional $35 overdraft fee.
- Declined transactions cost $35 as a non-sufficient funds fee, not an overdraft fee.
- Bank of America offers overdraft protection through linked accounts or lines of credit, which can prevent overdraft fees if you set it up in advance.
- The bank provides a grace period: if you bring your account positive by the end of the next business day, no fee is charged.
The grace period that can save you money
Bank of America gives you until the end of the next business day to bring your account back to zero or positive. If you do, no overdraft fee is charged. This means if you overdraw on a Tuesday, you have until the end of Wednesday to deposit money and avoid the fee.
The grace period applies once per calendar day. If you overdraw multiple times in the same day, you can still be charged up to four separate overdraft fees, but the grace period clock starts fresh each day.
This grace period is not automatic protection — it is straightforward how long the bank waits before charging you. You have to actually move money into the account within that window. If you do not, the fee posts.
How overdraft protection works and what it costs
Overdraft protection is a service that prevents overdraft fees by pulling money from another source when your checking account would go negative. Bank of America offers two types: transfers from a linked savings account or credit line, and overdraft protection through a line of credit.
If you link a savings account, the bank transfers money automatically when a transaction would overdraw your checking account. There is no fee for this transfer — you only pay interest if you borrowed from a credit line. If you link a credit line instead, the bank treats it the same way: money moves automatically, and you pay interest on what you borrow.
To set up overdraft protection, you log into your Bank of America account online or call 1-800-432-1000. You choose which account or credit line to link. Once it is active, the bank handles transfers without asking you each time.
The difference between overdraft fees and NSF fees
When your account goes negative, you pay one of two fees depending on whether the bank approves the transaction. An overdraft fee of $35 applies when the bank lets the transaction go through and your account goes into the red. A non-sufficient funds (NSF) fee of $35 applies when the bank declines the transaction because there is not enough money.
From your wallet, both cost the same: $35. The difference is in what happened: overdraft means the transaction went through and you now owe the bank money. NSF means the transaction was blocked and the money never left your account.
Some people prefer NSF because it prevents them from going into debt, even though they pay the same fee. Others prefer overdraft because at least the transaction they needed actually happened. Bank of America lets you choose which you want — you can turn overdraft protection on or off, which changes whether transactions are approved or declined when your balance is low.
Daily and monthly limits on overdraft fees
Bank of America caps overdraft fees at four per day. If you make ten transactions that overdraw your account in a single day, you pay $140 (four fees of $35 each), not $350. The four-fee daily limit resets at midnight.
There is no monthly cap on overdraft fees. If you overdraw four times a day for thirty days, you could pay $4,200 in overdraft fees alone. The five-day overdraft fee ($35 for staying negative five business days in a row) stacks on top of transaction fees, so the total can climb quickly.
The daily limit exists to prevent a single day of bad luck from costing hundreds of dollars. It does not prevent a pattern of overdrafting from becoming very expensive over time.
How to avoid overdraft fees
The simplest way is to keep a buffer in your checking account — money you do not plan to spend. Even $100 or $200 catches most accidental overdrafts. Check your balance before making large purchases, and remember that pending transactions (ones you have authorized but that have not cleared yet) count against your available balance.
Set up overdraft protection before you need it. Link a savings account with money in it, or set up a credit line. This takes five minutes and costs nothing unless you actually use it. Once it is active, you will not pay overdraft fees when your checking account dips negative — the bank will pull from your backup source instead.
Turn off overdraft protection for debit card and ATM transactions if you want the bank to decline purchases rather than approve them and charge you a fee. You can do this in your online account settings. This prevents overdraft fees on everyday spending but does not affect checks or automatic bill payments, which still overdraw if your balance is low.
Sign up for low balance alerts. Bank of America lets you set a threshold — say, $200 — and the bank texts or emails you when your balance drops below it. This gives you time to transfer money before you accidentally overdraw.
What happens if you stay overdrawn for several days
If your account stays negative for five consecutive business days, Bank of America charges an additional $35 fee on top of any transaction overdraft fees you have already paid. This fee is separate and stacks with the others.
The five-day clock resets if you bring your account positive, even for one day. If you go negative on Monday, positive on Wednesday, and negative again on Thursday, the five-day counter starts over on Thursday.
If you are overdrawn and cannot bring your account positive quickly, contact Bank of America at 1-800-432-1000. The bank sometimes waives fees for customers with good history, though this is not may provide. It never hurts to ask, especially if the overdraft was caused by an error or unusual circumstance.
Frequently Asked Questions
Can Bank of America overdraft fees be refunded?
Bank of America does not automatically refund overdraft fees, but you can request a refund by calling 1-800-432-1000 or visiting a branch. The bank may waive one or two fees if you have a good account history or if the overdraft was caused by a bank error. There is no may provide, but asking costs nothing.
Do overdraft fees explore to online bill payments and checks?
Yes. Checks and automatic bill payments can overdraw your account just like debit card transactions. You cannot turn off overdraft protection for these the way you can for debit cards, so they will go through and charge you a fee if your balance is low.
What is the difference between overdraft protection and overdraft fees?
Overdraft protection is a service that prevents overdraft fees by automatically transferring money from another account when your checking account would go negative. Overdraft fees are the charges you pay when the bank approves a transaction that makes your account negative. Protection stops the fee from happening; fees are what you pay when protection is not in place.
How long does it take for an overdraft fee to show up?
Overdraft fees typically post within one to two business days of the transaction that caused the overdraft. The grace period (end of the next business day) starts when the transaction posts, not when you make it. Check your account regularly so you know when fees have been charged.
Can I set up overdraft protection on a savings account?
No. Overdraft protection links a savings account or credit line to your checking account so money can be pulled from the savings account if your checking account goes negative. You cannot overdraw a savings account itself — transactions straightforward decline if there is not enough money.