Bank of America's overdraft limit depends on your account history and balance
Bank of America does not publish a fixed overdraft limit that applies to everyone. Instead, the bank sets an individual limit based on factors like how long you have banked with them, your account balance history, and your payment history. This means two customers with similar account types might have different limits.
The overdraft limit is separate from your account balance. If you have $500 in your account and a $200 overdraft limit, you could spend up to $700 before the bank stops the transaction. Bank of America does not tell you your specific overdraft limit upfront — you typically discover it when you attempt a transaction that would exceed it.
It is important to understand that overdrawing your account triggers fees. Bank of America charges an overdraft fee each time a transaction overdraws your account, and these fees can add up quickly if multiple transactions post on the same day.
Key Takeaways
- Bank of America sets overdraft limits individually based on your account history, not a standard amount for all customers.
- You can overdraw your account up to your limit, but each overdraft transaction triggers a separate fee from the bank.
- You can contact Bank of America directly to ask what your current overdraft limit is, though the bank may not disclose it.
- Opting out of overdraft protection stops the bank from covering transactions that exceed your balance, preventing overdraft fees.
- Transfers from a linked savings account or credit card can cover overdrafts if you set up overdraft protection in advance.
How Bank of America decides your overdraft limit
Bank of America uses your account history to determine how much you can overdraw. The bank looks at how long your account has been open, whether you regularly maintain a positive balance, and whether you have paid any previous overdraft fees on time. Newer accounts or accounts with frequent overdrafts typically have lower limits or no overdraft limit at all.
The bank also considers your relationship with Bank of America across all your accounts. If you have a checking account, savings account, and credit card with the bank, that history factors into your overdraft limit. Customers who have been with the bank for years and maintain healthy balances generally receive higher limits than those with newer accounts.
Your limit can change over time. If you consistently overdraw your account or miss payments on overdraft fees, the bank may lower your limit. Conversely, maintaining a positive balance and avoiding overdrafts may result in a higher limit, though the bank does not notify you when this happens.
Overdraft fees and how they work
Each transaction that overdraws your account costs money. Bank of America charges an overdraft fee for each transaction that draws your account below zero, even if multiple transactions occur on the same day. This means if you overdraw by $5 on three different transactions, you pay three separate overdraft fees, not one.
The fee amount varies depending on your account type and whether you are a Bank of America customer with additional services. Standard checking accounts typically incur a fee per overdraft transaction. The bank may also charge a daily fee if your account remains overdrawn for several consecutive days.
Bank of America gives you a grace period before charging some overdraft fees. If you bring your account back to a positive balance by the end of the business day, the bank may waive the fee. However, this depends on your account type and the specific circumstances, so you should not rely on this as a may provide.
Opting out of overdraft protection
You have the right to refuse overdraft protection. If you opt out, Bank of America will decline transactions that would overdraw your account rather than covering them and charging you a fee. This means your debit card will be rejected at the store, or an online payment will not go through, but you will not owe an overdraft fee.
Opting out protects you from unexpected fees, but it also means transactions may fail at inconvenient times. A declined payment at a store can be embarrassing, and a rejected bill payment might result in a late fee from the company you owe money to. You need to weigh the cost of overdraft fees against the inconvenience of declined transactions.
To opt out, contact Bank of America directly through your online account, by phone, or in person at a branch. The bank will confirm your choice in writing. You can change your mind and opt back in at any time, though opting back in takes effect within one to two business days.
Using overdraft protection to cover overdrafts without fees
Bank of America offers overdraft protection that transfers money from another account to cover overdrafts instead of charging a fee. If you link a savings account or credit card to your checking account, the bank can automatically transfer funds when you overdraw. This prevents the overdraft fee, though you may pay a transfer fee or interest on the credit card advance, depending on which account you transfer from.
Transferring from a linked savings account is usually free or costs a small fee. Transferring from a credit card typically costs more because you are borrowing money at the credit card's interest rate. Before setting up overdraft protection, understand which account the bank will pull from and what that transfer will cost you.
Overdraft protection only works if you set it up in advance. You cannot retroactively explore it to an overdraft that has already occurred. Log into your Bank of America account online or call the bank to link accounts and set up this feature.
What happens if you exceed your overdraft limit
If you attempt a transaction that would exceed your overdraft limit, Bank of America will decline it. The transaction will not go through, and you will not owe an overdraft fee for that specific transaction. However, you may still owe fees for any transactions that did overdraw your account before you hit the limit.
A declined transaction can create problems. A rejected debit card payment at a store is when ready and visible. A rejected automatic bill payment might cause a late fee from the company you owe money to, even though the bank declined the transaction. Check your account regularly to avoid this situation.
If you repeatedly exceed your overdraft limit or overdraw your account frequently, Bank of America may close your account. The bank reserves the right to close accounts that it considers high-risk. If your account is closed, you will need to open a new account elsewhere, and the closure may appear on your banking history.
Checking your current overdraft limit
Bank of America does not display your overdraft limit in your online account or mobile app. You have to contact the bank directly to find out what your limit is. Call the customer service number on the back of your debit card, visit a branch in person, or use the find message feature in your online account.
When you call, have your account number ready and ask specifically for your overdraft limit. The representative may not provide the exact number — some Bank of America staff are instructed to describe the limit in general terms rather than give a specific dollar amount. If that happens, ask what the maximum overdraft would be on a typical transaction, or ask whether you have overdraft protection enabled.
Knowing your limit helps you avoid accidental overdrafts. If your limit is $200 and you have $150 in your account, you know you can spend up to $350 before hitting the limit. This is especially useful if you are waiting for a paycheck to deposit or expecting a large payment.
Frequently Asked Questions
Can I request a higher overdraft limit from Bank of America?
You can ask, but Bank of America does not may provide an increase. Contact the bank and explain why you want a higher limit. The bank will review your account history and may increase it, but approval depends on factors you cannot control, like your balance history and how long you have been a customer. There is no formal request process — it is handled on a case-by-case basis.
Do overdraft fees explore to automatic bill payments?
Yes. If an automatic bill payment overdraws your account, Bank of America charges an overdraft fee just as it would for a debit card transaction. Set up overdraft protection or monitor your balance before automatic payments post to avoid unexpected fees.
What if I overdraw my account and cannot pay it back?
Contact Bank of America as soon as possible. The bank may work with you on a payment plan or waive fees in certain circumstances, especially if this is your first overdraft. The longer you wait, the more fees accumulate. Ignoring the overdraft can result in account closure and a report to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you.
Does overdrafting hurt my credit score?
Overdrafting itself does not directly appear on your credit report. However, if the overdraft goes unpaid and Bank of America sends it to a collection agency, that collection account will damage your credit. Pay overdraft fees promptly to avoid this outcome.
Can I set up overdraft protection on a credit card I do not have yet?
No. Overdraft protection requires an existing linked account at Bank of America. You must open a savings account or credit card first, then link it to your checking account. The linking process takes one to two business days to become active.