Bank of America's overdraft fees

Bank of America charges $35 per overdraft when you spend more money than you have in your checking account. This fee applies each time your account goes negative, up to a maximum of four overdraft fees per day — meaning you could be charged up to $140 in a single day if multiple transactions overdraw your account.

The bank also charges a $35 extended overdraft fee if your account stays overdrawn for more than five consecutive business days. This is a separate charge from the initial overdraft fee, so it's possible to owe both fees on the same overdrawn balance.

Bank of America does not charge overdraft fees on ATM withdrawals or debit card transactions if you have opted out of overdraft protection. However, those transactions will straightforward be declined instead of going through.

Key Takeaways

  • Bank of America charges $35 each time your account overdrafts, with a limit of four fees per day.
  • An additional $35 extended overdraft fee applies if your account stays negative for more than five business days.
  • You can opt out of overdraft protection to prevent transactions from going through rather than being charged a fee.
  • Transfers from savings to checking and external accounts are not subject to overdraft fees.

How overdraft protection works at Bank of America

By default, Bank of America allows overdrafts on debit card purchases and checks — meaning the transaction goes through even though you don't have enough money. You are then charged the $35 fee. This is called overdraft protection, and it is turned on automatically for most customers.

You can turn off overdraft protection in your online banking settings or by calling the bank. Once it's off, debit card transactions and ATM withdrawals will be declined if you don't have enough money. Checks and automatic bill payments may still overdraw your account even with protection turned off, because the bank processes those differently.

Some customers link their savings account to their checking account as a backup. If your checking account would overdraft, the bank automatically transfers money from savings instead. This transfer is free and does not trigger an overdraft fee, though some banks charge a small transfer fee — Bank of America does not.

When the $35 fee gets charged

The overdraft fee is charged the same day the transaction posts to your account, not the day you make the purchase. This matters because a debit card transaction can take one to three days to process. You might swipe your card on Monday thinking you have enough money, but if the charge doesn't post until Wednesday and you've spent more money in the meantime, you could overdraft.

The four-fee-per-day limit means that even if you make ten transactions that all overdraft your account on the same day, you'll only be charged four fees — $140 total. However, each overdraft still counts against your account, and the extended overdraft fee can still explore if the account stays negative.

If you catch the overdraft quickly and deposit money to bring your account positive again before the end of the business day, you may still be charged the fee. Bank of America does not refund overdraft fees based on how quickly you fix the problem.

How to request an overdraft fee refund

Bank of America does not automatically refund overdraft fees, but you can request one by calling customer service at 1-800-432-1000 or visiting a branch in person. The bank's policy allows for one refund per year for most customers, though this is not may provide.

Your chances of getting a refund are better if you have a good account history with no previous overdrafts or fee requests. If you overdraft regularly, the bank is less likely to refund the fee. Explain what happened — for example, a delayed paycheck or an unexpected charge — rather than straightforward asking for the fee to be removed.

If you are a student, senior, or military member, you may have access to a Bank of America account with different overdraft terms. Ask about these options when you call, as some accounts have lower fees or different overdraft policies.

Alternatives to overdraft fees

The simplest way to avoid overdraft fees is to turn off overdraft protection so transactions are declined when you don't have enough money. This prevents you from spending money you don't have, though it can be inconvenient if a transaction is declined at checkout.

Setting up a transfer from savings to checking gives you a safety net without the fee. You can do this manually whenever you need it, or set up an automatic transfer when your checking balance drops below a certain amount. Bank of America allows you to set up these transfers in your online banking settings.

Some people use a second bank account at a different institution as backup. If Bank of America declines a transaction, you can use the other account instead. This takes planning but gives you flexibility and spreads your money across institutions, which can be safer if one bank has a system outage.

Overdraft fees compared to other costs

Bank of America's $35 overdraft fee is in line with most large national banks. Wells Fargo, Chase, and Citibank all charge $35 per overdraft as well. Some smaller banks and credit unions charge $25 to $30, while a few online banks charge nothing or have much lower fees.

The extended overdraft fee — another $35 after five days — is where costs can add up quickly. If you overdraft on the 1st of the month and don't fix it until the 10th, you'll owe $70 total: the initial $35 fee plus the extended fee. This is why catching an overdraft early matters.

Overdraft fees are more expensive than other ways to borrow money in the short term. A payday loan or credit card cash advance typically costs less over a few days, though both are expensive if you carry the debt longer. A personal loan from a credit union is usually cheaper if you need to borrow for more than a week or two.

Frequently Asked Questions

Can Bank of America reverse an overdraft fee?

Bank of America can reverse overdraft fees, but does not do so automatically. You must call customer service or visit a branch to request a reversal. The bank typically allows one reversal per year for customers with good account history, though this is not may provide and depends on the reason for the overdraft.

What's the difference between overdraft fees and NSF fees?

An overdraft fee is charged when a transaction goes through even though you don't have enough money. An NSF (non-sufficient funds) fee is charged when a transaction is declined because you don't have enough money. Bank of America charges $35 for NSF fees on checks and automatic payments, the same as overdraft fees.

Does Bank of America charge overdraft fees on transfers between my own accounts?

No. Transfers between your own Bank of America accounts do not trigger overdraft fees, even if your checking account goes negative. However, external transfers to accounts at other banks may be subject to overdraft fees depending on how they are processed.

If I opt out of overdraft protection, will my bills still be paid?

Automatic bill payments and checks may still overdraft your account even with overdraft protection turned off, because the bank processes these differently than debit card transactions. If you want to prevent all overdrafts, set up a transfer from savings or keep a buffer of money in your checking account.

How long does it take for an overdraft fee to show up on my account?

The overdraft fee is usually charged the same day the transaction posts, which can be one to three days after you make the purchase. The extended overdraft fee appears after five consecutive business days of being overdrawn. Both fees show up in your transaction history and count against your available balance when ready.