Bank of America overdraft happens when you spend more than your account balance, and the bank covers the difference

When your account goes negative, Bank of America can either decline the transaction or pay it and charge you an overdraft fee. You do not choose this in the moment — it depends on the type of transaction, your account setup, and whether you have overdraft protection turned on. Most debit card purchases and ATM withdrawals will be declined if you do not have enough money. Checks and automatic bill payments may still go through and trigger overdraft fees.

The overdraft fee itself is $35 per transaction at Bank of America as of the most recent public schedule, though this can change. The bank will charge the fee only once per day, even if multiple transactions overdraft your account on the same day. You have until the end of the business day to deposit money and bring your account positive before the fee posts.

Key Takeaways

  • Bank of America charges $35 per overdraft event, with a maximum of one fee per day, though the fee amount may vary by account type and region.
  • Debit card purchases and ATM withdrawals are usually declined if you lack sufficient funds, while checks and bill payments may overdraft your account.
  • Overdraft protection links your checking account to a savings account or line of credit so transfers happen automatically instead of triggering fees.
  • If your account stays negative for more than a set number of days, Bank of America may close the account and report it to ChexSystems, affecting your ability to open accounts elsewhere.
  • Requesting a one-time fee reversal is possible if this is your first overdraft or if you have a long account history with no prior incidents.

How overdraft protection prevents fees by linking accounts

Overdraft protection is a service that automatically transfers money from another account when your checking account would go negative. Bank of America offers this by linking your checking account to a savings account, money market account, or a Bank of America credit card. When a transaction would overdraft, the bank transfers just enough to cover it instead of charging a fee.

You set up overdraft protection through your online banking portal or by calling Bank of America at 1-800-432-1000. You choose which account to link as the backup source. The transfer happens when ready for most transactions, though some bill payments may process after the transfer completes. There is no fee for the transfer itself, but you are responsible for any interest or fees charged by the account you are transferring from — for example, if you transfer from a credit card, you pay credit card interest on that balance.

Overdraft protection does not cover all transactions. Recurring bill payments and checks may still overdraft even with protection enabled, depending on how the payment is processed. Test the setup with a small transaction before relying on it for regular bills.

What happens to your account if you stay negative for too long

Bank of America does not charge a daily fee for staying overdrawn, but the account will eventually be closed if the negative balance persists. The exact timeline varies, but the bank typically closes accounts that remain negative for 30 to 60 days without payment or contact. Once closed, you cannot use the account and any pending transactions may be declined.

When Bank of America closes an account due to overdraft, the bank reports it to ChexSystems, a banking history database. This report stays on your record for five years and makes it difficult to open a new checking account at most banks. You will need to pay the negative balance in full before the bank will consider removing the report or before you can open a new account elsewhere.

If you receive a notice that your account is at risk of closure, contact Bank of America when ready. Speaking with a representative about a payment plan or fee reversal is often possible before the account is formally closed.

Overdraft fees and daily limits on how many you can incur

Bank of America charges one overdraft fee per day, regardless of how many transactions overdraft your account on that day. If you overdraft five times on a Monday, you pay one $35 fee. If you overdraft again on Tuesday, that is another $35 fee. The fee posts to your account within one to two business days.

There is no monthly cap on overdraft fees — you can be charged multiple times across different days. However, the bank does have a limit on how many overdraft fees it will charge before closing the account. Accounts with repeated overdrafts over several months are flagged for closure.

Some Bank of America account types, such as certain student or premium accounts, may have different overdraft policies. Check your account agreement or call the bank to confirm your specific terms.

How to request an overdraft fee reversal

Bank of America will sometimes reverse an overdraft fee if you request it, particularly if this is your first overdraft or if you have maintained the account in good standing for several years. There is no formal process — you contact the bank and ask. Call 1-800-432-1000 and explain the situation to a representative. Be honest about whether this is a one-time mistake or a pattern.

The bank is more likely to reverse the fee if you can show that the overdraft was caused by a system error, a delayed deposit, or an unexpected charge. If you have a history of overdrafts, the bank may decline the reversal but may offer a one-time courtesy instead. Do not expect reversal as a may provide — it depends on the representative and your account history.

Request the reversal within a few days of the fee posting. After 30 to 60 days, the bank is less likely to reverse it. If the representative declines, ask to speak with a supervisor or escalate through the bank's complaint process.

Transactions that trigger overdrafts versus those that are declined

Bank of America treats different types of transactions differently when your account lacks sufficient funds. Debit card purchases at stores and ATM withdrawals are almost always declined if you do not have enough money — the transaction straightforward does not go through. Online debit card purchases may also be declined, though some merchants process them differently.

Checks and automatic bill payments are more likely to overdraft your account because they are processed through a different system. The bank may not know the amount until after the transaction clears, so it cannot decline them in advance. ACH transfers (automatic payments set up through your bank) may also overdraft, depending on how the payment is scheduled.

Wire transfers and cashier's checks require sufficient funds and will be declined if you do not have the balance. Overdraft protection does not cover wire transfers in most cases.

Alternatives to overdraft protection if you cannot link another account

If you do not have a savings account or credit card to link for overdraft protection, you have other options. Some people set up a small line of credit through Bank of America, which functions similarly to overdraft protection but is technically a loan. You pay interest on the amount borrowed, but there is no overdraft fee.

Another option is to disable overdraft protection entirely and opt out of overdraft coverage for debit card transactions. This means debit purchases and ATM withdrawals will always be declined if you lack funds, but you will not incur overdraft fees on those transactions. Checks and bill payments may still overdraft, so this is not a complete solution.

If overdrafts are frequent, the underlying issue is usually a cash flow problem rather than a system problem. Consider whether you need to adjust your budget, set up alerts for low balances, or move to a bank with lower or no overdraft fees. Some online banks and credit unions offer accounts with no overdraft fees at all.

Frequently Asked Questions

Can Bank of America reverse an overdraft fee if I have never overdrafted before?

Yes, first-time overdrafts are often reversed if you call and request it. The bank is more likely to help if you have maintained the account for several years without problems. Call 1-800-432-1000 and ask a representative to review your account. There is no may provide, but the likelihood is higher than if you have a pattern of overdrafts.

What is the difference between overdraft protection and overdraft coverage?

Overdraft protection is a service you set up that automatically transfers money from another account to prevent overdrafts. Overdraft coverage is the bank's decision to pay a transaction even when you lack funds, charging you a fee afterward. You control protection; the bank controls coverage.

If I close my Bank of America account while it is overdrawn, do I still owe the money?

Yes. Closing the account does not erase the debt. Bank of America will pursue collection, and the negative balance will remain on your ChexSystems record. You must pay the full amount owed before opening a new account at most banks.

How long does an overdraft stay on my ChexSystems record?

A closed account due to overdraft stays on your ChexSystems record for five years from the date of closure. After five years, it is removed automatically. You can request a copy of your ChexSystems report at annualchecksystems.com to verify what is listed.

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

Transfers between your own Bank of America accounts typically do not trigger overdraft fees because they are processed as internal transfers. However, if the transfer is set up as an automatic payment or ACH, it may overdraft depending on how it is configured. Confirm with the bank before setting up regular transfers.