Bank of America's overdraft fee is $35 per transaction when you spend more than your available balance

Bank of America charges $35 for each transaction that overdraws your account. This applies when you use your debit card, write a check, or make an electronic payment that exceeds the money you have on hand. The fee hits your account the same day the transaction posts, making your negative balance worse.

The bank will charge up to four overdraft fees per day, meaning if you have multiple transactions that overdraw your account on the same day, you could face $140 in fees. There is no daily cap on total overdraft fees—only a limit on how many times per day they can charge you.

Bank of America also offers an overdraft protection service that links your checking account to a savings account or credit line. If you overdraw, the bank transfers money from the linked account instead of charging a fee. This transfer typically costs nothing, though some credit line transfers may carry a small fee depending on your account type.

Key Takeaways

  • Bank of America charges $35 each time a transaction overdraws your checking account, with up to four fees possible in a single day.
  • Overdraft protection can prevent fees by automatically transferring money from a linked savings account or credit line when you go negative.
  • The bank will not charge a fee if you bring your account back to a positive balance within one business day, though this depends on when the transaction actually posts.
  • Opting out of overdraft coverage means the bank will decline transactions that would overdraw your account instead of charging a fee.

How overdraft fees work in practice

The timing of when a transaction posts matters. If you swipe your debit card on Monday but the merchant doesn't submit the charge until Wednesday, the fee is assessed on Wednesday—not Monday. This delay is why people sometimes see multiple overdraft fees from transactions they thought happened on different days.

Bank of America processes transactions in a specific order each day. Larger transactions typically post before smaller ones, which can create a cascade of overdraft fees. For example, if you have $100 in your account and make a $50 purchase, a $75 purchase, and a $25 purchase on the same day, the $75 charge might post first, triggering an overdraft fee. Then the $50 and $25 charges each trigger their own fees, even though the total of all three ($150) would have fit if processed in a different order.

Once you receive an overdraft fee, you have limited time to dispute it. Bank of America allows you to request a reversal within a reasonable timeframe, though the bank does not publish a specific important date. Calling your local branch or the customer service number on your statement is the fastest way to ask for a one-time reversal, particularly if this is your first overdraft fee.

Overdraft protection as an alternative

If you link a savings account to your checking account through overdraft protection, Bank of America will transfer money automatically when you overdraw. The transfer is free if both accounts are in your name at Bank of America. This prevents the $35 fee and keeps your checking account positive.

You can also link a Bank of America credit card or line of credit to your checking account for overdraft protection. Transfers from a credit line may carry a fee—typically $10—though this is still cheaper than a $35 overdraft fee. The credit line option is useful if you do not have a savings account with enough cushion.

Overdraft protection is optional. You can turn it on or off through your online banking account under settings, or by calling customer service. The bank will not automatically enroll you, though it may suggest the service if you overdraw frequently.

Opting out of overdraft coverage entirely

You have the right to decline overdraft coverage for debit card and ATM transactions. If you opt out, Bank of America will straightforward decline the transaction instead of charging a fee. Your card will be rejected at the register, and you will not be able to complete the purchase.

This opt-out applies only to debit card and ATM withdrawals. Checks and electronic payments (like bill pay or ACH transfers) are not covered by this protection—the bank can still charge overdraft fees for those even if you have opted out of debit card overdraft coverage.

To opt out, contact Bank of America through your online account, call customer service, or visit a branch. The change takes effect within one to two business days. If you change your mind later, you can opt back in at any time.

What happens if you stay overdrawn

If your account remains negative for more than a few days, Bank of America may close your account. The bank typically sends a warning letter before closing, giving you time to bring the balance positive. Once closed, the account appears on ChexSystems (a banking history database), which can make it harder to open accounts at other banks for up to five years.

While your account is overdrawn, the bank may also report the negative balance to credit bureaus if it goes unpaid for 60 days or longer. This can damage your credit score. Bringing the account positive before that threshold prevents the credit report.

Comparing Bank of America's fee to other banks

Bank of America's $35 overdraft fee is standard among large national banks. Most charge between $30 and $35 per overdraft. Some regional banks and credit unions charge less—typically $25 to $30—or offer their first overdraft free per year. Online banks often have no overdraft fees at all, though they may decline transactions instead.

The real difference between banks is not the fee amount but the frequency cap and how transactions are ordered. Bank of America caps overdraft fees at four per day, while some banks allow more. The order in which transactions post also varies—some banks post smallest to largest, which reduces cascading fees.

Frequently Asked Questions

Can Bank of America reverse an overdraft fee?

Yes. Call your branch or customer service and ask for a reversal, especially if this is your first overdraft fee or if the overdraft was caused by a delayed deposit. The bank does not have to reverse it, but many representatives will do so once per year as a courtesy. Having a good account history makes reversal more likely.

Does overdraft protection cost anything?

Linking a savings account costs nothing. Transfers from a credit line may cost $10 per transfer, depending on your account type. Check your account terms or call customer service to confirm whether credit line transfers carry a fee.

What is the difference between overdraft fees and NSF fees?

Bank of America uses the terms interchangeably—both refer to the $35 charge when your account goes negative. Some banks distinguish between them based on whether the transaction was approved or declined, but Bank of America charges the same fee either way.

If I opt out of overdraft coverage, will checks still bounce?

Yes. Opting out only protects debit card and ATM transactions. Checks and bill pay transfers can still overdraw your account and trigger fees even after you opt out. You would need to manually monitor your balance or use overdraft protection to prevent check overdrafts.

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

The fee posts the same day the transaction that caused the overdraft is processed. If the transaction posts at 2 a.m., the fee appears when ready. If the transaction posts at 11 p.m., the fee appears that same day but may not show in your balance until the next morning.