Yes, you can overdraft a Bank of America checking account, but only if you have overdraft protection turned on

Bank of America allows overdrafts on checking accounts through a feature called Overdraft Protection. Without it enabled, transactions that would take your balance below zero are simply declined. With it on, the bank covers the shortfall and charges you a fee. You control whether this feature is active—it is not automatic for all accounts.

The overdraft itself is not free. Bank of America charges an overdraft fee each time you overdraft, and the amount depends on your account type and whether you are a preferred customer. The bank also charges an overdraft item fee if a check or ACH transfer bounces because of insufficient funds, which is separate from the overdraft fee itself.

Overdraft Protection can pull money from a linked savings account, money market account, or line of credit to cover the shortfall instead of charging a fee. This is different from allowing the overdraft to happen and paying the fee afterward.

Key Takeaways

  • Overdraft Protection must be turned on in your account settings; it does not happen by default, and you can turn it off anytime through your Bank of America app or by calling customer service.
  • Each overdraft costs a fee that varies by account type, typically ranging from $35 to $38 per transaction, and the bank can charge multiple fees in a single day if you overdraft more than once.
  • You can link overdraft protection to a savings account or line of credit so the bank transfers money automatically instead of charging a fee.
  • Bank of America will not charge an overdraft fee if you bring your account back to a positive balance by the end of the next business day, though this grace period applies only to certain account types.

How overdraft fees work at Bank of America

When you make a purchase, withdrawal, or transfer that would take your account below zero, Bank of America covers it if Overdraft Protection is on. The bank then charges you a fee for that service. The fee amount depends on whether you hold a Preferred Rewards membership and which tier you are in.

Standard customers without Preferred Rewards pay $35 per overdraft. Preferred Rewards members pay $35 for Gold tier, $33 for Platinum, and $33 for Platinum Plus. The bank can charge up to four overdraft fees per day, meaning if you overdraft multiple times in one day, you could face $132 to $140 in fees total.

The fee is charged to your account immediately, which can push you deeper into the negative and trigger additional overdrafts. For example, if you overdraft by $50 and are charged a $35 fee, your balance is now $85 in the negative, which may trigger another fee if your account does not recover.

Linking overdraft protection to a savings account or credit line

Instead of paying overdraft fees, you can link a savings account, money market account, or Bank of America line of credit to your checking account. When you overdraft, the bank automatically transfers money from the linked account to cover the shortfall, and you pay no overdraft fee.

To set this up, log into your Bank of America account online or through the mobile app, go to Account Services, and select Overdraft Protection. You can choose which account to link and set a transfer limit if you want to prevent large transfers. The transfer happens instantly when the overdraft occurs.

This method works only if the linked account has enough money in it. If your savings account is also empty, the transfer fails and you are charged an overdraft fee on the checking account instead. You should monitor both accounts to make sure the linked account stays funded.

Turning overdraft protection on or off

Overdraft Protection is not turned on automatically for all Bank of America accounts. You must enable it yourself through your online account or mobile app. Go to Settings, select Account Services, find Overdraft Protection, and toggle it on. You can also call Bank of America customer service at the number on the back of your debit card to have them enable it.

You can turn it off at any time using the same steps. Once disabled, any transaction that would overdraft your account will be declined instead, and you will not be charged a fee. However, the merchant or payee may charge you a fee for the declined transaction—for example, a utility company might charge a returned payment fee.

If you have overdraft protection linked to a savings account, disabling the feature stops the automatic transfers. Your savings account will not be touched, but your checking account will no longer have that safety net.

The grace period for overdrafts under $5

Bank of America does not charge an overdraft fee if your account goes negative by $5 or less and you bring it back to a positive balance by the end of the next business day. This applies to most checking accounts but not all account types, so check your account agreement or contact the bank to confirm whether your account qualifies.

The grace period covers only the overdraft itself, not other fees. If you overdraft by $3, you will not be charged an overdraft fee if you deposit money by the end of the next business day. However, if the overdraft triggers a returned check fee or other penalty from a merchant, that fee still applies.

This grace period is not a reason to overdraft intentionally. It is a buffer for small mistakes, not a regular payment method. Relying on it can lead to larger overdrafts that do incur fees.

What happens if you overdraft without protection enabled

If Overdraft Protection is off, Bank of America declines transactions that would take your balance below zero. The transaction does not go through, and you are not charged an overdraft fee. However, the merchant or payee may charge you a fee for the declined payment.

For example, if you try to pay a credit card bill and your checking account does not have enough money, the payment is declined. Your credit card company might charge a late fee if the payment does not arrive on time. A utility company might charge a returned payment fee. These are separate from Bank of America's fees.

Declined transactions also do not hurt your credit score directly, but if they cause you to miss a payment on a credit account, that missed payment can damage your credit. Keeping track of your balance and turning off Overdraft Protection if you do not want it can prevent this chain of problems.

Overdraft fees versus returned item fees

Bank of America charges two different fees related to insufficient funds: overdraft fees and returned item fees. An overdraft fee is charged when the bank covers a transaction that would overdraft your account. A returned item fee is charged when a check or ACH transfer bounces because your account does not have enough money, even if Overdraft Protection is on.

The returned item fee applies when a check is presented for payment and your account cannot cover it, or when an ACH debit (like an automatic bill payment) fails. This fee is typically $35 and is charged in addition to any overdraft fee. If you write a check that bounces, you may also face a fee from the merchant or payee who tried to cash it.

To avoid returned item fees, make sure your account has enough money before checks or automatic payments are processed. If you know a payment is coming and your balance is low, deposit money first or contact the payee to delay the payment.

Frequently Asked Questions

Can Bank of America overdraft my account without my permission?

No. Overdraft Protection must be turned on by you. If it is off, transactions are declined and no overdraft fee is charged. However, the merchant may charge you a fee for the declined payment. You can turn Overdraft Protection off anytime to prevent overdrafts.

How many overdraft fees can Bank of America charge in one day?

The bank can charge up to four overdraft fees per day. If you make four separate transactions that each overdraft your account, you could be charged four separate fees. This can happen quickly with debit card purchases, online payments, or automatic transfers.

Will Bank of America refund an overdraft fee if I ask?

Bank of America may refund one overdraft fee if you have a good account history and have not had fees refunded recently. Call the number on the back of your debit card and ask a representative to review your account. There is no may provide, but it is worth asking, especially if the overdraft was caused by an error or unusual circumstance.

What is the difference between overdraft protection and overdraft fees?

Overdraft Protection is a feature you turn on that allows the bank to cover overdrafts. Overdraft fees are the charges the bank imposes when you overdraft. You can have Overdraft Protection on and avoid fees by linking a savings account, or you can have it on and pay fees each time you overdraft.

Does overdrafting hurt my credit score?

Overdrafting itself does not appear on your credit report. However, if an overdraft causes you to miss a payment on a credit account, that missed payment will hurt your credit. Bank of America may also report the account to a collection agency if it stays negative for a long time, which damages your credit.