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 two separate systems: overdraft protection (which links to a savings account or credit line) and standard overdraft coverage (which lets the bank pay transactions that would otherwise bounce). Without one of these active, a transaction will be declined if your balance is too low. If you have overdraft protection enabled, the bank will cover the shortfall—and charge you a fee for doing so.

The key difference is what happens when you go negative. With overdraft protection linked to a savings account, the bank transfers money automatically. With standard overdraft coverage, the bank pays the transaction and you owe them the negative balance plus a fee. Both cost money, but they work differently and have different limits.

Key Takeaways

  • Bank of America overdraft protection must be turned on in your account settings; it is not automatic on most checking accounts.
  • Overdraft fees at Bank of America are $35 per transaction when the bank covers a shortfall, with a maximum of four fees per day.
  • Overdraft protection linked to a savings account transfers money automatically but only if your savings account has the balance available.
  • You can turn overdraft protection off at any time through your online account or by calling Bank of America customer service.
  • Bank of America offers a grace period: if you bring your account back to a positive balance within one business day, the overdraft fee is waived.

How overdraft protection actually works at Bank of America

Bank of America offers overdraft protection in two forms. The first is linked overdraft protection, where you connect your checking account to a savings account, money market account, or credit line. When a transaction would overdraft your checking account, the bank automatically transfers money from the linked account to cover it. You pay a transfer fee (usually $10 per transfer) rather than an overdraft fee, and only if the transfer actually happens.

The second form is standard overdraft coverage, which does not require a linked account. If you have this enabled and a transaction would overdraft you, Bank of America pays it anyway. You then owe the negative balance plus a $35 overdraft fee per transaction. The bank will not charge more than four overdraft fees per day, so the maximum daily cost is $140, but that limit applies only to overdraft fees—not to the negative balance itself.

By default, most Bank of America checking accounts have standard overdraft coverage turned off. You have to opt in to it. Linked overdraft protection is also off by default and requires you to set it up in your account settings or by phone.

What the overdraft fee actually costs and when it applies

Each overdraft transaction costs $35. This fee is charged once per transaction, not once per day. If you overdraft your account with five separate transactions in one day, you would normally owe five $35 fees—but Bank of America caps overdraft fees at four per day, so the maximum is $140 in fees per calendar day.

The fee is charged to your account immediately after the transaction posts. If your account is already negative, the fee makes it more negative. You have until the end of the next business day to bring your balance back to zero or positive; if you do, Bank of America waives the overdraft fee. This is called the one-day grace period. After that, the fee sticks.

Overdraft fees do not apply to automatic transfers, ACH payments, or wire transfers—only to debit card transactions, checks, and ATM withdrawals. If you try to use your debit card and your balance is too low, the transaction may be declined instead of overdrafted, depending on the merchant and the type of transaction.

How to turn overdraft protection on or off

To manage overdraft protection, log into your Bank of America online account or mobile app. Go to Settings, then Account Settings, then find Overdraft Protection or Overdraft Coverage. You will see options to turn standard overdraft coverage on or off, and to set up linked overdraft protection if you want to connect a savings account or credit line.

If you prefer to do this by phone, call Bank of America customer service at the number on the back of your debit card. A representative can turn overdraft protection on or off and can help you link a savings account if you want that option instead. Changes usually take effect within one business day.

If you turn off standard overdraft coverage, transactions that would overdraft your account will simply be declined. You will not be charged a fee, but the transaction will not go through. Linked overdraft protection, if you have it set up, will still work even if standard overdraft coverage is off.

What happens if you stay overdrawn for more than one day

If your account stays negative past the one-day grace period, you owe both the negative balance and the overdraft fee. Bank of America does not charge a daily fee for staying overdrawn—only the single $35 per-transaction fee—but the negative balance itself is money you owe the bank.

If you do not bring your account positive within a reasonable time, Bank of America may close your account and send the debt to a collection agency. The bank reports overdrawn accounts to ChexSystems, a banking history database, which can make it harder to open a new account at other banks. Bringing your balance positive as soon as possible stops the clock on these consequences.

If you are overdrawn and cannot pay it back immediately, contact Bank of America. Some branches will work out a payment plan or waive fees in hardship situations, though this is not may provide. The sooner you call, the more options you may have.

Overdraft protection versus overdraft coverage: which one to use

Linked overdraft protection is usually cheaper if you have money in a savings account. You pay a $10 transfer fee only when the transfer actually happens, and you avoid the $35 overdraft fee entirely. The downside is that you have to keep money in savings to use it, and the transfer takes a few minutes to process (though usually within the same day).

Standard overdraft coverage is faster—the transaction goes through immediately—but it costs $35 per transaction. This makes sense if you overdraft rarely and do not have a linked savings account, or if you need the transaction to go through right away. It does not make sense as a regular safety net, because the fees add up quickly.

The best approach is to turn off standard overdraft coverage and set up linked overdraft protection instead, if you have a savings account with money in it. This way, occasional overdrafts are cheaper, and you avoid the $35 fees. If you do not have a savings account, consider opening one before you enable overdraft coverage, or simply decline overdraft coverage and let transactions be declined instead.

How overdraft protection interacts with pending transactions and holds

Bank of America calculates your available balance by subtracting pending transactions and holds from your current balance. A pending transaction is one that has been authorized but has not yet posted to your account. A hold is money the bank is temporarily setting aside for a transaction (common with gas stations, hotels, and rental car companies).

Your available balance is what matters for overdraft decisions. If your current balance is $100 but you have a $150 pending transaction, your available balance is negative $50. If you try to make another transaction, it may be declined or overdrafted based on that negative available balance, even though the pending transaction has not actually posted yet.

This is why overdrafts can happen unexpectedly: the transaction you think will go through does not, or a hold you did not know about reduces your available balance. Checking your available balance (not just your current balance) before making a transaction helps you avoid surprises.

Frequently Asked Questions

Can I overdraft my Bank of America account at an ATM?

Yes, if you have overdraft protection enabled. ATM withdrawals are subject to the same $35 overdraft fee as debit card transactions. However, many ATMs will decline the withdrawal if your balance is too low, so the overdraft may not happen. Linked overdraft protection does not typically work at ATMs outside the Bank of America network.

What if I overdraft and then deposit money the same day?

The deposit will reduce your negative balance, but it does not automatically waive the overdraft fee. You have until the end of the next business day to bring your balance positive; if you do, the fee is waived. Deposits made after business hours may not post until the next day, so timing matters.

Does overdraft protection affect my credit score?

Overdrafts themselves do not show up on your credit report unless the account goes to collections. However, if you stay overdrawn for a long time and Bank of America reports it as a delinquent account, it can damage your credit. Bringing your account positive quickly prevents this.

Can I set a limit on how much I can overdraft?

Bank of America does not allow you to set a custom overdraft limit. The bank decides how much you can overdraft based on your account history and banking relationship. You can only turn overdraft protection on or off, not adjust the amount.

What is the difference between overdraft and insufficient funds?

Insufficient funds means your account does not have enough money to cover a transaction. If overdraft protection is off, the transaction is declined and you are not charged a fee. If overdraft protection is on, the bank covers the transaction anyway and charges you a fee. Both result in a shortfall, but the outcome depends on whether you have overdraft protection enabled.