Yes, you can overdraw at Bank of America, but it costs money and happens only under specific conditions
Bank of America allows your account to go negative, but only if you have overdraft protection turned on or if the bank decides to cover a transaction. When you overdraw, you are borrowing money from the bank at that moment. Bank of America charges an overdraft fee for each transaction that puts your account below zero — currently $35 per overdraft, though this can change. The bank also charges a daily fee if your account stays negative for more than a few days.
Overdrafts are not automatic. You have to opt in to overdraft protection, or the bank has to decide on its own to cover a transaction. If you have not opted in and the bank does not cover it, the transaction simply declines at the point of sale or ATM. Many people think overdrafts happen by accident; they usually do not.
Key Takeaways
- Bank of America charges $35 per overdraft transaction if your account goes below zero, whether you opted in or the bank covered it on its own.
- Overdraft protection is something you turn on yourself through your account settings; without it, most transactions will decline rather than overdraw.
- The bank can still cover transactions without your permission under its own discretion, and you will still pay the fee if it does.
- Multiple overdrafts in one day can each trigger a separate $35 fee, and the bank also charges a daily fee if the negative balance lasts more than a few days.
- Turning off overdraft protection prevents most overdrafts, but does not stop the bank from covering certain transactions at its discretion.
How overdraft protection works at Bank of America
Overdraft protection is a setting in your Bank of America account that you control. When it is on, the bank will cover transactions that would otherwise bounce — meaning it lends you the money to complete the purchase or withdrawal. When it is off, transactions decline instead.
You can turn overdraft protection on or off through the Bank of America mobile app, online banking, or by calling customer service at 1-800-432-1000. The setting applies to debit card purchases, ATM withdrawals, and checks. It does not apply to automatic bill payments or transfers between your own accounts — those will decline if there is not enough money.
Even if you turn off overdraft protection, Bank of America reserves the right to cover certain transactions at its own discretion. This is called courtesy overdraft, and you still pay the $35 fee if it happens. The bank is not required to cover transactions this way, and it can change this policy at any time.
What overdraft fees cost and how they add up
Each overdraft transaction costs $35. If you make five debit card purchases in one day and your account is overdrawn for all five, you pay $35 five times — a total of $175 in fees for that day alone. The fees are separate from the actual amount you overdrew.
Bank of America also charges an extended overdraft fee of $35 per day if your account stays negative for more than five consecutive business days. This fee continues daily until your balance goes positive again. If you overdraw on a Friday and do not deposit money until the following Thursday, you could pay the daily fee for five or six days in addition to the transaction fees.
The total cost of an overdraft can easily exceed the amount you actually borrowed. A $20 overdraft on a debit card purchase, plus a $35 fee, plus a daily fee if it lasts several days, means you have paid far more than the original shortfall.
How to turn off overdraft protection
Log into your Bank of America account online or open the mobile app. Go to Settings, then Account Settings, then Overdraft Protection. You will see a toggle or checkbox for overdraft coverage on debit card transactions and ATM withdrawals. Turn it off for both.
If you prefer to do this by phone, call 1-800-432-1000 and ask to disable overdraft protection. Have your account number ready. The change takes effect immediately, though it may take a few hours to show in your app.
Turning off overdraft protection does not prevent all overdrafts — the bank can still cover transactions at its discretion — but it stops most of them. Transactions will decline instead of overdrawing in most cases.
Overdraft protection linked to savings or credit accounts
Bank of America offers overdraft protection that links your checking account to a savings account or credit line. If your checking account goes negative, the bank automatically transfers money from the linked account to cover it. This is different from the overdraft coverage described above.
Linked overdraft protection usually costs less than a standard overdraft fee. Bank of America charges $10 per transfer if you link to a savings account, or no fee if you link to a credit line (though you pay interest on the credit line balance). You set up linked protection through your account settings or by calling customer service.
Linked protection only works if the other account has money in it. If your savings account is also empty, the transfer fails and your checking account overdrafts instead, triggering the standard $35 fee.
What happens if you stay overdrawn for days or weeks
If your account stays negative, the daily fee of $35 per day kicks in after five business days. This fee continues every day until your balance goes positive. A week-long overdraft can cost $70 or more in daily fees alone, not counting the original transaction fees.
Bank of America may also close your account if you stay overdrawn for an extended period without paying it back. The bank reports the negative balance to ChexSystems, a banking history database. This can make it harder to open a new account at other banks for up to five years.
If you have overdrawn your account, deposit money as soon as you can. The sooner your balance goes positive, the sooner the daily fees stop. If you cannot pay it back immediately, call 1-800-432-1000 and ask whether the bank will waive some of the fees as a one-time courtesy.
Overdrafts on checks and automatic payments
Checks and automatic bill payments do not trigger overdraft protection, even if it is turned on. If your account does not have enough money to cover a check or automatic payment, the transaction declines and the check bounces or the payment fails. You do not overdraw, but you may face a returned-check fee from the bank or a late-payment fee from the company you owe.
A bounced check can cost you $35 from Bank of America plus an additional fee from the business that tried to cash it — sometimes $25 to $40. This can add up quickly if multiple checks bounce in the same month.
To prevent bounced checks, keep a buffer of at least $100 to $200 in your account at all times, or set up low-balance alerts in your Bank of America app so you know when you are running short.
Frequently Asked Questions
Can Bank of America overdraft me without my permission?
Yes. Even if you turn off overdraft protection, Bank of America can cover transactions at its own discretion under its courtesy overdraft policy. You will still pay the $35 fee if this happens. The bank is not required to cover transactions this way and can change the policy anytime.
How many overdraft fees can I get in one day?
You can get one $35 fee per transaction that overdrafts your account. If you make ten debit card purchases and all ten overdraw your account, you pay ten fees — $350 total. Each transaction is charged separately, even if they all happen on the same day.
Will overdrafting hurt my credit score?
Overdrafts themselves do not appear on your credit report and do not hurt your credit score. However, if the overdraft leads to a bounced check or unpaid debt that goes to collections, that can damage your credit. Bank of America also reports chronic overdrafts to ChexSystems, which can affect your ability to open accounts elsewhere.
Can I get overdraft fees waived?
Bank of America may waive one or two overdraft fees as a one-time courtesy if you call and ask, especially if you have been a customer for a long time or if the overdraft was caused by an error. There is no may provide, and the bank can refuse. Repeated requests for waivers are less likely to succeed.
What is the difference between overdraft protection and overdraft coverage?
Overdraft protection is a setting you turn on that allows transactions to overdraw your account. Overdraft coverage is when the bank covers a transaction on its own, even if you did not opt in. Both cost $35 per transaction. Linked overdraft protection (to a savings account or credit line) is different — it transfers money automatically and costs less.