Bank of America checking accounts come with overdraft options, but they are not automatic

Bank of America offers overdraft protection on checking accounts, but you have to choose which type you want — or decline it altogether. The bank does not turn it on by default. You can link a savings account or credit card to cover overdrafts, opt into their standard overdraft service (which charges a fee per transaction), or use no protection at all and have transactions declined.

The choice matters because each option works differently, costs different amounts, and protects different transactions. A debit card purchase behaves differently from a check, and an ATM withdrawal is handled differently still. Understanding what you have chosen — and what happens when your account goes negative — keeps you from paying fees you did not expect.

Key Takeaways

  • Bank of America offers three overdraft routes: linking a savings or credit account, paying per-transaction overdraft fees, or declining protection and having transactions refused.
  • Overdraft fees at Bank of America are $35 per transaction if you choose their standard overdraft service, with a maximum of four fees per day.
  • Transfers from a linked savings account happen automatically and carry no fee, but only if you have set up that link in advance.
  • Debit card transactions, ATM withdrawals, and checks are treated differently under overdraft rules, and some may be declined even if you have protection turned on.
  • You can change or remove your overdraft settings at any time through your online account or by calling the bank.

The three overdraft options Bank of America offers

Overdraft Protection Transfer is the most common choice. You link your checking account to a savings account or money market account at Bank of America, and if your checking balance goes negative, the bank automatically transfers money from the linked account to cover it. There is no fee for this transfer. You only pay if you overdraw the linked account itself.

Overdraft Protection Line of Credit works similarly but uses a credit line instead of another deposit account. The bank extends a small credit line (often $100 to $1,000) tied to your checking account. If you overdraw, the bank lends you the money at the credit line's interest rate. This is less common than the savings transfer option but useful if you do not have a linked savings account.

Standard Overdraft Service is what most people think of as overdraft. If you turn this on, the bank will cover overdrafts up to a limit (usually $1,000 to $5,000 depending on your account history) and charge you $35 per transaction that overdraws your account. You can have up to four overdraft fees charged per day. This option exists if you do not have a linked account or if your linked account runs dry.

If you decline all three, transactions that would overdraw your account are simply declined — your debit card is refused, your check bounces, your ATM withdrawal does not go through. No fee, but also no money.

How to set up or change your overdraft protection

Log into your Bank of America online account and go to the Settings or Account Services section. Look for "Overdraft Protection" or "Overdraft Options." You will see your current settings and the option to add a linked account, remove protection, or switch between methods.

If you want to link a savings account, you will select which account to link and confirm. The link takes effect immediately. If you want to remove overdraft protection entirely, you can do that in the same menu — the bank will ask you to confirm because transactions will then be declined if your balance is too low.

You can also call Bank of America at the number on the back of your card or visit a branch to make changes. Changes usually take effect the same day, though some may take up to one business day to process.

What transactions overdraft protection does and does not cover

Overdraft protection covers most transactions: debit card purchases, online bill payments, checks you write, and ACH transfers you initiate. However, the bank may decline some transactions even if you have protection turned on, particularly if the transaction is unusually large or if it would push you too far into overdraft.

ATM withdrawals are covered by overdraft protection, but some ATMs (especially those outside the Bank of America network) may decline the transaction before the overdraft protection can kick in. The ATM operator's system checks your balance first, and if it is too low, the machine refuses the withdrawal before Bank of America's overdraft system sees it.

Recurring payments and automatic bill payments are covered, but if your account is already overdrawn when the payment is due, the bank may decline it to prevent the overdraft from growing larger. Overdraft protection is meant to cover occasional shortfalls, not ongoing negative balances.

Overdraft fees and daily limits

If you use Bank of America's standard overdraft service, each transaction that overdraws your account costs $35. The bank charges up to four overdraft fees per day, meaning the maximum you can pay in fees on a single day is $140. However, this limit applies only to overdraft fees — if you also incur other fees (like a returned item fee), those are separate.

The fee is charged per transaction, not per day. If you make five debit card purchases that each overdraw your account on the same day, you pay $35 for each of the first four, then the fifth may be declined or charged a different fee depending on your account history and the bank's policies at that moment.

If you have a linked savings account and use overdraft protection transfer instead, there is no overdraft fee. The bank simply moves money from savings to checking. You only pay if the transfer itself causes your savings account to go negative, in which case the savings account overdraft fee applies (also $35 per transaction).

What happens if you overdraw and do not have protection

If you have declined overdraft protection or if your linked account is empty, transactions that would overdraw your account are declined. Your debit card is refused at the register, your check bounces, your online bill payment does not go through. The merchant or payee may charge you a returned-item fee (typically $25 to $35), and you will need to make the payment another way.

A bounced check can also damage your relationship with the payee and may be reported to ChexSystems, a banking history database that other banks check when you open new accounts. Repeated bounced checks can make it harder to open accounts elsewhere.

If your account goes negative anyway (for example, if a fee is charged after a transaction clears), you will owe the bank the negative balance. The bank may close your account if the negative balance is not resolved within a set period, typically 30 to 60 days.

How to recover from overdraft fees

If you have been charged overdraft fees and believe they were unfair or the result of a bank error, you can ask Bank of America to reverse them. Call the customer service number on your statement or visit a branch and explain the situation. The bank has discretion to reverse fees, particularly if you have a good account history or if the overdraft was caused by a delay in processing a deposit.

Be specific: explain what happened, when it happened, and why you think the fee should not have been charged. If a deposit was delayed or a transaction was posted out of order, mention that. If this is your first overdraft in years, mention that too. The bank is more likely to reverse a fee if you have been a customer in good standing.

If the bank refuses, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) online at consumerfinance.gov. The CFPB investigates complaints about banks and can pressure the bank to refund fees if they find a violation.

Frequently Asked Questions

Can I turn off overdraft protection for debit card purchases but keep it for checks?

Bank of America does not allow you to turn overdraft protection on or off for specific transaction types. Your overdraft settings apply to all transactions. However, you can decline overdraft protection entirely and then use a linked savings account for transfers, which gives you more control over when money moves between accounts.

What if my linked savings account does not have enough money to cover the overdraft?

The bank will transfer whatever is available in the linked account, but if that is not enough to cover the transaction, the transaction may still be declined or your account may go into overdraft. If your account goes negative, overdraft fees apply to the checking account, and if the linked savings account also goes negative, overdraft fees apply there too.

How long does a linked account transfer take?

Overdraft protection transfers happen immediately when a transaction would overdraw your checking account. You do not have to wait for the transfer to clear — it is processed in real time as part of the overdraft protection system.

Can I set a limit on how much overdraft protection will cover?

Bank of America does not allow you to set a custom limit on overdraft protection transfers. The bank will transfer whatever is needed to cover the transaction, up to what is available in the linked account. If you want more control, you can remove overdraft protection and manually transfer money when needed.

What if I close my linked savings account?

If you close the savings account linked to your overdraft protection, the link is automatically removed and your overdraft protection is disabled. You will need to set up a new link or choose a different overdraft option. The bank will notify you when the link is removed.