Yes, Bank of America charges overdraft fees when you spend more than your account balance

Bank of America charges $35 per overdraft transaction if your account goes negative and the transaction is approved. This fee applies each time a transaction posts that overdraws your account, so multiple purchases on the same day can trigger multiple fees. The bank also charges a $35 per day fee if your account stays overdrawn for more than five consecutive business days, capped at four fees per statement cycle.

The overdraft happens when Bank of America pays a transaction even though you don't have enough money to cover it. This is different from a declined transaction — the bank chooses to process the payment anyway and charges you for doing so. You can turn off overdraft protection to prevent this, which means transactions will simply decline instead of triggering fees.

Bank of America does not charge overdraft fees on ATM withdrawals or on transfers between your own accounts. The fees apply only to debit card purchases, checks, and ACH transfers that overdraw your account.

Key Takeaways

  • Bank of America charges $35 each time a transaction overdraws your account, plus an additional $35 per day if the account stays negative for more than five business days.
  • You can disable overdraft protection in your online banking settings so transactions decline instead of overdrawing your account and triggering fees.
  • Overdraft fees do not apply to ATM withdrawals or transfers between your own accounts, only to debit card purchases, checks, and ACH transfers.
  • If you receive overdraft fees, you can contact Bank of America to request a reversal, particularly if this is your first occurrence or if the overdraft was caused by a delayed deposit.

How overdraft protection works at Bank of America

Bank of America's overdraft protection is turned on by default for most checking accounts. This means the bank will pay transactions that would otherwise overdraw your account, and you will be charged a fee for each one. The protection covers debit card purchases, checks, and ACH transfers — but not ATM withdrawals.

When you make a purchase and your balance is insufficient, Bank of America processes the transaction anyway and immediately deducts the $35 overdraft fee from your account. This can push your balance even further negative, potentially triggering additional fees if the account stays overdrawn.

To turn off overdraft protection, log into your Bank of America online banking account, go to Account Settings, and look for the overdraft protection option. You can disable it for debit card transactions, checks, ACH transfers, or all of them. Once disabled, transactions will decline at the point of sale rather than overdrawing your account.

The difference between overdraft fees and NSF fees

Bank of America uses the term "overdraft fee" for transactions the bank approves even though you lack funds. However, if a transaction is declined because you don't have enough money, the bank does not charge a fee. This is an important distinction: you only pay if the bank chooses to process the transaction.

Some banks charge a separate "non-sufficient funds" (NSF) fee when a check bounces or a transaction fails. Bank of America does not charge an NSF fee — it charges an overdraft fee only when it pays the transaction despite insufficient funds. If you disable overdraft protection, transactions will decline and you will not be charged.

When overdraft fees stack up quickly

Overdraft fees can accumulate rapidly if you make multiple purchases while your account is overdrawn. Each transaction that posts while your balance is negative triggers a separate $35 fee. If you overdraw your account on a Monday and make three debit card purchases before you deposit money on Friday, you could be charged $105 in overdraft fees ($35 per transaction) plus potentially $140 in extended overdraft fees ($35 per day for four days).

The extended overdraft fee — charged when your account stays negative for more than five consecutive business days — can add up to $140 per statement cycle (four days maximum). This means a single overdraft incident can cost you $245 or more if you don't deposit money quickly.

Bank of America does not waive these fees automatically, but you can request a reversal if this is your first overdraft or if circumstances warrant it. The bank's policy on fee reversals varies by branch and account history, so calling customer service is your best option.

How to request an overdraft fee reversal

If you have been charged overdraft fees, you can contact Bank of America and request a reversal. Call the customer service number on the back of your debit card or log into your online banking account and use the message center to reach your branch. Be prepared to explain the circumstances — first-time overdrafts, delayed deposits, or unusual circumstances are more likely to result in a reversal than repeated overdrafts.

Bank of America does not have a published policy on how many fee reversals you can receive, but the bank is more likely to reverse fees if you have maintained a good account history and this is an isolated incident. If you have been charged multiple overdraft fees in the past, your request may be denied.

Some customers report success by asking the bank to review the timing of deposits and withdrawals to see if a delayed deposit caused the overdraft. If your paycheck was supposed to arrive on a certain date but posted late, mentioning this context can strengthen your request.

Alternatives to overdraft protection

The simplest way to avoid overdraft fees is to disable overdraft protection entirely. Once turned off, your debit card transactions and checks will decline if you lack sufficient funds, and you will not be charged a fee. This prevents you from spending money you don't have, though it can be inconvenient if a transaction declines at checkout.

Another option is to link a savings account or credit card to your checking account as a backup funding source. Bank of America offers overdraft protection that transfers money from a linked account to cover shortfalls, though this service may have its own fees depending on your account type. Check your account terms to see whether transfers between your own accounts are free.

The most reliable approach is to monitor your account balance regularly and set up low-balance alerts. Bank of America allows you to receive notifications when your balance drops below a threshold you set. This gives you time to deposit money before a transaction overdrafts your account.

What happens if your account stays overdrawn

If your account remains negative for more than five consecutive business days, Bank of America charges an additional $35 per day, up to four times per statement cycle. This extended overdraft fee is separate from the initial $35 overdraft fee charged when the transaction posted. The maximum you can be charged for an extended overdraft is $140 per cycle.

If your account stays overdrawn for an extended period, Bank of America may close your account and report you to ChexSystems, a banking history database. This can make it difficult to open a new checking account at other banks for several years. Depositing money to bring your account back to zero as soon as possible is the best way to avoid this outcome.

If you cannot deposit money immediately, contact Bank of America and explain your situation. The bank may be willing to work with you on a payment plan or reverse some fees if you demonstrate a genuine hardship.

Frequently Asked Questions

Can I get overdraft fees refunded if I deposit money right away?

Bank of America does not automatically refund overdraft fees when you deposit money, even if you do so immediately. You must contact the bank and request a reversal. The bank considers factors like your account history and whether this is a first-time occurrence. There is no may provide of a reversal, but first-time overdrafts are more likely to be reversed than repeated ones.

Does Bank of America charge overdraft fees on online bill payments?

Yes, if you pay a bill online using your checking account and the transaction overdraws your account, you will be charged a $35 overdraft fee. This applies to ACH transfers and bill payments made through your bank's online system. To avoid this, verify your balance before scheduling a payment or disable overdraft protection.

What's the difference between overdraft protection and overdraft fees?

Overdraft protection is the service that allows transactions to go through even when you lack funds — you pay a fee for this service. If you disable overdraft protection, transactions will decline instead, and you will not be charged. The fee is the cost of the bank paying a transaction on your behalf when you don't have the money.

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

Bank of America typically posts overdraft fees within one business day of the transaction that caused the overdraft. Extended overdraft fees (charged after five business days of being overdrawn) post daily. Fees appear in your transaction history and are deducted from your balance immediately.

Can I dispute an overdraft fee if I think it was charged in error?

You can contact Bank of America and dispute the fee, though the bank will review the transaction to confirm it actually overdrawed your account. If the transaction genuinely caused an overdraft, the fee was charged correctly. Your best option is to request a reversal based on your account history rather than disputing the accuracy of the charge.