Bank of America charges overdraft fees, but you can turn off overdraft protection to stop them

Yes, Bank of America charges overdraft fees when you spend more money than you have in your account. The fee is $35 per overdraft transaction if your account goes negative. However, you can prevent these fees by declining overdraft protection — a setting that simply declines transactions instead of letting them go through and charging you.

The key decision is whether to keep overdraft protection on or off. With it on, Bank of America will cover overdrafts and charge you $35 each time. With it off, your debit card and ATM withdrawals will be declined if you do not have the money, but you will not be charged. Checks and automatic bill payments may still overdraft your account even with protection off, because the bank processes those differently.

Bank of America also limits how many overdraft fees you can be charged in a single day. You can be charged a maximum of 4 overdraft fees per day, which means the most you can owe in overdraft charges on any one day is $140. This cap applies whether the overdrafts come from debit transactions, ATM withdrawals, or a mix of both.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction when your account goes negative and overdraft protection is turned on.
  • You can turn off overdraft protection in your online banking settings or by calling the bank, which will decline transactions instead of charging fees.
  • Even with overdraft protection off, checks and automatic payments may still overdraft your account because the bank processes them separately.
  • Bank of America caps overdraft fees at 4 per day, so the maximum you can owe in one day is $140.
  • If you overdraft your account, the bank may close it if the negative balance is not resolved within a set period, typically 60 days.

How to turn off overdraft protection

Log into your Bank of America online banking account and go to Settings. Look for the option labeled "Overdraft Protection" or "Overdraft Services." You will see a toggle or checkbox to turn it off. Once you disable it, debit card transactions and ATM withdrawals will be declined if you do not have enough money in your account.

If you do not use online banking, call Bank of America customer service at 1-800-432-1000 and ask to disable overdraft protection on your checking account. Have your account number ready. The change takes effect immediately, though it may take a few hours to show in your online settings.

Turning off overdraft protection does not stop all overdrafts. Checks you have written and automatic bill payments scheduled through the bank can still overdraft your account even after you disable the setting. This is because the bank processes checks and ACH transfers differently than debit card transactions. If you want to prevent overdrafts from checks and automatic payments, you will need to monitor your balance closely or set up low-balance alerts.

What happens if you overdraft your account

When your account goes negative, Bank of America begins charging overdraft fees immediately if overdraft protection is on. The $35 fee is charged per transaction that causes the overdraft, not per day. If you make five debit card purchases while your account is negative, you will be charged $35 five times — but only up to the 4-per-day limit.

The bank will also attempt to collect the negative balance. If your account stays negative for more than a few days, Bank of America may freeze your account or prevent new transactions. If the balance remains negative for 60 days or longer, the bank may close the account and report it to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you.

If you catch an overdraft quickly, you can deposit money to bring your account back to zero and stop additional fees. Some customers have had overdraft fees refunded if they contact the bank within a day or two and explain the situation, though the bank is not required to reverse fees. Asking does not hurt, especially if overdrafts are rare on your account.

Overdraft fees compared to other banks

Bank of America's $35 overdraft fee is standard among large national banks. Wells Fargo, Chase, and Citibank all charge $35 per overdraft. Some regional banks and credit unions charge less — typically $25 to $30 — and a few online banks charge nothing at all or offer overdraft protection through a linked savings account instead of a fee.

The real difference between banks is not the fee amount but what triggers it. Some banks charge overdraft fees only on debit card transactions, while others charge them on checks and ACH transfers too. Bank of America charges fees on all three, which is why turning off overdraft protection for debit cards does not fully protect you if you use checks or automatic bill pay.

Low-balance alerts and other ways to avoid overdrafts

Bank of America offers low-balance alerts through online banking. You can set the bank to send you an email or text message when your account balance drops below a certain amount — for example, $100. This gives you time to deposit money or move funds from another account before you overdraft. Set the alert threshold high enough that you have a real buffer, not just a few dollars.

You can also link a savings account to your checking account and set up automatic transfers. If your checking account balance drops below a set amount, the bank will automatically move money from savings to checking. This is different from overdraft protection because you are using your own money instead of borrowing from the bank and paying a fee. However, some banks charge a small fee for each automatic transfer, so check your account terms.

Another option is to use a second checking account at a different bank as a backup. If you overdraft your primary account, you can quickly transfer money from the backup account to cover it. This takes a few hours with ACH transfers but can prevent overdraft fees if you catch the problem before the bank charges you.

Disputing an overdraft fee

If you believe an overdraft fee was charged in error — for example, if a debit card transaction posted out of order and caused an overdraft that would not have happened otherwise — you can dispute it with Bank of America. Call customer service or visit a branch and explain the situation. Bring documentation if you have it, such as screenshots of your account balance or transaction history.

The bank will review your account and may reverse the fee if it finds an error. However, if the overdraft was caused by your spending exceeding your balance, the fee will likely stand. Banks are not required to reverse overdraft fees, so success depends on the specific situation and how long you have been a customer.

If you have multiple overdraft fees and believe the bank made an error in how it calculated them or applied them, ask to speak with a supervisor or file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB does not reverse fees directly, but it investigates complaints and can pressure the bank to review your account.

Frequently Asked Questions

Can I get overdraft fees refunded if I deposit money quickly?

Bank of America does not automatically refund overdraft fees, but you can call and ask. If you overdraft by accident and deposit money within a day or two, the bank may reverse one or two fees as a courtesy, especially if your account is in good standing. There is no may provide, but it is worth asking.

Does turning off overdraft protection affect my credit score?

No. Turning off overdraft protection does not affect your credit score because it is just a setting on your checking account. Your credit score is based on credit accounts like credit cards and loans, not checking accounts. Overdrafting your account and leaving it negative for a long time can hurt your credit if the bank reports it, but disabling the feature itself has no impact.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is the service that allows transactions to go through even when your account is negative. Overdraft fees are the charges the bank imposes when that happens. You can turn off overdraft protection to prevent the fees, but checks and automatic payments may still overdraft your account regardless of this setting.

If I have overdraft protection off, will my debit card be declined?

Yes. With overdraft protection off, your debit card will be declined at the point of sale if you do not have enough money in your account. The transaction will not go through, and you will not be charged a fee. However, the merchant may charge you a fee for the declined transaction, depending on their policy.

How long does it take for an overdraft to clear?

Once you deposit money to bring your account back to zero or positive, the overdraft is cleared immediately. However, overdraft fees remain on your account unless you ask the bank to reverse them. The negative balance itself disappears as soon as your deposit posts, which is usually within one business day for in-person deposits or transfers from another Bank of America account.