What Bank of America charges when your account goes negative

Bank of America charges $35 per overdraft transaction when you spend more money than you have in your checking account. The fee applies each time a transaction posts that takes your balance below zero, up to a maximum of four overdraft fees per day. If your account stays overdrawn, you may also face a $35 daily fee after five consecutive business days of being negative.

The overdraft fee structure means a single day of overspending can cost you $140 if four separate transactions post while you're negative. The daily fee after five days adds another layer of cost if you don't bring your account back to positive quickly. Bank of America does not charge overdraft fees on ATM withdrawals or on transfers between your own accounts, but nearly every other transaction type—debit card purchases, checks, ACH transfers, and bill payments—can trigger the fee.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction, with a maximum of four fees per day ($140 total).
  • An additional $35 daily fee kicks in if your account stays overdrawn for five or more consecutive business days.
  • ATM withdrawals and transfers between your own accounts do not trigger overdraft fees.
  • You can opt out of overdraft protection entirely, which means transactions will be declined rather than charged a fee.
  • Overdraft fees are charged at the time the transaction posts, not when you make the purchase, so timing matters.

When the overdraft fee actually gets charged

The fee posts when the transaction clears your account, not when you swipe your card or write the check. This timing gap is important because it means you might not realize you're overdrawn until days after you spent the money. A debit card purchase on Monday might not post until Wednesday, by which time you've made other purchases that also go negative.

Bank of America processes transactions in a specific order each day: deposits post first, then checks and ACH transfers, then debit card transactions. This order can work for or against you depending on what's pending. If you have a large check clearing the same day as multiple small debit purchases, the check might post first and trigger overdraft fees on the smaller transactions even if you would have had enough money if they'd posted in a different order.

Opting out of overdraft protection

You can tell Bank of America to decline transactions instead of charging you an overdraft fee. This is called opting out of overdraft protection. When you opt out, your debit card will be declined at the register, and ACH transfers or bill payments will fail rather than overdrawing your account. You won't be charged a fee, but the transaction won't go through.

To opt out, log into your Bank of America account online, call 1-800-432-1000, or visit a branch. The change takes effect immediately for new transactions. Opting out does not affect checks or ACH transfers initiated by other people—those can still overdraw your account and trigger fees. If you want full protection, you need to monitor your balance closely or set up low-balance alerts through the Bank of America app.

How overdraft fees compare to other banks

Bank of America's $35 per-transaction fee is standard among large national banks. Chase, Wells Fargo, and Citibank all charge $35 per overdraft. Some regional banks and credit unions charge less—$25 to $30 per transaction—or cap the number of fees per day at two or three instead of four. Online banks like Ally and Charles Schwab often charge no overdraft fees at all, though they may decline transactions instead.

The daily fee after five days of being overdrawn is less common. Most banks charge it only after seven days, or not at all. If you carry a balance in overdraft regularly, switching to a bank with a lower daily fee or no overdraft fees could save you hundreds of dollars per year. The fee structure also varies by account type—some banks charge less for student or senior accounts.

What happens if you don't pay back the overdraft

If you don't deposit money to cover the negative balance, Bank of America will eventually close your account and report you to ChexSystems, a banking history database. This typically happens after 60 to 90 days of being overdrawn, though the exact timeline depends on the size of the negative balance and your account history. Once you're reported to ChexSystems, opening a new checking account at most banks becomes difficult for two to five years.

Before closing your account, Bank of America may also attempt to collect the debt through a collection agency. You could receive calls or letters demanding payment. The debt does not disappear after a certain time—banks can pursue collection indefinitely, though the statute of limitations for suing you varies by state (typically three to six years). If you owe money, contacting Bank of America to set up a payment plan is faster and cheaper than waiting for collection action.

Recovering overdraft fees you've already paid

Bank of America allows you to request a refund of overdraft fees under certain circumstances. If you have a good account history and the overdraft was caused by a processing error or unusual circumstance, the bank may reverse one or more fees as a courtesy. You have the best chance of getting a refund if you call within 30 days of the fee posting and explain the situation clearly.

To request a refund, call Bank of America at 1-800-432-1000 and ask to speak with a representative about overdraft fee reversal. Have your account number and the dates of the fees ready. The bank does not may provide a refund, and repeated requests are less likely to succeed. If you've been charged multiple overdraft fees in a short period, mentioning that you've now opted out of overdraft protection may strengthen your case.

Setting up alerts and preventing overdrafts

Bank of America's mobile app lets you set up low-balance alerts that notify you when your account drops below a threshold you choose. You can set separate alerts for checking and savings accounts. Alerts arrive as push notifications or text messages, depending on your settings. This gives you time to transfer money or adjust your spending before a transaction posts that would overdraw you.

You can also link a savings account to your checking account for overdraft protection, though this comes with its own fees—typically $10 per transfer. If a transaction would overdraw your checking account, the bank automatically transfers money from savings to cover it. This is cheaper than an overdraft fee if you only need a small transfer, but it costs money every time it happens. Many people find that simply checking their balance before making large purchases or setting up automatic transfers on payday prevents overdrafts entirely.

Frequently Asked Questions

Can Bank of America charge me an overdraft fee if I have overdraft protection turned on?

No. If you have overdraft protection linked to a savings account or credit line, the bank transfers money automatically instead of charging a fee. You pay the transfer fee (usually $10) rather than the overdraft fee ($35). If the transfer fails because your savings account is also empty, then the overdraft fee applies to your checking account.

Do pending transactions count toward the four overdraft fees per day limit?

No. Only transactions that have posted to your account count. Pending transactions show in your available balance but don't trigger fees until they clear. This is why your available balance can be different from your current balance—pending transactions are subtracted from available balance but haven't posted yet.

What if I'm overdrawn because of a fraudulent transaction?

Report the fraud to Bank of America immediately. The bank will investigate and may reverse the fraudulent charge. If the charge is reversed, any overdraft fees caused by that transaction may also be reversed. Call 1-800-432-1000 or report it through your online account to start the dispute process.

Does opting out of overdraft protection affect my credit score?

No. Opting out of overdraft protection does not appear on your credit report. Declined transactions are not reported to credit bureaus. However, if you go into overdraft and the debt is sent to collections, that will damage your credit score.

Can I get a refund for overdraft fees from years ago?

Bank of America typically only reverses fees from the past 30 to 60 days. Fees older than that are considered settled. If you were charged excessive overdraft fees due to a bank error, you can file a complaint with the Consumer Financial Protection Bureau, but recovering old fees is unlikely.