Bank of America overdraft happens when you spend more than your account balance, and the bank covers the difference

When your checking account balance drops below zero, Bank of America can pay the transaction anyway through its overdraft coverage system. This means a check clears, a debit card purchase goes through, or an ACH transfer completes even though you don't have the money. The bank then charges you an overdraft fee—currently $35 per transaction at Bank of America—and you owe them the negative balance plus that fee.

You don't have to do anything to trigger overdraft coverage. It's automatic for most account types unless you specifically turn it off. The bank decides whether to cover each transaction based on your account history and the type of payment, not based on a formal agreement you signed. This means some overdrafts get paid and some don't, depending on factors you can't always predict.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction and can charge multiple fees in a single day if several transactions post while your account is negative.
  • You can turn off overdraft coverage for debit card and ATM transactions through your online account settings, which will decline those payments instead of charging a fee.
  • Overdraft protection linked to a savings account or credit line is optional and must be set up in advance; it prevents overdraft fees by transferring money automatically.
  • The bank processes transactions in a specific order each day, which can cause transactions you made earlier to overdraft while later ones clear, multiplying your fees.
  • If you stay negative for more than a few days, Bank of America may close your account and report you to ChexSystems, making it harder to open accounts elsewhere.

How overdraft fees stack up in a single day

Bank of America can charge you multiple $35 overdraft fees on the same day. If your account has a $50 balance and you make five debit card purchases of $20 each, the bank may charge you $35 for each transaction that pushes you negative—potentially $175 in fees on $100 in spending. The bank processes transactions in its own order, not the order you made them, which means a transaction you initiated first might overdraft while one you made later clears without a fee.

The bank also distinguishes between different types of transactions. Debit card purchases, ATM withdrawals, and checks are treated differently than ACH transfers or automatic bill payments. Some types get overdraft coverage automatically; others don't. This means you might overdraft on a debit purchase but not on an ACH payment, even if both happen on the same day.

Bank of America caps overdraft fees at four per day for debit card and ATM transactions, but this limit does not apply to checks or ACH transfers. If you write multiple checks or set up several automatic payments and your account goes negative, you could face more than four overdraft fees in a single day.

Turning off overdraft coverage for debit and ATM transactions

You can prevent overdraft fees on debit card purchases and ATM withdrawals by disabling overdraft coverage for those transaction types. Log into your Bank of America online account, go to Account Settings, and look for "Overdraft Coverage" or "Overdraft Protection." You'll see separate toggles for debit card transactions and ATM withdrawals. Turn these off, and the bank will decline those transactions instead of charging a fee when your balance is too low.

Turning off overdraft coverage does not affect checks or ACH transfers—the bank will still cover those and charge a fee if you go negative. It also does not prevent overdraft fees you've already incurred. If you've been charged overdraft fees in the past 60 days, contact Bank of America customer service and ask about a one-time reversal; the bank sometimes removes one or two fees as a courtesy, though this is not may provide.

If you disable overdraft coverage and a debit transaction is declined, you'll know immediately at the point of sale. This gives you a chance to use a different payment method or add funds to your account before the transaction completes.

Setting up overdraft protection with a linked account or credit line

Overdraft protection is different from overdraft coverage. Protection is optional and requires you to set it up in advance. You link a Bank of America savings account, money market account, or credit line to your checking account. If your checking account goes negative, the bank automatically transfers money from the linked account to cover the shortfall. You pay a small transfer fee (usually $10) instead of a $35 overdraft fee, and you avoid going negative in the first place.

To set up overdraft protection, log into your account and go to Transfers & Payments. Select "Set Up Overdraft Protection" and choose which account or credit line to link. You can set a minimum transfer amount—for example, the bank will only transfer money if you're more than $25 negative—to avoid tiny transfers. Once it's active, the protection works automatically whenever your checking balance drops below zero.

Overdraft protection only works if the linked account has money in it. If you link a savings account that's also empty, the protection won't help. If you link a credit line, the transfer counts as a cash advance, which may carry a higher interest rate than regular credit card purchases.

What happens if you stay negative for several days

Bank of America typically allows accounts to stay negative for a few days before taking action. However, if your account remains negative for more than five to seven business days, the bank may close your account and report you to ChexSystems, a banking history database that other banks check when you try to open a new account. This report can stay on your record for five years and make it difficult or impossible to open a checking account elsewhere.

Before closing your account, the bank will usually send you a notice giving you time to bring the balance current. If you receive such a notice, deposit money immediately to cover the negative balance plus all overdraft fees. If you can't pay the full amount, contact Bank of America and ask about a payment plan; some branches will work with you to avoid a closure.

If your account is closed due to a negative balance, you can still pay what you owe, but you won't be able to use that account for new transactions. The debt doesn't disappear—the bank may send it to a collection agency if you don't pay within a few months.

Recovering from overdraft fees and disputing charges

If you've been charged overdraft fees, your first step is to call Bank of America at the number on your statement or visit a local branch. Explain the situation and ask for a courtesy reversal. The bank has no obligation to reverse fees, but if this is your first overdraft or if you've been a customer for a long time, they may remove one or two fees. Some branches are more willing to reverse fees than others, so if you're declined, ask to speak to a supervisor.

If you believe a fee was charged in error—for example, if a transaction posted twice or if the bank processed transactions out of order in a way that caused unnecessary overdrafts—you can file a dispute. Contact the bank and explain the error. The bank will investigate and may reverse the fee if they find a mistake on their end. This process typically takes 10 business days.

If you're in a difficult financial situation and overdraft fees are piling up, ask Bank of America about hardship programs. The bank may offer temporary fee waivers or modified terms if you're experiencing job loss, illness, or other documented hardship. These programs vary by location and are not automatic, so you have to ask.

How to avoid overdrafts going forward

The most reliable way to avoid overdraft fees is to keep a buffer in your checking account—money you don't spend. A $200 to $500 buffer catches most accidental overdrafts. Set up balance alerts in your Bank of America app so you get a notification when your balance drops below a certain amount, like $300. This gives you time to transfer money or adjust your spending before you go negative.

Link your checking account to a savings account with overdraft protection, as described above. This costs $10 per transfer instead of $35 per transaction and gives you automatic coverage without having to think about it. Alternatively, turn off overdraft coverage for debit and ATM transactions so those payments are simply declined instead of charged a fee.

Track your spending carefully. Many overdrafts happen because a transaction posts days after you make it—a check you wrote clears a week later, or an online purchase settles after a delay. Keep a running total of pending transactions and subtract them from your available balance, not just your current balance. Bank of America's app shows pending transactions, so check it regularly.

Frequently Asked Questions

Can Bank of America charge me more than one overdraft fee per day?

Yes. The bank caps overdraft fees at four per day for debit card and ATM transactions, but checks and ACH transfers are not subject to this limit. If you write multiple checks or set up several automatic bill payments and your account goes negative, you could be charged more than four fees in a single day.

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

Overdraft coverage is automatic and charges a $35 fee when you go negative. Overdraft protection is optional, requires advance setup, and transfers money from a linked account to prevent you from going negative in the first place, charging a $10 transfer fee instead.

If I turn off overdraft coverage, will my checks bounce?

Turning off overdraft coverage only affects debit card and ATM transactions. Checks and ACH transfers will still be covered by the bank and charged a $35 fee if your account is negative. To prevent checks from overdrafting, you must keep a sufficient balance or set up overdraft protection with a linked account.

How long does it take Bank of America to close my account if I stay negative?

The bank typically allows accounts to remain negative for five to seven business days before sending a closure notice. You usually have a grace period to bring the account current after receiving the notice, but this varies. Contact the bank immediately if you receive a closure notice.

Can I get overdraft fees reversed if I ask?

Bank of America may reverse one or two overdraft fees as a courtesy, especially if you're a long-time customer or if this is your first overdraft. There's no may provide, and the decision varies by branch. Call the bank or visit in person and ask; if you're declined, request to speak with a supervisor.