Bank of America overdraft protection is not automatic — you have to opt in, and the bank charges a fee each time you overdraw

Bank of America does not let your debit card or ATM withdrawal go through if you do not have enough money in your account. Instead, the transaction is declined. If you want the bank to cover the shortfall anyway, you have to turn on overdraft protection first. Once it is on, the bank will pay the transaction and charge you a fee — usually $35 per overdraft — whether you use a debit card, write a check, or make an ACH payment.

The key point: overdraft protection is a choice you make, not something that happens by default. You can also link a savings account or credit line to your checking account so overdrafts pull from that instead of triggering a fee. That second option costs nothing if you have the money available.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction if you opt into overdraft protection, and you can be charged multiple times in a single day.
  • You can link a savings account or credit line to your checking account to cover overdrafts without paying a fee, as long as the linked account has money in it.
  • Overdraft protection must be turned on through your online account or by calling the bank — it is not on by default.
  • The bank will not charge an overdraft fee if a transaction is simply declined, so you can also choose to have no overdraft coverage at all.
  • If you overdraw repeatedly, the bank may close your account, and the overdraft will be reported to ChexSystems, which affects your ability to open accounts elsewhere.

How to turn overdraft protection on or off

Log into your Bank of America online account or mobile app. Go to Settings, then Overdraft Protection. You will see options to link a savings account, a credit line, or to allow overdrafts on your checking account itself. Choose which one you want, then confirm.

If you do not have online access, call Bank of America at the number on the back of your card and ask to enable overdraft protection. The bank can set it up over the phone in a few minutes. You can also visit a branch in person.

To turn it off, follow the same path through Settings and toggle the protection off. Once you do, any transaction that would overdraw your account will be declined instead.

Linking a savings account or credit line to avoid fees

Instead of paying $35 per overdraft, you can link a Bank of America savings account or credit line to your checking account. When you overdraw, the bank pulls money from the linked account instead of charging you a fee. This works only if the linked account has money in it — if it does not, you will still be charged the overdraft fee.

To set this up, go to Settings > Overdraft Protection in your online account and select Transfer from another account. Choose the savings account or credit line you want to link. The transfer happens automatically when you overdraw, and there is no fee for the transfer itself.

This is the cheapest option if you have a savings account with a balance. The downside is that you have to remember to replenish the savings account, or you will run out of backup money.

What happens if you overdraw without protection

If overdraft protection is off, your debit card transaction or ATM withdrawal will be declined at the point of sale. You will not get the money, and you will not be charged a fee. The merchant or ATM will tell you the transaction failed, and you can try again with a different payment method or a smaller amount.

Checks and ACH payments work differently. If you write a check or set up an automatic payment and there is not enough money in your account, the transaction will bounce. The bank will charge you a non-sufficient funds (NSF) fee, usually $35, and the recipient may also charge you a fee for the bounced payment. This can happen even if overdraft protection is off.

Overdraft fees and daily limits

Bank of America charges $35 per overdraft transaction. You can be charged multiple times in a single day if you make multiple transactions that overdraw your account. The bank does not cap the number of overdraft fees you can incur in one day, so it is possible to rack up $100 or more in fees if you make several small purchases while overdrawn.

The bank does offer some protection: if your account is overdrawn by $5 or less at the end of the business day, Bank of America will not charge an overdraft fee. This is called the courtesy waiver, and it applies once per calendar year. After that, you pay the full $35 fee for every overdraft.

If you overdraw your account repeatedly over several months, Bank of America may close your account without warning. The overdraft will also be reported to ChexSystems, a banking history database. Other banks check ChexSystems when you apply for a new account, and a history of overdrafts can make it harder to open an account elsewhere.

How long you have to pay back an overdraft

Bank of America does not give you a set deadline to repay an overdraft. As long as you deposit enough money to bring your account back to a positive balance, the overdraft is resolved. If you do not deposit money and your account stays negative, the bank will eventually close the account and send it to collections.

If your account is closed due to a negative balance, you will owe the full amount overdrawn plus any fees. The bank may pursue collection action, and the debt can appear on your credit report. The timeline for this varies — some banks close accounts after 30 to 60 days of being overdrawn, while others wait longer.

Frequently Asked Questions

Can I overdraft my Bank of America account at an ATM?

Yes, if overdraft protection is on. The ATM will dispense cash even if you do not have enough in your account, and you will be charged a $35 overdraft fee. If overdraft protection is off, the ATM will decline the withdrawal and you will not get the cash.

What is the difference between overdraft protection and overdraft fees?

Overdraft protection is the feature you turn on that allows transactions to go through even when your balance is negative. Overdraft fees are the $35 charges the bank levies each time you use that protection. You can have overdraft protection on and never pay a fee if you link a savings account with money in it.

Will overdrafting hurt my credit score?

A single overdraft does not appear on your credit report. However, if your account goes to collections because you do not pay back the overdraft, that will hurt your credit. Also, overdraft history is reported to ChexSystems, which banks use to decide whether to open accounts for you.

Can I get an overdraft fee refunded?

Bank of America may refund one overdraft fee if you call and ask, especially if it is your first one or if you have been a customer for a long time. There is no may provide, and the bank is not required to refund it. If you have been charged multiple fees, ask the bank to review your account — some customers have had fees waived after a conversation with customer service.

What if I overdraft and then deposit money — do I still owe the fee?

Yes. The overdraft fee is charged when the transaction posts to your account, not when you repay the overdraft. Even if you deposit money the next day and bring your balance positive, you still owe the $35 fee. The fee will be deducted from your account automatically.