Bank of America's overdraft fee is $35 per transaction when you spend more than your available balance

Bank of America charges $35 for each overdraft transaction — that is, each time you make a purchase, withdrawal, or transfer that pushes your account below zero. The fee applies whether you overdraft by $1 or $100. You can be charged up to four overdraft fees per day, meaning a bad day of spending could cost you $140 in fees alone.

The fee hits your account immediately when the transaction posts, not when you notice the negative balance. If you catch the overdraft within a few hours, you may be able to deposit money before the fee is assessed, but once it posts, you will need to contact Bank of America to request a reversal — and they do not reverse fees automatically.

Key Takeaways

  • Bank of America charges $35 per overdraft transaction, with a maximum of four fees per day.
  • The fee posts when the transaction clears, not when you make the purchase, so timing matters if you are trying to avoid it.
  • Bank of America's overdraft protection can link a savings account or credit line to cover overdrafts, but this also costs money if the transfer occurs.
  • You can opt out of overdraft coverage entirely, which means transactions will be declined rather than charged a fee.
  • Requesting a fee reversal is possible if this is your first overdraft or if you have a good account history, but Bank of America does not reverse fees as a standard practice.

How the overdraft fee is triggered

An overdraft fee occurs when a transaction posts to your account and your available balance cannot cover it. The key word is posts — not when you swipe your card or click send, but when the merchant or receiving bank actually processes the payment. This delay means you can make a purchase at 9 a.m., have money in your account at 10 a.m., and still be charged an overdraft fee at 2 p.m. when the transaction finally clears.

Debit card purchases, ATM withdrawals, checks, ACH transfers, and wire transfers can all trigger overdraft fees. Online bill payments through Bank of America's bill pay system typically do not overdraft your account — the bank will hold the payment if there is not enough money — but third-party bill pay services may process differently.

Bank of America processes transactions in a specific order each day, and the order matters. The bank typically processes larger transactions before smaller ones, which can cause you to overdraft on a small purchase even if you had enough money for it when sorted differently. This practice, called reordering, is legal but means your actual sequence of spending does not determine which fees you pay.

Overdraft protection and linked accounts

Bank of America offers overdraft protection, which links your checking account to another account — usually a savings account, money market account, or credit line — to cover overdrafts automatically. If you overdraft, the bank transfers money from the linked account instead of charging a fee.

However, overdraft protection is not free. Bank of America charges a $10 transfer fee each time it moves money from a linked savings or money market account to cover an overdraft. If you link a Bank of America credit line or credit card, there is no transfer fee, but you will pay interest on the borrowed amount at your card's interest rate. For most people, the $10 transfer fee is cheaper than the $35 overdraft fee, but only if you overdraft occasionally.

You can set up overdraft protection through your online banking account or by visiting a branch. You can also remove it at any time, which means overdrafts will be declined rather than covered.

Opting out of overdraft coverage

If you do not want to pay overdraft fees or transfer fees, you can opt out of overdraft coverage entirely. When you do, transactions that would overdraft your account will simply be declined — your debit card will be rejected, your ATM withdrawal will not go through, and your check will bounce.

A declined transaction is not free — the merchant may charge you a returned-payment fee, and a bounced check can cost $25 to $35 from the recipient — but you avoid the bank's overdraft fee. This option works best if you monitor your balance closely and do not mind transactions being rejected.

To opt out, contact Bank of America by phone, through your online account settings, or in person at a branch. The bank will confirm your choice in writing. Note that opting out applies only to overdraft fees on debit transactions; it does not prevent overdrafts on checks or ACH transfers, which may still post even if your balance is negative.

Requesting an overdraft fee reversal

Bank of America does not automatically reverse overdraft fees, but you can request one. The bank is more likely to reverse a fee if this is your first overdraft, if you have maintained a good account history with no previous overdrafts, or if you can show that the overdraft was caused by a bank error.

To request a reversal, call Bank of America's customer service at the number on the back of your card, or visit a branch in person. Explain the circumstances and ask if they can reverse the fee as a courtesy. Be prepared to hear no — the bank reverses fees at its discretion, and there is no may provide. If you have overdrafted multiple times, your chances of a reversal are lower.

If the bank declines your request, you can escalate by asking to speak with a supervisor or filing a complaint with the Consumer Financial Protection Bureau (CFPB), though neither will force the bank to reverse the fee. The CFPB complaint may be useful if you believe the fee was charged in error or if the bank violated its own policies.

Comparing Bank of America's fee to other banks

Bank of America's $35 overdraft fee is in line with most large national banks. Chase, Wells Fargo, and Citibank all charge $35 per overdraft. Some regional banks and credit unions charge less — $25 to $30 — and a few online banks charge nothing at all or offer overdraft protection without fees.

If you overdraft frequently, switching to a bank with lower fees or no overdraft fees may save you money. However, the difference in overdraft fees is usually smaller than the difference in other account features, such as minimum balance requirements, interest rates on savings, or ATM access. Compare the full account before deciding based on overdraft fees alone.

What happens if you stay overdrawn

If your account remains negative for several days, Bank of America may charge additional fees. The bank does not charge a daily fee for being overdrawn, but if your account stays negative for more than a few days, the bank may close your account and send the debt to a collection agency. Accounts that are overdrawn by more than $100 for more than 60 days are at higher risk of closure.

If your account is closed due to overdraft, you will have difficulty opening a new account at Bank of America or other banks. The bank reports closed accounts to ChexSystems, a checking account verification system that other banks use to screen applicants. A ChexSystems record can stay on file for five years.

If you cannot pay back the overdrawn amount, contact Bank of America to discuss a payment plan. The bank may work with you to avoid closure, especially if the overdraft is small or if you have been a customer for a long time.

Frequently Asked Questions

Can Bank of America charge me more than four overdraft fees in one day?

No. Bank of America caps overdraft fees at four per day, meaning the maximum you can be charged in a single day is $140. However, fees from different days can stack, so a week of overdrafts could result in much higher charges.

Does Bank of America charge overdraft fees on pending transactions?

No. Overdraft fees are charged only when a transaction posts, not when it is pending. However, the bank may place a hold on your available balance for pending transactions, which can make it appear that you have less money than you actually do.

What is the difference between overdraft fees and NSF fees?

An overdraft fee is charged when a transaction posts and your account goes negative. An NSF (non-sufficient funds) fee is charged when a check or ACH transfer is declined because there is not enough money. Bank of America charges $35 for both, but they are technically different situations.

If I have overdraft protection, will I ever be charged an overdraft fee?

Only if the linked account does not have enough money to cover the overdraft. If your savings account is empty and your checking account overdrafts, the transfer will fail and you will be charged the $35 overdraft fee instead.

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

Overdraft fees typically post within one to two business days of the transaction clearing. The exact timing depends on when the transaction posts and when the bank processes fees, which is usually overnight.