Yes, you can overdraw a Bank of America account, but only if you have overdraft protection enabled

Bank of America allows overdrafts on most checking accounts, but the bank does not turn this on automatically. You have to opt in to overdraft protection — a choice you make when you open the account or later through your online banking portal or by calling the bank. Without it, transactions that would take your balance below zero are simply declined at the point of sale or ATM.

If you do have overdraft protection turned on and you spend more than you have, Bank of America will cover the transaction. You then owe that money back to the bank, plus a fee. The fee structure and the amount you can overdraw depend on which type of account you have and which overdraft service you choose.

Key Takeaways

  • Bank of America overdraft protection is optional — you must turn it on yourself; it does not happen by default.
  • The bank charges an overdraft fee each time your account goes negative, currently $35 per transaction for most checking accounts.
  • You can link a savings account or credit card to cover overdrafts automatically, which avoids the fee if the transfer succeeds.
  • Bank of America allows overdrafts up to a limit that varies by account type and your banking history, typically $100 to $1,200.
  • If you do not repay the overdraft within a set time, the bank may close your account and report you to ChexSystems, making it harder to open accounts elsewhere.

The two ways Bank of America covers overdrafts

Bank of America offers two separate overdraft services, and you can use one, both, or neither. The first is Overdraft Protection, which links your checking account to another account you own — usually a savings account or money market account at Bank of America. When a transaction would overdraw your checking account, the bank automatically transfers money from the linked account to cover it. If the transfer works, you pay a transfer fee (currently $10) rather than an overdraft fee.

The second service is Overdraft Assistance, which lets the bank cover the overdraft directly without a linked account. This is the service that triggers the $35 overdraft fee per transaction. You can turn Overdraft Assistance on or off separately from Overdraft Protection, and you can set daily limits on how much the bank will cover.

Many people use both: they set up Overdraft Protection to their savings account as the first line of defense, and keep Overdraft Assistance on as a backup in case the savings account does not have enough money to cover the transfer.

How much you can overdraw and what it costs

The amount Bank of America will let you overdraw depends on your account type and your history with the bank. For most checking accounts, the overdraft limit ranges from $100 to $1,200. The bank does not publish a formula for how it sets your limit — it is based on factors like how long you have banked with them, your direct deposit history, and your account balance patterns.

If you use Overdraft Assistance (the service that covers overdrafts without a linked account), you pay $35 per transaction that overdraws your account. Bank of America also charges a sustained overdraft fee of $35 per day if your account stays negative for more than five consecutive business days. This means if you overdraw on a Monday and do not deposit money until the following Monday, you could owe multiple daily fees on top of the transaction fee.

If you use Overdraft Protection instead and transfer money from a linked savings account, you pay a $10 transfer fee rather than the $35 overdraft fee. This is why linking an account is often the cheaper choice if you have savings available.

How to turn overdraft protection on or off

You can manage your overdraft settings through the Bank of America website, mobile app, or by calling customer service at 1-800-432-1000. In the mobile app or online, look for "Account Services" or "Overdraft Settings" in your checking account menu. You will see separate toggles for Overdraft Protection (the linked account transfer) and Overdraft Assistance (the direct coverage with fees).

If you want to set up Overdraft Protection, you will need to link a savings account or money market account that you own at Bank of America. The bank will not let you link an account at another bank. Once linked, the transfer happens automatically whenever a transaction would overdraw your checking account.

For Overdraft Assistance, you can also set a daily maximum — for example, you might allow the bank to cover up to $100 in overdrafts per day but no more. This acts as a safety limit to prevent fees from piling up if you make multiple transactions while overdrawn.

What happens if you stay overdrawn too long

If your account stays negative for more than five consecutive business days, Bank of America begins charging the daily sustained overdraft fee ($35 per day) in addition to any transaction fees you already owe. The bank will send you notices asking you to bring the account current, but they are not required to wait indefinitely.

If your account remains overdrawn for 60 days or more, Bank of America may close the account. When an account is closed due to overdraft, the bank reports it to ChexSystems, a banking history database that other banks check when you try to open a new account. A ChexSystems report can make it difficult or impossible to open a checking account at most banks for several years, even if you eventually pay back the overdraft.

The best way to avoid this is to deposit money as soon as you realize you are overdrawn, or to turn off Overdraft Assistance if you do not want to risk the fees. Turning it off means transactions will simply be declined instead of going through and charging you.

Overdraft protection versus having money in the account

Overdraft protection is a safety net, not a substitute for budgeting. Every overdraft costs you money — either the $10 transfer fee or the $35 transaction fee, plus potentially daily fees if you stay overdrawn. Over time, these fees add up and can turn a small shortfall into a much larger debt.

The cheapest overdraft is the one that does not happen. If you find yourself overdrawing regularly, the real problem is usually that your income and expenses are not aligned. Consider setting up a budget, using your bank's spending alerts, or asking your employer to split your direct deposit between checking and savings so that money is automatically set aside.

If overdrafts are a pattern for you, you might also look into whether a different account type would work better — some banks offer accounts with lower minimum balances or no overdraft fees at all, though they may have other trade-offs.

Frequently Asked Questions

Can Bank of America overdraft my account without my permission?

No. Overdraft protection is optional, and you must turn it on yourself. If you have not opted in, transactions that would overdraw your account will be declined. However, some transactions like automatic bill payments or checks may process before you realize your balance is low, so it is worth checking your overdraft settings even if you think you turned them off.

What is the difference between overdraft fees and NSF fees?

An overdraft fee is charged when the bank covers a transaction that would take your balance negative. An NSF (non-sufficient funds) fee is charged when a transaction is declined because you do not have enough money. If overdraft protection is off, you pay NSF fees instead of overdraft fees. Bank of America charges $35 for NSF as well, so the cost is the same either way.

If I link my savings account for overdraft protection, can the bank take money from it without asking?

Yes. When you set up Overdraft Protection, you are authorizing the bank to transfer money from your linked savings account to your checking account automatically whenever a transaction would overdraw. The transfer happens without a separate request each time. You can turn this off at any time through your account settings.

How long does it take to turn off overdraft protection?

You can turn off Overdraft Assistance or Overdraft Protection immediately through the mobile app or website. The change takes effect right away, though transactions already in process may still go through and trigger fees. If you call customer service, they can turn it off over the phone as well.

Will paying back an overdraft remove it from my ChexSystems report?

Paying back the overdraft stops the fees and prevents further damage, but it does not remove the closed account from your ChexSystems report immediately. The report stays on file for five years from the date the account was closed. However, paying it back does show good faith and may help you open an account at a bank that reviews ChexSystems reports more leniently.