Yes, Bank of America allows overdrafts on most checking accounts, but the terms depend on your account type and whether you have overdraft protection turned on.

Bank of America offers two ways to cover overdrafts: overdraft protection, which links your checking account to a savings account or credit line, and overdraft fees, which charge you when you spend more than your balance. If you have neither set up, the bank will decline transactions that exceed your balance—no overdraft occurs at all.

The key difference is control. With overdraft protection, you choose the backup source before you need it. Without it, you pay a fee each time you overdraft, and the fee applies whether you overdraft by $5 or $500. Bank of America's standard overdraft fee is $35 per transaction as of the most recent update, though this can change.

Key Takeaways

  • Bank of America allows overdrafts on checking accounts if you have overdraft protection enabled or if you opt in to overdraft coverage for debit card and ATM transactions.
  • Overdraft protection links your checking account to a savings account or credit line so transfers happen automatically when you overspend.
  • Without overdraft protection, the bank charges $35 per overdraft transaction, and you can face multiple fees in a single day.
  • You can turn overdraft protection on or off through your Bank of America online account, mobile app, or by calling customer service.
  • Opting out of overdraft coverage means debit card and ATM transactions will be declined rather than charged an overdraft fee.

How overdraft protection works at Bank of America

When you set up overdraft protection, you link your checking account to either a Bank of America savings account or a Bank of America credit line. If you spend more than your checking balance, the bank automatically transfers money from the linked account to cover the shortfall. This happens in real time, so the transaction goes through instead of being declined.

The transfer itself is free—you pay no fee for using overdraft protection. However, if you transfer from a savings account, you may eventually hit federal limits on how many transfers you can make per month (though these rules have loosened in recent years). If you link a credit line, you're borrowing money and will owe interest on the borrowed amount.

Bank of America also offers a feature called overdraft coverage for debit card and ATM transactions. This is separate from overdraft protection. If you opt in to overdraft coverage, the bank will allow debit card purchases and ATM withdrawals to go through even if they overdraft your account—but you'll pay the $35 fee for each transaction that overdraws.

Setting up or changing overdraft protection

You can manage overdraft protection through your Bank of America online account or mobile app. Log in, go to your checking account settings, and look for "Overdraft Protection" or "Overdraft Options." From there you can link a savings account or credit line, or turn the feature on and off.

If you prefer to speak with someone, call Bank of America customer service at the number on the back of your debit card. They can walk you through the setup and answer questions about which backup account makes sense for your situation. Changes usually take effect within one business day.

You can also visit a Bank of America branch in person. Bring your account number and the account or credit line you want to link as your overdraft source. A representative will set it up on the spot.

What happens if you overdraft without protection

If you don't have overdraft protection and you spend more than your balance, Bank of America charges you $35 per transaction that overdraws. This fee applies to debit card purchases, checks, ACH transfers, and other payments. The bank can charge multiple fees in a single day if multiple transactions overdraft your account.

You can opt out of overdraft coverage for debit cards and ATM withdrawals. When you do, those transactions will simply be declined instead of going through and charging a fee. Checks and ACH transfers will still overdraft your account and incur fees unless you have overdraft protection set up.

Once you overdraft, you need to deposit money to bring your account back to a positive balance. The bank does not automatically reverse overdraft fees, though you can request a reversal if this is your first overdraft or if you have a good account history. There's no may provide the bank will waive the fee, but it's worth asking.

Overdraft protection versus overdraft fees: which is right for you

Overdraft protection makes sense if you occasionally spend slightly more than your balance and want to avoid fees. The cost is zero as long as you have a linked savings account with money in it or a credit line you can draw from. The downside is that you might not notice you're overspending, which can mask a larger budgeting problem.

Overdraft fees are the default if you don't set up protection. They're expensive—$35 per transaction—and they add up fast if you overdraft multiple times. However, they create a hard stop: when your account runs dry, transactions decline, which forces you to notice and adjust your spending.

A middle ground is to opt out of overdraft coverage for debit cards and ATM withdrawals (so those decline) but keep overdraft protection for checks and ACH transfers (which can't be declined and would otherwise overdraft). This way, everyday spending stops when you run out of money, but critical payments like rent or utilities still go through if you have a backup source.

Frequently Asked Questions

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

Yes, if you have overdraft coverage turned on. The ATM will allow the withdrawal even if it overdraws your account, and you'll be charged $35. If you opt out of overdraft coverage, the ATM will decline the withdrawal instead.

Does Bank of America charge overdraft fees on every transaction that overdraws?

Yes. Each transaction that overdraws your account incurs a separate $35 fee. If you make five purchases that each overdraft your account on the same day, you could face $175 in fees. The bank does not combine multiple overdraws into a single fee.

What if I don't have a savings account to link for overdraft protection?

You can link a Bank of America credit line instead. When you overdraft, the bank transfers money from the credit line to your checking account. You'll owe interest on the borrowed amount, but there's no overdraft fee. You can also open a savings account specifically to use as an overdraft backup.

Can I get an overdraft fee reversed?

Bank of America may waive an overdraft fee if you request it, especially if it's your first overdraft or you have a long history of good account standing. Call customer service or visit a branch to ask. There's no may provide, but the bank has discretion to reverse fees in some cases.

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

Overdraft protection automatically transfers money from a linked account when you overspend—no fee. Overdraft coverage allows debit card and ATM transactions to go through even when they overdraft your account, but you pay a $35 fee for each one. They're separate features you can turn on or off independently.