Bank of America lets you overdraft through three separate systems, each with different rules and costs

Bank of America does not automatically overdraft your account. Instead, you choose which overdraft service to use — or you can choose none at all. The bank offers Overdraft Protection (which pulls money from a linked account), Overdraft Services (which covers checks and ACH transfers for a fee), and Debit Card Overdraft (which lets your debit card go negative in limited cases). Each one works differently, costs different amounts, and requires you to set it up in advance.

If you do nothing, Bank of America will decline transactions that exceed your balance. You will not overdraft by accident. The bank will not charge you an overdraft fee unless you have specifically turned on one of these services.

Key Takeaways

  • Overdraft Protection transfers money from a linked savings account or credit line to cover shortfalls, with no fee if the transfer succeeds.
  • Overdraft Services covers checks and ACH transfers for $35 per transaction, and you must turn it on through your online banking or in a branch.
  • Debit Card Overdraft allows small debit card purchases to go negative up to a limit, charged at $35 per overdraft.
  • Bank of America will not overdraft your account unless you have chosen one of these services in advance.
  • You can turn any of these services off at any time through your online account or by calling customer service.

Overdraft Protection: Moving money from another account

Overdraft Protection is the least expensive option because it does not charge a fee if the transfer works. When a transaction would overdraft your checking account, Bank of America automatically transfers money from a linked savings account, money market account, or credit line to cover it. The transfer happens instantly, and you pay no fee.

You must link the account yourself before you can use this service. Log into your Bank of America online banking, go to the Transfers section, and set up a linked account as your overdraft protection source. You can only link accounts you own at Bank of America. If the linked account does not have enough money when you need it, the transaction will be declined and you will not be charged a fee.

This service is free to set up and free to use. The only cost is if you overdraft the linked account itself — for example, if you transfer $500 from your savings account to cover a check, and that leaves your savings account negative. In that case, you would face overdraft fees on the savings account instead.

Overdraft Services: Covering checks and bank transfers for a fee

Overdraft Services is different from Overdraft Protection. This service allows checks and ACH transfers (like bill payments sent from your bank) to go through even if your balance is negative. Bank of America charges $35 per transaction that overdraws your account. You must turn this service on; it is not automatic.

Overdraft Services does not cover debit card purchases or ATM withdrawals — only checks and ACH transfers. If you write a check for $500 and your balance is $200, the check clears and you go to -$300. Bank of America charges you $35 for that overdraft. If you then write another check, that is another $35 charge.

To turn on Overdraft Services, log into your Bank of America online account, go to Account Services, and look for Overdraft Services under Alerts & Services. You can also call 1-800-432-1000 or visit a branch. Once it is on, it stays on until you turn it off. There is no limit to how many overdrafts you can incur in a day, so multiple transactions can result in multiple $35 fees.

Debit Card Overdraft: Small purchases that go negative

Debit Card Overdraft is a separate service that covers debit card purchases and ATM withdrawals — the things Overdraft Services does not cover. When you use your debit card and your balance is too low, Bank of America can allow the transaction to go through, charging you $35 per overdraft. This service is also not automatic; you must turn it on.

Bank of America sets a limit on how much you can overdraft with your debit card. The limit varies based on your account history and relationship with the bank, but it is typically between $100 and $500. You cannot overdraft beyond that limit, even if you want to. Once you hit the limit, debit card transactions will be declined.

To turn on Debit Card Overdraft, use your online banking account or call customer service. Like Overdraft Services, this stays on until you turn it off. Each overdraft transaction costs $35, so if you make three debit card purchases while overdrawn, you will be charged $35 three times.

How to turn overdraft services on or off

You control whether you use any of these services. To turn Overdraft Protection on, link a savings account or credit line through your online banking under Transfers. To turn Overdraft Services or Debit Card Overdraft on, go to Account Services in your online banking and find the Overdraft Services section, or call 1-800-432-1000.

To turn any service off, go to the same place you turned it on and select the option to disable it. You can also call customer service or visit a branch. Changes usually take effect immediately, though it can take up to one business day. If you turn off Overdraft Services or Debit Card Overdraft, future transactions that would overdraft your account will simply be declined instead.

Bank of America will not charge you overdraft fees for transactions that are declined. You only pay the $35 fee if the transaction goes through and your account goes negative.

What happens when you overdraft: Fees and repayment

Each overdraft transaction that goes through costs $35. If you overdraft multiple times in one day, you pay $35 for each one. Bank of America does not charge a daily overdraft fee — only a per-transaction fee. However, if your account stays negative for several days, the fees can add up quickly.

You repay the overdraft by depositing money into your account. There is no special repayment plan; you simply bring your balance back to zero or positive. Once your balance is positive, you stop incurring overdraft fees. If you overdraft on a Friday and do not deposit money until Monday, you will not be charged additional fees for those days — only the initial $35 per transaction that went through.

If your account stays negative for an extended period, Bank of America may close your account. The bank also reports negative account history to ChexSystems, a banking record system that other banks use to decide whether to open accounts for you. Repeated overdrafts can make it harder to open accounts at other banks.

Overdraft Protection versus Overdraft Services: Which to choose

Overdraft Protection is the cheapest option if you have a linked savings account or credit line with money in it. There is no fee, and the transfer is automatic. The downside is that you need another account with available funds, and if that account runs low too, you will face overdraft fees on it instead.

Overdraft Services and Debit Card Overdraft both cost $35 per transaction. The difference is what they cover: Overdraft Services handles checks and ACH transfers, while Debit Card Overdraft handles debit card purchases and ATM withdrawals. Many people turn on both if they want overdraft protection for all types of transactions.

If you do not turn on any of these services, transactions that exceed your balance will simply be declined. You will not be charged a fee, but the transaction will not go through. This is the safest option if you want to avoid overdraft fees entirely.

Frequently Asked Questions

Can I overdraft my Bank of America account without turning on a service?

No. Bank of America will decline any transaction that exceeds your balance unless you have specifically turned on Overdraft Protection, Overdraft Services, or Debit Card Overdraft. You will not overdraft by accident.

What is the difference between Overdraft Protection and Overdraft Services?

Overdraft Protection transfers money from a linked account with no fee. Overdraft Services charges $35 per transaction and covers checks and ACH transfers only. Overdraft Protection is free but requires another account with money; Overdraft Services costs money but does not require a linked account.

How many overdraft fees can I be charged in one day?

Bank of America charges $35 per transaction that overdraws your account. If you make five transactions while overdrawn, you pay $35 five times. There is no daily cap on overdraft fees, though the bank may close your account if overdrafts become frequent.

Can I turn off overdraft services after I have already overdrafted?

Yes. You can turn off Overdraft Services or Debit Card Overdraft at any time through your online banking or by calling customer service. Turning it off does not erase fees you have already been charged, but it prevents future transactions from overdrafting your account.

What happens if I do not repay an overdraft?

If your account stays negative for an extended period, Bank of America may close your account and report the negative balance to a collection agency. The bank also reports to ChexSystems, which can make it difficult to open accounts at other banks in the future.