Bank of America charges an overdraft fee the same day your account goes negative, but the timing of when you see it depends on how transactions post
Bank of America charges its overdraft fee immediately when your account balance drops below zero. However, the fee does not always appear on the same calendar day the transaction posts, because of how the bank processes payments in batches overnight.
Here is what actually happens: when you make a purchase or withdrawal that takes your balance negative, Bank of America flags the account as overdrawn. The overdraft fee itself posts the next business day, usually between midnight and early morning. If you overdraw on a Friday, you will see the fee on Monday (assuming Monday is a business day). If you overdraw on a Saturday or Sunday, the fee posts on Monday.
The fee amount is $35 per overdraft transaction as of this writing, though Bank of America can change this amount. You are charged once per transaction that overdraws the account, not once per day. If five transactions overdraw your account on the same day, you pay five fees.
Key Takeaways
- Bank of America charges a $35 overdraft fee the day after a transaction takes your balance negative, posted overnight.
- You are charged one fee per overdrawn transaction, not one fee per day, so multiple purchases on the same day can result in multiple fees.
- The fee posts on the next business day, so overdrafts on weekends or holidays post on the following Monday or business day.
- Bank of America offers overdraft protection through linked savings accounts or lines of credit, which can prevent the fee from posting in the first place.
How Bank of America decides which transactions post first
The order in which transactions post affects whether you overdraw at all. Bank of America does not process transactions in the order you made them — it processes them in an order it chooses, which typically means largest transactions first.
This matters because if you have $100 in your account and you make a $60 purchase, then a $50 purchase, the bank may process the $60 first (leaving you with $40), then the $50 (taking you to -$10 and triggering a fee). If the transactions had posted in the order you made them, you would have gone negative on the first transaction instead, and paid only one fee rather than two.
You cannot control this order, but you can see it by checking your transaction history in your Bank of America online account or mobile app. The order shown there is the order the bank used to calculate overdrafts.
What happens if you deposit money before the fee posts
If you deposit money into your account after you overdraw but before the fee posts the next day, the deposit does not prevent the fee. Bank of America charges the overdraft fee regardless of whether you bring the account back to positive before the fee posts.
The fee posts as a separate transaction, so even if you deposit $100 and your balance is now positive, the $35 fee will still post and take you back into the negative. You would then owe the bank $35 plus whatever balance you had before the deposit.
Overdraft protection and how it stops fees from posting
Bank of America offers overdraft protection, which links your checking account to another account (usually a savings account or line of credit) and automatically transfers money to cover the overdraft before the fee posts.
If you have overdraft protection enabled and you overdraw, the bank transfers money from your linked account to bring your checking balance back to zero or positive. You pay no overdraft fee, but you may pay a transfer fee (usually $1 to $3) or interest on the borrowed amount, depending on which type of protection you chose.
You set up overdraft protection through your Bank of America online account under account settings, or by calling the bank. You choose which account to link and set a maximum transfer amount. The protection only works if the linked account has enough money to cover the overdraft.
The difference between overdraft fees and non-sufficient funds fees
Bank of America charges an overdraft fee when a transaction takes your balance negative and the bank covers it. The bank also charges a non-sufficient funds (NSF) fee when a transaction is declined because you do not have enough money.
The NSF fee is also $35 (as of this writing), and it posts the same day as the overdraft fee — the next business day. The difference is that with an NSF fee, the transaction itself does not go through, so you do not owe the merchant the money. With an overdraft fee, the transaction does go through, and you owe both the merchant and the bank.
Some transactions (like checks or automatic bill payments) may be covered as overdrafts even if you have opted out of overdraft coverage for debit card purchases. Check your account settings to see which transaction types are covered.
How to avoid overdraft fees
The simplest way to avoid overdraft fees is to keep a buffer in your account — money you do not spend. Many people keep $100 to $200 as a cushion so that small mistakes do not trigger fees.
You can also turn off overdraft coverage for debit card purchases through your Bank of America account settings. If you do this, debit card transactions will be declined instead of covered, and you will pay an NSF fee instead of an overdraft fee. This does not affect checks or automatic bill payments, which may still be covered.
Setting up overdraft protection with a linked savings account is another option if you have savings you can use. The transfer fee is usually lower than the overdraft fee, and you avoid going negative.
You can also set up balance alerts in your Bank of America mobile app so you get a notification when your balance drops below a certain amount. This gives you time to transfer money in before you overdraw.
What to do if you are charged an overdraft fee
If you are charged an overdraft fee and believe it was a mistake, you can contact Bank of America and ask them to reverse it. The bank does not have to reverse it, but they often will if you have a good account history and this is your first or second overdraft.
Call the customer service number on the back of your debit card or log into your online account and use the message center to request a reversal. Explain what happened and ask politely. The bank is more likely to reverse the fee if you can show that the overdraft was caused by a timing issue (like a deposit that posted late) rather than spending more than you had.
If the fee is not reversed, you can dispute it through your bank account, though disputes are usually for fraudulent charges rather than legitimate fees. The better approach is to prevent future overdrafts by using one of the methods above.
Frequently Asked Questions
Can Bank of America reverse an overdraft fee?
Bank of America can reverse overdraft fees, and they often do if you ask and have a good account history. Call the customer service number on your card or use the message center in your online account. The bank is more likely to reverse the fee if this is your first overdraft or if you can explain what caused it.
Do I get charged a fee for every day I am overdrawn?
No. You are charged one $35 fee per transaction that overdraws your account, not per day. If your account stays negative for a week, you pay one fee (unless another transaction overdraws it further). The fee posts the day after the overdraft occurs.
What is the difference between overdraft and insufficient funds?
Overdraft means the bank covered the transaction and your account went negative. Insufficient funds means the transaction was declined because you did not have enough money. Both charge a $35 fee, but with overdraft you owe the merchant; with insufficient funds you do not.
Does overdraft protection cost money?
Overdraft protection itself is free to set up, but you may pay a transfer fee ($1 to $3) each time the bank transfers money from your linked account, or interest if you use a line of credit. This is usually cheaper than a $35 overdraft fee.
If I deposit money on the weekend, does it stop the overdraft fee from posting?
No. The overdraft fee posts the next business day regardless of whether you deposit money after you overdraw. Even if your balance is positive when the fee posts, the fee will still post and take you back into the negative.