Bank of America does not set a fixed overdraft limit

Bank of America does not tell you in advance how much you can overdraft. There is no preset number — no "$500 limit" or "$1,000 limit" that the bank publishes. Instead, the bank decides whether to cover each transaction as it happens, based on your account history, how much you have in the account, and the size of the transaction itself.

This means you could overdraft by $50 on one day and have a $200 overdraft declined the next day. The bank is not being inconsistent — it is making a judgment call each time. You cannot know your overdraft limit until you try to spend more than you have, and by then you may have already triggered an overdraft fee.

Key Takeaways

  • Bank of America does not publish a maximum overdraft amount; the bank decides case by case whether to cover each transaction.
  • Overdraft fees are $35 per transaction if you overdraft, whether you overdraft by $1 or $500.
  • You can turn off overdraft protection for debit card and ATM transactions to prevent overdrafts entirely, though checks and automatic payments may still overdraft.
  • The bank can cover multiple overdrafts in a single day, and you can be charged $35 for each one, up to a daily maximum that varies by account type.
  • Overdrafts are not assistance programs — the bank expects you to deposit funds to cover the negative balance within a few business days.

How Bank of America decides to cover an overdraft

When you attempt a transaction that would take your account below zero, Bank of America runs a quick internal check. The bank looks at your account age, your typical balance, whether you have overdrafted before, and how often you deposit money. Newer accounts with low balances and a history of overdrafts are less likely to be covered. Established accounts with regular deposits are more likely to be covered.

The bank also considers the type of transaction. A $20 debit card purchase is more likely to be covered than a $500 one. A check is treated differently than an ATM withdrawal. There is no published formula, so you cannot calculate your limit yourself — the decision happens inside the bank's system in seconds.

If the bank decides to cover the transaction, you will see the purchase go through, but your account balance will go negative. You will then owe the bank that amount plus a $35 overdraft fee.

Overdraft fees and daily limits

Each overdraft transaction costs $35. If you make three separate purchases that overdraft your account on the same day, you will be charged $35 three times — $105 total. Bank of America does cap the number of overdraft fees you can be charged in a single day, but the limit depends on your account type. Most checking accounts cap out at four overdraft fees per day, meaning a maximum of $140 in fees for one day.

The fees add up quickly. A $15 overdraft can cost you $50 when you add the fee. If you overdraft multiple times before you notice, you can owe hundreds of dollars in fees alone, on top of the original negative balance.

Bank of America also charges a fee if your account stays negative for more than five business days. This is called a sustained overdraft fee, and it is separate from the per-transaction overdraft fee.

Turning off overdraft protection for debit cards and ATMs

You can prevent overdrafts on debit card purchases and ATM withdrawals by opting out of overdraft protection. When you opt out, the bank will simply decline the transaction instead of covering it. Your card will be rejected at the register, or the ATM will refuse to give you cash. This stops you from overdrafting, but it also means you cannot make the purchase or withdrawal.

To opt out, log into your Bank of America online account, go to Account Settings, and look for Overdraft Protection or Overdraft Coverage. You can turn it off for debit cards and ATMs separately. The change takes effect within one business day.

Important: opting out of overdraft protection does not stop checks or automatic bill payments from overdrafting your account. Those transactions can still overdraft you even if you have turned off overdraft protection for debit cards. You have to monitor your balance separately to avoid overdrafting on checks and automatic payments.

What happens after you overdraft

Once your account goes negative, you owe Bank of America the full negative balance plus the overdraft fee. The bank does not charge interest on the overdraft itself, but it does expect you to deposit money to cover it within a few business days. If you do not, the bank may close your account and report you to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you.

If you overdraft repeatedly — more than a few times in a year — Bank of America may close your account without warning. The bank considers frequent overdrafts a sign that you cannot manage the account responsibly.

You can also negotiate with the bank. If you overdraft once and immediately deposit money to cover it, you can call Bank of America and ask them to reverse one or two of the fees as a courtesy. They will not always agree, but they sometimes will if you have been a customer for a long time and this is your first overdraft.

Alternatives to overdrafting

If you are worried about overdrafting, you have other options. You can link a savings account to your checking account and set up automatic transfers. If your checking account balance drops below a certain amount, the bank will automatically move money from savings to checking. This costs nothing if you have the money in savings, and it prevents an overdraft.

You can also set up balance alerts. Bank of America will send you a text or email when your balance drops below a number you choose — say, $100. This gives you a warning before you overdraft, so you can stop spending or deposit money.

A third option is to use a different bank. Some banks offer no overdraft fees at all, or they cap the total fees you can be charged per month. If you overdraft frequently, switching banks might save you hundreds of dollars per year.

Frequently Asked Questions

Can Bank of America overdraft me by more than my account balance?

Yes. The bank can cover a transaction even if it takes your balance far below zero. If you have $50 and try to buy something for $200, the bank may cover it and leave you with a negative balance of $150 plus a $35 fee. The bank is not required to set a limit on how negative your account can go.

Will Bank of America tell me my overdraft limit?

No. Bank of America does not publish overdraft limits. You will not find a number in your account settings or in your welcome materials. The only way to find out is to attempt a transaction and see if it is covered.

Do I have to pay overdraft fees if I opt out of overdraft protection?

Not for debit cards and ATM withdrawals — those will be declined instead. But checks and automatic bill payments can still overdraft you even if you have opted out, because overdraft protection for those transactions cannot be turned off. You have to monitor your balance to avoid overdrafting on checks.

How long do I have to pay back an overdraft?

Bank of America does not set a formal deadline, but the bank expects you to deposit money within a few business days. If your account stays negative for more than five business days, you will be charged an additional sustained overdraft fee. If it stays negative for weeks, the bank may close your account.

Can I overdraft my Bank of America savings account?

No. Overdraft protection only applies to checking accounts. Savings accounts cannot overdraft. If you try to withdraw more than you have in savings, the transaction will be declined.