Bank of America's overdraft fee is $35 per transaction

Bank of America charges $35 for each transaction that overdraws your account. This means if you make a purchase, write a check, or use your debit card when you don't have enough money in your account, the bank will process the transaction anyway and then charge you $35.

The fee applies whether you overdraw by $1 or $100. Bank of America will charge up to four overdraft fees per day, meaning you could owe $140 in fees in a single day if four separate transactions overdraw your account. The bank also charges a $35 "sustained overdraft fee" if your account stays negative for more than five consecutive business days.

These fees are separate from any other charges you might face. If you overdraw and then make another purchase before the account is back in the positive, that second purchase triggers its own $35 fee.

Key Takeaways

  • Bank of America charges $35 for each transaction that overdraws your account, up to four times per day.
  • A sustained overdraft fee of $35 kicks in if your account stays negative for more than five consecutive business days.
  • Bank of America's Overdraft Protection service can link your savings account or credit line to cover overdrafts, but it may charge a transfer fee.
  • You can turn off overdraft coverage for debit card and ATM transactions to prevent overdrafts from going through in the first place.
  • Opting out of overdraft coverage means transactions will be declined rather than processed and charged.

How overdraft fees actually get charged

The timing of when Bank of America charges overdraft fees matters. The bank processes transactions in a specific order each day, and that order can affect how many overdraft fees you pay. Larger transactions often post before smaller ones, even if you made the smaller purchase first. This means your account can go negative sooner than you expected, triggering fees on transactions that would have cleared if they had posted in a different order.

Once a transaction overdraws your account, the fee is charged immediately. You'll see both the transaction amount and the $35 fee deducted from your balance. If your account is already negative and you make another purchase, that second purchase also triggers a $35 fee, even though you're already overdrawn.

The sustained overdraft fee is different. If your account stays below zero for five consecutive business days, Bank of America charges an additional $35. This fee can keep accumulating every five days your account remains negative, so a prolonged overdraft becomes expensive quickly.

Overdraft Protection: how it works and what it costs

Bank of America offers Overdraft Protection, which automatically transfers money from another account to cover overdrafts. You can link your savings account, money market account, or credit line to your checking account. When a transaction would overdraw your checking account, the bank transfers money from the linked account instead.

The transfer itself is free, but there's a catch: if you use Overdraft Protection to transfer from a credit line, Bank of America charges interest on that borrowed amount just like any other credit line balance. If you transfer from a savings account, there's no fee, but you're moving money out of savings and potentially losing interest on it.

Overdraft Protection only covers overdrafts that would occur—it doesn't prevent you from overspending. You still need to track your balance and make sure you have enough money. The service simply moves money around so you don't get hit with the $35 overdraft fee.

Turning off overdraft coverage to prevent fees

Bank of America lets you opt out of overdraft coverage for debit card transactions and ATM withdrawals. If you turn this off, your debit card or ATM card will simply be declined if you don't have enough money in your account. You won't be charged a fee, and the transaction won't go through.

This is different from opting out of overdraft coverage entirely. You can choose to keep overdraft protection for checks and automatic bill payments while turning it off for debit cards and ATMs. Many people do this because checks and automatic payments are harder to monitor in real time, while debit card declines give you immediate feedback that you're out of money.

To change your overdraft settings, log into your Bank of America account online, call customer service, or visit a branch. The bank will walk you through which types of transactions you want to allow to overdraw and which ones you want declined.

What happens if you can't pay back an overdraft

If your account stays overdrawn, the fees keep adding up. After five business days, you'll be charged the $35 sustained overdraft fee. If your account is still negative after another five business days, you'll be charged another $35. This can happen multiple times if you don't deposit money to bring your account back to zero.

Bank of America may also close your account if it stays overdrawn for an extended period or if you have a pattern of overdrafts. A closed account gets reported to ChexSystems, a banking history database that other banks use to decide whether to open accounts for you. This can make it harder to open a new account elsewhere.

If you're overdrawn, the fastest solution is to deposit money to cover the negative balance plus the fees. Some people contact Bank of America to ask about fee reversals, especially if it's a first offense or if the overdraft was caused by a bank error. The bank has discretion to reverse fees, but there's no may provide.

How Bank of America's fees compare to other banks

Bank of America's $35 overdraft fee is in the middle of the range for large national banks. Some banks charge $25 to $30 per overdraft, while others charge $35 to $40. Credit unions often charge less—sometimes $20 or even $15 per overdraft. Online banks frequently charge no overdraft fees at all because they don't offer overdraft coverage as a standard feature.

The sustained overdraft fee also varies. Some banks charge it after three days instead of five, while others don't charge one at all. If you're frequently overdrawn, switching to a bank with lower fees or no overdraft coverage could save you hundreds of dollars per year.

The fee structure also matters. Some banks cap the number of overdraft fees you can be charged per day (Bank of America allows up to four), while others have no daily cap. A few banks charge overdraft fees only on the first overdraft in a statement period, not on every transaction.

Steps to avoid overdraft fees

The most straightforward way to avoid overdraft fees is to keep a buffer in your checking account—money you don't plan to spend. Even $100 or $200 can prevent most accidental overdrafts. Check your balance before making large purchases or paying bills.

Set up balance alerts through Bank of America's mobile app or website. You can choose to receive a notification when your balance drops below a certain amount, giving you time to transfer money in before you overdraft. The bank sends these alerts for free.

If you have irregular income or variable expenses, consider using Overdraft Protection with a linked savings account. This way, if you accidentally overdraw, money transfers automatically and you avoid the $35 fee. Just remember to replenish your savings account so you don't deplete it.

Review your account activity regularly. Look for recurring charges you've forgotten about or subscriptions you're no longer using. These small charges add up and can push your balance negative without you realizing it.

Frequently Asked Questions

Can Bank of America reverse an overdraft fee?

Bank of America can reverse overdraft fees at its discretion, but it's not automatic. If you contact the bank and explain the situation—especially if it's your first overdraft or if the bank made an error—they may reverse one or more fees. There's no may provide, and the bank is more likely to reverse fees for long-time customers with good account history.

Does Bank of America charge overdraft fees on pending transactions?

Overdraft fees are charged on transactions that post to your account, not on pending transactions. However, pending transactions do count toward your available balance, so they can affect whether future transactions overdraw your account. A transaction that's pending won't trigger a fee by itself, but it can cause the next transaction to overdraw.

What's the difference between overdraft fees and NSF fees?

Bank of America charges an overdraft fee when it allows a transaction to go through even though you don't have enough money. An NSF (non-sufficient funds) fee would be charged if the bank declined the transaction instead. Since Bank of America has overdraft coverage by default, you'll see overdraft fees, not NSF fees, unless you've opted out of overdraft protection.

How long does it take for an overdraft to be reversed?

Once you deposit money to cover an overdraft, the negative balance is reversed immediately. However, if you're asking about a fee reversal (the bank canceling the $35 charge), that can take a few business days to process after the bank approves your request.

Will an overdraft hurt my credit score?

An overdraft itself doesn't directly hurt your credit score because Bank of America doesn't report overdrafts to credit bureaus. However, if your account goes to collections because you don't pay back the overdraft, that collection account will appear on your credit report and damage your score.