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How To Avoid Bank of America Overdraft Fees

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An overdraft fee is generated when a checking account holder withdraws cash using their debit card or writes a check for an amount greater than the account’s current balance. The bank will either reject the transaction due to insufficient funds or pay the transaction on your behalf — and you’ll incur the overdraft fee in either case.

Bank of America, Member FDIC, overdraft fees are $10 each time you overdraw your accountUnderstand Bank of America’s overdraft policy so you can avoid this costly bank fee.

How Much Bank of America Overdraft Fees Cost

Overdraft fees are one of the most expensive bank fees. Fortunately, you can avoid them if you know how they work. No matter which type of Bank of America checking account you have, you’ll be subject to an overdraft fee if you attempt to withdraw too much money from your account. The Bank of America overdraft fee is:

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Bank of America caps the number of overdraft fees you can be charged in a day. Consumer accounts are subject to a total of two overdraft or returned item fees.

What Triggers Bank of America Overdraft Fees

Bank of America will decline ATM withdrawals and everyday debit card purchases when your account balance doesn’t cover the transaction. In this case, you will not be charged a fee.

However, recurring transactions like bill payments and scheduled debit card transactions will overdraw your account and incur the $10 fee.

How To Avoid Bank of America Overdraft Fees

You can do a few things to protect yourself from declined transactions and penalties for overdrawing your account. Here’s how to avoid overdraft fees:

Step-By-Step Guide

  1. Check your account balance. Before using the ATM or writing a check, log on to your account and view the current balance. Continue with your transaction after you’ve verified that you have enough money in your account.
  2. Build a checking account buffer. Save up an amount, such as $100, to always keep in your account. Never touch this money or count on it to pay your bills. In the event you accidentally make a charge that’s a little over what you thought you had in the account, you’ll pay it from your buffer instead of generating an overdraft fee.
  3. Sign up for overdraft protection. Bank of America offers Balance Connect® overdraft services that provide overdraft protection by linking your checking account to your Bank of America savings account or credit card. This ensures that the bank will withdraw the difference from your linked account if you make a transaction that’s larger than your balance.
  4. Pay with a different account. Don’t risk incurring an overdraft fee if you know your checking account balance is running low. Instead, pay with funds from a savings account or use a credit card.

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Another way to avoid overdraft fees is by using the Bank of America Advantage SafeBalance Banking® account. This no-frills checking account has no overdraft fee. Transactions will be declined or returned unpaid if you have insufficient funds in your account. However, the account does charge a monthly fee unless you meet the requirements to waive it.

Advice

Stay on top of your bank balances and what you’re spending to avoid Bank of America overdraft fees. Insufficient funds can really take a bite out of your budget. The bank can charge you as much as $20 per day when your account goes into the negative, which is the daily limit of two overdrafts of $10 each.

How To Get Bank of America Overdraft Fees Waived

Even when you are at fault, it might be possible to get an overdraft fee refund. Bank of America customers can call their local branch and politely ask to have the fee waived. This method works best if you’re not a repeat offender. Another option is to speak with a customer service representative by phone at 1-800-432-1000.

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Cynthia Bowman contributed to the reporting for this article.

Information is accurate as of Sept. 29, 2022.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.