Banking » Guides » How Bank of America Overdraft Fees Work? How to Waive It?
Advertiser Disclosure This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.

How Bank of America Overdraft Fees Work? How to Waive It?

While Bank of America charges overdraft fees, customers can waive them in many ways. Here's what you should know
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

Does Bank Of America Charge Overdraft Fees?

Until May 2022, the fee was $35 but it has decreased to $10, so the Bank of America overdraft fee is now $10.

However, it has been restricted to two per day instead of four per day. The only payments that result in an overdraft of more than $1 are subject to the charge. Also, with Bank of America Advantage SafeBalance Banking®, there are no overdraft fees.

Additionally, Bank of America no longer charges an overdraft protection transfer fee.  

However, it can be suspended if your balance is not swiftly brought back to a positive level. If you have a negative balance for several months, they can also charge you collection fees and have your account closed.

The following transactions may lead to overdraft fees:

  • Audits executed with your checking account number
  • Repeated debit card payments
  • ACH transfers
  • Automatic digital Bill payments 
BofA Manage debit Card
Example: manage Bofa debit card (Screenshot taken by our team from Bank Of America app)

How Much Bank Of America Overdraft Fee Compared to Other Banks?

Many banks and other financial institutions revised their overdraft policy in recent years. This is a more prevalent benefit of internet banking, but it is not the only one.

In order to avoid overdraft costs, several of them now provide a grace period and other options. If you considering a new account with Bank Of America, you may want to compare fees.

The following banks do not impose an overdraft fee:

  • Axos Bank
  • Ally
  • Capital One 360
  • Discover
  • Citibank
  • Chime

For example, if we compare Bank of America and Chase, we can see that Bank of America has much lower fees. Chase charges a maximum of only 3 times per business day ($105 overall), while Bank of America can charge you 2 times per day ($20 overall).

Bank/institution
Overdraft Fee
Max Per Day
bank of america bank logo
Bank of America
$10
2 per day
Learn More
TD_Bank logo
TD Bank
$35
3 per business day
Learn More
pnc bank logo
PNC Bank
$36
4 per 24 hours
Learn More
Wells_Fargo-Logo
Wells Fargo
$34
3 per business day
Learn More
us bank logo
US Bank
$36
4 times per day
Learn More
chase bank logo
Chase Total Checking®
$35
3 per business day
Learn More

Sign Up for

Our Newsletter

Join our community for the latest attractive savings rate changes ,expert insights, and member-only perks

How Can I Get Bank of America To Waive Or Refund Overdraft Fees?

You might get help from Bank of America if you monitor your account and find any overdraft fees. You have the following options to get your overdraft fees waived.

Call customer support to explain your circumstance and request a refund. Bank of America can always contest charges like overdraft fees. You can start the conversation by:

  • Explain the purpose of your call.
  • Provide rational reasons for a refund.
  • Be polite and accept your mistake.
  • Assure them it will not happen again intentionally.

If the call doesn’t work, then go for any of the following ways:

  • Set up a meeting with a BoA specialist in the closest Bank of America location.
  • Connect with the Bank of America’s customer service manager.
  • Post a general letter to the Bank of America or email a customer representative. 
BofA set an appointment with specialist
(Screenshot from Bank Of America app)

It is better to avoid overdraft fees. You can avoid overdraft fees by implementing these tips:

  • Tip#1: Do not have overdraft protection on debit cards. If there is not enough money, they cancel transactions without overdraft protection. However, most institutions do not impose penalties for failed debit card requests because of insufficient funds.
  • Tip#2: Ensure your amount isn’t too low by checking your accounts once a week or even more regularly. Alerts can simplify the procedure of checking your balance.
BofA monitor your money Set Up Alerts
BofA monitor your money (Screenshot from Bank Of America app)

Does Bank of America Offer 24 Hours Overdraft Fee Policy?

There was no concept of 24 hours grace period for the overdraft fees, unlike some other banks offering their customers a 24-hour time until overdraft costs take effect.

The Bank of America has adjusted its overdraft options and services to lessen clients’ reliance on them. It also provides customers tools for responsible management of their deposit accounts and total finances.

photo illustration Bank of America logo
(Photo by BestStockFoto/Shutterstock)

How Does Bank of America’s Overdraft Protection Work?

With balance connect® for overdraft protection, you can link up to 5 additional Bank of America accounts to your eligible checking account.

Available funds will then be automatically transferred from your linked backup account(s) to cover transactions that are greater than the available balance in your checking account.

Bank of America will immediately transfer funds from another connected account and access the overdraft account.  There is no cost to set up Balance Connect®. and there are no transfer fees when you use Balance Connect®.

If you’ve linked one or more backup accounts, the bank will transfer cash in the designated sequence from each account. Even if there are many transactions, each associated backup account will only make one transfer to your checking account.

Unless it can fund at least one transaction, the bank will not charge you for an overdraft protection payment.

BofA Overdraft protection
BofA Overdraft protection (Screenshot from Bank Of America app)

How Balance Connect by the bank of America Can Help You Avoid Overdraft Fee?

Customers can avoid overdraft penalties using Balance Connect.  It is a means for the customers to lower that expense. Customers can use Balance Connect to connect up to five additional Bank of America accounts to their checking accounts.

For a $12 transaction fee, Balance Connect can immediately move funds across accounts if a consumer seeks to overspend their checking account.  You can use the balance connect after registering. To register:

  • Call the number listed on your bank statements to set up Balance Connect overdraft protection.
  • Set up using the mobile banking app of Bank of America or digital banking,
  • You can also schedule a visit at a nearby financial institution.

Setting up Balance Connect is free. When using Balance Connect, no transfer fees apply. If you withdraw money from your savings account or make transfers out of it, including transfers using Balance Connect, they can charge you a Withdrawal Limit Fee.

Does Using Bank Of America Debit Card Can Cause Overdraft?

Bank of America removed the overdraft system from the debit card (unless it's repeatedly purchased).

Customers who attempt to use their debit cards to make purchases without sufficient funds in their bank account will have their transactions denied. If the inconvenience or shame is less severe for you than owing an overdraft fee, it’s a strategy to avoid a penalty.

Bank of America is also getting ready for a new regulatory oversight that will compel them to ask account holders for approval before offering overdraft protection for debit transactions and ATM withdrawals. 

FAQs

No, the Bank of America doesn't have a grace period of 24 hours for overdrafts.

 

As of May 2024, The Bank of America allows you to have two overdrafts a day.  

There is no set amount for the refund policy. Bank of America waives the overdraft fees based on the conditions and reasons

There is no limit to the overdraft amount, but the bank may reduce to accept a transaction. However, the BofA does not charge for overdrafts less than $5. 

Basically yes, it should be charged overnight.  These transactions may not show up in your balance.

Overdraft fees are occasionally refunded by Bank of America.  So be honest and sincere when describing your situation to increase your chances of success.

Negative balances act as outstanding debts and a bank may initiate legal action and close your account. If you have a Bank Of America credit card, it may be canceled as well.

Checking Accounts Reviews

Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Search
Best Checking Accounts
Top Offers From Our Partners

Chase_logo

Promotion:
$300 New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account and make direct deposits totaling $500 or more within 90 days of coupon enrollment.. Expired on 7/24/2024
Chase Overdraft Assist
With Chase Overdraft AssistSM, you won’t be charged an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day

UpgradeLogo

Fees:
No monthly fees No monthly fees and no overdraft fees. Plus get reimbursed for ATM fees with an active account 
Rewards:
Up to 2% cash back Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases 

Promotion:
$300 Use Promo Code “AXOS300” for a $300 bonus when you apply for a Rewards Checking account
Up to 3.30% APY
to get the maximum rate (up to $50,000) you’ll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).

PNC bank logo

Promotion:
Up to $400 Open a new, select Virtual Wallet product and receive $500/$2,000/$5,000 or more in qualifying monthly direct deposits within 60 days to earn a $100/$200/$400 bonus.
Subject to state availability
PNC Virtual Wallet ® is available in AL, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MD, MI, NC, NJ, NY, NM, OH, PA, SC, TX, VA, WI, and WV. Virtual Wallet ® is offered in the state of MO with the exception of the Greater Kansas City area. Product availability may vary based on where you open your account and the Zip code of your primary address.

penfed personal loan

APY on Daily Balances
0.15% APY on daily balances of less than $20,000 or 0.35% APY on daily balances of $20,000 up to $50,000
Get paid up to 2 days early
Set up direct deposits and get your paycheck up to 2 days early

Promotion:
Up to $4,000 New customers may earn up to $4,000 when they open an eligible HSBC Premier checking account from January 8, 2024 through March 27, 2024 and complete qualifying activities:

• Receive a cash bonus of $1,500 when you deposit or invest $100,000 – $199,999.99

• Receive a cash bonus of $2,000 when you deposit or invest $200,000 – $299,999.99

• Receive a cash bonus of $2,500 when you deposit or invest $300,000 – 499,999.99

• Receive a cash bonus of $3,500 when you deposit or invest $500,000+

• Earn an extra $500 when you set up recurring monthly Direct Deposits totaling at least $5,000 for 3 months
Wealth Products & Advice
Get access to wealth products, insights and advice from an HSBC Financial Professional through HSBC Securities (USA) Inc
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
Top Offers From Our Partners

UpgradeLogo

Savings Rate: 5.21% APY
Minimum Deposit:
$0
 
CIT-Bank-Logo
Savings Rate: 5.00% APY
Minimum Deposit:
$5,000
Quontic bank logo
Savings Rate: 4.50% APY
Minimum Deposit:
$100
 
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

#1 In Banking

Our Newsletter

Get expert advice, insider tips, fresh banking promotions and rate changes on savings accounts and CDs

Banking Promotions & Latest Rate Updates

Our Banking Newsletter

Sign up for our newsletter and gain access to expert advice,
insider knowledge, and exclusive updates