How Much Is My Overdraft Fee for Bank of America?

Introduction

An overdraft occurs when your checking account doesn't have enough funds to cover a bill payment, purchase, or other transaction. One of the best ways to avoid overdrafts is to regularly monitor your account balance and ensure you have enough funds. Depending on your account type and transaction, Bank of America may or may not charge overdraft fees. Continue reading to learn more about overdrafts and how much Bank of America charges for them.

Overdraft Item Fees

When Bank of America determines that your account doesn't have sufficient funds to cover a transaction, it may either pay the item or return it unpaid. If the bank covers the transaction despite insufficient funds in your account, that's considered an overdraft item. Bank of America currently charges a $10 overdraft fee for each overdraft item it pays. However, overdraft fees and policies may change over time, so it's always a good idea to review the latest account fee schedule for the most up-to-date information.

The following Bank of America accounts don't incur overdraft item fees:Bank of America Advantage SafeBalance for Family BankingBank of America Advantage SafeBalance BankingBank of America Advantage SavingsThese accounts are generally set to a "Decline All" overdraft setting. This means that if there are insufficient funds available to cover a transaction, Bank of America will typically decline or return the item rather than pay it and create an overdraft. As a result, customers with these account types can avoid overdraft item fees.

What's Considered an Overdraft Item

Examples of transactions that may result in an overdraft item include recurring debit card payments, ACH transactions, ATM withdrawals, and automatic bill payments. If your available balance is insufficient to cover one of these transactions and Bank of America chooses to pay the item, you may be charged an overdraft fee. However, Bank of America limits overdraft fees to a maximum of two overdraft item fees per day.

Bank of America doesn't charge an overdraft item fee for these types of transactions:On everyday non-recurring ATM or debit card transactionsAuthorized items when the account had enough fundsAccounts on Decline All Overdraft settingACH submission labelled as REDEPCHECK or RETRY PYMTItem that is $1 or lessDo note that the payee may charge a fee for the transaction mentioned above.

Enroll in Balance Connect to Avoid Overdrafts

Bank of America also offers Balance Connect services that allow eligible customers to link up to 5 Bank of America accounts to a checking account, helping cover transactions when funds are low. This can help customers avoid overdraft fees, declined transactions, and other issues associated with insufficient funds.

To enroll in Balance Connect, sign in to Online or Mobile Banking and go to Account Management. Then tap Balance Connect for Overdraft Protection. Make sure it's turned on. Once turned on, you'll be able to choose up to 5 backup accounts to avoid overdraft fees.

Conclusion

Did you incur an overdraft fee? One of the best ways to avoid overdrafts is to maintain sufficient funds in your account and enroll in Balance Connect to link eligible backup accounts. You may also choose a "Decline All" overdraft setting, which helps prevent overdraft fees by declining or returning transactions when funds are insufficient. Keep in mind that while this setting can help you avoid overdraft fees, the payee may still charge a fee or penalty for a returned or declined payment. Do you have additional questions about overdraft fees? Contact Customer Support today.