How Much Does an Overdraft Fee Cost at Bank of America?
Bank of America (BoA) charges a $10.00 fee per overdraft item, with a limit of up to two overdraft fees per business day. If you’re wondering why it seems to be lower than before, BoA reduced the cost of their overdraft fees during the COVID-19 pandemic from $35.00 to $10.00.
BoA’s overdraft fee only applies to transactions that cause you to overdraft your account by more than $1.00. For example, if you make a purchase and your account only falls to -$0.50, you will not incur an overdraft fee.
💡 Note: Diamond tier members are eligible to have all overdraft fees waived. Platinum tier members can have one overdraft fee waived per statement cycle.
Does Bank of America Charge Overdraft Transfer Fees?
No, Bank of America doesn’t charge overdraft protection transfer fees. They used to charge $12.00 per Balance Connect transfer but they eliminated this charge in May 2022.
Related articles:
What is Balance Connect?
Balance Connect is an optional service for Bank of America’s overdraft protection which allows their customers to link up to five (5) other BoA accounts to an eligible checking account.
In the event of an overdraft, Balance Connect automatically transfers available funds from your linked accounts to cover the overdraft amount.
Not all BoA accounts are eligible for linking, however. Qualified accounts include but aren’t limited to:
- Savings or secondary checking account
- Line of credit
- Credit card
💡 Note: Accounts that are set to decline all overdrafts aren’t eligible for Balance Connect since they are exempt from overdraft fees in the first place. These accounts are BoA Advantage Savings, BoA Advantage SafeBalance Banking, and BoA Minor Savings Account.
How to Enroll In BoA Balance Connect in the App
To enroll in Balance Connect through the BoA App, follow these steps:
- Sign in to the Bank of America Mobile App
- Select the Checking Account you want to connect
- Go to the Account Management Section by scrolling down
- Select Balance Connect for Overdraft Protection
- Toggle Balance Connect On
- Choose up to Five Eligible Accounts to connect
- Select Next at the bottom of the page
- Review the Terms & Conditions and Press Save
Does Bank of America Charge NSF fees?
Bank of America doesn’t charge NSF fees for declined transactions. However, merchants or payees may still charge you with fees associated with declined transactions.
💡 Note: A non-sufficient funds fee (NSF) is usually charged to those who overdraft their account without overdraft protection.
What Is an Overdraft Fee?
Bank of America issues you an overdraft fee (overdraft item fee) when you don’t have enough money in your account to complete a transaction but the bank pays for the transaction anyway. This will cause your account to have a negative balance, and you will incur a fee on top of it.
Transactions that can trigger an overdraft item fee include:
- Checks or other transactions made using your checking account number
- Recurring debit card transactions (e.g. gym memberships, streaming service subscriptions)
- ACH transactions
- Online or automatic bill payments (e.g. auto-pay utility bills, credit card payments)
Bank of America can cover other types of overdraft transactions, but you first have to opt into overdraft protection. In addition to the transactions covered by the overdraft item fee, other types of transactions covered by overdraft protection include:
- Every day, non-recurring debit card transactions (gas, groceries, etc.)
- ATM withdrawals
Bank of America is not obligated to cover any transactions that overdraft your account, regardless of transaction type or overdraft protection status. The decision is ultimately at the bank’s discretion.
How to Avoid an Overdraft Fee at Bank of America
Overdraft fees are one of the most common charges detected on Cushion customers’ accounts, but there are small actions that you can take to avoid them:
- Keep an eye on your account balance and charges.
- Sign up for low-balance notifications.
- Carefully consider whether you should opt into overdraft protection.
Learn more about how to avoid an overdraft fee.
How to Get an Overdraft Fee Refund
Sometimes, overdraft fees are inevitable. But we’ve got great news for you! If you get hit with one, that’s not the end of it. You can try to get Bank of America overdraft fees refunded.
Here’s how you can increase your chances of success.
Prepare your information
Name, address, bank account number, the fees that you’d like to negotiate, and possibly your social security number.
Introduce yourself
“Hello. My name is , and I recently received an overdraft fee while using my card. I’m contacting you to see if you would be willing to refund this fee.”
Have your points of leverage ready
Have you been financially affected by COVID-19? Are you a loyal customer who has banked with the institution for an extended period of time? Do you have multiple accounts with the bank? Do you make regular deposits? Is this overdraft a rare occurrence?
Be patient, persistent, and prepared not to get a refund every time
A little kindness goes a long way. Remember: The representative that you’re speaking with on the phone likely didn’t write the rules on refunds. But also, don’t hesitate to press the issue if you initially hear “no”—that’s what your points of leverage are for. Sometimes, success depends on the representative that you speak with, so try calling back a few days later to speak with someone new. Finally, you have to be willing to lose some negotiations. Try not to get discouraged, but do try to take the necessary steps to avoid an overdraft fee in the future.
Learn more about how to get an overdraft fee refund.
Find Bank of America’s full fee schedule here.
