Understanding Bank of America's Overdraft Policies and Limits

## What is an Overdraft? An overdraft occurs when you withdraw more money from your bank account than is available. This can happen through checks, debit card transactions, or automatic bill payments. When this occurs, the bank may cover the shortfall, but typically charges a fee for this service. ## Standard Overdraft Fees and Recent Changes Bank of America made significant changes in 2022 to benefit customers: 1. Reduced overdraft fees from $35 to $10 2. Eliminated non-sufficient funds (NSF) fees 3. Removed transfer fees for [overdraft protection](https://www.bankofamerica.com/deposits/overdrafts-and-overdraft-protection/) Additional fee-related policies include: * No overdraft fees on transactions under $1 * Maximum of 4 overdraft fees per day * Grace period until end of business day to deposit funds ## Overdraft Protection Options ### Balance Connect® Bank of America's primary overdraft protection service allows you to link up to five eligible accounts to your checking account, including: * Savings account * Secondary checking account * Credit card * Line of credit When your checking account has insufficient funds, money is automatically transferred from the linked accounts to cover the transaction. ### Advantage SafeBalance® Banking > "Prevention is better than cure" applies perfectly to overdraft management. The [Advantage SafeBalance® Banking account](https://www.bankofamerica.com/deposits/checking/advantage-banking/) helps avoid overdrafts by: * Declining transactions when sufficient funds aren't available * Eliminating overdraft fees completely * Providing real-time balance alerts ## Daily Overdraft Limits | Transaction Type | Maximum Overdraft Allowed | |-----------------|---------------------------| | ATM withdrawals | $0 (declined if insufficient funds) | | Debit card purchases | Based on account history | | Checks and ACH | Typically up to $500-$1,000 | ## Managing Overdrafts To avoid overdraft fees, consider these strategies: ### Set Up Alerts Configure balance alerts through: ``` - Mobile banking app - Online banking portal - Text messages ``` ### Additional Tips * Monitor your account balance regularly * Use online banking or the mobile app to track transactions * Maintain a budget to ensure sufficient funds * Consider keeping a small buffer in your account * Set up automatic payment scheduling * Review account activity for errors or unauthorized transactions ## Grace Period and Resolution If your account becomes overdrawn, Bank of America provides: 1. A **5 business day** grace period to bring your balance positive 2. The ability to have fees refunded in certain circumstances 3. Support for setting up payment arrangements *** ## Additional Resources For more detailed information about overdraft services and policies: * Visit a local Bank of America branch * Call customer service at 1-800-432-1000 * Review the [official fee schedule](https://www.bankofamerica.com/deposits/resources/personal-schedule-fees.go?cm_mmc=EBZ-FactsAboutFees-_-vanity-_-RC01VN000A_fees-_-03282017) * Access the mobile banking app * Visit [Bank of America's overdraft services page](https://www.bankofamerica.com/deposits/overdrafts-and-overdraft-protection/) Remember that policies may vary by state and account type, so it's always best to verify specific details with your local branch or through official Bank of America channels.

Understanding Bank of America's Overdraft Policies and Limits

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