Bofa Overdraft Fee: What You Need to Know About NSF Fees and Linked Accounts

Bofa overdraft fees can be a real headache, especially if you're not aware of how they work. You'll be charged $35 per overdraft transaction, and that's on top of any other fees you may be charged.

Bank of America's overdraft fee policy is pretty straightforward: if you don't have enough money in your account to cover a transaction, you'll be charged an overdraft fee. This fee is charged per transaction, so if you have multiple transactions that overdraft your account, you'll be charged the fee multiple times.

You can avoid some of these fees by linking your accounts, but be aware that Bank of America will still charge you the overdraft fee if your linked accounts don't have enough money to cover the transaction. Linked accounts can be a convenient way to manage your finances, but they're not a foolproof way to avoid overdraft fees.

Overdraft fees can be a surprise, but it's essential to understand how they work. Bank of America charges an overdraft protection transfer fee when a transaction overdraws your eligible checking or savings account and transfers funds from another account.

This fee is charged for items over $1, so if you have a small transaction, you won't be hit with this fee. However, if you have a larger transaction, you'll need to be aware of this fee.

You'll also be charged a Non-sufficient Fund (NSF: Returned item) fee if Bank of America declines to pay or return an item because you don't have enough funds. This fee is charged for each returned item over $1.

It's worth noting that Bank of America offers various overdraft services to its customers, but it's crucial to understand the terms and fees associated with these services to avoid unexpected charges.

Managing overdraft fees requires some planning and awareness of your account balance. Bank of America now charges a flat fee of $10 per transaction, down from $35, starting in May 2022.

To avoid incurring multiple overdraft fees in a single day, track your account balance carefully. You can also use Bank of America's Balance Assist program, which charges a flat fee of $5 for borrowing up to $500, but keep in mind your account will be ineligible for overdraft protection.

If you do overdraft your account, you can withdraw up to $1,500 from Bank of America ATMs daily, but be aware each time you overdraw, you'll be charged an additional $10 fee.

Bank of America is leading the way in reducing overdraft fees, slashing them from $35 to $10, and eliminating non-sufficient funds fees altogether.

This change is set to take effect in May, giving customers a much-needed break from the financial strain of overdraft fees.

The bank's president of retail banking, Holly O'Neill, emphasizes the importance of empowering customers to create long-term financial wellness.

Overdraft fees are a major concern, with the average penalty hitting a record high of $33.47 in 2020.

In fact, Americans shelled out over $12 billion in fees for bounced checks and overdrafts last year.

Bank of America's move is a significant step towards reducing the financial burden on customers, and it's likely to set a precedent for other banks to follow.

The Consumer Financial Protection Bureau found that 5% of checking account holders overdraft more than 20 times per year, highlighting the need for more affordable banking options.

To avoid incurring multiple overdraft fees in a single day, customers should carefully track their account balance.

Bank of America now limits customers to a maximum of two overdraft fees per day, resulting in a total potential daily cost of $20 in overdraft fees.

Here are the new overdraft fee limits:

By taking control of their finances and tracking their account balance, customers can avoid the financial strain of overdraft fees.

You can withdraw up to $1,500 from Bank of America ATMs daily, even if you're overdrawing your account. This means you can cover larger expenses or unexpected costs.

Each time you overdraw your account at an ATM, Bank of America charges a $10 fee. This fee can add up quickly if you're not careful.

To avoid these fees, you can adjust your overdraft preferences through the mobile app or online banking, or visit your local bank branch.

The cost of a Bank of America overdraft fee can be a real punch to the wallet. It's a whopping $35 per overdraft, with a daily maximum of 4 overdrafts.

This means that if you're not careful, you could be facing a total of $140 in overdraft fees per day. That's a significant amount of money that could be better spent on something else.

To put that into perspective, let's say you have a $500 overdraft fee due to a series of small transactions. It would take you 14 days to pay off the fee, assuming you're only paying the minimum amount due each day.

To avoid Bank of America overdraft fees, you can change your overdraft settings by scheduling an appointment at a financial center or calling 800.432.1000. This will allow you to view and change how the bank handles your transactions when you don't have enough money.

One way to avoid overdraft fees is to sign up for Bank of America Overdraft Protection. This service links your eligible checking account to another Bank of America account, automatically transferring available funds to your checking account if you overdraw it.

You can also use Online Banking and Mobile Banking to avoid overdraft fees. These tools allow you to access your account information 24/7 and receive alerts and notifications when there's important activity on your account, such as a low balance.

If you do overdraft your account, you can try to cover the fee by transferring funds from a linked savings or eligible second checking account.

When you need to cover a $500 expense, you have options.

You can overdraft your account, but this depends on your account history and the proposed transaction amount.

Bank of America may pay for the transaction, overdraw your account, or decline it based on these factors.

Borrowing money from a cash advance app is another alternative if needed.

You can join a class action lawsuit against Bank of America if your claim is covered by the settlement criteria for a current BOA class action settlement.

Bank of America has settled several class action lawsuits over overdraft fees, including one for $66.6 million and another for $75 million. These settlements were reached after customers alleged that BOA charged multiple NSF fees and overdraft fees for a single transaction.

To join a class action lawsuit, you can register your claim on the claims administration website or follow the directions in a notice you may have received in the mail from Bank of America.

Calling Bank of America's customer service is a great way to dispute an overdraft fee and potentially get a refund. You can dial 1-800-432-1000 to speak to a live person.

The call center hours are Monday to Friday from 7 am to 10 pm, and Saturday and Sunday from 8 am to 5 pm EST. If you're unable to reach a live person, you can try contacting them during these hours.

To get started, state your purpose for the call, explaining that there was an overdraft fee charge on your account that you'd like to dispute. For example, you could say "There was an overdraft fee charge of ($000.00) on my account dated (date/month) that I would like to get a refund."

When explaining your situation, be honest and take responsibility for the overdraft. You could say something like "I lost track of my account balance because I was outside of the United States, and a check issued a long time ago recently got cashed." This shows that you're accountable for the mistake and willing to learn from it.

You can also mention if this is your first-time overdraft or if you've been a loyal customer, as Bank of America may consider waiving the fee in these cases. The key is to be sincere and explain your circumstances in a clear and respectful manner.

If you're unable to get a refund over the phone, don't give up. You can also try contacting Bank of America's customer service through the BoA app, using the 24/7 virtual financial assistant Erica.

Bank of America offers two main overdraft options for your checking account: Standard and Decline All. The Standard option will send you paychecks, schedule payments, and charge you an overdraft fee if your account balance is insufficient to cover the transaction amount.

If you choose the Decline All option, Bank of America will automatically decline any transaction that attempts to charge your account more than the available balance. This can help you avoid overdraft fees altogether.

Certain Bank of America accounts, such as the SafeBalance account, have lower monthly fees but do not permit overdrafts. This can be a good option if you're prone to overdrafting.

If you're interested in joining a class action lawsuit against Bank of America for overdraft fees, you can check the claims administration website for the settlement. Bank of America has agreed to settle several class action lawsuits, including one for $66.6 million and another for $75 million.

Here are the two overdraft options offered by Bank of America:

Bank of America has agreed not to charge multiple fees on a single transaction for five years as part of a recent settlement. This can help you avoid unexpected fees.

Bank of America has made significant changes to its NSF fee structure, removing the linked account transfer fees and insufficient funds (NSF) fees as of May 2022. This means you won't incur any charges for transferring funds between your linked accounts or for insufficient funds.

Most consumer checking accounts no longer incur NSF fees, which can result in significant savings for customers who may have bounced checks in the past.

An NSF fee is a charge imposed by Bank of America for returned items.

The fee is charged when you don't have enough available funds in your account to cover an item, and the bank declines to pay or return the item unpaid.

The NSF: Returned item fee is charged for each returned item over $1.

Bank of America used to charge $35 per returned check, but this fee has been significantly reduced.

As of May 2022, most consumer checking accounts no longer incur NSF fees, resulting in significant savings for customers who may have bounced checks in the past.

Bank of America has made some changes to its fee structure that can help you avoid NSF fees. As of May 2022, they've removed linked account transfer fees and NSF fees.

You won't incur any charges for transferring funds between your linked accounts or for insufficient funds. This is a big win for customers.

Bank of America will no longer charge you for overdraft protection transfers, as long as the item is $1 or less. This means you can breathe a sigh of relief when making small transactions.

Just remember that overdraft protection transfer fees still apply for larger transactions, but at least there's some protection from excessive fees.