At some point in life, we need an extra buck to settle bills or get groceries for the home — but the question that often recurs was how do I get this extra fund? It is no news that certain banks allow customers to take an overdraft over a specific limit, with charges to be repaid for. Overdraft protection is a legal agreement between a financial institution and a customer to cover overdrafts on a checking account. This agreement warrants that a fee is charged over a preset maximum amount. Let us know Can You Overdraft Bank Of America?
The Bank of America allows for overdraft, although there have been several changes in policy over the years that you may want to consider before taking a bank overdraft from the BOA.
Bank Of America Announces Slash Of Overdraft Fees
On the 11 of January 2022, the Bank of America announced a new update in policy, related to its overdrafts. The second-largest bank in America, in a publication released on their website, reveals that there would be a new change in the number of fees it charges customers when they take a bank overdraft.
The bank will be reducing the fees from $35 to $10 effective in May 2022. Additionally, it will also halt charging fees for bounced checks. That is, whenever a transaction is rejected due to non-sufficient funds (NSF), no fees would be charged.
Examples of transactions that can propel an overdraft on your account include;
- Automated Clearing House transactions
- Recurring card transactions. For instance Gym subscriptions, Streaming services like Netflix, Amazon Prime, etc.
- Transactions are made using your checking account number.
- Automated bill payments.
Furthermore, BoFA can offset several other kinds of bank overdraft but would require that you are opt-in for overdraft protection.
What Is Overdraft Protection?
After you opt-in for overdraft protection, the bank will be able to cover up for other kinds of overdrafts such as ATM withdrawals, and daily transactions like food, gas, groceries shopping, cloth shopping, etc. In addition to the updated policy, customers of the BoFA would no longer be able to overdraw from the ATM, and transfer fees associated with the Bank of America Balance connect service will be removed in May 2022.
What Is The Balance Connect Service For Bank Overdraft?
Balance connect for Bank overdraft is an optional service that allows you to link up to 5 Bank of America checking accounts that automatically transfer money from the linked accounts (backups) to cover a transaction that surpasses the available balance on your checking account. Balance connect service will allow you to avoid bank overdrafts, bounced checks, and declined transactions.
How To Enroll A Balance Connect For Bank Overdraft?
To set up or manage your preferences on Balance Connect, visit the BoFA mobile banking app, Online banking, or contact your account officer.
How Much Does It Cost To Set Up A Balance Connect For Bank Overdraft?
There is no fee attached to setting up a Balance Connect for a Bank overdraft. According to a statement on the Bank of America website, a single transfer fee may be charged when an overdraft protection transaction occurs. Also, overdraft protection transfers from linked savings accounts have a monthly limit of six (6) withdrawals. Hence, a service fee would be charged after exhausting monthly limits.
Asides from the update in the change of policy, the Bank of America offers a suite of Essential Solutions that provide transparency, low costs, and assistance to budget, save and spend appropriately. Some of these essential solutions include the following;
- Financial Education: The Bank offers a free money management plan that allows its customers to have access to tools, resources, and information that allows them to take charge of their finances.
- Secured Bank Card: The BankAmericard allows customers to boost and rebuild their credits. It also allows for an opportunity to apply for a security deposit starting from $300. Likewise, with remarkable credit behavior, the customers can be able to improve their credit scores.
- Balance Connect: With Balance Connect, clients are allowed to link up to 5 checking accounts while increasing flexibility and access to funds through digital management.
- Balance Assist: Clients are allowed to manage their temporary cash needs by lending only the amount they need from $5 to $500.
- Safe Balance: When Safe Balance is in place, there will not be a charged fee for overdraft incurred. Also, there is a waiver for the monthly maintenance fee for eligible individuals as well as clients registered for the Preferred Rewards program (PRP).
Conclusion
As a customer of the Bank of America, you can access overdraft for recurring and automated transactions that incur a service charge of $10. Although, several updates denote the policy change which may mean that certain transactions such as ATM withdrawals would no longer be allowed for a bank overdraft. If you experience any difficulties accessing a bank overdraft, kindly reach out to their customer service via (877) 366-1121 or via their website.
Frequently Asked Questions
Q: How much does Bank Of America charge for an overdraft?
A: The Bank Of America charges $10 for an overdraft starting May 2022.
Q: What are the eligibility requirements for a bank overdraft from BofA?
A: You are automatically eligible to overdraft but it is required that you are opt-in for overdraft protection if you wish to extend your overdraft to daily transactions.
Q: How can I stop overdraft?
A: Always make sure to have enough money in your account to cover the items you intend to buy and other upcoming payments. You can as well monitor your account balance via the mobile app to ensure that you have enough money for your transactions.
Q: Why was my transaction declined?
A: Without overdraft protection, a one-time debit card transaction such as groceries shopping would be declined and wouldn’t be charged an NSF fee. This also applies to ATM withdrawals. Other transactions such as recurring payments and automated bill payments may be allowed to go through. Hence, you’d be charged an overdraft fee.
