Bank of America is one of the most prominent banks in the US. Like any other bank, it too charges overdraft fees. An overdraft charge applies when a person with a savings account uses their debit card for money withdrawal or writes a check that is for a sum more than the current balance. In both cases, an overdraft fee will apply, and the bank will either decline the transaction due to insufficient funds or pay the transaction on your behalf. Each time overdrawn occurs in your account, Bank of America charges $10 in overdraft fees. Let us learn ‘How to Avoid Bank of America Overdraft Fees?’ in this article.
The overdraft fee is a costly bank charge. Fortunately, if you understand how they operate, you can prevent them. Regardless of the type of account you have, one of two overdraft penalties will be charged if you attempt to take too much money from your Bank of America checking account. It is important to manage and track your expenses properly to avoid overdraft fees.
Fees from Bank of America include:
Common Overdraft Item Fee: $10 in cases where Bank of America pays for your transaction.
Non-Sufficient Funds – Standard Fee for Returned Items: When a transaction is refused and returned unpaid, there is a returned item of $10 as a fee.
The number of overdraft fees that Bank of America will allow you to incur each day is capped. Two overdrafts or returned items of penalties can apply to consumer total accounts.
How to Avoid Overdraft Fees at Bank of America?
There are a few things you can do to save yourself from rejected transactions and fees for account overdrawing. How to avoid overdraft fees is as follows:
- Checking up on the balance of the account
Log into the account just to verify the balance before using an ATM or writing a check. Once you’re sure there is enough money in the account and proceed with your transaction.
- Create a reserve for account checking
Put aside some money, say $100—to keep it in the account at all times. Never touch this money or rely on it to cover personal expenses. You won’t incur an overdraft fee if you unintentionally make a charge that is a tiny bit more than the amount of money you first believed to have in the account because you will pay it from your buffer.
- Join the overdraft protection program
By connecting the checking account to your credit card, savings account, and other Bank of America products, Balance Connect® overdraft services from Bank of America offer overdraft protection. As a result, the bank will make a deduction from your linked account for such transactions that are bigger than your balance. Every day the service is used, there is a $12 overdraft transfer fee.
- Pay with a proxy account
If you are aware that the balance in the checking account will soon expire, don’t take a chance of paying an overdraft fee. Instead, utilise a credit card or money from a savings account to make your purchase.
Another way to avoid overdraft penalties is to use the Bank of America Advantage SafeBalance Banking® account. With this straightforward checking account, there are no overdraft fees. If there are not enough funds in the account, then transactions will be rejected or returned unpaid.
Why Do Bank of America Overdraft Fees Apply?
Any withdrawal from the account results in a negative balance and charges you an overdraft fee. However, if the account balance is insufficient to cover the transaction, Bank of America will refuse ATM withdrawals or routine debit card payments.
Is it possible to avoid paying Bank of America overdraft fees?
It can be possible to receive a reimbursement for the overdraft cost even if you are at fault. Customers of Bank of America can phone their nearby branch and courteously request that the fee be waived. If you are not a repeat offender, this strategy works well. Contacting a customer service agent over the phone at 1-800-432-1000 is an additional choice.
Conclusion:
To prevent paying Bank of America overdraft penalties, maintain track of your expenditures. Your budget could suffer greatly from a lack of finances. When the balance of your account falls below the daily cap of two overdrafts of $10 each, the bank may charge you up to $20 each day.
Frequently asked questions:
- How to avoid paying Bank of America overdraft fees?
It can be possible to receive a reimbursement for the overdraft cost even if you are at fault. Customers of Bank of America can phone their branch and request that the fee is waived. If you are not a repeat offender, this strategy can work well. Contacting a customer support agent over the phone at 1-800-432-1000 is another choice.
- How long is an account allowed to be overdrawn?
Most of the time, you have five business days or seven calendar days to adjust the balance before the extended overdraft fee pushes the account even farther into the red. Some banks only charge this fee every five days, while others charge it daily until your balance rises over zero.
- Is it offered overdraft courtesy at Bank of America?
Spend only what is in account with the use of our Bank of America Advantage SafeBalance Banking® account. Transactions will be rejected or returned unpaid if there is insufficient money in an account to cover them, preventing you from being overdrawn.
