Bank of America, like many other banks, charges overdraft fees when you spend more money than you have in your account. These fees can be significant, so it's important to understand how they work and how to avoid them.
What is an Overdraft Fee?
An overdraft fee is a charge that a bank imposes when you withdraw or spend more money than you have in your account. This can happen if you write a check for more than your balance, use your debit card to make a purchase that exceeds your balance, or pay a bill that is more than your available funds.
Bank of America's Overdraft Fee
Bank of America's overdraft fee is currently $35 per item. This means that each time you overdraw your account, you will be charged a $35 fee. For example, if you write a check for $100 but only have $50 in your account, you will be charged a $35 overdraft fee.
How to Avoid Overdraft Fees
There are a few things you can do to avoid overdraft fees:
- Keep track of your balance: This can be done by checking your account balance online, on your mobile app, or by calling customer service.
- Set up overdraft protection: This allows you to link your checking account to another account, such as a savings account, to cover any overdraft transactions.
- Use a debit card with overdraft protection: Some debit cards have built-in overdraft protection that will cover transactions that exceed your balance.
- Avoid making purchases that you know will overdraw your account: This may seem obvious, but it's important to make sure you have enough money available before you make a purchase.
Conclusion
Overdraft fees can be expensive, so it's important to understand how they work and take steps to avoid them. By keeping track of your balance, setting up overdraft protection, and avoiding purchases that may overdraw your account, you can help protect yourself from these costly fees.