Overdraft fees are annoying at the best of times but extended overdraft fees? Well, they can seem a tad unfair when you’re already strapped for cash. If you have questions about the Bank of America extended overdraft fee or want to know about their overdraft settings in general, this article explains more.

Bank of America overdraft protection

Bank of America has two overdraft settings; Standard and Decline-All. The Standard setting allows checks or scheduled payments to be approved at the bank’s discretion, subject to an Overdraft Item Fee of $35 or an Overdraft Protection Transfer fee of $12.

The Decline-All setting, when enabled, means that Bank of America will decline or return transactions when you don’t have enough money in your account. The cost for an NSF: Returned Item Fee is $35.

No more than four Overdraft Item Fees or NSF fees are charged per day. If you have Overdraft Protection, you’ll only be charged one transfer fee per each day that a transfer is made.

A complete list of fees associated with Bank of America’s Core Checking Account can be found here.

How long before Bank of America charges overdraft fee

With regard to Bank of America’s typical overdraft fees, if your account is in overdraft by more than $1 by the time Bank of America finishes its processing for the day, you’ll be charged a fee. (Or possibly multiple fees depending on how many transactions have been paid and whether or not you have Overdraft Protection).

If you go overdrawn, but manage to bring your account back to a positive balance within the same day of processing, you won’t be charged.

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Does Bank of America charge an extended overdraft fee?

Until recently, Bank of America would charge an Extended Overdrawn Balance Charge (EOBC) if your checking account remained in a negative balance for more than five consecutive business days. On the sixth day, you’d be charged an additional $35, in addition to the usual overdraft fees.

However, Bank of America has agreed to suspend their EOBC charges for a period of five years, following a settlement reached in a class action lawsuit that they are currently involved in. The lawsuit challenges their EOBCs as allegedly violating the National Bank Act’s usury limit.

The Court hasn’t decided which side is right, but a settlement of $66.6 million has been tentatively approved with the final hearing due at the end of August.

Bank of America overdraft fees refund

Bank of America’s consumer checking account customers who have incurred one or more $35 EOBCs between February 25, 2014, and December 30, 2017, may be entitled to compensation from the settlement, providing it receives court approval.

If you’re eligible for compensation, you can find out more about your options and follow the progress of the case online.

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Is your overdraft protection working for you?

If you want to look at other ways to avoid overdraft fees, as opposed to overdraft protection from your bank, there are several overdraft apps available that you might want to explore. As a starting point, check out these two apps below:

  • Dave app – this app can loan you a cash advance from your next paycheck, of up to $75 at 0% interest. Once you’ve connected your bank account to the app and uploaded your pay stubs, Dave will alert you when you’re close to overdrafting, helping you to monitor and keep control of your finances. If you need the cash advance, you’ll simply pay it back when you get your paycheck.
  • Earnin app – with Earnin, you can access your paychecks earlier than usual, directly from your smartphone. Initially, you could withdraw up to $100 per day as a cash advance, with this limit increasing to as much as $500 per day, once you become an established user.

Ultimately, the very best way to avoid overdraft fees is to get your finances firmly on track with enough money in your checking and savings account to ensure you won’t be a position where you end up overdrafting unexpectedly. Try a budgeting app to help you save more and spend less.

*Disclaimer: while every effort has been made to ensure the accuracy of the information presented in this article, it may be subject to change.

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