Bank of America Allows You To Determine Your Overdraft Settings
If you have a Bank of America Advantage Plus Banking® or Advantage Relationship Banking® account, you can select between two overdraft options that can help you minimize overdraft fees. The Standard setting allows Bank of America to pay checks or scheduled payments at its discretion, even if it results in an overdraft fee. You’ll incur the $10 charge for every paid overdraft item — up to a limit of two per day.
If you select the Decline All overdraft option, Bank of America will automatically decline checks, scheduled payments or other charges that result in an overdrawn account. You won’t incur overdraft fees for returned items from Bank of America. However, the company you were supposed to pay may charge you a returned item fee and attempt to retry the transaction in the future.
Selecting the Decline All overdraft option protects you from overdraft fees, and it may be an ideal alternative if you’re concerned about overdrawing your account.
Remember that if you select the Decline All option, you may run into problems if a critical bill isn’t paid because you don’t have enough money in your account. For instance, if your monthly credit card payment is declined because of insufficient funds, the creditor may charge you a late fee. The late fee may be more than the $10 overdraft fee. In that case, allowing Bank of America to cover your payment and charge you the $10 overdraft fee is likely the better choice.
