Bank of America Review – Is Bigger Better?
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BoA is one of the largest banks in America with several checking and savings account options.
8/10
Cost
7/10
Features
9/10
Ease of use
8/10
Services
9/10
Your personal finances can be a lot easier to manage if you do all of your banking at one bank. You don’t have to, of course. You may be OK juggling multiple accounts for a home loan, investments, savings, checking, and credit cards, among other financial needs.
Or you can do what 69 million U.S. consumers do and have some, if not all, of your financial activities at Bank of America. It’s the second-largest bank in the country, with $3.18 trillion in total assets, behind only JPMorgan Chase & Co.
Bank of America offers many services, which we’ll touch on, but our main focus is showing how checking and savings accounts work so you can pick the best account that fits your daily needs.
In this article
What is Bank of America?
As we’ve said, it’s a large bank. Not only does it have millions of customers and assets, but it has 3,800 branches and 15,000 ATMs. It services approximately 10.73% of all American bank deposits. The FDIC insures BoA’s deposits.
Now called BoA for short, Bank of America was started in 1904 as Bank of Italy by Amadeo Pietro Giannini to help Italian immigrants who faced service discrimination by various banks. Giannini acquired Banca d’America e d’Italia (Bank of America and Italy) in 1922.
The bank now offers various financial services, including checking, savings, credit cards, home loans, auto loans, and investing services.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Bank of America checking and savings accounts
Bank of America has three types of checking accounts and three savings accounts. It has accounts for students, everyday customers with basic banking needs, and those with high balances.
It also has CDs that pay a set interest rate for a deposit kept at the bank for a certain amount of time and offers individual retirement accounts, or IRAs, to help people save for retirement.
Customers with high balances get extra perks, such as waived monthly maintenance fees, free use of non-BoA ATMs, a higher savings account rate, and other things in what the bank calls Preferred Rewards. We’ll explain the three reward tiers in more detail later, but they start for account balances of $20,000.
Bank of America checking accounts
A Bank of America checking account isn’t limited to one type. BoA has three Advantage Banking checking accounts. Each has a monthly service fee that can be waived by meeting minimum balance requirements or having direct deposits of at least $250 monthly.
Here is how the accounts work:
- Advantage SafeBalance: For high school, college, or vocational school students. A monthly $4.95 maintenance fee is waived if you are under 25 and enrolled in school. The account doesn’t have overdraft fees.
- Advantage Plus: Everyday banking for non-students. A $12 account fee is waived for having a $250 direct deposit each month or keeping a $1,500 minimum daily balance.
- Advantage Relationship: Meant for customers with high balances. This checking account earns interest and doesn’t charge fees for some services. A monthly $25 fee is waived for having $10,000 in linked accounts or enrolling in Preferred Rewards.
Bank of America savings accounts
BofA has two types of savings accounts. One is for everyday use, and the other two are for children:
- Advantage Savings: This savings account pays 0.01% APY, though Bank of America Preferred Rewards members can earn 0.02%, 0.03%, and 0.04% more by having $20,000, $50,000, or $100,000, respectively, in their combined accounts at BofA. The monthly maintenance fee is $8 unless the minimum daily balance is $500 or it’s linked to an Advantage Relationship account. The minimum deposit to open an account is $100.
- Minor Savings Account: There is no monthly maintenance fee if the child is under 18. This joint account is owned by the minor and a parent or guardian. The child can access the funds before the age of 18. The account pays interest, requires $25 to open, and has no minimum daily balance requirement.
Bank of America fees
Every Bank of America savings or checking account charges a monthly maintenance fee, except for the Minor Savings Account, if the child is under 18.
The monthly fees are waived for meeting at least one other requirement, depending on which account you have:
- Direct deposit of $250 per month.
- $1,500 minimum daily balance in checking account.
- Under age 24 and in school.
- $500 minimum daily balance in a savings account or linked to a high-balance checking account.
- A high-balance account, Advantage Relationship, requires $10,000 in linked accounts.
Otherwise, monthly banking account maintenance fees range from $4.95 to $25. Most people should be able to waive the fees simply by having $250 per month in direct deposits to their Bank of America Advantage Plus banking account for checking or keeping at least $500 in a savings account.
Like many other banks, BoA charges fees for extra services. The checking account for high balances, the Bank of America Advantage Relationship banking program, however, waives most of those extra fees.
But if you’re not in the high balance account, the fees include such things as:
- $15 for ATM or debit card replacement
- $30 for stop payment request
You can view all the fees in the Schedule here.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Bank of America features
Preferred Rewards
The more money you have in Bank of America accounts, including in its Merrill investment accounts, the more rewards you qualify for in its Preferred Rewards program. It has three tiers, each with better benefits as balances increase.
Program benefits are kept for at least a full year, so you don’t have to worry if your balances dip temporarily. Balances are reviewed monthly to see if you qualify for a higher tier. Here are the three tiers and some of the rewards they allow:
Rewards level | Minimum balances | Savings interest rate booster | Free use of non-BofA ATMs | Select banking services |
Gold | $20,000 | 5% | 0 | No fees |
Platinum | $50,000 | 10% | 12 | No fees |
Platinum Honors | $100,000 | 20% | Unlimited | No fees |
Diamond | $ 1,000,000 | 20% | Unlimited | No fees |
Mobile banking
Most financial institutions have a mobile banking app. Bank of America has online banking and a mobile banking app that allows you to deposit checks, open an online account, access investment accounts, lock your debit card, and do other banking chores without visiting a bank office.
The mobile banking app has a robot-assistant named Erica, who can help you find answers to your banking questions.
Your debit card can be put in your digital wallet to pay merchants, and you can pay friends securely with Zelle from your phone. The app also allows you to set custom alerts and savings goals, and cashback deals and other rewards can be customized for you.
Track rewards
Some businesses try to sell existing customers something by sending them fliers in the mail and other forms of advertising. Bank of America does this, too, in a way through the mobile app that could put money in their customers’ pockets.
One benefit is being a Preferred Rewards member, meaning you have at least $20,000 in account balances. The app will show you how much money you’ve saved in fees, how much the interest on your savings account is boosted, and other benefits.
It also shows deals through Bank of America, such as 10% off Big O Tires when you use your BoA credit or debit card. You can choose the deals you want. No promo codes or coupons are needed. Once you make the purchase, the cashback is deposited into your account.
Waived fees
When researching Bank of America checking and savings accounts, you may see a monthly maintenance fee listed. The bank’s basic savings account charges $8 per month, and the basic checking account charges $12.
Don’t let those account fees dissuade you from researching the account more. The payment can be waived if you meet the simple requirements of having a $500 balance in the savings account and a $250 direct deposit in the checking account. A $1,500 minimum daily balance in the checking account will also allow the fee to be waived, though that may be harder to reach than a monthly direct deposit of $250.
Keep the Change
Bank of America has a program called Keep the Change, where debit card transactions are rounded to the nearest dollar, and the difference is transferred to your savings account. It won’t make you rich, but it makes it easier to balance your checkbook and reminds savings account holders to save with automatic transfers.
Who is Bank of America best for?
Those with direct deposits
Most people should be able to avoid paying the fee that BoA charges for a basic checking account by having a direct deposit of $250 each month. If you get paid every two weeks, that’s only $125 per paycheck that goes through direct deposit to the bank.
Those who want physical bank branches
Bank of America has 3,800 branches across the U.S., so you should be able to find an office near you if you need one and want to talk to a bank professional in person. Customer service can also be reached online and by phone.
Those with high balances
Meeting both criteria will give you free access to services other customers must pay for. Stop payment requests, wire transfers, and debit card replacement are some services that Preferred Rewards members who have at least $20,000 in their BoA accounts get for free.
Students
High school and college students can get a free checking account at Bank of America, called Advantage SafeBalance, until they turn 25. The account doesn’t have overdraft fees and is a good way for students to have a checking account when starting their financial journey. BoA has 15,000 ATMs in the U.S. that are free for its customers, so students should be able to find one near their campus.
Who shouldn’t use Bank of America?
Those with non-traditional income
Freelancers, some gig workers, restaurant staff, contractors, and others with fluctuating incomes may not be able to meet BofA’s requirements to waive monthly account fees. The bank’s basic checking account requires monthly direct deposits of $250, and its savings account requires a $500 minimum daily balance to have the fee waived.
Savers
If you’re looking for a high-yield savings account, you’re unlikely to find it at Bank of America. Its savings accounts do the basic job of saving for a rainy day, but you can find much higher interest rates paid on savings at online-only banks and some brick-and-mortar banks.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Pros and cons
Consider these pros and cons if you’re still unsure why Bank of America may be best for your financial needs.
Pros
- Accounts for any age. From children to retirees, Bank of America has savings and checking accounts for all ages. It offers a savings account where children can get access to their money now.
- Rewards for high balances. The more money you have in your accounts, the more you’ll save on fees and can get bonuses on the interest you earn in a savings account and elsewhere. Keep at least $100,000 in Bank of America accounts and you can use ATMs for free that aren’t run by the bank.
- Waived fees. Most people should be able to have the monthly maintenance fees waived by having a direct deposit or meeting minimum balance requirements.
- Lots of ATMs and branches. Bank of America has 15,000 ATMs that are free to use, and 3,800 branches across the U.S.
Cons
- Low savings rate. The basic rate on a savings account is 0.01% APY. It can go up to 0.04% APY if you have a high balance, but a savings account may not be the best place to park $100,000.
- Overdraft fees. While overdraft fees can be avoided, Bank of America charges a hefty $10 per overdraft, up to twice daily. That can be painful at up to $20 per day.
- Fees for non-Bank of America ATMs. The bank also charges fees for using non-Bank of America ATMs. The fee is $2.50 in the U.S. and $5 internationally. With 15,000 ATMs that it owns, it shouldn’t be hard finding a BofA ATM in the U.S. If you’re going abroad, you may want to use a credit card without foreign transaction fees instead.
Bank of America vs. competitors
Bank | Monthly fee | Savings APY | Overdraft fee | Branches |
Bank of America | $4.50-$25 | $10 | 3,800 | |
Citibank | $5-$30 | $0 | 700 | |
Wells Fargo | $10 | $35 | 5,600 |
Bank of America vs. Citibank
Citibank is the fourth largest bank in the U.S. It has fewer branches than Bank of America, 700 at Citi vs. 3,800 at BofA. Most of Citibank’s branches are in California, while BofA has them in every state.
Citibank offers similar ways of waiving monthly account maintenance fees for its basic checking accounts as BofA. At least one qualifying direct deposit is required each month, as is a bill payment per statement period or a $1,500 combined average monthly balance in linked accounts.
Citi pays higher starting interest rates on savings accounts but varies by state.
Bank of America vs. Wells Fargo
Wells Fargo & Co. is the third-largest bank in the world, with more than 5,320 locations nationwide.
Wells Fargo charges $10 for customers 25 and older using its basic checking account, Everyday Checking, each month. The fee is waived for having a $500 direct deposit monthly or an average balance of $500. That’s double the direct deposit amount BofA requires in a similar checking account but well below the $1,500 minimum daily balance BofA requires for waiving its $12 monthly account fee.
If you earn a low income, the $250 direct deposit threshold at BofA may be easier to reach each month, though most people should be able to hit either level.
Should you open a savings account at Bank of America?
Bank of America's savings account is worth opening to store extra money or to transfer money from the bank’s Keep the Change program, which rounds up debit card transactions and transfers the change to your savings account.
But it has a few flaws, starting with the abysmal interest rates it pays on balances. The rates are tiered, though the standard APY is currently 0.01% for balances up to $20,000.
Reach any of the three tiers in its Preferred Rewards program, and the interest rates increase slightly. Here are the minimum balances and what those APYs are:
Tier | Account balance | APY |
Gold | $20,000 | 0.02% |
Platinum | $50,000 | 0.03% |
Platinum Honors | $100,000 | 0.05% |
Diamond | $1,000,000 | 0.05% |
The BoA savings account also has a monthly fee of $8, which isn’t much but adds up in a year to $96. The fee can be waived in a few ways, starting by maintaining a minimum daily balance of $500. That may be a lot of money to tie up in a low-interest savings account for some people.
Is a large bank for me?
That’s a question that only you can decide, but we can offer some factors to consider when choosing a bank for your daily financial needs.
Bank of America is a good fit if you want a bank with many offices and ATMs. It has 3,800 branches and 15,000 ATMs. Like most banks, it offers customer support online and over the phone.
Traditional, large banks aren’t known for paying high interest rates to checking and savings account holders. BofA’s interest rates are low on its savings accounts and nonexistent on its basic checking accounts. It pays interest on a high-balance checking account, though it’s only 0.01% APY on balances up to $50,000 and 0.02% APY on higher balances.
Chances are you can find higher interest rates at online-only banks. That means being comfortable with online communication, though most should also have a phone number to call for customer service. And we know how much fun waiting on hold can be.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
Searching for an ATM late at night when you need cash isn’t something you want to do often. Bank of America makes it easy, with more than 15,000 ATMs nationwide. You should be able to find an ATM near you, no matter where you live in the U.S. BoA also has many bank offices, giving you the option to do your banking in person if you want to.
Those can be big reasons to choose a bank for your daily financial needs. Still, they shouldn’t be the only ones. Bank of America offers checking and savings accounts free of monthly maintenance charges by meeting simple requirements, such as direct deposit or keeping a minimum balance.
But its basic checking and savings accounts pay little or no interest. If earning money alone is a priority, you may want to look elsewhere for your banking needs. But if you want bank accounts that can be free and offer money-saving perks, then Bank of America may be the daily bank you need.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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