Bank of America Advantage Savings Review: Is It Worth It?

Bank of America is one of the oldest and largest banks in the United States. While it isn't known for being especially competitive for consumers, they are a full service bank that has some specialities. It has a large brick and mortar footprint, which can be especially helpful for some consumers.

And they have a Preferred Rewards program, partnerships with Merrill Edge for investing bonuses, and more - all of which could make them a compelling choice for you.

Here's what you need to know about Bank of America in our Bank of America Savings Review. See how Bank of America compares to other top high yield savings accounts.

What Is Bank of America?

As of April 2021, Bank of America is the second-largest bank in the U.S., just behind JPMorgan Chase Bank ($3.02 billion in AUM vs. $2.25 billion) according to mx.com.

Bank of America is a full-service bank offering checking, savings, mortgages, HELOCs, loans, and more. It has branches and ATMs all across the U.S.

What Does Bank of America Savings Offer?

Bank of America’s savings product is called Bank of America Advantage Savings. Here's a quick look at all that you get with a Bank of America Advantage Savings account.

Low Interest Rates

Bank of America savings isn’t going to earn you any money. It’s a very low-interest-rate product and unable to compete with many of the other high-interest savings account services on the market. If this product isn’t really for those looking to earn money off of their savings, whom is it for?

The Bank of America savings account requires a $100 deposit to open. It has a tiered interest rate structure, but currently all tiers earn 0.01% APY. Rates do change for Preferred Rewards clients, but only slightly. Here’s a summary of the tiers:

• Gold: 0.02%
• Platinum: 0.03%
• Platinum Honors: 0.04%

As you can see, it doesn’t really matter which tier you are in as your money isn’t really going to notice the difference.

Bank of America does offer several other savings products, including CDs, IRAs, and savings accounts for kids. If you’re thinking perhaps that Bank of America CDs offer better interest rates, you’d be right. But they are still far below what you can get on savings accounts at other banks.

All-In-One Banking Solution

So whom is this product for if it earns almost no interest on deposits? If you already have accounts at Bank of America and want to maintain a savings account for whatever reason, you're the ideal person to open a Bank of America Advantage Savings account.

There’s something to be said for ease of access and convenience when all of your accounts are connected and in one location. This goes double if you particularly like Bank of America.

Round-Up Savings

If you also have a Bank of America checking account, its Keep the Change® product could help you save a little money every time you make a purchase. Each time you swipe your debit card, BoA can round your transaction up to the next dollar and move the change to your Advantage Savings account.

This can be a painless way to build up your emergency fund in small chunks each day. But if you'd like to invest your round-up savings in the stock market, you may want to consider using an all-in-one finance app like Acorns or Stash instead.

Relationship Rewards

One of the best reasons to stash your savings in a BoA Advantage Savings account would be to qualify for a Preferred Rewards tier. In addition to needing a BoA checking account, here's the combined balances that you'll need to qualify for each tier:

• Gold: $20,000
• Platinum: $50,000
• Platinum Honors: $100,000

Note that if you're a Merrill Edge customer, your investment account balances also count towards the combined balances that you need to reach a Preferred Rewards tier.

Preferred Rewards members get access to a variety of benefits including discounts on Merrill Edge Guided Investing fees, savings and rewards bonuses, loan discounts, and waivers on ATM out-of-network fees. The table below shows what each Preferred Rewards tier offers: 

Are There Any Fees?

A $500 daily balance must be maintained to avoid the $8 monthly fees. If the balance drops below $500 during the day but goes back to $500 by the end of the day, the account will not be charged a fee. The fee is also waived for children under the age of 18 and students under 25.

There are two other ways to avoid the maintenance fee:

• Link your Bank of America Advantage Savings account to your Bank of America Advantage Relationship Banking® account.
• Become a Bank of America Preferred Rewards client.

There are also a few transaction fees that you'll want to do your best to steer clear of. Some examples include:

• Card replacements: $5.00 per card.
• Statement copies: $5.00 each.
• Excessive transfers: You are allowed six transfers and withdrawals per statement. Going past this amount will result in a $10 fee for each additional transfer and withdrawal.
• Non-Bank of America ATM usage: $2.50 within the U.S. plus any fees charged by the ATM operator. The fee is $5 outside of the U.S. plus ATM operator fees.

Note you can reduce or eliminate the last two fees on this list by becoming a Preferred Rewards member. You can see the full fee schedule for the Bank of America Advantage Savings account here.

How Does Bank of America Compare?

If you're looking to get one one of the top yield available right now, you should pass on the Bank of America Advantage Savings account. There are many online banks that offer better APYs. However, this savings account could be worth considering if you already have multiple ties to BoA's financial ecosystem. 

For example, if you're a Bank of America credit card holder and auto loan borrower as well as a Merrill Edge investor, sticking with BoA for your savings could just keep things simpler. And, depending on your combined balances, it could qualify you for relationship rewards. Here's a quick look at how the Bank of America Advantage Savings account compares:

How Do I Open An Account?

You can open an account online at the Bank of America website or by visiting a Bank of America branch location. During the application, you'll need to provide your:

• Name, date of birth
• Social Security number
• Phone number and email address
• Physical address

If the primary account holder is under 16 years of age, he or she will need a co-applicant over 18. Also, in certain situations, you may be asked to upload a U.S. driver's license or state ID card to verify your identity.

Is It Safe And Secure?

Yes — like all U.S.-regulated banks, Bank of America is FDIC-insured. That means your account funds are protected up to $250,000 per depositor. Other security features include data encryption, two-factor authentication, and account alerts.

How Do I Contact Bank Of America?

There are a variety of ways to get in touch with Bank of America's support team, including visiting one of its approximately 4,200 local branches. You can also 800-432-1000. Phone operating hours are Mon–Fri 8 AM-11 PM (ET) and Sat–Sun 8 AM-8 PM (ET).

Like other U.S. megabanks, Bank of America often receives negative customer service reviews. The bank is currently rated 1.4/5 on Trustpilot. It does have an A+ rating on the Better Business Bureau (BBB), however, which means that it's at least promptly responding to complaints. 

Is It Worth It?

It's only worth it to open a Bank of America Advantage Savings account if you have other accounts at BoA and want the added convenience of maintaining all of your finances at one bank.

As a full-service top-tier national bank, Bank of America has a lot to offer. Additionally, Preferred Rewards members can qualify for a variety of relationship fee discounts and interest boosters. Bank of America also has an excellent mobile app.

However, if you are shopping for a high-interest savings account with minimal fees, you’ll want to keep shopping. Plus, the level of fees, "hoops" you have to jump through, combined with their low rates, make me want to place my savings elsewhere.

Bank Of America Advantage Savings FAQs

Let's answer a few of the most common questions that people ask about Bank of America's Advantage Savings account.

Does Bank of America support mobile check deposits?

Yes, customers can use the Bank of America Mobile Banking app to deposit physical checks by simply snapping and uploading a pic.

Does Bank of America have branches in every state?

No, its branch locations are currently spread across more than 35 states.

Can Bank of America customers use Zelle?

Yes, but they can no longer use the Zelle app. To send or receive money with Zelle, customers must use Zelle® within their Bank of America mobile apps.

Can you get a bonus for opening a savings account with Bank of America?

Not right now. However, you may be able to earn a bonus by opening up a checking account with Bank of America.

Bank Of America Advantage Savings Features