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.
Quick Summary
- One of the largest and oldest banks in the United States
- Online savings has a $500 minimum daily balance
- Lots of fees for consumers to watch out for
What Is Bank of America?
As of June 2019, Bank of America is the second-largest bank in the U.S., just behind JPMorgan Chase Bank ($1.8 billion in AUM vs. $2.35 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 Is Bank of America Savings and Who Is It For?
Bank of America’s savings product is called Bank of America Advantage Savings.
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?
If you already have accounts at Bank of America and want to maintain a savings account for whatever reason, you are the ideal person to open a Bank of America 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.
The Bank of America savings account requires a $100 deposit to open. A $500 daily balance must be maintained to avoid 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. Students under 24 years of age and enrolled in high school, college, a university, or a vocational program may qualify for a fee waiver.
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.
The Bank of America savings product has a tiered structure. The more money in the account, the more interest those funds will earn — at least that is what Bank of America says. After you view the tiered structure, rates change based on the Preferred Rewards client tier rather than savings balance. Here’s a summary of the tiers:
- Standard: 0.03%
- Gold: 0.04%
- Platinum: 0.05%
- Platinum Honors: 0.06%
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.
The Bank of America savings account includes the following services:
- Mobile check deposits
- Automatic transfers
- Custom alerts
- Overdraft protection
- FDIC insurance
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.
How Does Bank of America Compare?
Here are the current top yielding savings accounts right now:
Are There Any Fees?
Yes — there are quite a few fees. These include the following:
- $8/month maintenance fee if you don’t meet the minimum balance requirement.
- 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. If you maintain a $20,000 daily balance or are enrolled in the Preferred Rewards program, the fee is waived.
- Non-Bank of America ATM usage incurs a $2.50 fee 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.
- Card replacements are $5.00 per card.
- Statement copies are $5.00 each.
- The non-Bank of America teller withdrawal fee is $5 per transaction or 3% of the dollar amount, up to a $10 maximum.
How Do I Open an Account?
You can open an account online at https://www.bankofamerica.com or by visiting a Bank of America branch location.
Is My Money Safe?
Yes — like all U.S.-regulated banks, Bank of America is FDIC-insured.
Is It Worth It?
As mentioned above, it is only worth it if you have other accounts at Bank of America and want the added convenience of easily transferring between your other Bank of America accounts and 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, the savings account can be linked to your checking for overdraft protection. 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 Online Savings Review
- Interest Rates - 20
- Fees and Charges - 40
- Customer Service - 40
- Ease of Use - 60
- Tools and Resources - 60
- Products and Services - 100
Overall
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.