Banking at Bank of America makes sense if you’re looking for an institution with top-notch digital capabilities, an extensive branch network, and plenty of ATMs. However, if you want to avoid bank fees and get high returns, this bank is not the best choice.
Bank of America is the second largest financial institution in the United States. It is a digital leader with a global presence and approximately 67 million customers.
What we like
- The bank is spread across the country, with around 4,200 branches and around 16,000 ATMs.
- It has an award-winning mobile banking app and has invested heavily in digital technology.
- Customers can use their mobile phone’s person-to-person payment service, which makes it easier to transfer money directly to friends and family’s bank accounts.
- Powered by artificial intelligence, virtual assistant Erica makes budgeting, money management and expense tracking easier.
We have nothing
- Fees are avoidable, but can easily skyrocket for customers who cannot meet certain requirements.
- Savings and CD returns are small.
- Branches have closed, some temporarily due to COVID-19 and others permanently as banks transition to more online banking.
- If customers don’t have an overdraft-protected SafeBalance account, they can be billed in excess of $100 per day.
Savings accounts
Bank of America’s Advantage Savings minimum APY is lower than the national average. A minimum deposit of $100 is required to open an account, and there is a monthly maintenance fee of $8, which can be avoided by maintaining a minimum balance of $500. You can also link a Bank of America Advantage savings account or become a Bank of America Preferred Rewards customer to avoid monthly service fees.
Bank of America Advantage Savings offers tiered APYs. The bank’s mobile app can be used to deposit checks into your savings account.
As with most banks, there is a fee for more than six withdrawals or transfers in a monthly statement cycle. Bank of America charges $10 for each withdrawal or transfer over the six withdrawal limit.
Bank of America’s Keep the Change program helps you automate your savings by aggregating purchases made with your Bank of America debit card and depositing the difference into your savings account.
What we like
When you use the Bank of America debit card linked to your Bank of America checking account, Bank of America’s Keep Change program helps you save automatically by rounding up your purchases and transferring the difference to your savings.
The mobile app can be used to deposit checks into your savings account.
We have nothing
The maximum APY for Bank of America’s Advantage savings accounts is lower than the national average for savings accounts.
There are other savings accounts with higher yields that have no monthly service fee.
CD rates
Bank of America offers 14-term CDs. CDs have durations ranging from 1 month to 10 years. Customers can choose between two different CD types. Standard CDs have a minimum deposit of $1,000 and can choose from several terms. Customers interested in short-term accounts can use the featured CD with a minimum deposit of $10,000. Select CDs are only available for a limited time, ranging from 7 months to 37 months.
There will be penalties for early withdrawals. For CDs with a maturity between 12 months and 5 years, the penalty is 180 interest days.
What we like
- The minimum account opening deposit for a Standard CD is $1,000. Some banks have higher CD deposit requirements.
- Customers can choose from a variety of different runtimes on the Standard Runtime CD.
We have nothing
- Bank of America CDs offer lower rates of return compared to those offered by online banks.
- Select CDs are only available from 7 months to 37 months.
- Recommended CDs cost at least $10,000 to open.
- There are no special CDs, such as enhanced CDs or penalty-free CDs.
Checking accounts
Open an Advantage Plus Bank checking account with Bank of America for just $100. There is a $12 maintenance fee unless you hold at least $1,500 in your account. Other ways to waive the monthly fee include making at least one qualifying direct deposit of $250 or more per billing cycle or joining Preferred Rewards.
Bank of America Advantage Relationship Banking offers interest-bearing checking accounts with a minimum opening deposit of $100. The $25 monthly maintenance fee is waived for eligible linked accounts or Preferred Rewards customers with a total credit limit of $10,000.
Another option is interest-free Advantage SafeBalance Banking ($4.95 monthly fee, $25 opening balance, no paper checks).
What we like
- It is appropriate to open a deposit for a checking account.
- Check out Erica, a virtual banking assistant that customers can use with a mobile app.
- Offers an overdraft protection option called balanced connections.
We have nothing
- Advantage Plus Banking does not earn interest.
- There is no checking account option without a monthly service fee.
Banking experience
Bank of America provides access to approximately 4,200 branches and approximately 16,000 ATMs. Customers can also use Zelle, a person-to-person payments platform that lets you send and receive money directly from family and friends.
Bank of America’s mobile app experience also includes a few extra details compared to its competitors. In the app, you can customize your dashboard and get insights and guidance from the bank’s virtual assistant, Erica.
You can also contact a customer service representative 7 days a week.
About Bank of America
What is now known as Bank of America started out as Bank of Italy, a local San Francisco bank founded in 1904 by Amadeo Peter Giannini to support immigrants who were not served by other financial institutions. The bank continued to expand until it became the only statewide bank in California. Branches were opened in Italy and other cities in the United States, and by 1945 it was the largest bank in the world.
The 1998 merger with National Bank made Bank of America the first bank to operate coast-to-coast. Today, the bank is headquartered in Charlotte, North Carolina.
Bank of America offers a wide range of banking, small business and wealth management services. It has best-in-class digital capabilities, an extensive branch network and a large number of ATMs. However, if you want to avoid bank fees or want high returns, save your money elsewhere.
