Bank of America charges a monthly fee on most savings accounts, but you can avoid it
Bank of America charges a $4 monthly maintenance fee on its standard savings account, called the BofA Savings account. This fee hits your account every month unless you meet one of the conditions that waive it. The fee is not automatic—it only appears if you do not maintain the balance or deposit pattern the bank requires.
You can stop the $4 charge in three ways: keep a minimum balance of $300 in the account, set up a direct deposit of any amount, or link the savings account to a Bank of America checking account that has a may have access to direct deposit. If you do any of these, the fee does not post that month.
Bank of America also offers a Premium Savings account, which charges $25 per month but is designed for customers with larger balances and higher deposit activity. Most people with a savings account at Bank of America use the standard account, not the premium version.
Key Takeaways
- The standard Bank of America Savings account charges $4 per month unless you maintain a $300 minimum balance, set up a direct deposit, or link it to a may have access to checking account.
- The fee is charged monthly on the last day of the statement period if none of the waiver conditions are met.
- A direct deposit of any size—even $1—counts toward the waiver, so you do not need a full paycheck routed to the account.
- Bank of America's Premium Savings account charges $25 monthly and is intended for customers managing larger sums or making frequent deposits.
How the $4 monthly fee works and when it posts
The $4 maintenance fee appears on your statement once per month, typically on the last day of your statement cycle. Bank of America does not charge the fee upfront—it deducts it from your account balance at the end of the period. If your account balance falls below $0 after the fee is deducted, you may face overdraft charges on top of the maintenance fee.
The fee is not a one-time charge. It recurs every month you hold the account without meeting a waiver condition. If you maintain the $300 minimum balance every day of the statement period, the fee does not post that month. If your balance dips below $300 even once, you do not lose the waiver for that month—the balance requirement is an average daily balance or a minimum balance on the last day of the statement period, depending on your account type. Check your account terms to confirm which applies to you.
The three ways to avoid paying the monthly fee
The simplest route for most people is setting up a direct deposit. Bank of America counts any recurring deposit from an employer, government agency, or other source as a may have access to direct deposit. You do not need a full paycheck—even a $1 recurring transfer counts. Once the direct deposit is set up and posts at least once during the statement period, the $4 fee is waived for that month.
If direct deposit is not an option, you can keep a $300 minimum balance in the account at all times. This balance must be maintained throughout the statement period. Some account types require the balance on the last day of the statement; others use an average daily balance. The account terms you received when you opened the account specify which method applies.
The third option is linking your savings account to a Bank of America checking account that has a may have access to direct deposit. If your checking account receives a direct deposit and is linked to your savings account, the savings account fee is waived. This works even if the savings account itself has no direct deposit and no minimum balance.
What happens if you do not meet any waiver condition
If you do not maintain the $300 balance, set up a direct deposit, or link to a checking account with a direct deposit, the $4 fee posts to your account every month. Over a year, this amounts to $48 in fees. The charge is deducted from your available balance, so it reduces the amount of money you actually have in the account.
If your account balance is very low when the fee posts, you could end up with a negative balance. Bank of America then charges overdraft fees on top of the maintenance fee. For example, if you have $2 in your account and the $4 fee posts, you are now $2 in the negative, and Bank of America charges an overdraft fee (typically $35) for allowing the account to go negative.
Comparing Bank of America savings to other banks
Many online banks and credit unions offer savings accounts with no monthly maintenance fee at all. Banks like Ally, Marcus, and Discover have $0 monthly fees and often pay higher interest rates on savings balances. If you are paying $4 per month at Bank of America and not earning much interest, moving to a no-fee account elsewhere could save you money over time.
Traditional banks like Chase, Wells Fargo, and Citibank also charge monthly fees on savings accounts, though the amounts and waiver conditions vary. Chase charges $5 per month on its standard savings account; Wells Fargo charges $5 as well. Credit unions typically charge no monthly fee on savings accounts, though some have minimum balance requirements to open the account.
The trade-off is usually convenience. If you already bank with Bank of America and use their checking account, keeping your savings there means you can manage both accounts in one place and transfer money when ready between them. If you move your savings to another bank, you will have accounts at two institutions and may need to wait one to three business days for transfers.
Interest rates and whether the fee matters
Bank of America's savings account interest rate is typically very low—often 0.01% or less, depending on market conditions and your account balance. At that rate, a $1,000 balance earns roughly $0.10 per year in interest. The $4 monthly fee ($48 per year) far exceeds any interest you would earn, making the account a net loss if you are not meeting a waiver condition.
If you do meet a waiver condition and pay no fee, the account becomes a low-cost place to park money temporarily or to keep an emergency fund linked to your checking account. The interest rate is still low, but at least you are not losing money to fees. If you want to earn meaningful interest on savings, you will need to move to an online bank or credit union offering higher rates.
Frequently Asked Questions
Can I avoid the fee by keeping money in a linked checking account?
No. The $4 fee applies only to the savings account itself. Keeping money in a linked checking account does not waive the savings account fee. However, if your checking account has a may have access to direct deposit, that direct deposit waives the fee on the linked savings account, even if the savings account has no balance and no direct deposit of its own.
What counts as a direct deposit for the fee waiver?
Any recurring deposit from an employer, government agency (Social Security, unemployment, tax refund), or another financial institution counts. The deposit must be set up to recur regularly and must post at least once during the statement period. A one-time transfer from another account does not count as a direct deposit.
Does the $300 minimum balance have to be in the savings account the whole month?
It depends on your specific account terms. Some accounts require the balance on the last day of the statement period; others use an average daily balance throughout the month. Check your account agreement or call Bank of America to confirm which method applies to your account.
If I close my Bank of America savings account, do I owe the monthly fee?
No. Once you close the account, no further fees post. If you close the account before the monthly fee posts, you will not be charged for that month. If the fee has already posted, it remains deducted from your final balance.
Can I switch to a different Bank of America savings product to avoid the fee?
Bank of America's main savings options are the standard Savings account ($4 fee) and the Premium Savings account ($25 fee). The Premium account is more expensive, not cheaper. Money Market accounts and CDs have different structures. If you want to avoid fees entirely, you would need to move to another bank or credit union.