Bank of America charges monthly fees on most checking accounts, but you can waive them

Bank of America's standard checking account, called Checking, carries a $12 monthly maintenance fee. However, the fee disappears if you meet one of these conditions: keep a $1,500 minimum daily balance, set up a direct deposit of any amount, or maintain a linked savings account with a $500 minimum balance. Most people who use direct deposit never see the fee.

Bank of America also offers Advantage Banking, which costs $10 per month but waives the fee if you maintain a $2,000 minimum daily balance or set up direct deposit. This account includes overdraft protection and slightly higher interest on savings, though the rates remain low across the industry.

If you want no monthly fee at all with no conditions attached, Bank of America does not offer that option for checking. You would need to look at other banks or credit unions. Within Bank of America, the only way to avoid fees is to meet one of the stated requirements.

Key Takeaways

  • Bank of America's Checking account has a $12 monthly fee that you can waive by setting up direct deposit, keeping $1,500 in the account daily, or linking a savings account with $500 in it.
  • Advantage Banking costs $10 per month and waives the fee if you maintain $2,000 daily or set up direct deposit.
  • Direct deposit is the easiest way to avoid fees because it requires no minimum balance and works with any employer or benefit payment.
  • Bank of America does not offer a checking account with zero monthly fees and no conditions.

How direct deposit waives the monthly fee

Setting up direct deposit is the most common way to waive Bank of America's checking fee. Direct deposit means your employer, the Social Security Administration, or another payer sends your paycheck or benefit payment straight to your account electronically. The amount does not matter—even a single direct deposit per month counts.

To set this up, you give your employer or benefit administrator your Bank of America account number and routing number. You can find both on the bottom left of any check, or log into your online account and look under account details. Once direct deposit is active, the monthly fee stops when ready on your next statement cycle.

If you do not receive a regular paycheck or benefit payment, direct deposit may not be an option for you. In that case, the $1,500 minimum balance or the linked savings account route becomes your alternative.

Minimum balance requirements as an alternative

If you cannot set up direct deposit, you can waive the $12 fee by keeping $1,500 in your Checking account at all times. This is a daily minimum, meaning the balance must never drop below $1,500, even for a day. If it does, the fee applies that month.

For many people, this is harder than it sounds. If you live paycheck to paycheck or use your checking account for regular spending, maintaining $1,500 constantly may not be realistic. The linked savings account option—keeping $500 in a separate Bank of America savings account—is sometimes easier because you can move money between accounts without triggering the fee.

Bank of America does not charge interest on checking accounts, so keeping $1,500 sitting there earns you nothing. If you have that much money available, a high-yield savings account at another bank would earn you interest while you keep it there.

What happens if you do not meet any requirement

If you do not set up direct deposit, do not keep the minimum balance, and do not link a savings account, Bank of America charges you $12 per month. This fee appears on your statement and is deducted from your account automatically.

The fee stacks up over time. Over a year, $12 per month equals $144. If you have multiple checking accounts with Bank of America, each one incurs its own fee unless you meet the waiver conditions for each account separately.

You can dispute a single fee by calling Bank of America at the number on your card or logging into your online account and contacting them through find messaging. They may reverse one or two fees as a courtesy, but they will not remove the fee permanently unless you meet one of the waiver conditions going forward.

Comparing Bank of America to other banks

Many online banks and credit unions offer checking accounts with no monthly fee and no minimum balance. Examples include Ally Bank, Charles Schwab, and most local credit unions. These accounts work the same way as Bank of America's—you can use a debit card, set up direct deposit, and write checks—but you never pay a monthly fee.

The trade-off is that online banks have fewer physical branches. If you use Bank of America's ATM network or visit a branch regularly, switching may not be worth it. If you mostly use your debit card and online banking, a no-fee account elsewhere could save you $144 per year with no effort.

Some people keep a Bank of America account for branch access and a no-fee account elsewhere for savings. This is a valid strategy if you have the money to split between accounts.

How to check your current account type and fee status

Log into your Bank of America online account and go to the account details page. It will show your account type (Checking or Advantage Banking) and whether you currently have a monthly fee scheduled. If you see a $12 or $10 charge listed, you are being charged.

You can also call Bank of America at the number on your debit card and ask a representative to confirm your account type and whether you are currently waiving the fee. They can tell you when ready whether you meet the direct deposit, minimum balance, or linked account requirement.

If you recently set up direct deposit but still see a fee on your statement, it may take one or two billing cycles for the waiver to take effect. Check again after your next statement closes.

Frequently Asked Questions

Can I waive the fee by using my debit card a certain number of times?

No. Bank of America does not waive the checking fee based on debit card usage, number of transactions, or account activity. The only ways to waive it are direct deposit, the $1,500 minimum balance, or the linked savings account with $500.

What if I have a Bank of America credit card—does that waive the checking fee?

No. Having a Bank of America credit card does not waive the checking account fee. The fee waiver is tied only to the checking account itself and the conditions listed above.

Does the direct deposit have to be from my employer, or can it be from anywhere?

Direct deposit from any source counts—your employer, Social Security, a pension, unemployment benefits, or even a transfer from another bank set up as a recurring payment. Bank of America does not distinguish between types of direct deposit.

If I close my checking account, do I owe the monthly fee for that month?

You may owe a prorated fee depending on when you close the account during the billing cycle. Call Bank of America before closing to ask what you owe, or check your final statement after closure.

Can I switch to a different Bank of America checking account to avoid the fee?

Bank of America's other checking options (Checking and Advantage Banking) both have monthly fees with the same waiver conditions. There is no fee-free checking account option within Bank of America itself.