What Bank of America charges for a savings account
Bank of America does not charge a monthly fee to open or maintain a basic savings account. However, the account you end up with depends on which one you choose, and some of their savings products do have costs attached.
The most common option is the Bank of America Savings Account, which has no monthly maintenance fee. You can open it with as little as $25. The catch is not a fee — it is the interest rate. Bank of America's savings accounts typically pay very little interest on the money you keep there, often less than 0.01% per year. That means if you have $1,000 in the account for a year, you might earn less than 10 cents in interest.
If you want a savings account that actually pays interest, Bank of America offers the Bank of America Advantage Savings, which also has no monthly fee but requires a higher opening deposit and has tiered interest rates based on your balance. The interest is still modest compared to online banks, but it is higher than the basic savings account.
Key Takeaways
- Bank of America's standard savings account has no monthly maintenance fee and requires only a $25 opening deposit.
- You will not be charged for having the account open, but the interest rate paid on your balance is very low.
- Some Bank of America savings products, like money market accounts, may have higher balance requirements or different fee structures.
- Fees can appear if you fall below a minimum balance, withdraw too much money in a month, or link the account to overdraft protection.
When Bank of America might charge you for a savings account
Even though the account itself has no monthly fee, charges can appear under specific circumstances. The most common is the excessive withdrawal fee. Federal rules once limited you to six withdrawals per month from a savings account. Bank of America no longer enforces this limit, but if you make many withdrawals in a short period, the bank may charge you a fee or convert your account to a checking account.
If you link your savings account to overdraft protection — a service that covers checking account overdrafts using your savings balance — you may be charged an overdraft fee if the transfer happens. This is not a savings account fee, but it affects the money in your savings account.
Some Bank of America savings products, like the Money Market Account, do have different rules. These accounts typically require a higher opening deposit (often $2,500 or more) and may charge a monthly fee if your balance drops below the minimum. Check the specific product details before opening.
How to avoid unexpected charges
The simplest way to avoid fees is to keep your savings account separate from overdraft protection. When you open the account, you will be asked whether to link it to your checking account for overdraft coverage. Declining this option means your savings account stays independent and cannot be tapped for overdraft fees.
If you plan to withdraw money frequently, ask a Bank of America representative whether your account type has withdrawal limits or fees. For most people using a savings account as intended — depositing money and leaving it there — no fees will appear.
Compare Bank of America's interest rates to those offered by online banks before deciding where to keep your savings. Online banks often pay 10 to 20 times more interest on savings, with no monthly fees. If earning interest matters to you, the difference over a year can be significant.
The difference between Bank of America savings accounts
Bank of America offers several savings products, and the fees and features vary. The Savings Account is the basic option with no monthly fee and low interest. The Advantage Savings requires a higher opening deposit but pays tiered interest rates — the more money you keep in the account, the higher the rate. Neither charges a monthly fee.
The Money Market Account is designed for people with larger balances. It typically requires $2,500 to open and may charge a monthly fee if your balance falls below the minimum. It also comes with a debit card and check-writing privileges, which a regular savings account does not have.
If you are new to banking or starting with a small amount of money, the basic Savings Account is the right choice. You will not pay a monthly fee, and you can move to a different product later if your balance grows.
Why Bank of America's interest rates are low
Bank of America is a large national bank with physical branches in most cities. Maintaining those branches, employing tellers, and keeping offices open costs money. The bank passes some of those costs to customers by offering lower interest rates on savings accounts.
Online banks have no physical locations and far fewer employees, so they can afford to pay higher interest rates on savings. If you are comfortable banking online and do not need to visit a branch in person, you will earn more interest elsewhere. If you value having a local branch you can walk into, Bank of America's low fees and no-fee savings account may be worth the trade-off in interest.
What happens if you close your savings account
Bank of America does not charge a fee to close a savings account. You can close it online, by phone, or in person at a branch. If your account has money in it, the bank will send you a check or transfer the balance to another account you specify.
There is no penalty for closing early, no waiting period, and no "early closure fee" like some banks charge. If you decide Bank of America is not the right fit, you can move your money elsewhere without cost.
Frequently Asked Questions
Can I have multiple savings accounts at Bank of America?
Yes. You can open more than one savings account at Bank of America, and each one has its own no monthly fee structure. Some people use multiple accounts to separate savings for different goals — one for emergencies, one for a vacation, one for a down payment. Each account earns interest separately.
What is the minimum balance required to keep a Bank of America savings account open?
Bank of America requires a $25 opening deposit for the basic Savings Account, but there is no minimum balance requirement to keep it open afterward. You can let the balance drop to $1 and the account will stay active with no monthly fee. The Advantage Savings and Money Market Account have different requirements — ask at your branch or check online for current minimums.
Do I earn interest on a Bank of America savings account?
Yes, but the amount is very small. The basic Savings Account earns less than 0.01% annually on most balances. The Advantage Savings pays slightly more depending on your balance tier. Online banks typically pay 4% to 5% or higher, so if interest matters to you, Bank of America's rates are significantly lower.
Will Bank of America charge me if I do not use my savings account for a long time?
No. Bank of America does not charge an inactivity fee for savings accounts. You can leave money in the account untouched for months or years, and no fees will appear. The account will remain open as long as you do not close it yourself.
What fees might appear on my Bank of America savings account statement?
The most likely fee is an excessive withdrawal fee if you make many withdrawals in a short time, though Bank of America has relaxed these rules. Overdraft fees can appear if you link the account to overdraft protection and the bank transfers money to cover a checking account overdraft. Money Market Accounts may charge a monthly fee if the balance falls below the minimum. Regular Savings Accounts should show no fees under normal use.