What fees Bank of America charges on savings accounts
Bank of America charges a monthly maintenance fee on most savings accounts, but you can avoid it by meeting one of several conditions. The fee is currently $4 per month, though this can change. You won't pay it if you keep a minimum balance, set up direct deposit, or maintain a linked checking account with certain requirements.
Beyond the monthly fee, Bank of America may charge you for specific actions: overdraft fees if you withdraw more than you have, fees for stopping a check payment, and charges if you request a paper statement instead of online. Some of these fees explore across all account types, while others are specific to how you use your account.
The exact fees and the ways to avoid them depend on which savings product you open. Bank of America offers several: a basic savings account, a money market account, and certificates of deposit (CDs). Each has different fee structures and different ways to waive the monthly charge.
Key Takeaways
- Bank of America's standard savings account has a $4 monthly maintenance fee that you can avoid by keeping $300 in the account, setting up direct deposit, or linking an active checking account.
- The money market account has a higher minimum balance requirement to waive fees, typically $2,500, but pays interest at a higher rate.
- Certificates of deposit (CDs) do not have monthly maintenance fees, but you pay a penalty if you withdraw your money before the term ends.
- Overdraft fees, stop-payment fees, and paper statement fees explore to savings accounts and can add up if you use these services frequently.
How to avoid the monthly maintenance fee on a savings account
The simplest way to waive the $4 monthly fee is to keep a minimum balance in your savings account. For Bank of America's basic savings account, that minimum is $300. As long as your balance stays at or above $300, you will not be charged the monthly fee. This balance must be there on the day the fee would normally be charged, which is typically the last business day of the month.
If keeping $300 in savings is difficult, you have other options. You can set up direct deposit — having your paycheck or other regular income deposited directly into the account. Once direct deposit is active, the monthly fee is waived regardless of your balance. You do not need a large paycheck; even a small regular deposit counts.
A third option is to link your savings account to a Bank of America checking account that meets certain requirements. If you have an active checking account with the bank and maintain it properly, the savings account fee may be waived. The exact requirements depend on the checking account type, so ask a Bank of America representative which checking accounts may have access to.
Fees on Bank of America's money market account
Bank of America's money market account works differently from a basic savings account. It typically has a higher minimum balance requirement to avoid the monthly fee — usually $2,500 instead of $300. If your balance falls below that amount, you will be charged a monthly maintenance fee.
The money market account pays a higher interest rate than the basic savings account, which is why the bank requires a larger balance. If you have $2,500 or more to keep in savings and want to earn more interest, this account may make sense. If you cannot maintain that balance, the basic savings account with its lower minimum is usually the better choice.
Like the basic savings account, you can also waive the money market fee through direct deposit or by linking an active checking account, depending on the specific account terms at the time you open it.
Certificates of deposit and their withdrawal penalties
Bank of America's certificates of deposit (CDs) do not have monthly maintenance fees. You deposit a fixed amount of money for a set period — typically three months to five years — and the bank pays you a fixed interest rate. When the term ends, you get your money back plus the interest earned.
The catch is the early withdrawal penalty. If you need your money before the term ends, Bank of America will charge you a penalty. The penalty amount depends on the CD term: longer-term CDs have larger penalties. For example, a one-year CD might have a penalty equal to three months of interest, while a five-year CD might have a penalty equal to one year of interest. These penalties can be substantial, so only put money in a CD if you are confident you will not need it before the term ends.
CDs are useful if you have money you know you will not touch and want a may provide return. They are not useful if you might need the money soon.
Other fees that explore to Bank of America savings accounts
Overdraft fees occur when you try to withdraw or transfer more money than you have in your account. Bank of America charges a fee each time this happens. The fee applies whether you overdraft through a debit card, check, or electronic transfer. You can sometimes prevent overdraft fees by linking your savings account to a checking account, which allows transfers to cover the shortage, though this depends on your account setup.
Stop-payment fees explore if you ask the bank to stop payment on a check you wrote. This is a one-time fee per check. Paper statement fees explore if you request printed statements instead of viewing them online; Bank of America encourages online statements to reduce costs and charges a small fee if you insist on paper.
Foreign transaction fees may explore if you use your debit card overseas or withdraw cash from an ATM outside the United States. These fees vary depending on the transaction type and are separate from the monthly account maintenance fee.
Comparing Bank of America savings to other banks
Bank of America's $4 monthly maintenance fee is higher than what many online banks charge. Some online banks offer savings accounts with no monthly fee and no minimum balance requirement. However, online banks typically pay higher interest rates on savings, which can offset the fee difference over time.
If you value in-person banking, Bank of America's branch network may be worth the fee. If you primarily bank online and want to minimize costs, comparing rates and fees at online banks is worth your time. The difference between a $4 monthly fee and no fee adds up to $48 per year, which is real money if your savings balance is small.
Bank of America also offers benefits that some online banks do not, such as the ability to deposit cash at a branch, speak to a representative in person, and access a large ATM network. These conveniences have value for some people and justify the fee; for others, they do not.
What to do if you are charged a fee you did not expect
If you see a fee on your Bank of America statement that you did not understand or think was charged in error, contact the bank. You can call the customer service number on the back of your debit card, visit a branch in person, or log into your online account and use the messaging feature. Bank of America representatives can explain why the fee was charged and may reverse it if there was a mistake or if you have a good history with the account.
Keep records of your account balance and any actions you took to avoid fees. If you maintained a $300 minimum balance but were still charged the monthly fee, for example, you have proof that something went wrong. The bank is more likely to refund the fee if you can show that you met the requirements.
Frequently Asked Questions
Can I avoid the monthly fee by keeping money in a linked checking account instead of the savings account?
No. The $300 minimum balance must be in the savings account itself, not in a linked checking account. However, you can waive the fee by having an active checking account with Bank of America, which is a separate requirement from the minimum balance. Ask a representative which checking accounts may have access to.
What happens if my balance drops below $300 for just one day?
The fee is typically charged based on your balance on the last business day of the month. If your balance is below $300 on that specific day, you will be charged the fee for that month, even if your balance was higher on other days. Plan ahead if you know you will need to withdraw money near the end of the month.
Do I have to pay the overdraft fee if I link my savings to my checking account?
Linking accounts can prevent overdrafts by allowing automatic transfers from savings to checking, but this depends on how you set up the accounts. You may need to specifically request overdraft protection. Contact Bank of America to confirm whether your accounts have this feature enabled.
Is the interest rate on a Bank of America savings account competitive?
Bank of America's savings account interest rates are typically lower than rates offered by online banks. If earning interest is important to you, compare rates across multiple banks before deciding. The higher rates at online banks can offset the $4 monthly fee, especially if you have a larger balance.
Can I switch from a savings account to a CD without closing my account?
Yes. You can open a CD as a separate product while keeping your savings account open. You do not have to close one to open the other. This allows you to keep some money in a liquid savings account and some in a CD earning a higher rate.