Bank of America offers savings accounts, but none without a monthly fee unless you meet specific conditions

Bank of America's main savings product is the Regular Savings Account, which carries a $3 monthly maintenance fee. You can avoid this fee in two ways: keep a minimum daily balance of $300, or link it to a Bank of America checking account and maintain a combined balance of $500 across both accounts. If neither condition applies to your situation, you pay the fee every month.

Bank of America also offers a Money Market Savings Account, which has a $25 monthly fee that you can waive by maintaining a $2,500 minimum daily balance. This account typically pays a higher interest rate than the Regular Savings Account, but only if you can sustain that balance.

The fee structure matters because $3 per month compounds. Over a year, that is $36 in fees on an account that might hold $500 or less. Before opening any Bank of America savings account, calculate whether the fee will cost more than the interest you would earn.

Key Takeaways

  • Bank of America's Regular Savings Account charges $3 monthly unless you keep $300 in the account or $500 combined across a linked checking account.
  • The Money Market Savings Account charges $25 monthly unless you maintain a $2,500 minimum balance.
  • Monthly fees can exceed the interest earned on small balances, so compare the cost against what you would actually earn.
  • Other banks offer savings accounts with no monthly fee and no minimum balance requirement, which may be a better fit if you cannot meet Bank of America's conditions.

How the minimum balance requirement works

The $300 minimum for the Regular Savings Account is a daily balance, not an average. This means your balance must stay at or above $300 every single day of the month. If you drop to $299 on any day, the fee applies for that entire month.

The combined $500 option (Regular Savings plus a linked checking account) gives you more flexibility because you can move money between the two accounts. If your checking account dips below the combined threshold, the fee still applies. Bank of America calculates this daily, so timing matters if you are close to the limit.

For the Money Market account, the $2,500 minimum works the same way—it must be present every day. If you are using this account to save toward a goal and your balance fluctuates, you may pay the fee in months when you withdraw funds.

Interest rates on Bank of America savings accounts

Bank of America's savings account interest rates are typically lower than rates offered by online banks or credit unions. As of recent months, the Regular Savings Account pays a rate that varies by region and account type, but it is generally well below 0.5% annually. The Money Market account pays slightly more, but the difference is small.

This matters because a $500 balance earning 0.01% annually generates about 5 cents in interest per year—far less than the $36 annual fee. Even a $5,000 balance earning 0.05% generates only $2.50 per year. You would need a much larger balance for interest to offset the monthly cost.

If you are saving money and want to earn interest, comparing rates across banks is worth your time. Online banks often pay 4% or higher on savings accounts with no monthly fee and no minimum balance.

When Bank of America savings accounts make sense

A Bank of America savings account works best if you already have a checking account there and can easily maintain the combined $500 balance. The convenience of one bank for both accounts may justify the fee if you use the savings account as a holding place for money you move frequently.

If you have a larger balance—say $10,000 or more—the monthly fee becomes negligible relative to your total funds, and the convenience factor increases. You might also choose Bank of America if you value in-person branch access and do not want to manage accounts at multiple institutions.

For most people saving smaller amounts, however, a no-fee savings account elsewhere will cost you nothing and earn you more interest. The decision depends on your balance size and how much you value Bank of America's branch network.

Alternatives to Bank of America savings accounts

Many online banks offer savings accounts with no monthly fee, no minimum balance, and interest rates significantly higher than Bank of America. These accounts are FDIC-insured the same way Bank of America accounts are, so your money is equally protected.

Credit unions often offer savings accounts with no monthly fee as well. If you are a member of a credit union, checking their savings rates and fee structure takes minutes and may reveal a better option for your situation.

The trade-off with online banks is that you cannot deposit cash in person or speak to someone in a branch. If you need those services, a local credit union or a regional bank might split the difference—lower fees than Bank of America, but with physical locations.

How to avoid the monthly fee if you stay with Bank of America

The simplest route is to maintain the $300 minimum in the Regular Savings Account itself. If you are saving toward a goal and your balance naturally stays above $300, you pay nothing.

If your balance dips below $300 sometimes, link the savings account to a Bank of America checking account and keep $500 combined across both. This gives you flexibility to move money between accounts without triggering the fee. Many people use this setup: they keep their main spending money in checking and let savings accumulate in the linked account.

If you cannot meet either condition, the fee applies every month. At that point, the math usually favors opening a savings account elsewhere.

Frequently Asked Questions

Can I avoid the fee by keeping my balance above $300 for most of the month?

No. Bank of America calculates the minimum balance daily, so your balance must stay at or above $300 every single day of the month. Even one day below $300 triggers the $3 fee for that month.

Do I have to use a Bank of America checking account to waive the savings fee?

Yes. The combined $500 balance option requires a linked Bank of America checking account. If you do not have a checking account there, your only option is to keep $300 in the savings account itself.

What happens if I do not meet the minimum balance one month?

The $3 monthly fee is deducted from your savings account balance. If your balance is very low, this fee can eat into your savings. There is no penalty beyond the monthly charge, but the fee repeats every month you do not meet the requirement.

Is the interest I earn on a Bank of America savings account taxable?

Yes. Any interest earned is taxable income and will be reported to you on a 1099-INT form if the amount exceeds $10. Bank of America will also report it to the IRS. The amount is usually small, but it still counts as income for tax purposes.

Can I move money between my Bank of America checking and savings account without a fee?

Yes. Transfers between your own Bank of America accounts are free and typically happen when ready online or within one business day. This is why linking the accounts for the combined minimum balance works well—you can move money as needed without penalty.