What Bank of America charges for savings accounts

Bank of America does not charge a monthly fee to open or maintain most of its savings accounts. However, the bank does charge fees in specific situations — if your account balance drops below a certain level, if you exceed a limit on withdrawals, or if you use certain services. The exact fees depend on which savings product you choose.

The most common savings account at Bank of America is the Regular Savings Account. This account has no monthly maintenance fee, but it does charge $2.50 per withdrawal after you make six withdrawals in a statement period. A statement period is usually one month. This limit comes from a federal rule that used to explore to all savings accounts, though that rule changed in 2020 — Bank of America kept the limit anyway.

Bank of America also offers a Premium Savings Account, which requires a higher opening balance and has different fee rules. Before you open any account, you should know what the current minimum balance requirement is and what happens if you fall below it, because these details change and vary by location.

Key Takeaways

  • Bank of America's Regular Savings Account has no monthly fee, but charges $2.50 for each withdrawal after the sixth one in a month.
  • The Premium Savings Account has different balance requirements and fee structures, so you should check the current terms before opening.
  • Fees can be waived if you maintain a high enough balance or link your account to a may have access to checking account.
  • The interest rate Bank of America pays on savings is typically very low compared to online banks, so the fee structure matters less than where your money actually grows.

When Bank of America charges the withdrawal fee

The $2.50 per-withdrawal fee on the Regular Savings Account kicks in after your sixth withdrawal in a calendar month. This includes ATM withdrawals, transfers to other accounts, and debit card withdrawals from the savings account itself. It does not include deposits or balance inquiries.

The fee applies to each withdrawal over six, so if you make ten withdrawals in one month, you pay $2.50 four times — once for the seventh, eighth, ninth, and tenth withdrawal. The count resets on the first day of the next month.

Many people do not hit this limit because they use savings as a place to keep money, not to move it around. But if you are using your savings account like a checking account — pulling money out multiple times a week — you will see these charges add up quickly.

How to avoid fees on a Bank of America savings account

The simplest way to avoid the withdrawal fee is to make fewer than seven withdrawals per month. If you treat your savings account as a place to deposit money and leave it there, you will not trigger the fee at all.

Bank of America also waives the withdrawal fee if you maintain a minimum balance. The exact amount varies, so you should ask a banker or check your account terms online. Some customers can also waive fees by linking their savings account to a Bank of America checking account with direct deposit, though the requirements change.

If you find yourself regularly hitting the withdrawal limit, that is a sign that a checking account might be a better fit for your money. Checking accounts are designed for frequent transactions and typically have no limit on how many times you can withdraw.

Interest rates and why they matter more than fees

Bank of America's savings accounts earn interest — money the bank pays you for letting them use your deposit. However, the interest rate is very low, often less than 0.01% per year. This means if you keep $1,000 in the account for a year, you might earn less than a dollar in interest.

Online banks and credit unions often pay 10 to 20 times higher interest rates on savings accounts. The difference between Bank of America's rate and an online bank's rate will cost you far more money over time than any monthly fee would. If you are keeping a significant amount in savings, the interest rate matters much more than whether you pay $2.50 occasionally.

This does not mean Bank of America is a bad choice — convenience, having a physical branch nearby, or keeping all your accounts in one place might be worth the lower rate to you. But you should know what you are trading off.

Premium Savings Account fees and requirements

Bank of America's Premium Savings Account is designed for customers who keep larger balances. It typically requires a higher opening deposit and has different withdrawal rules than the Regular Savings Account. The fee structure and balance requirements change, so you should check the current terms before opening.

Some customers find that the Premium account's higher interest rate (still low by online banking standards) makes sense if they already meet the balance requirement. Others find that the extra requirements are not worth the small difference in earnings.

What happens if your balance falls below the minimum

Some Bank of America savings accounts have a minimum balance requirement. If your balance drops below that amount, the bank may charge a monthly fee. The exact minimum and fee vary by account type and can change, so check your account agreement or ask at a branch.

If you are worried about accidentally falling below a minimum, you can set up a low-balance alert on your account through Bank of America's website or mobile app. This sends you a notification when your balance gets close to the limit, giving you time to deposit more money before a fee is charged.

Frequently Asked Questions

Does Bank of America charge to open a savings account?

No, there is no fee to open a Bank of America savings account. You may need to deposit money to meet a minimum opening balance, but that money is yours — it is not a fee.

Can I avoid the withdrawal fee by using a debit card instead of an ATM?

No. Both ATM withdrawals and debit card withdrawals from your savings account count toward the six-withdrawal limit. The fee applies to any way you take money out of the account.

What is the difference between a savings account and a money market account at Bank of America?

A money market account typically requires a higher minimum balance and pays a slightly higher interest rate, but it also has withdrawal limits and may charge higher fees if you fall below the minimum. A regular savings account has lower barriers to entry but earns less interest.

If I have multiple savings accounts, do the withdrawal limits explore to each one separately?

Yes. Each savings account has its own six-withdrawal limit per month. However, if you are managing multiple accounts, it may be a sign that a checking account would be more practical for your needs.

Does Bank of America charge fees for online transfers between my own accounts?

Transfers between your own Bank of America accounts typically do not incur a fee, but they may count toward your withdrawal limit on savings accounts. Check your account terms or ask a banker to be certain.