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 is waived if you meet one of these conditions: maintain a minimum daily balance of $1,500 in the account, set up a direct deposit of any amount, or link the account to a Bank of America savings or money market account with a $2,500 minimum balance. Most people who use direct deposit never pay the fee.

Bank of America also offers Advantage Banking, which costs $10 per month but waives the fee with a $2,000 minimum daily balance or direct deposit. The third option is Premium Checking, which has a $25 monthly fee and requires either a $25,000 minimum balance or a combination of linked accounts totaling $50,000. Premium Checking is designed for customers with higher balances and includes benefits like higher interest rates and fee reductions on other services.

If you do not meet any waiver condition, the monthly fee will post to your account automatically. Bank of America does not refund fees retroactively unless you can show an error on their part, so the decision to keep the account or move to a different bank should be made before fees accumulate.

Key Takeaways

  • Bank of America's standard Checking account has a $12 monthly fee that is waived if you set up direct deposit, maintain $1,500 in the account, or link a savings account with $2,500.
  • Direct deposit is the easiest waiver because it requires no minimum balance and works even if you receive just one deposit per month from any employer or government program.
  • Advantage Banking costs $10 monthly and waives the fee with a $2,000 balance or direct deposit, while Premium Checking costs $25 and is meant for customers with larger account balances.
  • Monthly fees post automatically if you do not meet a waiver condition, and Bank of America typically does not refund them after they have been charged.

How direct deposit waives the monthly fee

Setting up direct deposit is the most common way to avoid Bank of America's checking account fee. Direct deposit means your employer, a government agency, or another payer sends your paycheck or benefit payment straight to your account electronically. You do not need a large deposit amount—even a single direct deposit per month, of any size, will waive the $12 fee for the entire month.

To set up direct deposit, you provide your employer or benefit administrator with your Bank of America account number and routing number. You can find both on the bottom left of any check, or by logging into your Bank of America account online and viewing your account details. Once the direct deposit is active, the fee waiver applies automatically each month that a deposit arrives.

If you are retired, unemployed, or do not receive regular deposits, direct deposit may not be an option. In that case, the $1,500 minimum balance waiver is the next easiest path.

Minimum balance requirements and how they work

Bank of America waives the $12 monthly fee if you keep a minimum daily balance of $1,500 in your Checking account. This means the balance must stay at or above $1,500 every single day of the month—if it drops below $1,500 even once, the fee will be charged. The bank calculates your daily balance at the end of each business day based on all transactions that have posted.

For some people, maintaining $1,500 is realistic; for others, it is not. If you live paycheck to paycheck or have irregular income, the balance requirement may be harder to meet than setting up direct deposit. However, if you have savings or receive regular deposits that keep your balance above $1,500 naturally, this waiver requires no additional action.

The Advantage Banking account has a lower minimum of $2,000, and Premium Checking requires $25,000. If you cannot meet any of these thresholds, you will pay the monthly fee unless you use direct deposit or link another account.

Linking a savings account to waive fees

Bank of America allows you to waive the Checking account fee by linking a savings or money market account with a $2,500 minimum balance. This means you keep $2,500 in a separate savings account, and the bank will not charge you the $12 monthly fee on your checking account. The two accounts must be in your name and linked in Bank of America's system.

This option works well if you already have savings set aside or are building an emergency fund. You earn a small amount of interest on the savings account (the rate varies and is typically very low), and the fee waiver is automatic as long as the balance stays above $2,500. If the balance drops below $2,500, the checking account fee will resume the following month.

You can link the accounts through Bank of America's website or mobile app, or by visiting a branch. Once linked, you do not need to do anything else—the waiver applies each month automatically.

What happens if you do not meet any waiver condition

If you do not set up direct deposit, maintain the required balance, or link a savings account, Bank of America will charge the monthly maintenance fee to your checking account. The fee posts on a specific day each month (usually around the 10th, though this varies). Once the fee is charged, it is deducted from your balance when ready.

Repeated monthly fees add up quickly. Over a year, the $12 monthly fee on a standard Checking account totals $144. If you are paying this fee and do not want to, the fastest solution is usually to set up direct deposit, since it requires no minimum balance and no additional account.

If you believe a fee was charged in error—for example, if you had a direct deposit that should have waived the fee but the system did not recognize it—you can contact Bank of America to request a review. Explain what happened and provide documentation if you have it. The bank may refund a single fee if you can show a clear error, but this is not may provide and does not happen retroactively for multiple months.

Comparing Bank of America checking to other banks

Bank of America is not the only bank that charges monthly checking fees. Many large national banks charge similar amounts: Wells Fargo charges $10 per month on its standard account, and Chase charges $12. However, many online banks and credit unions offer checking accounts with no monthly fee at all, regardless of balance or direct deposit.

If you are paying Bank of America's monthly fee and cannot meet any waiver condition, moving to a bank with no monthly fee might save you money. Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee and offer competitive interest rates. Credit unions often have no-fee checking as well, though you must be a member to open an account.

The trade-off is that online banks have no physical branches, so you cannot deposit cash or speak to someone in person. If you need in-person banking, a local credit union or a bank with branches in your area may be worth the monthly fee. If you rarely need a branch, an online bank with no fee is usually the better choice financially.

Frequently Asked Questions

Can I get a refund for monthly fees I already paid?

Bank of America does not automatically refund monthly fees after they have been charged. However, if you can show that a fee was charged in error—for example, if a direct deposit should have waived the fee but did not post correctly—you can contact the bank and request a review. A single fee may be refunded, but this is not may provide and does not explore to multiple months of fees.

Does the direct deposit have to come from my employer?

No. Direct deposit from any source counts toward the fee waiver. This includes paychecks, Social Security, pension payments, tax refunds, or transfers from another bank. As long as the deposit is electronic and comes from an outside source, it waives the fee for that month.

What if my balance drops below $1,500 for just one day?

If your daily balance falls below $1,500 even once during the month, you will be charged the monthly fee. The bank checks your balance at the end of each business day, so a temporary dip counts. If you are using the balance waiver, you need to keep the account above $1,500 consistently.

Do I have to pay the monthly fee if I am a student?

Bank of America does not offer a student checking account with a waived fee. Students must meet the same waiver conditions as anyone else: direct deposit, a $1,500 minimum balance, or a linked savings account with $2,500. However, some other banks offer student checking with no monthly fee.

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

Switching to Advantage Banking ($10 per month) or Premium Checking ($25 per month) does not save money unless you meet their specific waiver conditions. Advantage Banking waives the fee with a $2,000 balance or direct deposit, and Premium Checking waives it with a $25,000 balance. If you cannot meet any waiver condition on your current account, you will not be able to avoid fees by switching accounts within Bank of America.