What happens when you open a Bank of America savings account

A Bank of America savings account is a deposit account where you store money and earn interest on your balance. When you open one, the bank holds your funds, insures them up to $250,000 through the Federal Deposit Insurance Corporation (FDIC), and pays you a small percentage of your balance each month or quarter as interest. You can deposit money by transferring it from another bank, depositing a check through the mobile app, or visiting a branch in person.

The account comes with a debit card, online banking access, and the ability to move money to other accounts or people. You can withdraw cash at any Bank of America ATM without a fee, or at any ATM in the Allpoint network (over 55,000 ATMs worldwide) for a small fee. The account itself has no monthly maintenance fee if you meet one of several conditions: keeping a minimum balance, setting up direct deposit, or maintaining a linked Bank of America checking account.

Key Takeaways

  • Bank of America savings accounts earn interest on your balance, paid monthly or quarterly depending on the account type.
  • Your deposits are insured up to $250,000 by the FDIC, meaning the bank guarantees your money even if the bank fails.
  • You avoid the monthly maintenance fee by keeping a minimum balance (usually $500), setting up direct deposit, or linking a checking account.
  • Withdrawals and transfers are limited to six per month under federal rules, though Bank of America does not charge a fee for exceeding this limit.
  • Interest rates on savings accounts are set by the bank and change based on Federal Reserve decisions, so your rate may be lower or higher than other banks offer.

How interest accrues and when you receive it

Bank of America calculates interest on your savings account daily based on your balance, but pays it out monthly or quarterly depending on which savings product you hold. The interest rate varies by account type: a basic savings account currently earns a lower rate than a high-yield savings account or money market account, though Bank of America's rates are typically lower than online banks offer. The rate the bank pays you changes when the Federal Reserve raises or lowers its benchmark interest rate, usually within a few weeks.

Interest is added directly to your account balance, so you earn interest on your interest in the following months. If you withdraw money mid-month, you lose the interest you would have earned on that amount for that period. The bank sends you a statement each month showing your opening balance, deposits, withdrawals, interest earned, and closing balance.

Withdrawal limits and how they work

Federal rules limit you to six withdrawals or transfers per month from a savings account, whether you withdraw at an ATM, write a check, transfer money online, or use a debit card. Bank of America does not charge a fee if you exceed this limit, but the bank may convert your account to a checking account or close it if you repeatedly go over six transactions per month. Most people stay under this limit because they use savings accounts to hold money they do not plan to touch regularly.

Deposits have no limit—you can deposit as much as you want whenever you want. ATM withdrawals at Bank of America machines are free, but withdrawals at other banks' ATMs through the Allpoint network cost $2.50 per transaction (though some accounts waive this fee). If you need to withdraw money frequently, a checking account may be more practical than a savings account.

Minimum balance requirements and monthly fees

Bank of America charges a $4 monthly maintenance fee on most savings accounts unless you meet one of three conditions: maintain a minimum balance of $500, set up direct deposit of at least $250 per month, or link the account to a Bank of America checking account. If you fall below the minimum balance, the fee is charged that month. The fee is deducted directly from your account, so your balance drops by $4.

If you are a student under 18, a Bank of America Student Savings account has no minimum balance requirement and no monthly fee. If you are over 65, the Bank of America Advantage Gold Savings account also waives the fee if you maintain a $500 balance or set up direct deposit. Check your account documents or log into online banking to see which fee structure applies to your specific account type.

How to move money in and out of your savings account

You can deposit money into your savings account through several methods: transfer from another bank account (takes one to three business days), mobile check deposit (takes one to two business days), in-person deposit at a Bank of America branch (available when ready), or ATM deposit at a Bank of America machine (available when ready). To transfer from another bank, you will need your Bank of America account number and routing number, which you can find in online banking or on a check.

To withdraw or transfer money out, you can use online banking to move funds to another account, visit an ATM to withdraw cash, go to a branch to withdraw cash or transfer to another person, or set up an automatic transfer to another account on a schedule. Transfers to accounts at other banks usually take one to three business days. Transfers between your own Bank of America accounts are when ready.

FDIC insurance and what it protects

The FDIC insures your savings account balance up to $250,000 per account owner per bank. This means if Bank of America fails, the FDIC will reimburse you for your balance up to that limit. If you have multiple accounts at Bank of America—a savings account, a checking account, and a money market account—each is insured separately up to $250,000, so you could have up to $750,000 protected across three accounts.

If you have a joint account with another person, each owner is insured separately for $250,000, so a joint savings account is protected for up to $500,000 total. FDIC insurance does not cover investment accounts, brokerage accounts, or mutual funds—only deposit accounts like savings and checking. Your funds are protected even if you never use the account; the insurance is automatic and costs you nothing.

How Bank of America savings accounts compare to other options

Bank of America savings accounts offer convenience—you can visit a branch in person, call customer service, and manage money across multiple account types in one place. However, the interest rate is typically lower than online banks offer. As of now, Bank of America's basic savings account earns significantly less than online savings accounts at banks like Marcus, Ally, or American Express, which have no physical branches but higher rates.

If you prioritize straightforward access to a branch and do not mind a lower interest rate, a Bank of America savings account works well. If you want to maximize interest earned and do not need in-person banking, an online savings account may be a better fit. You can hold accounts at multiple banks, so some people keep a small balance at Bank of America for convenience and a larger balance at an online bank for higher interest.

Frequently Asked Questions

What happens if I go below the $500 minimum balance?

You will be charged a $4 monthly maintenance fee that month. The fee is deducted from your account balance. If you bring the balance back above $500 the next month, you will not be charged again. If you consistently stay below the minimum, consider setting up direct deposit or linking a checking account to avoid the fee.

Can I have multiple savings accounts at Bank of America?

Yes, you can open more than one savings account. Each account is insured separately by the FDIC up to $250,000, so multiple accounts give you more insurance protection. However, each account counts toward your six-withdrawal limit per month, so if you have two savings accounts, you have six withdrawals total across both, not six per account.

How long does it take to transfer money from another bank into my Bank of America savings account?

Transfers from another bank usually take one to three business days. If you deposit a check through the mobile app, it takes one to two business days. In-person deposits at a branch or ATM deposits are available when ready. The exact timing depends on the other bank and whether the transfer happens on a business day.

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

A money market account typically earns a higher interest rate than a savings account but requires a higher minimum balance to avoid fees. Both have the same six-withdrawal limit per month. Money market accounts may come with a debit card or checkbook, while savings accounts typically do not. Choose based on how much you plan to keep in the account and how often you need to access the money.

Does Bank of America charge fees for ATM withdrawals outside their network?

Bank of America does not charge a fee for withdrawals at their own ATMs. Withdrawals at other banks' ATMs through the Allpoint network cost $2.50 per transaction. Some Bank of America account types waive this fee—check your account terms to see if yours does. The other bank's ATM may also charge its own fee on top of Bank of America's fee.