Bank of America savings accounts have no monthly maintenance fee, but you pay through lower interest rates and account restrictions

Bank of America does not charge a monthly fee to hold a savings account. However, the bank makes money from your savings in other ways: the interest rate paid on deposits is typically lower than competitors offer, and some account types come with balance requirements or withdrawal limits that can cost you if you break them.

The real cost of a Bank of America savings account is opportunity cost. If you keep $10,000 in their standard savings account earning 0.01% annual percentage yield (APY), you earn about $1 per year. The same $10,000 in an online savings account earning 4.5% APY earns $450 per year. That $449 difference is what Bank of America's low rates cost you over time.

Key Takeaways

  • Bank of America charges no monthly maintenance fee on any of its savings accounts, but interest rates are significantly lower than online banks offer.
  • The standard savings account has no minimum balance requirement, but the Money Market Savings account requires $2,500 to open and $25,000 to earn the higher rate tier.
  • Excessive withdrawals from savings accounts can trigger a $10 fee per transaction after six withdrawals in a calendar month, though this limit is less common now.
  • Bank of America Preferred Rewards members receive slightly higher APY rates, but the increase is usually less than 0.5% and does not close the gap with online competitors.

The three savings account types and what each costs

Bank of America offers three savings products. The Regular Savings Account has no monthly fee, no minimum opening deposit, and no minimum balance. It earns interest, but the rate is typically 0.01% APY or lower depending on your Preferred Rewards status. There are no withdrawal restrictions or penalties.

The Money Market Savings Account requires $2,500 to open. It pays a higher interest rate than regular savings, but only if your balance stays above $25,000. If your balance falls below $25,000, the rate drops to match regular savings. There is no monthly fee, but the account structure penalizes you for keeping less than $25,000.

The Growth Savings Account is Bank of America's newest product, designed to compete with online banks. It offers higher APY than regular savings but lower than Money Market Savings, with no minimum balance requirement and no monthly fee. Interest rates and availability vary by region and change frequently.

Withdrawal limits and the $10 excess transaction fee

Federal law once capped savings account withdrawals at six per month, and Bank of America enforced this limit with a $10 fee for each withdrawal over six. That federal rule was suspended in 2020 and has not been reinstated, so Bank of America no longer charges the excess transaction fee on most savings accounts.

However, the bank still lists withdrawal limits in its account agreements, and policies can change. If you plan to make frequent withdrawals from savings, confirm the current withdrawal policy with Bank of America directly, because the rules vary by account type and region. A regular checking account is a better choice if you need to withdraw money more than a few times per month.

How Preferred Rewards membership affects your savings rate

Bank of America customers who enroll in Preferred Rewards receive a small boost to their savings account APY. The increase depends on your membership tier, which is based on how much money you have in Bank of America accounts or how much you spend on their credit cards.

The boost is typically 0.10% to 0.25% APY above the standard rate. If the standard rate is 0.01%, a Preferred Rewards boost might bring it to 0.11% or 0.26%. This is better than nothing, but it still leaves you far behind online savings accounts. Preferred Rewards is a free program to join, so there is no cost to enroll, but do not expect the rate increase to make Bank of America competitive with online banks.

Comparing Bank of America to online savings accounts

The cost difference between Bank of America and online banks is the interest rate gap. Bank of America's regular savings account currently earns around 0.01% APY. Online banks like Marcus, Ally, and American Express Personal Savings typically offer 4.0% to 4.5% APY on the same type of account, with no monthly fee, no minimum balance, and no withdrawal restrictions.

On a $50,000 balance held for one year, Bank of America would pay you roughly $5 in interest. An online bank at 4.25% APY would pay you roughly $2,125. The difference is $2,120 per year. Bank of America makes up this gap by paying you less interest on your deposits — which is how they profit from your savings account.

Bank of America's advantage is convenience: if you already bank there, you can deposit checks at a branch or ATM, and you have a local person to call if something goes wrong. That convenience has a price, and the price is paid in lost interest over time.

Other fees that can explore to your savings account

Bank of America does not charge a monthly maintenance fee, but other fees can explore. If your account is inactive for a long period, the bank may charge an inactivity fee, though this is rare and usually only applies if you have not used the account for several years. Check your account agreement or call the bank to confirm the current policy.

If you overdraft your checking account and Bank of America transfers money from your savings to cover it, you may be charged an overdraft fee on the checking account (typically $35), but not on the savings account itself. Wire transfers out of your savings account may carry a fee of $15 to $25, depending on whether the wire is domestic or international.

If you close your savings account within 90 days of opening it, Bank of America may charge a $25 early closure fee. This fee is designed to discourage people from opening accounts just to earn a promotional bonus and then closing them when ready.

How to minimize what you pay on a Bank of America savings account

If you want to keep your savings at Bank of America, enroll in Preferred Rewards to get the small rate boost. Make sure your balance stays above $25,000 if you have a Money Market Savings Account, because falling below that threshold cuts your interest rate. Avoid making more than six withdrawals per month, even though the excess fee is no longer enforced, because the account agreement still lists the restriction.

If you are saving money for a goal more than a year away, the interest rate difference between Bank of America and online banks becomes significant. Moving $50,000 to an online savings account for one year costs you nothing to do and saves you roughly $2,000 in lost interest. You can keep your checking account at Bank of America and your savings at an online bank — many people do this to get the best of both.

Frequently Asked Questions

Does Bank of America charge a monthly fee for savings accounts?

No. Bank of America does not charge a monthly maintenance fee on any of its savings accounts. The cost comes from the interest rate being much lower than online banks offer, not from a fee you see on your statement.

What is the current interest rate on Bank of America savings accounts?

Bank of America's regular savings account earns approximately 0.01% APY, though the exact rate changes and may vary by region. Money Market Savings accounts earn a higher rate if your balance exceeds $25,000. Check your account online or call the bank for the current rate on your specific account.

Can I avoid the excess withdrawal fee by moving to a different account type?

The excess withdrawal fee is no longer enforced by Bank of America because the federal rule that created it was suspended. However, if you need to withdraw money frequently, a checking account is a better choice than savings, because checking accounts have no withdrawal limits.

Is it worth keeping savings at Bank of America if I already bank there?

That depends on how long you plan to keep the money there. For money you need within a few months, the interest rate difference does not matter much. For money you are saving for a year or longer, moving it to an online savings account can save you hundreds or thousands in lost interest, and you can do this while keeping your checking account at Bank of America.

What happens if my Money Market Savings account balance drops below $25,000?

Your interest rate drops to match the regular savings account rate, which is much lower. If you cannot maintain a $25,000 balance, the regular savings account or Growth Savings account is a better choice because they have no balance requirement.