Bank of America checking accounts have no monthly fee if you meet one straightforward condition

Bank of America's most common checking account, called Checking, costs nothing per month as long as you keep a minimum balance — the smallest amount of money the bank requires you to hold in the account at all times. If your balance drops below that minimum, you pay a monthly fee. The minimum balance and the fee amount depend on which account you choose and whether you use certain features like direct deposit.

The bank offers several checking accounts with different minimums and fees. The basic Checking account requires either a $500 minimum balance or a direct deposit of at least $250 per pay period to avoid the monthly fee. If you do neither, the fee is $12 per month. Other accounts have higher minimums but may offer more features, like higher interest rates or waived ATM fees.

Key Takeaways

  • Bank of America's basic Checking account has no monthly fee if you maintain a $500 minimum balance or set up direct deposit of $250 or more per pay period.
  • If you fall below the minimum balance and have no direct deposit, you will pay a $12 monthly maintenance fee.
  • Premium accounts like Preferred Rewards Checking have higher minimums but offer benefits like interest on your balance and waived fees for certain services.
  • The actual fee and minimum balance can change, so confirm the current terms on Bank of America's website or by calling your local branch before opening an account.

What "minimum balance" means and how it works

A minimum balance is the lowest amount of money you must keep in your checking account to avoid paying a fee. Bank of America measures this balance on a daily basis — meaning they check how much money is in your account each day. If your balance dips below the required amount even once during a month, you may be charged the fee at the end of that month.

For example, if your account requires a $500 minimum balance and you have $600 in the account, you are safe. If you withdraw $150 and drop to $450, you have fallen below the minimum, even if you deposit money back the next day. The fee will likely appear on your statement at the end of the billing cycle.

The reason banks set minimums is to may support they have money on hand to lend out and earn interest from. When you keep money in the account, the bank uses it. In exchange, they waive the fee — it is their way of saying the account is worth keeping open.

How direct deposit can waive the fee instead

Direct deposit is when your employer or another source (like Social Security or a pension) sends your payment straight into your bank account electronically, rather than giving you a paper check. Bank of America will waive the monthly fee on its basic Checking account if you receive at least $250 in direct deposits per pay period.

This matters because direct deposit is more reliable for the bank than a minimum balance. If you receive a paycheck every two weeks, that is $250 or more coming in regularly. The bank knows it can count on that money. Many people find this easier than keeping a large balance sitting in the account, especially if they live paycheck to paycheck.

To set up direct deposit, you give your employer or benefit provider your account number and routing number (a nine-digit code that identifies your Bank of America branch). Your employer's payroll department handles the rest. It usually takes one or two pay periods to start.

Premium checking accounts with higher minimums and more features

Bank of America offers accounts beyond the basic Checking option. Preferred Rewards Checking is one example. It requires a higher minimum balance — often $10,000 or more — but it pays interest on your balance. Interest means the bank pays you a small percentage of your balance each month just for keeping money there.

These premium accounts may also waive fees for things like overdrafts (when you spend more than you have), ATM withdrawals at out-of-network machines, or wire transfers. They sometimes offer other perks like higher interest rates or discounts on loans. The trade-off is that you need to keep more money in the account at all times.

Premium accounts make sense only if you have the money to meet the minimum balance and if the benefits (like interest) actually save you more than the fee would cost. For someone just starting out with banking, the basic Checking account is usually the right choice.

What happens if you do not meet the minimum or have direct deposit

If you do not maintain the minimum balance and you do not have direct deposit set up, Bank of America charges you a monthly fee. For the basic Checking account, this fee is $12 per month as of the last update, though fees can change. That adds up to $144 per year.

The fee appears as a line item on your monthly statement. It reduces your account balance just like any other withdrawal. If your balance is already low, the fee can push you further below the minimum, triggering another fee the next month — a cycle that is hard to escape.

Some people avoid this by keeping just enough money in the account to stay above the minimum, or by setting up direct deposit even if it is a small amount. Others switch to banks with no minimum balance requirement. The choice depends on your situation and whether you plan to use Bank of America for other services.

Other costs to know about

The monthly maintenance fee is not the only cost associated with a checking account. Bank of America also charges for certain transactions and services. For example, if you overdraw your account — spend more money than you have — you may pay an overdraft fee, usually around $35 per transaction. ATM withdrawals at machines outside the Bank of America network may cost $2 to $3 each, though the bank reimburses some of these fees depending on your account type.

Wire transfers, cashier's checks, and stop payments (asking the bank to block a check you wrote) also carry fees. These are not automatic charges — you only pay them if you use these services. For someone who uses their checking account for basic deposits and withdrawals, these fees may never explore.

Before opening an account, ask your local Bank of America branch or check their website for the full fee schedule. Fees and minimums change occasionally, and knowing the current terms helps you decide whether this account fits your needs.

Frequently Asked Questions

Can I avoid the monthly fee without direct deposit?

Yes, by keeping a $500 minimum balance in your basic Checking account. The balance is measured daily, so you need to stay above $500 every day of the month. If you cannot keep that much money in the account, direct deposit is the other way to waive the fee.

Does the minimum balance include money I am saving for something?

Yes. Bank of America counts all the money in your checking account toward the minimum, whether you plan to spend it or save it. If you want to keep savings separate, you can open a savings account at the same bank and transfer money between them.

What if I set up direct deposit but it does not start right away?

Direct deposit usually takes one or two pay periods to begin. Until it starts, you are responsible for meeting the $500 minimum balance to avoid the fee. Once direct deposit is active, the fee will be waived even if your balance drops below $500.

Are there Bank of America checking accounts with no minimum balance?

Bank of America's basic Checking account has a minimum balance requirement, but the bank may offer other options depending on your location and situation. Contact your local branch to ask about all available accounts, or check their website for the most current offerings.

If I close my account, do I owe the monthly fee?

No. Once you close the account, you stop paying monthly fees. However, any fees that were already charged before you closed it remain your responsibility. Make sure your account balance is positive before closing to avoid owing money to the bank.