What Bank of America charges for savings accounts
Bank of America does not charge a monthly fee on most of its savings accounts. However, the account you open determines whether you pay anything, and what you need to do to avoid charges if one exists.
Bank of America offers several savings products. The most common is the Regular Savings Account, which has no monthly maintenance fee. The Premium Savings Account also has no monthly fee. A third option, the Money Market Savings Account, also carries no monthly maintenance charge. The difference between these accounts is the interest rate you earn and the minimum balance required to reach that rate — not whether you pay to hold the account.
The one savings product that does charge a monthly fee is the Advantage Savings Account, which costs $4.95 per month. This account is less common and is typically offered to customers who already have other Bank of America products. You can avoid this fee by maintaining a minimum daily balance of $500 or more in the account.
Key Takeaways
- Bank of America's Regular Savings Account and Premium Savings Account have no monthly maintenance fee.
- The Advantage Savings Account charges $4.95 per month unless you keep at least $500 in the account at all times.
- Interest rates and minimum balance requirements differ between account types, but these are separate from monthly fees.
- If you have a checking account with Bank of America, you may be able to link it to a savings account and avoid certain fees through bundling.
How to avoid monthly charges on a savings account
If you open a Regular Savings Account or Premium Savings Account, there is nothing you need to do — no monthly fee applies. These are the standard savings products Bank of America offers to most customers.
If you have an Advantage Savings Account, the fee applies automatically each month unless you maintain the $500 minimum balance. This balance is measured as your daily balance, meaning you need to have at least $500 in the account every single day of the month. If your balance drops below $500 on even one day, the $4.95 fee will be charged for that month.
Some customers avoid fees by linking their savings account to a Bank of America checking account. When you have both products, Bank of America sometimes waives certain fees or offers better interest rates. Ask a Bank of America representative whether bundling your accounts would lower your costs.
Interest rates and minimum balances
Bank of America savings accounts do not charge a fee based on how much money you have, but they do pay different interest rates depending on your balance and account type. The interest rate is the percentage of your money that the bank pays you each year for letting them hold it.
The Premium Savings Account typically requires a higher opening balance than the Regular Savings Account and pays a higher interest rate in return. The Money Market Savings Account also requires a larger minimum balance but may offer a higher rate. These minimums vary and change over time, so the current requirements depend on when you open the account.
Interest rates at all banks change frequently and are not the same as monthly fees. A low interest rate costs you money over time by paying you less, but it is not a charge the bank takes from your account each month the way a fee is.
What happens if you close your account
Bank of America does not charge a fee to close a savings account. You can close the account at any time by visiting a branch, calling customer service, or using the mobile app. If you have an outstanding monthly fee that has not been paid, you should settle it before closing, though the bank may waive the fee in some cases.
If you close your account and later want to reopen one, Bank of America treats it as a new account. There is no penalty for closing and reopening, but you will need to go through the opening process again.
Other charges that may explore
Beyond the monthly maintenance fee, Bank of America may charge for specific actions on your savings account. An overdraft fee applies if you try to withdraw more money than you have in the account. A wire transfer fee applies if you send money to another bank. An ATM fee may explore if you use an ATM that does not belong to Bank of America.
These charges are separate from the monthly fee and depend on what you do with the account, not straightforward on holding it. For example, you can have a savings account for years and never pay an overdraft fee if you never overdraw it.
Bank of America also charges fees on certain services like cashier's checks, stop payments, and account research. These are not savings account fees but rather fees for specific transactions or services you request.
Comparing Bank of America savings to other banks
Bank of America's savings accounts are competitive in terms of monthly fees — most have none — but the interest rates they pay are often lower than what you can find at online banks or credit unions. An online bank might pay three to five times more interest on the same amount of money, though it may offer fewer physical branches and in-person services.
If you value having a local branch where you can walk in and speak to someone, Bank of America's fee structure may work for you. If you prioritize earning more interest on your savings, you may want to research other banks' rates. The choice depends on what matters most to your situation.
Frequently Asked Questions
Does Bank of America charge a fee just for having a savings account?
Most Bank of America savings accounts do not charge a monthly fee. The Regular Savings Account and Premium Savings Account are free to hold. Only the Advantage Savings Account charges a monthly fee, and you can avoid it by keeping $500 in the account.
What is the minimum balance I need to avoid fees?
For the Advantage Savings Account, you need a minimum daily balance of $500. For the Regular Savings Account and Premium Savings Account, there is no minimum balance requirement to avoid a fee, though you may earn a higher interest rate if you maintain a larger balance.
Can I move money between my Bank of America savings and checking account without a fee?
Yes. Transfers between your own Bank of America accounts are free and can usually be done through the mobile app, online banking, or in a branch. There is no limit on how many times you transfer between your own accounts.
Do I have to pay a fee if I keep my savings account inactive?
No. Bank of America does not charge a fee for an inactive account. However, if your account sits unused for a very long time, the bank may close it. Contact Bank of America if you have not used your account in several years to confirm it is still active.
What happens if I cannot maintain the $500 minimum for the Advantage Savings Account?
If your balance drops below $500, the $4.95 monthly fee will be charged. You can avoid this by switching to the Regular Savings Account, which has no minimum balance and no monthly fee, though it may pay a lower interest rate.