Bank of America checking accounts have monthly fees unless you meet specific balance or deposit requirements

Bank of America's standard checking account, called Checking, costs $12 per month. You can waive that fee in three ways: keep a $1,500 minimum daily balance, set up a direct deposit of any amount, or maintain a linked savings account with a $500 minimum balance. If none of those fit your situation, you pay the fee every month.

Bank of America also offers Advantage Banking, which costs $10 per month and has the same waiver options. The difference is small—Advantage Banking gives you a slightly higher interest rate on savings and a few extra perks like discounted safe deposit boxes. For most people, the standard Checking account is the one to consider.

The real question is not whether the account itself is "good"—it depends on whether you can hit one of those fee waivers without strain. If you can keep $1,500 in the account at all times, or if your employer already sends paychecks there, the monthly cost is zero. If you cannot, you are paying $144 a year just to have the account open.

Key Takeaways

  • Bank of America checking costs $12 monthly unless you maintain a $1,500 minimum balance, set up direct deposit, or link a savings account with $500 in it.
  • The account includes a debit card, online banking, and access to Bank of America's branch and ATM network, which is one of the largest in the United States.
  • If you cannot meet any fee waiver requirement, you will pay $144 per year in fees alone, making other banks a cheaper option.
  • Bank of America pays almost no interest on checking balances, so the account is for spending and bill pay, not for saving money.

What you get for the monthly fee

The checking account comes with a debit card, online and mobile banking, bill pay, and the ability to transfer money between your own accounts. You can also set up automatic transfers and recurring payments. Bank of America does not charge extra for these features—they are included in the $12 monthly fee (or free if you waive it).

The real value for many people is the branch and ATM network. Bank of America has roughly 4,300 branches and 16,000 ATMs across the United States. If you live in or near a major city, you probably have a Bank of America branch within a few miles. That matters if you need to deposit cash, get a cashier's check, or talk to someone in person about your account.

The account also gives you access to Zelle, which is a free way to send money to other people's bank accounts in minutes. Most major banks offer Zelle, so this is not unique to Bank of America, but it is useful if your friends and family bank there too.

Interest rates and how much money you actually earn

Bank of America checking accounts pay almost no interest on your balance. As of late 2024, the rate is typically 0.01% annual percentage yield (APY) or lower, which means a $1,500 balance earns about 15 cents per year. That is not a rounding error—that is what the account actually pays.

If you keep money in the account for savings, you are losing purchasing power to inflation. Bank of America's savings accounts pay slightly more—usually around 0.01% to 0.04% APY depending on the account type—but that is still far below inflation. Online banks and credit unions often pay 4% to 5% APY on savings accounts, which is 100 times higher.

This matters only if you are trying to save money in the account. If you use it for spending and bill pay, and keep your savings elsewhere, the interest rate does not affect you.

Overdraft fees and how they work

Bank of America charges $35 per overdraft transaction if you spend more than you have in the account. The bank also charges $35 per day if your account stays negative for more than one business day, up to a maximum of $105 per statement cycle. That means one mistake—a forgotten check or an unexpected charge—can cost you $35 to $140 depending on how long it takes you to notice and fix it.

You can turn off overdraft protection, which means the bank will decline transactions instead of charging you a fee. This is the safer choice if you tend to spend without checking your balance first. To do this, you log into your Bank of America account online or call the bank and ask them to disable overdraft coverage on your debit card.

Some banks offer overdraft protection through a linked savings account, which means the bank moves money from savings to checking automatically if you go negative. Bank of America offers this, but you have to set it up yourself—it is not automatic.

How Bank of America checking compares to other banks

If you can waive the $12 monthly fee through direct deposit or a minimum balance, Bank of America is competitive with other large banks. Chase, Wells Fargo, and Citibank all charge similar monthly fees with similar waiver options. The main difference is the branch and ATM network—Bank of America's is larger than most, which matters if you use branches.

If you cannot waive the fee, you are paying more than you need to. Many online banks like Ally, Charles Schwab, and Discover offer checking accounts with no monthly fee, no minimum balance, and no direct deposit requirement. They also reimburse ATM fees nationwide, so you can use any ATM without paying extra. The trade-off is no physical branches—everything is online or by phone.

Credit unions often have lower fees and higher interest rates than Bank of America, but you have to be a member. Membership usually requires living or working in a specific area or belonging to a specific group. If you may have access to for a credit union, it is worth comparing their checking account to Bank of America's.

When a Bank of America checking account makes sense

The account works well if you have direct deposit through your employer, because that waives the monthly fee automatically. It also works if you keep at least $1,500 in the account at all times and do not mind that money sitting there earning almost nothing. And it works if you live near a Bank of America branch and use it regularly—for depositing cash, getting cashier's checks, or talking to someone about your account.

The account is less useful if you cannot meet any fee waiver, because you are paying $144 per year for features you can get free elsewhere. It is also less useful if you are trying to earn interest on your money, because the rate is too low to matter. And it is less useful if you never visit a physical branch, because the online experience is not meaningfully better than what online banks offer.

Frequently Asked Questions

Can I waive the monthly fee with a savings account at a different bank?

No. The $500 minimum balance waiver requires a linked Bank of America savings account. If you have savings at another bank, that does not count. You would need to move the money to Bank of America or choose a different fee waiver method.

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

If you are using the minimum balance waiver, the fee is charged in the next statement cycle if your balance falls below $1,500 on any day during that cycle. One day below the threshold triggers the fee. If you use direct deposit as your waiver instead, the balance does not matter—the fee is waived as long as direct deposit is set up.

Does Bank of America charge for wire transfers?

Yes. Domestic wire transfers cost $15, and international wire transfers cost $45. These are not included in the monthly fee. Many online banks offer free domestic wire transfers, so this is another area where Bank of America costs more than alternatives.

Can I have multiple checking accounts with Bank of America?

Yes, but each account has its own $12 monthly fee unless you meet the waiver requirements for each one separately. If you want multiple accounts, you would need to maintain the minimum balance or direct deposit for each, or the fees add up quickly.

What is the difference between Checking and Advantage Banking?

Advantage Banking costs $10 per month (versus $12 for Checking) and pays slightly higher interest on savings. The fee waivers are the same. For most people, the $2 monthly difference is small enough that Checking is the simpler choice, but if you also have a Bank of America savings account, Advantage Banking might save you a few dollars per year.