Bank of America savings accounts have no monthly maintenance fee, but you need to meet one condition to keep it that way
Bank of America offers savings accounts with no monthly fee as long as you maintain a minimum balance or set up a direct deposit. The most common option is the Bank of America Savings Account, which waives the monthly maintenance fee if you keep $300 or more in the account at all times. If your balance drops below $300, you will be charged a $4 monthly fee until you bring it back up.
The other way to avoid the fee is to have at least one direct deposit per month of any amount. This means your employer, government benefit, or another source deposits money straight into your account. If you meet either condition — the $300 balance or the monthly direct deposit — you pay nothing.
Bank of America also offers a Money Market Savings Account, which works the same way: no monthly fee if you keep $2,500 or more in the account, or if you have a monthly direct deposit. This account typically pays a higher interest rate than the regular savings account, but the higher balance requirement makes it less practical for people building an emergency fund.
Key Takeaways
- The Bank of America Savings Account charges no monthly fee if you maintain a $300 minimum balance or receive at least one direct deposit per month.
- If your balance falls below $300 and you have no direct deposits, you will be charged $4 per month until the balance is restored.
- The Money Market Savings Account requires a $2,500 minimum balance or monthly direct deposit to avoid a monthly fee.
- Interest rates on both accounts are typically very low, so these accounts work best for storing money you need to access quickly rather than for earning significant interest.
How the $300 minimum balance works in practice
The $300 minimum is checked at the end of each business day. This means if your balance drops to $299 on a Tuesday, you will not be charged a fee that day — but if it stays below $300 through the end of that business day, the $4 fee will be applied the following month.
The fee is not charged when ready. Instead, Bank of America applies it on the last day of your statement cycle, which is usually once per month. If you bring your balance back above $300 before that date, the fee may not be charged. However, once the fee is applied, you cannot get it back by raising your balance later — you have to contact Bank of America to dispute it, and they will only reverse it if you can show the balance was above $300 for the entire statement period.
Many people keep the $300 minimum by leaving it untouched and using the account only for deposits and withdrawals above that amount. This is a straightforward way to may support you never accidentally trigger the fee.
Direct deposit as an alternative to the minimum balance
If you receive a paycheck, Social Security, unemployment benefits, or any other regular deposit into your account, you can use that to waive the fee instead of maintaining the $300 balance. The direct deposit must come from an employer, government agency, or similar source — transferring money from another account you own does not count.
The deposit can be any amount, even $1, as long as it arrives at least once per month. Many people find this easier than watching their balance, especially if they live paycheck to paycheck and their balance fluctuates.
If you lose your job or your benefits stop, you will need to either build the $300 balance back up or the $4 monthly fee will start. Bank of America does not give you a grace period — the fee applies the month after you miss a direct deposit and fall below $300.
What happens if you are charged the monthly fee
The $4 monthly maintenance fee is deducted from your account balance automatically. It will keep being charged every month until either your balance reaches $300 or you receive a direct deposit.
If your balance is very low — say, $50 — and you are charged the $4 fee, your balance drops to $46. If you do not add money or receive a deposit, the fee will be charged again the next month, bringing it to $42. Over time, a low balance can be eaten away by these fees.
You can call Bank of America at the number on the back of your debit card or visit a branch to ask them to reverse one or two fees if this is your first time, but they are not required to do so. It is better to prevent the fee by maintaining the balance or setting up a direct deposit.
Interest rates on Bank of America savings accounts
Bank of America savings accounts earn interest, but the rate is typically very low — often less than 0.01% per year. This means if you keep $1,000 in the account for a full year, you might earn less than 10 cents in interest.
Interest rates change based on what the Federal Reserve does with its benchmark rate. When the Fed raises rates, Bank of America may raise its savings rates slightly. When the Fed lowers rates, Bank of America lowers its rates too. You can check the current rate on Bank of America's website or by asking at a branch.
Because the interest earned is so small, Bank of America savings accounts are best used for money you need to access quickly — like an emergency fund — rather than for long-term savings. If you want to earn more interest, you would need to look at other banks or account types, though that is beyond the scope of this guide.
Comparing Bank of America to other banks' savings accounts
Many online banks and credit unions offer savings accounts with no monthly fee and no minimum balance requirement at all. They also often pay higher interest rates than Bank of America. However, Bank of America has physical branches in most cities, which some people prefer because they can deposit cash in person and speak to someone face-to-face.
If you already have a checking account with Bank of America, opening a savings account with them is straightforward — you can do it online or at a branch in minutes. The trade-off is that you will pay the $4 fee if you do not meet the balance or direct deposit requirement, whereas some other banks would not charge you anything.
The choice depends on what matters to you: convenience of a local branch, or lower fees and higher interest rates from an online bank. Both are valid options.
How to avoid the monthly fee when you open your account
When you open a Bank of America Savings Account, the monthly fee does not explore for the first month. This gives you time to either deposit $300 or set up a direct deposit before the fee could be charged.
If you are opening the account in person at a branch, the banker can help you set up a direct deposit right away if you have your employer's information. If you are opening online, you can add the $300 minimum balance during the account setup process, or you can set up direct deposit later through the Bank of America website or app.
The safest approach is to do both: deposit at least $300 when you open the account, and also set up a direct deposit if you have one. This way, even if your balance drops below $300 for a few days, the direct deposit will protect you from the fee.
Frequently Asked Questions
What if I cannot keep $300 in the account?
Set up a direct deposit instead. Even a small regular deposit from your employer or benefits will waive the fee. If you do not have a direct deposit, you will need to either build up the $300 or accept the $4 monthly charge.
Can I use a transfer from another account to meet the $300 minimum?
Yes, you can transfer money from another account to reach $300. The minimum balance rule does not care where the money comes from — only that $300 is in the account at the end of each business day.
Does the direct deposit have to be from my job?
No. Direct deposits from Social Security, unemployment benefits, tax refunds, or other government sources all count. The deposit just needs to come from an external source, not from another account you own.
What if my balance drops below $300 for one day?
One day below $300 will not trigger the fee. The fee is charged only if your balance is below $300 at the end of a business day, and it applies to the following month's statement. If you bring it back above $300 before the end of that business day, you are safe.
Can I get the monthly fee reversed if I was not paying attention?
Bank of America may reverse one or two fees as a courtesy, especially if you are a new customer, but they are not required to. It is better to set up the $300 balance or direct deposit from the start so the fee never applies.