Advantage Savings is Bank of America's basic savings account for everyday banking
Advantage Savings is a savings account designed for people who want a straightforward place to store money and earn interest, without monthly fees or minimum balance requirements. Bank of America offers it alongside other account types, and it's one of the simpler options if you're new to banking or returning after time away from formal accounts.
The account lets you deposit money, watch it grow through interest, and withdraw when you need it. You can open one online, on a mobile app, or in a Bank of America branch. There's no setup fee, and you don't have to keep a certain amount in the account to avoid charges.
Key Takeaways
- Advantage Savings has no monthly maintenance fee and no minimum balance requirement, so you can open it with any amount.
- The account earns interest on your balance, though the rate changes based on what the Federal Reserve does and market conditions.
- You can access your money through Bank of America's ATMs, branches, online banking, and mobile app.
- Transfers between your Advantage Savings and other Bank of America accounts you own happen when ready online.
- The account is FDIC insured up to $250,000, meaning your money is protected if the bank fails.
How interest works on Advantage Savings
When you keep money in Advantage Savings, the bank pays you interest — a small percentage of your balance each month. The rate varies depending on Federal Reserve decisions and market conditions, so it changes over time. Bank of America publishes the current rate on their website and in your account statements.
Interest compounds daily, which means the bank calculates interest on your balance each day, and then adds that interest to your account. The next day, you earn interest on the larger amount. This compounds month after month, so your balance grows even if you don't deposit more money.
The interest rate on savings accounts is typically lower than what you might earn from a money market account or certificate of deposit (CD) at Bank of America, but Advantage Savings gives you full access to your money anytime without penalties.
Accessing your money and making transfers
You can withdraw money from Advantage Savings in several ways. Bank of America has thousands of ATMs nationwide where you can take out cash. You can also visit a branch and withdraw in person, or transfer money online to another account you own — at Bank of America or at a different bank.
Transfers between Advantage Savings and your other Bank of America accounts (like a checking account) happen right away when you do them online or through the mobile app. Transfers to accounts at other banks usually take one to three business days, depending on the receiving bank.
There's no limit on how many times you can withdraw or transfer money out of Advantage Savings each month. This is different from some savings accounts that restrict withdrawals, so you have flexibility if you need your money quickly.
Fees and account requirements
Advantage Savings has no monthly maintenance fee, which means Bank of America doesn't charge you just for having the account open. You also don't need to keep a minimum balance — you can open the account with $1 if you want, though most people deposit more.
There are no overdraft fees because this is a savings account, not a checking account. You straightforward can't withdraw more than you have. If you link it to a checking account and try to overdraft, the overdraft protection rules for your checking account explore instead.
Bank of America does charge fees for certain actions, like requesting a paper statement or stopping a payment, but these are uncommon and only explore if you specifically ask for those services.
How Advantage Savings compares to other Bank of America accounts
Bank of America offers several savings and money management accounts. Advantage Plus Savings is similar to Advantage Savings but includes additional perks like higher interest rates for customers who meet certain conditions (like maintaining a checking account or setting up direct deposit). Money Market Accounts typically offer higher interest rates but may require a larger opening deposit. Certificates of Deposit (CDs) lock your money away for a set period in exchange for a may provide higher rate.
If you want a place to keep everyday spending money and pay bills, you'd use a checking account instead. Checking accounts come with a debit card and checks, while savings accounts are meant for storing money rather than frequent transactions.
For someone new to banking, Advantage Savings is often a good starting point because there are no fees or minimums to worry about. You can open it alongside a checking account, or use it on its own if you only need a place to save.
Opening an Advantage Savings account
You can open Advantage Savings online through Bank of America's website, through their mobile app, or by visiting a branch in person. Online and app applications usually take 10 to 15 minutes. You'll need a valid government ID, your Social Security number, and an initial deposit (though some promotions may waive this).
If you already have a Bank of America account, opening a second Advantage Savings account is faster — you can do it in minutes online without re-entering all your information. If you're opening your first Bank of America account, the process takes a bit longer because the bank verifies your identity.
Once your account is open, you can start depositing money right away through direct deposit, transfers from another bank, or by depositing a check through the mobile app or at a branch.
FDIC protection and account safety
Your money in Advantage Savings is protected by FDIC insurance, which stands for Federal Deposit Insurance Corporation. This means if Bank of America fails, the government guarantees your deposits up to $250,000. Most people never need this protection, but it's a safety net built into the banking system.
If you have multiple accounts at Bank of America — like an Advantage Savings account and a checking account — they're insured separately up to $250,000 each. So if you have $200,000 in Advantage Savings and $100,000 in checking, both are fully protected.
Your account is also protected by Bank of America's security measures, including encryption for online banking and fraud monitoring. If someone uses your account without permission, you can report it and the bank will investigate.
Frequently Asked Questions
Can I have more than one Advantage Savings account?
Yes. You can open multiple Advantage Savings accounts at Bank of America if you want to organize your money into separate buckets — for example, one for an emergency fund and one for a vacation fund. Each account earns interest separately and is insured separately up to $250,000.
What happens if I don't use my account for a long time?
Bank of America won't close your account or charge you for inactivity. Your money stays there and continues to earn interest. However, if your account is inactive for a very long time (typically years), the state may claim it as unclaimed property. You can always reclaim it by contacting Bank of America.
Can I set up automatic transfers into Advantage Savings?
Yes. You can schedule recurring transfers from your Bank of America checking account or from an external bank account into Advantage Savings. This is useful if you want to automatically move money to savings on payday or on a set date each month.
Is the interest rate may provide to stay the same?
No. Bank of America can change the interest rate at any time based on market conditions and Federal Reserve decisions. The bank will notify you before making a change. You can check the current rate on their website or in your online account.
What's the difference between Advantage Savings and Advantage Plus Savings?
Advantage Plus Savings offers a higher interest rate if you meet certain requirements, like maintaining a Bank of America checking account or setting up direct deposit. Advantage Savings has no requirements but a lower rate. Both have no monthly fees or minimum balance.