Bank of America is one of the largest banks in the United States
Bank of America (often called BofA) is a national bank that offers checking accounts, savings accounts, credit cards, loans, and investment services. It operates thousands of branches across the country and online, so you can do your banking in person, by phone, or through a website or mobile app.
If you're new to banking or returning after time away, Bank of America works like most other banks: you deposit money, the bank holds it safely, you can withdraw it when you need it, and the bank pays you a small amount of interest on savings. You can also borrow money from them through loans or credit cards, and they charge you interest on what you borrow.
The bank is owned by shareholders (people who own pieces of the company), not by the government. It's a for-profit business, which means it makes money by charging fees on accounts and services, and by earning interest on the money it lends out.
Key Takeaways
- Bank of America is a private bank where you can open a checking or savings account, get a credit card, or borrow money.
- You can bank with them in person at a branch, by phone, or online through their website or mobile app.
- The bank charges fees for some services, such as monthly account maintenance or overdrafts, though some accounts have no monthly fee.
- Your money is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per account type, so your deposits are protected if the bank fails.
- Bank of America is regulated by federal banking authorities, which means it must follow rules about how it handles your money and information.
How Bank of America makes money from your account
Bank of America charges fees on some accounts and services. A checking account might have a monthly maintenance fee (usually $12 to $15), though you can often waive it by keeping a minimum balance, setting up direct deposit, or meeting other conditions. Savings accounts typically have no monthly fee, but they pay you interest at a rate the bank sets.
The bank also makes money when you use their services: overdraft fees if you spend more than you have, ATM fees if you use an out-of-network machine, wire transfer fees, and credit card interest if you carry a balance. Reading the account terms before you open an account tells you exactly what these fees are.
On the flip side, the bank pays you interest on money in a savings account. That interest rate changes based on what the Federal Reserve does with interest rates nationally, so your rate may go up or down over time. Checking accounts rarely pay interest, or pay very little.
What types of accounts Bank of America offers
Bank of America's most common account for everyday banking is a checking account. You get a debit card to spend money directly from the account, checks to write, and online access to move money and pay bills. Some checking accounts have no monthly fee; others charge a fee unless you meet certain requirements.
A savings account is meant for money you want to keep and grow. The bank pays you interest, but you can only withdraw money a limited number of times per month (usually six) without a fee. Savings accounts typically have lower monthly fees than checking accounts, or no fee at all.
Bank of America also offers money market accounts (a hybrid between checking and savings), certificates of deposit or CDs (you lock money away for a set time and earn higher interest), and credit cards (you borrow money and pay it back with interest). They also provide mortgages, auto loans, and investment accounts, but those are more complex and usually for people with established banking history.
How to open an account at Bank of America
You can open an account online, by phone, or in person at a branch. You'll need a government-issued ID (like a driver's license or passport), a Social Security number, and proof of address (a utility bill or lease). Some people also need to bring a small amount of money to deposit right away, though this varies by account type.
When you open an account, the bank will ask questions about your income, employment, and whether you've had banking problems in the past. They use this information to decide whether to open the account and what terms to offer you. If you've had overdrafts or unpaid fees at another bank, Bank of America may decline you or require a higher opening deposit.
Once your account is open, you'll receive a debit card in the mail (usually within 7 to 10 business days), online access to check your balance and move money, and a checkbook if you opened a checking account. You can start depositing money right away through direct deposit, mobile check deposit (taking a photo of a check through the app), or in person at a branch.
How Bank of America protects your money
Your deposits at Bank of America are insured by the FDIC (Federal Deposit Insurance Corporation), a government agency. This means if the bank fails, the FDIC will return your money up to $250,000 per account type. So if you have $100,000 in a checking account and $100,000 in a savings account, both are fully protected because they're different account types.
Bank of America is also regulated by the Federal Reserve and the Office of the Comptroller of the Currency, which means federal examiners regularly check that the bank is following the law and managing money safely. The bank must also follow strict rules about protecting your personal information and reporting suspicious activity.
When you use online banking or a mobile app, Bank of America uses encryption (a way of scrambling information so only you and the bank can read it) to protect your login and transactions. You should still use a strong, unique password and never share your login details with anyone.
Fees and costs you should know about
Bank of America's checking accounts range from no monthly fee to about $15 per month, depending on the account type and whether you meet the bank's requirements. Common ways to avoid a monthly fee include setting up direct deposit, keeping a minimum balance (often $500 to $1,500), or maintaining a linked savings account with a certain balance.
Other fees include overdraft fees (usually $35 per transaction if you spend more than you have), out-of-network ATM fees ($2 to $3 per withdrawal), wire transfer fees ($15 to $30), and returned check fees ($35). Some accounts offer overdraft protection, which links your checking account to a savings account and automatically transfers money if you overdraft, though this may come with a small fee.
Credit cards issued by Bank of America charge interest on balances you don't pay off each month, and some charge annual fees. The interest rate depends on your credit history and the card type. Always read the terms before opening any account or card so you know exactly what you'll pay.
How to contact Bank of America if you have questions
You can reach Bank of America by phone at 1-800-432-1000 for general customer service. If you have a specific account question, the number is usually on the back of your debit card or in your online banking portal. You can also visit a local branch in person, call their investment or credit card customer service lines, or use the chat feature in their mobile app.
If you have a complaint about the bank or believe they've treated you unfairly, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) online at consumerfinance.gov. The CFPB is a government agency that investigates complaints about banks and other financial companies.
Frequently Asked Questions
Is my money safe at Bank of America?
Yes. Your deposits are insured by the FDIC up to $250,000 per account type, and the bank is regulated by federal agencies that check it regularly. The bank also uses encryption to protect your online banking information.
What's the difference between a checking and savings account?
A checking account is for everyday spending—you get a debit card and can write checks. A savings account is for money you want to keep and earn interest on, and you can only withdraw a limited number of times per month without a fee.
Can I avoid monthly fees?
Yes. Most Bank of America checking accounts waive the monthly fee if you set up direct deposit, keep a minimum balance, or maintain a linked savings account. Read the specific account terms to see which requirements explore to the account you want.
What happens if I overdraft my account?
If you spend more than you have, Bank of America will charge an overdraft fee (usually $35 per transaction). You can link your checking account to a savings account for overdraft protection, which automatically transfers money instead of charging a fee.
How do I know if Bank of America is the right bank for me?
Consider whether you want to bank in person or online, how many times you'll use ATMs, and what fees matter most to you. Compare Bank of America's accounts and fees to other banks in your area to see which fits your needs and budget best.