Bank of America's main account categories
Bank of America offers three broad account types: checking accounts, savings accounts, and money market accounts. Each one handles money differently. Checking accounts let you write checks and use a debit card for everyday spending. Savings accounts hold money you're not spending right now and earn interest. Money market accounts sit between the two—they earn more interest than savings but require a larger balance and limit how often you can withdraw.
Within each category, Bank of America offers different versions depending on how much money you keep there and what features you want. A student checking account works differently from a premium checking account. A basic savings account is not the same as a high-yield savings account. The version you choose affects your monthly fees, the interest you earn, and what services cost extra.
Key Takeaways
- Checking accounts are for regular spending and bill payments; savings and money market accounts are for holding money and earning interest.
- Bank of America charges monthly maintenance fees on most accounts unless you meet balance requirements or set up direct deposit.
- Interest rates on savings accounts vary by account type and change based on Federal Reserve decisions, not Bank of America's choice alone.
- Each account type has a different minimum opening deposit, ranging from zero to several thousand dollars depending on the account.
- You can hold multiple accounts at Bank of America—many people keep a checking account for spending and a savings account for emergencies.
Checking accounts: what they're built for
Checking accounts are designed for money you spend regularly. You get a debit card, online bill pay, and the ability to set up automatic payments to other accounts or to people. Bank of America's checking accounts include Advantage SafeBalance Banking (no overdraft fees, no minimum balance), Advantage Plus Checking (standard checking with overdraft protection), and Premium Rewards Checking (earns cash back on debit card purchases if you meet spending thresholds).
The main difference between these three is what happens if your balance drops below zero. SafeBalance Banking declines transactions instead of charging overdraft fees. Advantage Plus Checking allows overdrafts but charges a fee each time. Premium Rewards Checking is aimed at people who spend frequently on their debit card and want to earn rewards.
All checking accounts come with online banking, mobile app access, and the ability to deposit checks by phone camera. Monthly maintenance fees range from zero to $12 depending on the account, but you can waive most fees by setting up direct deposit or keeping a minimum balance—usually $500 to $1,500.
Savings accounts: how interest works and what you'll earn
Savings accounts hold money you're not spending when ready and pay you interest on the balance. Bank of America offers regular savings accounts and high-yield savings accounts. The regular savings account earns a lower interest rate but has no minimum balance requirement. The high-yield savings account earns more interest but typically requires a larger opening deposit and minimum balance.
Interest rates on both accounts change regularly—Bank of America adjusts them based on decisions by the Federal Reserve, not on its own. When the Fed raises rates, savings account rates go up. When the Fed cuts rates, they go down. You can check the current rate on Bank of America's website before you open an account, but that rate may be different by the time you fund it.
Savings accounts have withdrawal limits set by federal regulation. You can make up to six withdrawals or transfers per month before Bank of America charges a fee for additional withdrawals. This rule exists across the banking industry, not just at Bank of America. Monthly maintenance fees on savings accounts are typically $5 to $8 but can be waived by maintaining a minimum balance, usually $300 to $500.
Money market accounts: higher rates with more restrictions
Money market accounts combine features of checking and savings accounts. They earn interest like a savings account but come with a debit card and checkbook like a checking account. The trade-off is that they require a larger opening deposit—often $2,500 or more—and have the same six-withdrawal limit per month that savings accounts do.
The interest rate on a money market account is typically higher than a regular savings account but may be lower than a high-yield savings account, depending on current market conditions. Like savings accounts, the rate changes based on Federal Reserve decisions. Monthly maintenance fees are usually $10 to $15 but are waived if you maintain the required minimum balance.
Money market accounts make sense if you want to earn interest on a larger sum of money but also want occasional access to it through checks or a debit card. They don't make sense if you need to withdraw money frequently, because the six-withdrawal limit applies.
Minimum deposits and monthly fees
| Account Type | Typical Minimum to Open | Monthly Fee (if not waived) | How to Waive the Fee |
|---|---|---|---|
| SafeBalance Checking | $0 | $0 | No fee charged |
| Advantage Plus Checking | $0 | $12 | Direct deposit or $1,500 balance |
| Premium Rewards Checking | $0 | $12 | Direct deposit or $1,500 balance |
| Regular Savings | $0 | $5 | $300 balance |
| High-Yield Savings | $0 | $0 | No fee charged |
| Money Market | $2,500 | $12 | $2,500 balance |
These minimums and fees change periodically. Check Bank of America's current terms before opening an account, because the information above reflects typical offerings but may not match what's available when you explore.
Special account types for specific situations
Bank of America also offers accounts designed for students, seniors, and business owners. Student checking accounts typically have no monthly fee and no minimum balance. Senior accounts may include benefits like waived fees and higher interest rates on savings. Business checking and savings accounts work similarly to personal accounts but are structured for business use and may require an Employer Identification Number (EIN).
If you're under 18, you'll need a parent or guardian to co-own the account. Bank of America calls these "youth accounts" and they function like regular checking or savings accounts but with parental oversight built in. Once you turn 18, you can convert to a standard account or keep the same account without the co-owner requirement.
How to choose between account types
Start with what you actually do with money. If you spend regularly and pay bills, you need a checking account. If you have money sitting aside for emergencies or a goal, you need a savings account. If you have a large sum earning nothing and want it to earn interest while keeping occasional access, a money market account might fit.
Next, consider the fees. SafeBalance Checking has no monthly fee, which makes it the cheapest checking option if you don't get direct deposit. High-yield savings accounts have no monthly fee and earn more interest, which makes them better than regular savings accounts for most people. Premium Rewards Checking only makes sense if you spend enough on your debit card to earn back more in rewards than you'd pay in fees.
Finally, think about how you bank. If you use the mobile app and online banking, all Bank of America accounts work the same way. If you write checks regularly, you need a checking or money market account. If you need to withdraw money frequently, avoid money market accounts because of the six-withdrawal limit.
Frequently Asked Questions
Can I have more than one checking account at Bank of America?
Yes. Many people keep multiple checking accounts for different purposes—one for regular bills, one for savings toward a specific goal. Bank of America doesn't limit the number of accounts you can open, but each account has its own monthly fee unless you meet the waiver requirements.
Do I earn interest on a checking account?
Most Bank of America checking accounts earn little to no interest. Premium Rewards Checking earns cash back on debit card purchases, which is different from interest. If you want to earn interest on your money, use a savings or money market account.
What's the difference between a savings account and a money market account?
Money market accounts earn higher interest and come with a debit card and checkbook, but require a larger opening deposit and have the same six-withdrawal limit per month. Savings accounts have no debit card or checkbook but are simpler and have lower minimum balances. Choose based on whether you need occasional check-writing access to the money.
Can I move money between my Bank of America accounts for free?
Yes. Transfers between your own Bank of America accounts through online banking or the mobile app are free and usually happen when ready. The six-withdrawal limit on savings and money market accounts applies to transfers as well as withdrawals.
What happens if I don't meet the minimum balance requirement?
Bank of America charges the monthly maintenance fee. You can avoid the fee by bringing the balance back above the minimum before the fee posts, or by setting up direct deposit, which waives the fee regardless of balance on most accounts.