Bank of America 2024 Review

Vault’s Viewpoint on Bank of America

Bank of America offers a suite of products and services to customers. This includes checking and savings accounts and CDs. But you can also find mortgages, car loans, small business loans, credit cards and investment vehicles for college and retirement savings.

If you’re looking for a national bank with a large network of branches and ATMs and the ability to cover most of your banking and lending needs, Bank of America is a strong choice. But if your main goal is maximizing your savings, you’ll do better looking elsewhere. Most of Bank of America’s interest rates are far below the best available rates.

Bank of America Certificates of Deposit

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Vault Verified

APY

0.05% – 4.00%

Min. Deposit Requirement

$1,000

Term Length

28 days – 10 years

Expert Take

Bank of America offers three certificates of deposit (CDs), all of which have minimum opening deposits of $1,000. Depending on which you choose, as well as the balance and selected term, CD rates range from a subpar 0.03 percent APY to a competitive 5.00 percent APY.

Bank of America CD terms range from 28 days to 10 years. If you cash it early, penalties will be assessed and could be as high as 365 days of interest on the amount withdrawn.

Once your CD matures you can withdraw the funds plus the earned interest. You will receive a notice before it matures. If you don’t withdraw the money, the term will automatically renew, but Bank of America does give you a grace period of up to seven days after maturity to take out the money without penalty.

Pros

• Wide range of term options available
• Competitive APYs for select terms
• Can open the CD at a branch for in-person service

Cons

• Higher APYs can be found at other banks
• Minimum deposit may be high for some savers

Bank of America Savings Account

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Vault Verified

APY

0.01% – 0.04%

Min. Balance

$500

Monthly Maintenance Fee

$8

Expert Take

Bank of America’s Advantage Savings Account can be opened with a deposit of $100 or more. An $8 monthly fee will be added unless you either link it to your Bank of America Advantage Relationship Banking checking account, you are a Bank of America Preferred Rewards member, are under the age of 18 or are under the age of 25 and qualify as a student. Even if the fee will be imposed, Bank of America will waive it for the first six months after opening the account.

Bank of America’s savings account earns some interest, but it doesn’t come close to what the best high-yield savings accounts offer. The standard APY begins at 0.01 percent. But this increases if you are a Preferred Rewards member and qualify for the program’s different tiers based on a three-month combined average daily balance in one or more eligible accounts:

• The Gold Tier ($20,000 to less than $50,000) APY is 0.02 percent
• Platinum Tier ($50,000 to less than $100,000) APY is 0.03 percent
• Platinum Honors Tier ($100,000 to less than $1 million) APY is 0.4 percent

Pros

• Access to BankAmeriDeals to earn up to 10% cash back on promotional brands
• Keep the Change program to round up debit card purchases and transfer to savings
• Fee waived up to the age of 25, which is a year longer than many other banks

Cons

• No debit card for savings account
• Monthly fees, unless waived
• Higher interest rates available at other banks

Bank of America Checking Accounts

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Vault Verified

APY

0.01% – 0.02%

Min. Balance to Avoid Fee

$0 – $20,000

Min. Opening Deposit

$25 – $100

Monthly Maintenance Fee

$0 – $25

Expert Take

Bank of America offers three checking accounts with low minimum opening deposits. Each charges monthly maintenance fees, but Bank of America offers ways to avoid this fee, such as maintaining a predetermined minimum daily balance or being enrolled in the Preferred Rewards program.

Here’s a look at each account:

• SafeBalance®: This is a basic checking account with limited features and no overdraft protection or paper checks. The minimum initial deposit is $25, and there is no monthly fee if you are under the age of 25.
• Advantage Plus Banking: With this account, you get paper checks and can link eligible Bank of America accounts for overdraft protection. You’ll need to deposit at least $100 to open the account.
• Advantage Relationship Banking: This is the only interest-bearing checking account and is designed for people who maintain high balances. The monthly fee will be $25 unless you maintain a minimum daily balance of $20,000 or more.

Pros

• Low minimum deposit requirements
• Options available to help waive maintenance fees
• Access to Zelle for free payment transactions

Cons

• No overdraft protection with basic account
• Only Advantage Relationship Banking account earns interest
• Free standard paper checks only available for Advantage Relationship account

About Bank of America

Bank of America is one of the largest banks in the country. There are 3,900 financial centers and approximately 15,000 ATMs for customers to conduct their banking business throughout the U.S.

Although Bank of America has products and services that meet most consumers’ needs, it doesn’t offer personal loans and lines of credit.

Bank of America Fees

It can be tough to escape the fees that are associated with Bank of America accounts. Early withdrawal penalties are common on CDs, but if you are seeking fee-free checking and savings accounts, you will have to meet the criteria. If you don’t, expect to pay $8 a month to maintain a savings account and up to $25 a month for a checking account.

Other common fees include a $15 fee for a rush replacement of a lost debit card and an overdraft fee of $10. The fee for using non-Bank of America ATMs is $2.50 in the U.S. and $5.00 in a foreign country.

Who is Bank of America Best For?

Bank of America is an ideal option for people who are looking for a large, recognizable bank that has a variety of personal finance products and services. You can integrate nearly all of your banking needs in one place, simplifying your money management system.

If you’re looking for top-notch technology, Bank of America has you covered. You will have access to financial guidance and calculators. The mobile app is streamlined and you can do just about all of your financial business, including swift and free payment transactions with Zelle.

Who Should Consider an Alternative to Bank of America?

If you want to easily avoid account fees as well as minimum deposit requirements on checking, savings and CDs, you may want to look beyond Bank of America. A credit union or online bank can be a good alternative. These institutions offer many of the same services but without the costs and minimum deposit requirements.

Another consideration is interest. Online banks will generally offer much higher rates on CDs and savings accounts.

How Does Bank of America Stack Up to Its Competitors?

Many financial institutions perform the same functions as Bank of America but may offer better features for all their customers. Before you settle on one, compare and contrast the features of each.

Bank of America vs. Wells Fargo

Both Bank of America and Wells Fargo are household names and have many thousands of branches and ATMs. Interest rates for Wells Fargo’s savings accounts are better than Bank of America though both offer low rates compared to the best savings accounts.

Wells Fargo offers four checking accounts compared to Bank of America’s three accounts. All of Wells Fargo’s checking accounts can be opened for $25 dollars while two of Bank of America’s checking accounts require $100.

For CDs, Wells Fargo currently offers an 11-month CD with higher interest rates than any of Bank of America’s CDs. And while many of Bank of America’s CDs offer a 0.03 percent APY, Wells Fargo’s CDs have rates starting at 1.50 percent APY. But the minimum deposit for Wells Fargo’s CDs is either $2,500 or $5,000 depending on the type of CD, while Bank of America’s CDs have a minimum deposit amount of $1,000.

Bank of America vs. Citizens Bank

Citizens Bank has a strong East Coast and Midwest presence. It offers checking and savings accounts, credit cards, home loans, student loans and wealth management services. But while Bank of America offers a wide span of CDs, Citizens Bank has only two online CDs: a 10-month CD with a $25,000 minimum balance to open and a 14-month CD with a $1,000 minimum balance to open. So if you’re seeking variety, Citizens Bank falls short.

Both offer savings accounts with disappointingly low savings rates. Unlike Bank of America, Citizens Bank offers savings accounts with no minimum opening deposits and lower fees with the ability to easily have them waived. For example, you won’t be charged the $4.99 monthly fee on your checking account when you keep your minimum daily balance to at least $200 or have a checking account with them.

Bank of America vs. Chase

The one financial institution that is larger than Bank of America is JP Morgan Chase, and it offers almost all of the same services and programs.

There are a few notable differences, though. For example, you can open a Chase Total Checking® account with no opening deposit but will have to put down $100 to get started with Bank of America’s Advantage Plus Checking. The overdraft fee is $34* for the Chase checking account but is just $10 for Bank of America’s. If such factors are important to you, Chase may come out ahead, but if you’re looking for special features like BankAmeriDeals and Keep the Change, Bank of America will take the lead.

*With Chase Overdraft Assist℠, Chase won’t charge an Overdraft Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts.