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The Bank of America Fees Customers Will Pay for Having a Low Balance
Almost every one of us has a checking account. And if you don’t have one, get on it — it’s a place to safely store your money and you could be eligible for a new-account bonus, free checks and other perks.
For many of us, checking is the way we pay our bills and budget for our lives. It’s not where we store an abundance of money, like a savings account. Instead it holds enough to cover regular expenditures, and ideally, a little buffer cash.
Often, banks with business checking accounts charge users a fee monthly to maintain this service. However, most banks offer general checking for free to everyday customers who use it for personal expenses, with certain stipulations.
The hope is that — once they have you as a checking account customer — you’ll stick around for other services, such as savings accounts and loans. Perhaps you’ll refer family members and friends to open savings accounts and other type of accounts with this business, as well.
Here are the results of our survey of BofA fees:
Bank of America used to be one of those institutions that offered a fee-free checking to customers. This one account was available to users without maintenance or ATM fees.
Then, a couple years ago, some BofA customers who’d previously enjoyed a free eBanking (online banking) account got an unwelcome surprise.
For years, BofA offered an eBanking checking account that allowed consumers to keep a free checking account — if they agreed to go paperless and handle most transactions via ATM or online transfer. This was a simple way for people to avoid monthly charges.
Then, in 2018, the bank changed course.
Bank of America eliminated its eBanking checking account and moved those customers to what it called a Core Checking Account. Members who didn’t fit certain criteria for this account could be charged $12 a month.
Back then, to avoid monthly maintenance fees, customers with a Core Checking Account would need to meet one of two guidelines:
In other words, BofA wanted to charge customers money for not keeping a the minimum required with stiff overdraft penalties.
Students under 24 years old who were enrolled in high school, college or a vocational program were exempt from these new fees. Still, that left many people susceptible to paying this monthly charge.
To be fair, checking programs are expensive to maintain for banks. And more banks started charging monthly maintenance fees to customers who didn’t maintain a minimum daily balance.
But not everyone took this news lying down. There was a petition on Change.org asking Bank of America not to end its free checking. After it launched, the petition garnered more than a whopping 380,000 signatures.
The decision wasn’t popular, to say the least.
So, what will BofA customers pay to maintain a checking account with the bank in 2023? It depends on a couple factors.
In the years since 2018, BofA has altered its account offerings. (And there’s no longer a Core Checking account.) Today, the company has three primary checking accounts: Bank of America Advantage SafeBalance Banking®, Bank of America Advantage Plus Banking® and Bank of America Advantage Relationship Banking®.
Here’s a breakdown of each one:
Required opening deposit: $25
Interest-bearing account: No
Option to add overdraft protection: No
Overdraft fees: No overdraft or insufficient funds fees
Monthly maintenance fee: $4.95 or $0
Required opening deposit: $100
Interest-bearing account: No
Option to add overdraft protection: Yes
Overdraft fees: No overdraft or insufficient funds fees
Monthly maintenance fee: $12 or $0
Required opening deposit: $100
Interest-bearing account: Yes (The annual percentage yield, or APY, will vary based on the amount in your account. For example, an account with less than $2,500 in it in West Central Florida will generate a 0.01% APY. This may vary based on location, as well.)
Option to add overdraft protection: Yes
Overdraft fees: No overdraft or insufficient funds fees
Monthly maintenance fee: $25 or $0
BofA also offers a savings account — Bank of America Advantage Savings — though it requires an opening deposit of $100.
Here’s a table so you can view the different details and fees for BofA checking accounts at a glance.
Depending on the type of account you choose, here’s how you can avoid the recurring fees:
The fee is waived for each statement cycle in which you’re enrolled in Preferred Rewards.
It’s BofA’s rewards program, and there are three tiers: Gold, Platinum and Platinum Honors.
To be a Preferred Rewards client, you must have an active and eligible BoA personal checking account and maintain a three-month combined average of $20,000, $50,000 or $100,000, depending on your tier.
Monthly maintenance fees are waived for each statement cycle in which you are enrolled in Preferred Rewards, have a qualifying direct deposit ($250 or more) or maintain the daily balance requirement ($1,500).
The fee is waived for each monthly statement cycle in which you are enrolled in Preferred Rewards or maintain the combined minimum balance ($10,000) in eligible linked accounts.
Like before, there is a student waiver for bank fees, too. To be eligible, the customer must:
Note: Students may be asked to show proof of enrollment. They will also no longer be entitled to this waiver once they turn 24, if they leave school or are no longer the account owner.
So unless you’re an eligible student, you will need to be a Preferred Rewards program member or meet other qualifying balance or deposit requirements to avoid account fees.
To recap, here’s how you can avoid these fees, by account.
Here’s all the Bank of America fees and all the ways you can get around paying for them.
It bears repeating, especially if it means saving you money: You can avoid BofA’s checking account fees in a few ways. Depending on the account, here’s how you can circumvent paying the monthly fee:
BofA offers a standard savings account to members: Advantage Savings. It has a $8 monthly fee that can be waived if you:
The $8 fee is also waived for new account holders for the first six months.
Wire transfers offer a secure way to send money within and outside the U.S. Fees will vary depending on a number of factors, like the fees you may incur from other banks.
You can view a list of some fees here. While you may not be able to avoid a charge completely, you can plan accordingly for them.
In May 2022, Bank of America began charging a $10 fee — lowered from $35 — for every overdraft item over $1. The best way to avoid this fee is to stay on top of how much money you have in your account. If your account is eligible, you can also sign up for protection from overdrafts.
Bank of America charges users $2.50 domestically and $5 internationally for using non-branded ATMs. You might also incur other ATM operator and international fees.
You can avoid fees entirely by only using Bank of America ATMs. Also, Preferred Rewards program members are entitled to a certain amount (or even unlimited) usage of non-BoA ATMs at no charge.
To give you an idea of how BofA compares to other big-name institutions, we compared fees. This information applies to checking accounts.
First, if you don’t want to switch banks, dig into your financial situation. For instance, does your employer offer direct salary payment into your account? If so, that’s a qualifying requirement, and a Bank of America Advantage Plus Banking account may work for you. Otherwise, you might want to consider the Bank of America Advantage SafeBalance Banking account.
Here’s a glance at the pros and cons of each account:
Pros:
Cons:
Pros:
Cons:
Again, if you’re an eligible student under 24, you won’t pay monthly maintenance on any account.
If you’re not exempt from Bank of America’s monthly fees — or looking to avoid monthly service fees altogether — it might be time to consider other options.
Whether you have a BofA or an account at another bank, switching banks can be a pain. But it’s worth it if it will save you cash — and headaches.
Not sure which bank is right for you? We graded 10 checking accounts so you don’t have to do the legwork to find a new place to store your money. You can choose from a variety of online-only and traditional banks. Bonus: Some banks can even help you get your paycheck faster.
Keeping in line with the theme of this article, you save money with this list of several free checking accounts. Most of these accounts take five minutes or less to sign up and some of these banks offer nice perks like a high-interest or a rewards savings account. Just peep the fine print to make sure you’re aware of any ancillary costs. Other account fees or requirements might include:
Whatever you do, don’t stand back and simply let your bank take nearly $60+ of your hard-earned money away from you every year. There are other banks, and far too many better, easier-to-manage options out there.
Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder.
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