Getting a checking account is often the first step towards managing your finances effectively. If you're considering Bank of America, you might be wondering, "How many types of checking accounts does Bank of America have?" It's a great question, as choosing the right account can significantly impact your banking experience, fees, and even potential benefits. Let's dive in and explore the various options available, along with a step-by-step guide to help you make an informed decision.
Understanding Bank of America's Checking Account Offerings: A Comprehensive Guide
Bank of America streamlines its personal checking accounts under a program called Bank of America Advantage Banking. Within this program, they offer three primary types of checking accounts, each designed to cater to different financial habits and needs. Beyond these, they also have dedicated options for businesses. It's not just about how many, but what each offers and who it's best for.
Let's break down each type in detail.
Step 1: Engage with Your Financial Needs – What Kind of Banking Do YOU Do?
Before we even look at the specific accounts, let's start with you! Think about your current banking habits and what you need from a checking account. Are you:
- Just starting out with banking and need something simple?
- A student looking for a low-cost option?
- Someone who uses a debit card frequently and wants to avoid overdraft fees?
- Looking for a more traditional account with check-writing capabilities and potential overdraft protection?
- Someone who maintains a higher balance and wants to earn interest or receive perks?
- A small business owner needing a separate account for your operations?
Pondering these questions now will make the rest of this guide much more relevant to your specific situation.
Step 2: Unveiling Bank of America's Personal Checking Accounts (Advantage Banking)
Bank of America's personal checking accounts fall under the "Advantage Banking" umbrella, with three distinct tiers:
Sub-heading 2.1: Advantage SafeBalance Banking® – The Basics, Simplified
The Advantage SafeBalance Banking account is designed for those who prefer simple, paperless banking and want to avoid overdraft fees. It's often favored by students and those who are building their financial literacy.
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Key Features:
- No Overdraft Item Fees: This is a big one! Instead of charging overdraft fees, Bank of America will decline transactions that would overdraw your account. This can be a great way to manage your spending and avoid unexpected charges.
- Debit Card: You'll receive a debit card for purchases and ATM withdrawals.
- Digital Banking Tools: Access to Bank of America's robust online and mobile banking, including mobile check deposit, Zelle®, and custom alerts.
- No Paper Checks: This account does not allow for paper checks. All transactions are typically done digitally or with your debit card.
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Monthly Maintenance Fee: $4.95.
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How to Waive the Fee: This fee can be waived if you meet one of the following criteria:
- You are under the age of 25.
- You maintain a minimum daily balance of $500 or more in your account.
- You are a member of the Preferred Rewards program.
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Best For: Students, young adults, or anyone who wants a straightforward checking account with no overdraft fees and primarily uses a debit card and digital banking.
Sub-heading 2.2: Advantage Plus Banking® – The Flexible Standard
The Advantage Plus Banking account is Bank of America's most popular and flexible checking option, offering traditional banking features with several ways to avoid the monthly fee.
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Key Features:
- Traditional Checking: Allows for check writing in addition to debit card use and digital transactions.
- Overdraft Protection Options: You can enroll in Balance Connect® for overdraft protection, which automatically transfers funds from a linked savings or other checking account to cover purchases. An overdraft fee of $10 per item applies, with a maximum of two per day.
- Digital Banking Tools: Full access to online and mobile banking, including Bill Pay, Zelle®, and spending and budgeting tools.
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Monthly Maintenance Fee: $12.
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How to Waive the Fee: This fee can be waived if you meet one of the following criteria:
- You have at least one qualifying direct deposit of $250 or more in the statement cycle.
- You maintain a minimum daily balance of $1,500 or more in your account.
- You are a member of the Preferred Rewards program.
- You are a student under the age of 24.
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Best For: Individuals who need traditional checking features, including paper checks, and prefer options to avoid monthly fees through direct deposits or maintaining a modest balance.
Sub-heading 2.3: Advantage Relationship Banking® – The Interest-Earning Perks
The Advantage Relationship Banking account is designed for clients who maintain higher balances and are looking for interest earnings and a wider range of banking perks.
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Key Features:
- Interest-Bearing: This account earns interest on your balance, though the Annual Percentage Yield (APY) may be modest, especially on lower balances.
- Waived Fees on Select Services: Members of this tier often receive waived fees on various banking services, such as standard checks, incoming domestic wires, stop payments, and paper statement copies.
- Linked Account Benefits: You can link up to 7 eligible accounts (checking, savings) and have their monthly maintenance fees waived.
- Overdraft Protection Options: Similar to Advantage Plus, it offers Balance Connect® with a $10 overdraft fee per item (maximum two per day).
- Full Digital Access: Comprehensive online and mobile banking features.
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Monthly Maintenance Fee: $25.
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How to Waive the Fee: This fee can be waived if you meet one of the following criteria:
- You maintain a combined balance of $20,000 or more across eligible linked Bank of America deposit accounts and/or Merrill investment accounts.
- You are a member of the Preferred Rewards program.
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Best For: Clients with significant combined balances who want to earn interest, receive various banking perks, and potentially waive fees across multiple accounts.
Step 3: Understanding the Preferred Rewards Program – Unlock More Benefits!
Regardless of which Advantage Banking account you choose, being a part of the Bank of America Preferred Rewards program can significantly enhance your banking experience. This program offers tiered benefits based on your combined balances across eligible Bank of America and Merrill accounts (checking, savings, CDs, investments).
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Benefits often include:
- Waived Monthly Maintenance Fees: For eligible checking and savings accounts.
- Credit Card Rewards Bonuses: Increased rewards on eligible Bank of America credit cards.
- Interest Rate Boosters: Higher interest rates on certain savings accounts.
- Loan Discounts: Reductions on interest rates for auto loans, home equity, and mortgages.
- ATM Fee Waivers: Potentially unlimited no-fee transactions at non-Bank of America ATMs (depending on tier).
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Tiers and Eligibility:
- Gold: $20,000 - $49,999 combined balance.
- Platinum: $50,000 - $99,999 combined balance.
- Platinum Honors: $100,000 - less than $1 million combined balance.
- Diamond Honors: $1 million - $9,999,999 combined balance.
Being a Preferred Rewards member is a powerful way to maximize value from your Bank of America relationship.
Step 4: Don't Forget Business Checking Accounts!
For entrepreneurs and small business owners, Bank of America offers distinct checking accounts tailored to business needs. While not part of the "Advantage Banking" personal accounts, they are crucial for keeping personal and business finances separate.
- Business Advantage Fundamentals™ Banking: A straightforward option for businesses with simpler banking needs, offering digital tools and a waivable monthly fee.
- Business Advantage Relationship Banking®: Designed for businesses with higher transaction volumes and balances, offering more perks, including waived fees on certain services and potentially higher earning rates on linked savings.
Both business accounts also have their own ways to waive monthly fees, often tied to maintaining specific balances or using business debit cards for a certain amount.
Step 5: How to Choose the Right Checking Account for YOU
Now that you know the types, let's tie it back to your needs from Step 1.
- Assess Your Transaction Habits: Do you write checks often, or do you mostly use a debit card and digital payments?
- Evaluate Your Balance Consistency: Can you consistently maintain a minimum daily balance, or do your funds fluctuate? Do you have direct deposits?
- Consider Overdraft Preference: Do you prefer transactions to be declined to avoid fees (SafeBalance) or have overdraft protection with a potential fee (Plus, Relationship)?
- Look at Your Overall Relationship with Bank of America: Do you have other accounts (savings, investments, credit cards) with them? If so, the Preferred Rewards program could be a significant factor.
- Factor in Your Age (Students): If you're under 25, the SafeBalance and Advantage Plus accounts offer easy fee waivers.
- Business Needs: If you own a business, a dedicated business checking account is essential for financial clarity and tax purposes.
By carefully weighing these factors against the features and fee waiver options of each account, you'll be well-equipped to select the Bank of America checking account that aligns perfectly with your financial lifestyle.
Frequently Asked Questions (FAQs)
Here are 10 related questions and their quick answers to further assist you:
How to choose the best Bank of America checking account for me?
The best account depends on your financial habits. If you're under 25 or want to avoid overdraft fees, Advantage SafeBalance is good. If you need traditional checking with options to waive fees via direct deposit, Advantage Plus is a strong choice. If you maintain high balances and want interest and perks, Advantage Relationship is ideal.
How to waive the monthly fee on a Bank of America SafeBalance Banking account?
You can waive the $4.95 monthly fee by being under age 25, maintaining a minimum daily balance of $500 or more, or being a Preferred Rewards member.
How to avoid the monthly fee on a Bank of America Advantage Plus Banking account?
The $12 monthly fee can be waived with at least one qualifying direct deposit of $250 or more, maintaining a minimum daily balance of $1,500 or more, being a Preferred Rewards member, or being a student under age 24.
How to get an interest-bearing checking account at Bank of America?
The Bank of America Advantage Relationship Banking account is the interest-bearing personal checking option, though the APY is typically low and a higher balance is needed to waive its $25 monthly fee.
How to qualify for Bank of America Preferred Rewards?
You qualify for Preferred Rewards by having an eligible Bank of America personal checking account and maintaining a three-month combined average daily balance of $20,000 or more across your eligible Bank of America deposit accounts and/or Merrill investment accounts.
How to open a Bank of America checking account online?
You can apply online by visiting the Bank of America website, selecting the desired checking account, and providing your personal information (SSN, address, etc.) and funding details.
How to deposit a check using the Bank of America mobile app?
You can deposit checks using the mobile app by selecting "Deposit Checks," taking photos of the front and back of the endorsed check, and entering the amount.
How to find Bank of America ATMs near me?
You can find Bank of America ATMs using their mobile app's ATM locator feature or by visiting the "Find Us" section on their website and searching by your location.
How to set up direct deposit with Bank of America?
You can set up direct deposit by providing your employer with your Bank of America account number and routing number. These can typically be found on your checks, within your online banking portal, or by contacting customer service.
How to switch my checking account type at Bank of America?
You can typically switch your checking account type by contacting Bank of America customer service, visiting a financial center, or sometimes through your online banking portal, depending on the desired account change.
