Do you find yourself wondering where your money goes each month? Are you a Bank of America customer, or considering becoming one, and confused about those "monthly maintenance fees" that sometimes pop up on your statement? You're not alone! Bank of America, like many large financial institutions, charges monthly maintenance fees on certain checking and savings accounts. But here's the good news: most of these fees can be avoided if you know how.
This comprehensive guide will walk you through everything you need to know about Bank of America's monthly maintenance fees, why they exist, and most importantly, how to keep more of your hard-earned cash in your pocket.
Understanding Bank of America's Monthly Maintenance Fees: A Step-by-Step Guide
Let's demystify these fees and empower you to manage your banking relationship more effectively.
Step 1: Identify Your Bank of America Account Type
The very first and most crucial step is to understand which type of Bank of America checking or savings account you currently have. Different accounts come with different fee structures and waiver requirements.
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Why is this important? Think of it like a personalized instruction manual for your account. What applies to one account might not apply to another. If you don't know your account type, you can't figure out the specific rules for avoiding fees.
- How to find your account type:
- Check your online banking: Log in to your Bank of America online banking portal. Your account names (e.g., "Advantage Plus Banking," "Advantage SafeBalance Banking") will typically be displayed clearly.
- Review your monthly statement: Your paper or e-statements will always list your account type.
- Call customer service: If you're still unsure, don't hesitate to call Bank of America's customer service. They can quickly tell you your account type.
- Visit a financial center: A Bank of America associate at a branch can also help you identify your account.
- How to find your account type:
Once you know your account type, you're ready for the next step!
Step 2: Understand the Standard Monthly Maintenance Fees by Account Type
Bank of America primarily offers three types of personal checking accounts under its "Advantage Banking" suite, each with a different standard monthly maintenance fee:
- Advantage SafeBalance Banking®: This account is designed to help you avoid overdrafts, as transactions will generally be declined if you don't have enough funds.
- Standard Monthly Fee: $4.95
- Advantage Plus Banking®: A more flexible checking account that allows for traditional checks.
- Standard Monthly Fee: $12.00
- Advantage Relationship Banking®: This account offers interest-earning capabilities and other benefits, designed for clients with higher balances.
- Standard Monthly Fee: $25.00
In addition to checking accounts, Bank of America also has a standard savings account:
- Bank of America Advantage Savings:
- Standard Monthly Fee: $8.00 (often waived for the first six months for new accounts).
Step 3: Discover How to Waive Your Monthly Maintenance Fee
This is where you can take control! Bank of America offers multiple ways to waive the monthly maintenance fee for each account type. You generally only need to meet one of the specified criteria during each statement cycle.
Sub-heading: Waiving Fees for Advantage SafeBalance Banking® ($4.95/month)
You can avoid the $4.95 monthly fee if you meet ONE of the following:
- Maintain a minimum daily balance of $500 or more in your account. This means your balance must not drop below $500 at any point during the statement cycle.
- An account owner is under the age of 25. This is a great benefit for students and young adults.
- An account owner is a member of the Bank of America Preferred Rewards® Program. We'll delve into this program in Step 4.
Sub-heading: Waiving Fees for Advantage Plus Banking® ($12.00/month)
You can avoid the $12.00 monthly fee if you meet ONE of the following:
- Have at least one qualifying direct deposit of $250 or more made to your account each statement cycle. This is a popular and relatively easy way for many people to avoid the fee.
- Maintain a minimum daily balance of $1,500 or more in your account.
- An account owner is a member of the Bank of America Preferred Rewards® Program.
Sub-heading: Waiving Fees for Advantage Relationship Banking® ($25.00/month)
You can avoid the $25.00 monthly fee if you meet ONE of the following:
- Maintain a minimum daily balance of $20,000 or more in your account (this is a combined balance across eligible linked accounts, including checking, savings, money market savings, CDs, and IRAs).
- An account owner is a member of the Bank of America Preferred Rewards® Program.
Sub-heading: Waiving Fees for Bank of America Advantage Savings ($8.00/month)
You can avoid the $8.00 monthly fee if you meet ONE of the following:
- Maintain a minimum daily balance of at least $500.
- Link your Bank of America Advantage Savings account to your Bank of America Advantage Relationship Banking account, Advantage regular checking, or Tiered interest checking
(this usually means having an eligible checking account with BofA). - Become a Bank of America Preferred Rewards® client.
- Are under 25 years old.
Step 4: Explore the Bank of America Preferred Rewards® Program
The Preferred Rewards program is a fantastic way to waive fees and unlock other benefits if you have a significant banking relationship with Bank of America and/or Merrill (its investment arm).
- What is it? It's a tiered program that rewards clients based on their combined balances across eligible Bank of America deposit accounts (checking, savings, CDs) and/or Merrill investment accounts.
- How to qualify: You need an eligible Bank of America personal checking account and a three-month combined average daily balance of $20,000 or more.
- Benefits (including fee waivers): As you move up the tiers (Gold, Platinum, Platinum Honors, Diamond, Diamond Honors), you receive increasingly valuable benefits, including:
- Waived monthly maintenance fees on up to 4 eligible checking and 4 savings accounts (Gold, Platinum, Platinum Honors tiers) or an unlimited number of accounts (Diamond, Diamond Honors tiers).
- Rewards bonuses on eligible Bank of America credit cards.
- Discounts on loans and mortgages.
- No-fee ATM transactions at non-Bank of America ATMs (at higher tiers).
If you have substantial assets with Bank of America or Merrill, enrolling in Preferred Rewards could be the easiest way to eliminate monthly fees across multiple accounts. There is no fee to join or participate in the Preferred Rewards program.
Step 5: Implement Your Fee-Waiver Strategy
Now that you know the options, it's time to put your plan into action!
- Option A: Optimize your direct deposits. If your account type allows for a direct deposit waiver, make sure at least $250 (for Advantage Plus) is directly deposited into your account each statement cycle. This could be your salary, government benefits, or even a regular transfer from another bank account.
- Option B: Maintain the minimum balance. If you can consistently keep the required minimum balance ($500 for SafeBalance/Savings, $1,500 for Advantage Plus, $20,000 for Advantage Relationship), this is a straightforward way to avoid fees. Set up balance alerts through your online banking or mobile app to notify you if your balance drops below your target.
- Option C: Utilize Preferred Rewards. If you qualify or are close to qualifying for Preferred Rewards, consider consolidating your funds with Bank of America and enrolling. This offers comprehensive fee waivers and other perks.
- Option D: Consider account changes (if necessary). If you find it consistently difficult to meet the waiver requirements for your current account, or if a different account type better suits your needs, consider switching. For example, if you rarely write checks and struggle to maintain a $1,500 balance, the Advantage SafeBalance Banking account with its lower $500 waiver requirement might be a better fit. You can typically initiate an account change through online banking or by visiting a financial center.
- Option E: For young adults, leverage the age waiver. If you're under 25, simply having a SafeBalance or Advantage Savings account means the fee is automatically waived. Keep this in mind!
Step 6: Monitor Your Account Regularly
Even with a strategy in place, vigilance is key.
- Check your statements: Review your monthly statements (paper or electronic) to ensure that no maintenance fees have been charged. If one appears unexpectedly, investigate why.
- Set up alerts: Bank of America's online and mobile banking platforms allow you to set up various alerts. Create alerts for:
- Low balance warnings.
- Notifications when a direct deposit is received.
- Confirmation of monthly maintenance fee waivers.
- Understand your statement cycle: Fees are assessed based on your statement cycle, which might not align perfectly with the calendar month. Knowing your statement cycle dates helps you ensure you meet the waiver requirements for the correct period.
Frequently Asked Questions (FAQs) about Bank of America Monthly Maintenance Fees
Here are 10 common questions related to Bank of America monthly maintenance fees, with quick answers:
How to avoid Bank of America Advantage SafeBalance Banking monthly fees?
You can avoid the $4.95 fee by maintaining a minimum daily balance of $500, being under 25 years old, or being a Preferred Rewards member.
How to waive the Bank of America Advantage Plus Banking monthly fee?
The $12 fee can be waived by having at least one qualifying direct deposit of $250 or more, maintaining a minimum daily balance of $1,500, or being a Preferred Rewards member.
How to get rid of the Bank of America Advantage Relationship Banking monthly fee?
The $25 fee is waived if you maintain a minimum daily balance of $20,000 across eligible linked accounts, or if you are a Preferred Rewards member.
How to avoid the Bank of America Advantage Savings monthly fee?
The $8 fee can be avoided by maintaining a minimum daily balance of $500, linking it to an eligible Bank of America checking account (like Advantage Relationship Banking), being under 25, or being a Preferred Rewards member.
How to know if I qualify for Bank of America Preferred Rewards?
You qualify for Preferred Rewards if you have an eligible Bank of America personal checking account and a three-month combined average daily balance of $20,000 or more across your Bank of America deposit and/or Merrill investment accounts.
How to check my Bank of America account type?
You can find your account type by logging into your Bank of America online banking, checking your monthly statement, or calling customer service.
How to change my Bank of America account type?
You can typically change your account type by logging into your online banking, or by visiting a Bank of America financial center and speaking with a representative.
How to set up direct deposit for Bank of America?
You'll typically provide your employer or payer with your Bank of America account number and routing number. These can usually be found on your checks, within your online banking portal, or by contacting Bank of America directly.
How to set up low balance alerts for my Bank of America account?
You can set up various alerts, including low balance alerts, through your Bank of America online banking portal or their mobile app.
How to contact Bank of America customer service about fees?
You can typically find Bank of America's customer service number on their official website (usually 1-800-432-1000 for general inquiries) or on the back of your debit card.