Hey there! Ever found yourself scratching your head, wondering why your Bank of America savings account statement has that pesky monthly maintenance fee? You're definitely not alone! It's a common query, and the good news is, there are clear ways to make that fee disappear. Let's dive in and figure out exactly how much you need in your Bank of America savings account to avoid those charges and keep more of your hard-earned money.
The Bank of America Advantage Savings Account: Understanding the Basics
Bank of America's primary savings offering for consumers is the Bank of America Advantage Savings account. Like many traditional bank accounts, it comes with a monthly maintenance fee. Currently, this fee is $8.00 per month. But don't despair! Bank of America provides several straightforward ways to waive this fee.
Step 1: Discover Your Current Account Status – Are You Already Paying Fees?
Before we jump into avoiding fees, let's confirm if you're actually being charged them.
- Check your recent bank statements: Look for a line item labeled "Monthly Maintenance Fee" or similar. This will confirm if you're currently incurring the fee.
- Log in to your online banking or mobile app: Navigate to your savings account details. Most banking platforms clearly display fees and how to avoid them.
- Call Bank of America customer service: If you're unsure or prefer to speak with someone directly, call their customer service line. They can quickly tell you your account's fee status and options.
Why is this important? Knowing your current situation helps you understand the impact of these fees and motivates you to take action!
Step 2: The Magic Number – How Much Do You Need to Keep in Your Account?
The most direct way to avoid the monthly maintenance fee on your Bank of America Advantage Savings account is to maintain a specific balance.
Minimum Daily Balance Requirement
For the Bank of America Advantage Savings account, you can avoid the $8.00 monthly maintenance fee by maintaining a minimum daily balance of $500 or more in your account during each statement cycle.
- What does "minimum daily balance" mean? It means that on every single day of your statement cycle, your account balance must be at least $500. If it drops below $500 even for one day, you might be charged the fee. So, it's crucial to consistently keep at least that amount in your account.
Step 3: Beyond the Minimum Balance – Other Ways to Waive the Fee
While maintaining the minimum daily balance is a popular method, Bank of America offers several other avenues to waive the monthly maintenance fee for your Advantage Savings account. Explore these options to see which one best fits your financial situation.
Sub-heading: Linking Your Accounts
Bank of America incentivizes customers to have multiple accounts with them. You can often waive the savings account fee by linking it to another qualifying Bank of America account.
- Link to an eligible Bank of America checking account: If you have a Bank of America Advantage Relationship Banking®, Bank of America Advantage® with Tiered Interest Checking, or Bank of America Advantage Regular Checking account, you can link your Advantage Savings account to it. This can often waive the savings account fee, especially if your checking account also meets certain balance or direct deposit requirements. Always confirm the specific linking requirements and benefits with Bank of America, as they can vary.
Sub-heading: Age-Based Waivers
Bank of America has special considerations for younger account holders.
- Be under age 25: If you are under the age of 25, the monthly maintenance fee for your Bank of America Advantage Savings account is typically waived. This is a fantastic benefit for students and young adults starting their financial journeys.
Sub-heading: Preferred Rewards Program
For customers with a more substantial relationship with Bank of America, the Preferred Rewards program offers numerous benefits, including fee waivers.
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Enroll in the Preferred Rewards program: If an account owner is a member of the Bank of America Preferred Rewards program (Gold, Platinum, Platinum Honors, Diamond, or Diamond Honors tiers), the monthly maintenance fee for the Advantage Savings account is waived. This program typically requires a combined balance of eligible Bank of America and Merrill accounts (checking, savings, investment accounts) to qualify for different tiers.
- Gold Tier: Requires a combined balance of $20,000 to less than $50,000.
- Platinum Tier: Requires a combined balance of $50,000 to less than $100,000.
- Platinum Honors Tier: Requires a combined balance of $100,000 to less than $1 million.
This is a great option if you have significant assets with Bank of America across various account types.
Sub-heading: New Account Promotion
- New account waiver: Bank of America often waives the monthly maintenance fee for new Advantage Savings accounts for the first six months from account opening. This gives you a grace period to set up your finances to meet one of the permanent waiver requirements.
Step 4: Setting Up Your Strategy to Avoid Fees
Now that you know the options, it's time to implement a plan.
- Option 1: The $500 Daily Balance Commitment
- If you choose this path, ensure you consistently monitor your savings account balance. Set up alerts to notify you if your balance dips below a certain threshold.
- Consider setting up automatic transfers from your checking account to your savings account to ensure you always have at least $500 available.
- Option 2: Leveraging Linked Accounts
- If you have a Bank of America checking account, call Bank of America or visit a financial center to inquire about linking your accounts for fee waiver purposes. Confirm all requirements for both accounts.
- Option 3: For the Young Savers
- If you're under 25, great news! You likely don't need to do anything extra. Just enjoy the fee waiver.
- Option 4: Preferred Rewards Path
- If you have substantial assets, explore the Preferred Rewards program. This might involve consolidating accounts or investing more with Merrill to reach a qualifying tier. This strategy offers broader benefits beyond just fee waivers.
Step 5: Ongoing Monitoring and Review
Your financial situation can change, and so can bank policies.
- Review your statements regularly: Even after setting up your fee-avoidance strategy, always double-check your monthly statements to ensure no unexpected fees appear.
- Stay informed about Bank of America policies: Banks can update their fee structures and waiver requirements. Periodically check Bank of America's official website or your account's "Personal Schedule of Fees" for any changes.
- Adjust your strategy as needed: If your financial habits change (e.g., you start receiving direct deposits, or your balance fluctuates), adjust your approach to continue avoiding fees.
By following these steps, you can confidently manage your Bank of America savings account and avoid those avoidable monthly maintenance fees!
10 Related FAQ Questions
How to avoid Bank of America savings account fees as a student?
You can generally avoid Bank of America Advantage Savings account fees if you are under the age of 25.
How to link Bank of America accounts to avoid savings fees?
You can link your Bank of America Advantage Savings account to an eligible Bank of America checking account (like Advantage Relationship Banking, Advantage with Tiered Interest Checking, or Advantage Regular Checking) to potentially waive the savings account fee. You typically need to contact Bank of America to request the linking of accounts.
How to check my Bank of America savings account balance to avoid fees?
You can check your balance via online banking, the Bank of America mobile app, at an ATM, or by calling customer service. It's crucial to monitor your minimum daily balance throughout your statement cycle.
How to set up alerts for my Bank of America savings account to avoid fees?
You can set up balance alerts through your Bank of America online banking or mobile app. This allows you to receive notifications if your balance drops below a specific amount, helping you stay above the $500 minimum daily balance requirement.
How to qualify for Bank of America Preferred Rewards to waive savings fees?
To qualify for Preferred Rewards, you need to maintain a combined balance of eligible Bank of America deposit and Merrill investment accounts. The specific combined balance required depends on the tier (e.g., $20,000 for Gold, $50,000 for Platinum).
How to find my Bank of America savings account statement cycle?
Your statement cycle dates are typically listed on your monthly bank statements (paper or electronic). You can also find this information by logging into your online banking account.
How to avoid Bank of America savings fees for the first six months?
New Bank of America Advantage Savings accounts typically have their monthly maintenance fee waived for the first six months from the account opening date. You don't need to do anything specific for this initial waiver.
How to upgrade my Bank of America account to avoid savings fees?
While you can't "upgrade" a savings account directly to avoid fees, you can upgrade your overall relationship with Bank of America by opening a qualifying checking account or consolidating assets to reach Preferred Rewards status, which then waives the savings account fee.
How to contact Bank of America about savings account fees?
You can contact Bank of America customer service by calling the number on the back of your debit card or statement, or by visiting a local Bank of America financial center.
How to ensure my direct deposit counts towards fee waivers for linked accounts?
For linked checking accounts that require a direct deposit for their own fee waiver, a "qualifying direct deposit" is typically defined as regular monthly income (like salary, pension, or Social Security) made by your employer or payer using your account and routing numbers. Transfers between your own accounts or teller deposits usually do not qualify.
