Do you find yourself wondering, "How much do I really need in my Bank of America checking account to avoid those pesky fees?" You're not alone! Bank fees can chip away at your hard-earned money if you're not aware of the specific requirements for your account type. But fear not, this comprehensive guide will walk you through everything you need to know to keep your money where it belongs – in your pocket!
Bank of America, like many large financial institutions, offers various checking account options, each with its own set of features and, yes, its own fee structure and waiver criteria. Understanding these nuances is key to banking smarter and avoiding unnecessary charges.
Step 1: Identify Your Bank of America Checking Account Type
The very first and most crucial step is to determine which Bank of America checking account you currently hold. This is because the minimum balance requirements and fee waiver conditions vary significantly between different account products.
Sub-heading: How to Find Your Account Type
- Check Your Online Banking: Log into your Bank of America online banking portal. Your account type is usually clearly displayed alongside your account balance.
- Review Your Monthly Statement: Your paper or electronic statement will explicitly state the name of your checking account (e.g., "Advantage SafeBalance Banking," "Advantage Plus Banking," "Advantage Relationship Banking").
- Contact Bank of America Customer Service: If you're unsure, or can't find the information, don't hesitate to call Bank of America's customer service line. They can quickly identify your account type for you.
Once you know your account type, you can proceed to the next steps to understand the specific fee waiver requirements.
Step 2: Understand the Monthly Maintenance Fees and Their Waivers
Bank of America primarily offers three main personal checking account types under its "Advantage Banking" umbrella, each with a different monthly maintenance fee and ways to waive it.
Sub-heading: Advantage SafeBalance Banking®
This account is designed to help you avoid overdraft fees by declining transactions that would overdraw your account. It's a good option for those who want a simple, straightforward checking account.
- Monthly Maintenance Fee: $4.95
- How to Waive the Fee: You can avoid this monthly fee if you meet one of the following criteria during each statement cycle:
- Maintain a minimum daily balance of $500 or more in your account. This means your balance must not dip below $500 at any point during the statement cycle.
- An account owner is under age 25. This is a great perk for students and young adults.
- An account owner is a member of the Preferred Rewards program. (More on Preferred Rewards below!)
Sub-heading: Advantage Plus Banking®
This is a more traditional checking account that offers features like paper checks.
- Monthly Maintenance Fee: $12.00
- How to Waive the Fee: You can avoid this monthly fee if you meet one of the following criteria during each statement cycle:
- Maintain a minimum daily balance of $1,500 or more in your account.
- Have at least one qualifying direct deposit of $250 or more made to your account each statement cycle. This is a popular option for many people who receive regular paychecks.
- An account owner is a member of the Preferred Rewards program.
Sub-heading: Advantage Relationship Banking®
This account is designed for customers with higher balances and offers interest on your checking balance, along with other benefits.
- Monthly Maintenance Fee: $25.00
- How to Waive the Fee: You can avoid this monthly fee if you meet one of the following criteria during each statement cycle:
- Maintain a minimum daily balance of $20,000 or more in your account.
- An account owner is a member of the Preferred Rewards program. For Preferred Rewards members in the Gold, Platinum, or Platinum Honors tiers, the monthly maintenance fee waiver applies to the first 4 checking and 4 savings accounts.
Step 3: Explore the Preferred Rewards Program
The Bank of America Preferred Rewards program is a fantastic way to waive monthly maintenance fees across various accounts, and it offers a range of other benefits. If you have significant assets with Bank of America and/or Merrill (its investment arm), this program can be incredibly valuable.
Sub-heading: How Preferred Rewards Works
Preferred Rewards is a tiered program based on your combined average daily balance across eligible Bank of America banking and Merrill investment accounts over a three-month period. The higher your combined balance, the higher your tier and the more benefits you receive.
- Gold Tier: $20,000 - $49,999 combined balance
- Platinum Tier: $50,000 - $99,999 combined balance
- Platinum Honors Tier: $100,000 - $1,000,000 combined balance
- Diamond Tier: $1,000,000 - $10,000,000 combined balance
- Diamond Honors Tier: $10,000,000+ combined balance
Being a Preferred Rewards member at any tier typically waives the monthly maintenance fees for Advantage SafeBalance, Advantage Plus, and Advantage Relationship checking accounts. It also offers perks like interest rate boosters on savings, credit card rewards bonuses, loan discounts, and more.
Step 4: Implement Strategies to Avoid Fees
Now that you know the requirements, it's time to put a plan into action!
Sub-heading: Maintaining the Minimum Daily Balance
- Be Diligent with Your Balance: If your waiver depends on a minimum daily balance, actively monitor your account. Set up low-balance alerts through your online banking or mobile app.
- Avoid Unnecessary Withdrawals: If you're close to the minimum, consider if a non-essential purchase can wait or be made with a different payment method.
- Transfer Funds Proactively: If you anticipate a large expense, transfer funds from a linked savings account or another source to ensure your checking account remains above the threshold.
Sub-heading: Setting Up Direct Deposits
- Automate Your Income: If your employer offers direct deposit, setting up a qualifying direct deposit (usually $250 or more for Advantage Plus) is one of the easiest ways to waive the fee.
- Government Benefits: Social Security, disability payments, or other government benefits often qualify as direct deposits.
- Regular Transfers: Some banks may consider recurring transfers from another financial institution as a direct deposit, but it's best to confirm this with Bank of America directly for your specific account.
Sub-heading: Leveraging Age-Based Waivers
- Under 25: If you're under 25, make sure your account is correctly categorized to receive the automatic fee waiver on Advantage SafeBalance Banking.
- Note on Senior Accounts: While Bank of America doesn't explicitly advertise a "senior checking account" with automatic fee waivers based solely on age across all its Advantage products, some regional banks or specific legacy accounts might have such provisions. Always check your specific account terms.
Sub-heading: Consolidating Your Finances (Preferred Rewards)
- Assess Your Total Assets: If you have checking, savings, money market, CDs, IRAs, and Merrill investment accounts with Bank of America, calculate your combined average daily balance. You might be closer to a Preferred Rewards tier than you think.
- Consider Moving Funds: If you have significant funds scattered across different banks, consolidating them with Bank of America could unlock Preferred Rewards benefits, including fee waivers.
Step 5: Monitor Your Account and Statements
Even after implementing these strategies, it's essential to regularly review your account activity and statements.
Sub-heading: Checking for Fees
- Review Monthly Statements: Always check the "Fees Charged" section of your monthly statement. If you see a monthly maintenance fee, it means you didn't meet the waiver criteria for that statement cycle.
- Set Up Account Alerts: Bank of America allows you to set up alerts for various account activities, including low balances or when a fee is charged. Utilize these tools to stay informed.
Sub-heading: What to Do if You're Charged a Fee
- Understand Why: The first step is to understand why the fee was charged. Did your balance drop below the minimum? Did a direct deposit not qualify?
- Contact Customer Service: If it's a one-time oversight or you believe there's been an error, contact Bank of America customer service. Politely explain the situation and ask if the fee can be waived as a one-time courtesy. They may be willing to do so, especially if you have a good banking history.
- Adjust Your Strategy: If you're consistently being charged a fee, it's a clear sign that your current strategy isn't working. Re-evaluate your account type, your banking habits, and the fee waiver requirements, and adjust accordingly.
Related FAQ Questions:
How to avoid Bank of America monthly maintenance fees?
To avoid Bank of America monthly maintenance fees, you typically need to meet specific criteria for your account type, such as maintaining a minimum daily balance, setting up qualifying direct deposits, or being enrolled in the Preferred Rewards program.
How to find out my Bank of America checking account type?
You can find your Bank of America checking account type by logging into your online banking, checking your monthly statement, or contacting Bank of America customer service.
How to set up direct deposit to waive Bank of America fees?
To set up direct deposit, provide your employer or payer with your Bank of America account number and routing number. For Advantage Plus Banking, a single qualifying direct deposit of $250 or more per statement cycle will typically waive the fee.
How to become a Bank of America Preferred Rewards member?
You become a Bank of America Preferred Rewards member by maintaining a combined average daily balance of at least $20,000 (across eligible Bank of America banking and Merrill investment accounts) over a three-month period.
How to check my Bank of America account balance to avoid fees?
You can check your Bank of America account balance through online banking, the mobile app, at ATMs, or by calling customer service. Set up low balance alerts to help you monitor it effectively.
How to switch Bank of America checking account types?
You can typically switch Bank of America checking account types by contacting customer service or visiting a financial center. Discuss your banking habits and financial goals with a representative to choose the best account for you.
How to know if my Bank of America account is for students (under 25)?
If you are under 25 and have an Advantage SafeBalance Banking account, the monthly fee is automatically waived. You can confirm your eligibility with Bank of America.
How to avoid overdraft fees with Bank of America?
To avoid overdraft fees, you can choose an Advantage SafeBalance Banking account (which declines transactions that would overdraw), enroll in Overdraft Protection (linking to a savings account or line of credit), or simply ensure you always have sufficient funds before making transactions.
How to get a Bank of America fee waived after it's charged?
Contact Bank of America customer service and politely explain the situation. They may offer a one-time courtesy waiver, especially if it's your first time or you have a good account history.
How to close a Bank of America checking account if I can't avoid fees?
If you consistently incur fees and cannot meet the waiver requirements, you can close your Bank of America checking account by visiting a financial center, calling customer service, or by mail. Ensure all outstanding transactions have cleared and your balance is zero or positive before closing.
