Have you ever wondered what it takes to get started with one of the biggest banks in the United States, Bank of America? Well, you're in the right place! Opening a bank account can seem like a daunting task with all the different account types, fees, and requirements. But don't worry, we're going to break it down step-by-step, making it as clear as possible.
Let's dive in and see how much you actually need to open an account at Bank of America!
Step 1: Understanding Bank of America's Advantage Banking Accounts
First things first, Bank of America offers a range of "Advantage Banking" accounts designed for different needs. The "how much" you need largely depends on which account type best suits you. There are three main personal checking accounts and one primary savings account:
- Bank of America Advantage SafeBalance Banking®: This account is designed for simpler banking, with no overdraft fees and no paper checks. It's often a good choice for students or those who prefer to manage their finances digitally.
- Bank of America Advantage Plus Banking®: This account offers more flexibility, including the ability to write paper checks and overdraft protection options.
- Bank of America Advantage Relationship Banking®: This is their most comprehensive checking account, offering interest earnings and waived fees on certain banking services, especially if you maintain higher balances.
- Bank of America Advantage Savings: This is their standard savings account, designed to help you save money and earn interest.
It's crucial to understand that while there's an initial minimum deposit to open an account, the real "cost" often comes down to the monthly maintenance fees and how you can waive them.
Step 2: Minimum Opening Deposits – The Initial "How Much"
Here's the good news: the actual minimum deposit to open an account at Bank of America isn't always very high. However, meeting certain ongoing balance requirements or activity requirements is key to avoiding monthly fees.
Sub-heading: Checking Accounts
- Advantage SafeBalance Banking®: You'll typically need a minimum opening deposit of $25. This account is known for having no overdraft fees, as transactions are generally declined if you don't have sufficient funds.
- Advantage Plus Banking®: The minimum opening deposit for this account is usually $100.
- Advantage Relationship Banking®: Similar to Advantage Plus, this account typically requires a minimum opening deposit of $100.
Sub-heading: Savings Accounts
- Advantage Savings: To open a Bank of America Advantage Savings account, you generally need a minimum opening deposit of $100.
Step 3: Understanding and Waiving Monthly Maintenance Fees
This is where the "how much" can become more significant if you're not careful. Bank of America charges monthly maintenance fees on most of its accounts, but they offer several ways to get these fees waived. This is often more important than the initial opening deposit!
Sub-heading: Waiving Fees for Checking Accounts
- Advantage SafeBalance Banking® ($4.95 monthly fee): You can avoid this fee if you meet one of the following conditions:
- Maintain a minimum daily balance of $500 or more in your account.
- An account owner is under the age of 25. This is a great option for students and young adults!
- An account owner is a member of the Preferred Rewards program.
- Advantage Plus Banking® ($12 monthly fee): This fee can be waived if you meet one of these requirements:
- Have at least one qualifying direct deposit of $250 or more made to your account each statement cycle.
- Maintain a minimum daily balance of $1,500 or more in your account.
- An account owner is a member of the Preferred Rewards program.
- Advantage Relationship Banking® ($25 monthly fee): To avoid this higher fee, you need to meet one of the following:
- Maintain a minimum daily balance of $20,000 or more in your account. This can be a combined average daily balance across your linked Bank of America deposit accounts and Merrill investment accounts.
- An account owner is a member of the Preferred Rewards program. This account offers additional benefits like no fees on select banking services and potential interest earnings.
Sub-heading: Waiving Fees for Savings Accounts
- Advantage Savings ($8 monthly fee): You can avoid this fee if you meet one of the following:
- Maintain a minimum daily balance of $500 or more in your account.
- Link your Advantage Savings account to a Bank of America Advantage Relationship Banking account (or certain older checking accounts).
- An account owner is a member of the Preferred Rewards program.
- An account owner is under the age of 25.
- For new accounts, Bank of America often waives the monthly maintenance fee for the first six months.
Step 4: Understanding Preferred Rewards and Its Benefits
The Preferred Rewards program is a key way to avoid fees and gain additional benefits across various Bank of America and Merrill accounts. It's designed for clients who maintain higher combined balances.
Sub-heading: How to Qualify for Preferred Rewards
To qualify, you need an eligible Bank of America personal checking account and a three-month combined average daily balance of:
- Gold Tier: $20,000 to < $50,000
- Platinum Tier: $50,000 to < $100,000
- Platinum Honors Tier: $100,000 to < $1,000,000
- Diamond Tier: $1,000,000 to < $10,000,000
- Diamond Honors Tier: $10,000,000 or more
As you can see, reaching these tiers significantly increases your "how much" in terms of overall assets with Bank of America, but it waives many fees and offers perks like credit card rewards bonuses, interest rate boosts on savings, and discounts on loans.
Step 5: Required Documents to Open an Account
Beyond the "how much" in terms of money, you'll also need to gather some essential documents. Whether you open an account online or in person, generally, you'll need:
- Primary Identification: A valid government-issued photo ID (e.g., driver's license, state ID, passport).
- Secondary Identification: Another form of ID (e.g., Social Security card, credit or debit card from another US bank, utility bill with your name and address).
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Current U.S. Physical Address: No P.O. boxes. Proof of address might be required if it's not on your primary ID (e.g., a utility bill, lease agreement).
- Initial Deposit Funds: The amount you determined in Step 2.
Step 6: The Application Process - Online vs. In-Person
Once you have your funds and documents ready, you can choose how to apply:
Sub-heading: Opening Online
- Convenience: This is often the quickest way if you meet all the online eligibility criteria (e.g., U.S. citizen, 18+, SSN).
- Process: You'll typically fill out an online application, verify your identity electronically, and link an external bank account or use a debit card to make your initial deposit.
- Keep in mind: If there are any discrepancies or additional verification needed, you might still be required to visit a financial center.
Sub-heading: Opening In-Person
- Personalized Assistance: A good option if you have questions, prefer face-to-face interaction, or have a more complex situation (e.g., international student, under 18, no SSN).
- Process: Schedule an appointment or walk into a Bank of America financial center. A banking specialist will guide you through the application, verify your documents, and help you make your initial deposit.
Step 7: Factors Beyond Initial Deposit and Monthly Fees
While the opening deposit and monthly fees are critical, consider these other factors:
- ATM Fees: Bank of America ATMs are free. However, out-of-network ATMs will incur fees (e.g., $2.50 in the U.S., $5.00 outside the U.S., plus any fee charged by the ATM owner).
- Overdraft Fees: While Advantage SafeBalance has no overdraft fees, Advantage Plus and Advantage Relationship may have a $10 overdraft item fee for certain transactions if you overdraw your account. Bank of America also offers Balance Connect® for overdraft protection, linking to other accounts.
- Other Service Fees: Be aware of potential fees for services like stop payments, wire transfers, or check orders. The "Personal Schedule of Fees" document provided by Bank of America is your best resource for a comprehensive list.
- Interest Rates (for Savings/Interest-Bearing Checking): While not a "how much to open," the interest you earn can impact your overall financial picture. Bank of America's standard savings rates are generally low, with higher rates typically reserved for Preferred Rewards members.
In Conclusion: Your "How Much" Depends on Your Banking Habits!
To sum it up, while the initial minimum deposit to open a Bank of America account can be as low as $25 (for Advantage SafeBalance) or $100 (for Advantage Plus, Relationship, and Savings), the true cost is determined by whether you can avoid the monthly maintenance fees. By maintaining minimum balances, setting up direct deposits, or qualifying for Preferred Rewards, you can enjoy the benefits of banking with Bank of America without incurring recurring charges. Careful planning and understanding of the fee waivers are key to managing your banking costs effectively.
10 Related FAQ Questions
How to choose the right Bank of America account for me?
Consider your banking habits: if you primarily use digital banking and want to avoid overdrafts, Advantage SafeBalance might be a fit. If you need checks and occasional overdraft protection, Advantage Plus. For comprehensive benefits and higher balances, Advantage Relationship is ideal.
How to waive the monthly fee on a Bank of America Advantage SafeBalance account?
Maintain a minimum daily balance of $500, be under 25 years old, or be a Preferred Rewards member.
How to avoid the monthly fee on a Bank of America Advantage Plus account?
Set up at least one direct deposit of $250 or more, maintain a minimum daily balance of $1,500, or be a Preferred Rewards member.
How to get no monthly fees on a Bank of America Advantage Relationship account?
Maintain a minimum daily balance of $20,000 (including linked Merrill accounts) or be a Preferred Rewards member.
How to open a Bank of America account if I am an international student?
You'll need to visit a financial center with your foreign passport, U.S. visa, proof of U.S. and foreign address, and a tax identification number (if applicable).
How to qualify for Bank of America's Preferred Rewards program?
Maintain an eligible Bank of America personal checking account and a three-month combined average daily balance of $20,000 or more across your qualifying Bank of America deposit and Merrill investment accounts.
How to make an initial deposit when opening a Bank of America account online?
You can typically fund your new account by linking an external bank account for an electronic transfer or by using a debit card from another financial institution.
How to check my account balance at Bank of America?
You can check your balance through Online Banking, the Mobile Banking app, at Bank of America ATMs, or by calling customer service.
How to set up direct deposit with Bank of America?
Provide your employer or benefits provider with your Bank of America account number and routing number. You can usually find these in your online banking portal or on a check.
How to close a Bank of America account?
You can typically close an account by visiting a financial center, calling customer service, or sometimes by sending a written request, ensuring your balance is zero or positive before closing.
