Ready to take control of your finances? Opening a bank account is a fantastic first step, and if you're considering Bank of America, you're looking at one of the largest and most widely accessible banks in the U.S. But before you dive in, you're probably wondering: "How much does it actually cost to open a Bank of America account?"
The good news is, opening a Bank of America account itself generally has no direct "opening fee." However, there are minimum opening deposits and, more importantly, monthly maintenance fees that you need to be aware of. These fees, and how to potentially avoid them, are the true "cost" of maintaining your account. Let's break it down step-by-step.
Understanding the "Cost" of Opening a Bank of America Account: It's More Than Just the Opening Day
When you think about the cost, don't just focus on the initial deposit. The ongoing monthly maintenance fees are what will impact your wallet over time if you don't meet their waiver requirements.
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| How Much Does It Cost To Open A Bank Of America Account |
Step 1: Let's figure out what kind of account you need!
Before we even talk about numbers, consider your banking habits. Are you looking for a simple checking account for everyday transactions? Do you want to save money? Are you a student? Bank of America offers various account types, each with its own fee structure and benefits.
- Bank of America Advantage SafeBalance Banking®: Ideal for those who want to avoid overdraft fees and prefer digital banking. This account doesn't allow paper checks.
- Bank of America Advantage Plus Banking®: A more traditional checking account with check-writing capabilities and ways to waive the monthly fee.
- Bank of America Advantage Relationship Banking®: Designed for those with higher balances, offering interest-earning potential and additional benefits.
- Bank of America Advantage Savings: A standard savings account.
- Student Accounts: Bank of America also offers specific accounts that cater to students and young adults, often with waived monthly fees.
Deciding which account suits your needs best will significantly impact the fees you might encounter.
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Step 2: Minimum Opening Deposits – Your Initial Investment
While there's no "fee" to open the account, you will typically need to make an initial deposit to activate it. This isn't a fee you pay to the bank, but rather the initial funds that go into your account.
- Advantage SafeBalance Banking®: Typically requires a minimum opening deposit of $25.
- Advantage Plus Banking®: Generally requires a minimum opening deposit of $100.
- Advantage Relationship Banking®: Also typically requires a minimum opening deposit of $100.
- Advantage Savings: Usually requires a minimum opening deposit of $100.
Important Note: These minimums are subject to change, so always verify the latest requirements on Bank of America's official website or by speaking with a representative.
Step 3: Decoding Monthly Maintenance Fees – The Recurring Cost
This is where the "cost" really comes into play. Most Bank of America checking and savings accounts come with a monthly maintenance fee, unless you meet specific criteria to get it waived.
Sub-heading: Bank of America Advantage Checking Accounts
- Advantage SafeBalance Banking®:
- Monthly Fee: $4.95
- How to Waive: You can avoid this fee if you:
- Maintain a minimum daily balance of $500 or more in your account, OR
- An account owner is under the age of 25, OR
- An account owner is enrolled in the Preferred Rewards program.
- Advantage Plus Banking®:
- Monthly Fee: $12
- How to Waive: You can avoid this fee if you:
- Make at least one qualifying direct deposit of $250 or more to your account each statement cycle, OR
- Maintain a minimum daily balance of $1,500 or more in your account, OR
- An account owner is enrolled in the Preferred Rewards program.
- Advantage Relationship Banking®:
- Monthly Fee: $25
- How to Waive: You can avoid this fee if you:
- Maintain a minimum daily balance of $20,000 or more in your account, OR
- An account owner is enrolled in the Preferred Rewards program.
Sub-heading: Bank of America Advantage Savings Accounts
- Advantage Savings:
- Monthly Fee: $8
- How to Waive: You can avoid this fee if you:
- Maintain a minimum daily balance of $500 or more in your account, OR
- An account owner is under the age of 25, OR
- The account is linked to a Bank of America Advantage Relationship Banking account, OR
- An account owner is enrolled in the Preferred Rewards program.
- For new accounts opened on or after August 13, 2018, the monthly maintenance fee is waived for the first six months from account opening.
Step 4: Understanding the Preferred Rewards Program – A Powerful Waiver Tool
The Bank of America Preferred Rewards program is a significant way to waive monthly maintenance fees across various accounts. 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 in qualifying Bank of America deposit accounts and/or Merrill investment accounts. As you move up the tiers (Gold, Platinum, Platinum Honors, Diamond Honors), the benefits, including fee waivers, increase.
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Step 5: Potential Additional Fees to Be Aware Of
While not directly tied to "opening" an account, these are ongoing fees that can impact your overall cost of banking if you're not careful:
- ATM Fees (Non-Bank of America ATMs):
- $2.50 per transaction in the U.S. (plus any fee charged by the ATM owner).
- $5.00 per transaction outside the U.S. (plus any fee charged by the ATM owner and a 3% international transaction fee).
- Overdraft Fees:
- Bank of America charges a $10 Overdraft Item Fee per item if you overdraw your account by more than $1. (Maximum of 2 fees per day).
- SafeBalance Banking is designed to help you avoid these by declining transactions when funds aren't available.
- Wire Transfer Fees:
- Domestic outbound wire transfers: $30
- International outbound wire transfers (U.S. Dollars): $45
- International outbound wire transfers (foreign currency): No wire transfer fee, but exchange rate markups apply.
- Inbound wire transfers: $15
- Returned Item Fee: Bank of America generally does not charge a fee for returned items.
- Stop Payment Fee: Check with the latest fee schedule, but typically there's a fee for placing a stop payment on a check.
- Paper Statement Fee: Some accounts may charge a fee for receiving paper statements instead of opting for eStatements.
Step 6: How to Open Your Account – The Process
Now that you're aware of the potential costs, let's look at how to actually open the account.
Sub-heading: Online Application
- Convenient and Quick: This is often the fastest way to open an account.
- Requirements: You'll typically need your Social Security number, a valid government-issued ID (like a driver's license or state ID), and your initial deposit information.
- Steps:
- Visit the Bank of America website.
- Select the type of account you wish to open.
- Click "Open Account" or "Apply Now."
- Fill out the online application form with your personal details, employment information, and financial details.
- Review the terms and conditions, including the fee schedule.
- Fund your account with the minimum opening deposit.
- Submit your application. You'll typically receive an instant decision or a notification for further review.
Sub-heading: In-Person at a Financial Center
- Personalized Assistance: If you prefer face-to-face interaction or have complex questions, visiting a branch is a good option.
- Requirements: Bring your Social Security number, a valid government-issued photo ID, proof of address (e.g., utility bill), and your initial deposit.
- Steps:
- Locate your nearest Bank of America financial center.
- Schedule an appointment online or walk in (appointments are recommended to minimize wait times).
- A banking specialist will guide you through the application process, explain account features, and answer any questions.
- Complete the necessary paperwork.
- Make your initial deposit.
- Your account will be opened, and you'll typically receive a temporary debit card on the spot.
Step 7: Managing Your Account to Minimize Costs
Once your account is open, proactive management is key to avoiding unnecessary fees.
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- Monitor Your Balance: Regularly check your account balance to ensure you meet the minimums required for fee waivers. Use online banking or the mobile app.
- Set Up Direct Deposit: If you have an Advantage Plus account, setting up direct deposit can be an easy way to waive the monthly fee.
- Utilize Bank of America ATMs: Stick to Bank of America ATMs to avoid out-of-network ATM fees.
- Enroll in E-Statements: Opt for paperless statements to avoid potential paper statement fees.
- Set Up Alerts: Bank of America offers alerts for low balances or when transactions occur, helping you stay informed and prevent overdrafts.
- Consider Overdraft Protection: Link your checking account to a savings account or line of credit to automatically transfer funds if you're about to overdraw, potentially avoiding overdraft fees.
Conclusion: Is Bank of America Right for You?
Opening a Bank of America account doesn't come with an upfront "opening fee." The actual "cost" lies in the minimum opening deposit and the monthly maintenance fees, which can be easily waived by meeting specific criteria like maintaining a minimum balance, setting up direct deposits, being under a certain age, or being part of the Preferred Rewards program. By understanding these aspects and actively managing your account, you can enjoy the convenience and widespread presence of Bank of America without incurring unnecessary charges.
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10 Related FAQ Questions
How to avoid monthly maintenance fees on a Bank of America Advantage SafeBalance Banking account?
You can avoid the $4.95 monthly fee by maintaining a minimum daily balance of $500 or more, or if an account owner is under the age of 25, or if an account owner is enrolled in the Preferred Rewards program.
How to waive the monthly fee for a Bank of America Advantage Plus Banking account?
The $12 monthly fee can be waived by making at least one qualifying direct deposit of $250 or more each statement cycle, maintaining a minimum daily balance of $1,500 or more, or by being enrolled in the Preferred Rewards program.
How to get rid of the monthly fee on a Bank of America Advantage Relationship Banking account?
To avoid the $25 monthly fee, you must maintain a minimum daily balance of $20,000 or more in your account or be a member of the Preferred Rewards program.
How to avoid monthly maintenance fees on a Bank of America Advantage Savings account?
The $8 monthly fee can be avoided by maintaining a minimum daily balance of $500 or more, if an account owner is under 25, if the account is linked to an Advantage Relationship Banking account, or if an account owner is in the Preferred Rewards program. New accounts also get a six-month waiver.
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How to qualify for Bank of America's Preferred Rewards program?
You can qualify for the Preferred Rewards program by having an eligible Bank of America personal checking account and maintaining a three-month combined average daily balance of $20,000 or more in qualifying Bank of America deposit accounts and/or Merrill investment accounts.
How to prevent Bank of America ATM fees?
To avoid ATM fees, use only Bank of America ATMs for deposits, withdrawals, and balance inquiries. Using non-Bank of America ATMs will incur a fee from Bank of America ($2.50 in the U.S., $5.00 internationally) plus any fee charged by the ATM owner.
How to avoid Bank of America overdraft fees?
The Bank of America Advantage SafeBalance Banking account is designed to help avoid overdraft fees by declining transactions when funds are not available. For other accounts, maintaining a sufficient balance, setting up Balance Connect for overdraft protection, and monitoring your spending can help prevent overdrafts.
How to open a Bank of America account online?
You can open a Bank of America account online by visiting their website, choosing the desired account type, and following the prompts to complete the application with your personal information, ID, and initial deposit details.
How to deposit money into a new Bank of America account?
You can make your initial deposit when opening the account online (via transfer from another bank) or in person at a financial center (cash, check, or transfer). After opening, you can deposit via direct deposit, mobile check deposit, ATM deposits, or in-person deposits.
How to check the current Bank of America fee schedule?
You can find the most up-to-date Personal Schedule of Fees on the Bank of America website, usually under the "Deposits" or "Accounts" sections, or by asking a representative at a financial center.
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