Banking with any institution often comes with certain requirements, and Bank of America is no exception. One common aspect that new and existing customers inquire about is the minimum balance required for their accounts. Understanding these requirements is crucial to avoid unnecessary fees and to maximize the benefits of your banking relationship. This comprehensive guide will walk you through everything you need to know about Bank of America's minimum balance policies, step by step.
Ready to Dive In? Let's Start Unraveling Bank of America's Minimum Balance Rules!
Step 1: Understand Why Minimum Balances Exist
Before we get into the specifics, let's briefly touch upon why banks like Bank of America have minimum balance requirements. It's not just to make your life harder, believe it or not!
- Cost Recovery: Banks incur operational costs to maintain your accounts, provide services (like online banking, ATMs, customer support), and comply with regulations. Minimum balances, or the fees associated with not meeting them, help offset these costs.
- Encouraging Deposits: By requiring a certain balance, banks encourage customers to keep more money with them, which the bank can then use for lending and other investments.
- Tiered Services: Often, higher balances unlock more premium services, lower fees, or better interest rates, creating an incentive for customers to consolidate their funds.
Now that you have a basic understanding of the "why," let's move on to the practicalities.
Step 2: Identify Your Bank of America Account Type
Bank of America offers various checking and savings account options, each with its own set of rules regarding minimum balances and monthly maintenance fees. The most common account types include:
- Advantage SafeBalance Banking®: A checking account designed for those who prefer to avoid overdraft fees.
- Advantage Plus Banking®: A common checking account with more features than SafeBalance.
- Advantage Relationship Banking®: A checking account that offers more benefits for customers with higher balances or multiple accounts.
- Advantage Savings: The standard savings account.
It's important to know which type of account you have, as this will directly impact your minimum balance requirements. You can usually find this information on your monthly statement, by logging into your online banking, or by speaking with a Bank of America representative.
Step 3: Discover the Minimum Balance Requirements for Checking Accounts
This is where the rubber meets the road. Let's break down the minimum balance requirements and how to waive the monthly fees for Bank of America's popular checking accounts.
Sub-heading: Advantage SafeBalance Banking®
- Monthly Maintenance Fee: $4.95
- How to Waive the Fee: You can avoid this fee if you meet ONE of the following criteria each statement cycle:
- Maintain a minimum daily balance of $500 or more in your account.
- An account owner (or a child on the account for the "Family Banking" version) is under the age of 25.
- An account owner is a member of the Preferred Rewards program.
Sub-heading: Advantage Plus Banking®
- Monthly Maintenance Fee: $12
- How to Waive the Fee: You can avoid this fee if you meet ONE of the following criteria 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.
- An account owner is a member of the Preferred Rewards program.
Sub-heading: Advantage Relationship Banking®
- Monthly Maintenance Fee: $25
- How to Waive the Fee: You can avoid this fee if you meet ONE of the following criteria 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.
Step 4: Explore the Minimum Balance Requirements for Savings Accounts
Savings accounts also have their own set of rules.
Sub-heading: Advantage Savings
- Monthly Maintenance Fee: $8
- How to Waive the Fee: You can avoid this fee if you meet ONE of the following criteria each statement cycle:
- Maintain a minimum daily balance of $500 or more in your account.
- Link your Advantage Savings account to an eligible Bank of America checking account (this waiver applies to the first four savings accounts linked).
- An account owner is under the age of 25.
- An account owner is a member of the Preferred Rewards program.
- For new Advantage Savings accounts, the monthly maintenance fee is waived for the first six months from account opening.
Step 5: Understand the Preferred Rewards Program
The Bank of America Preferred Rewards program is a fantastic way to waive various fees, including monthly maintenance fees, across multiple accounts. If you have significant assets with Bank of America or Merrill, this program can be highly beneficial.
Sub-heading: How Preferred Rewards Works
- Eligibility: 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 (checking, savings, CDs) and/or Merrill investment accounts (including IRAs, 401ks, etc.).
- Tiers: The program has different tiers (Gold, Platinum, Platinum Honors, Diamond Honors) based on your combined balances. Each tier offers increasing benefits, including fee waivers.
- Gold Tier: $20,000 - $49,999 combined balance.
- Platinum Tier: $50,000 - $99,999 combined balance.
- Platinum Honors Tier: $100,000 or more combined balance.
- Diamond Honors Tier: $1,000,000 or more combined balance.
- Fee Waivers: Preferred Rewards members typically get monthly maintenance fees waived on up to four checking and four savings accounts (or unlimited for Diamond Honors). They also receive other perks like credit card rewards bonuses, interest rate boosters on savings, and discounts on loans.
If you're close to these balance tiers, it's definitely worth exploring if you can consolidate your funds to qualify!
Step 6: Strategies to Avoid Monthly Maintenance Fees
Even if you don't meet the minimum balance requirements or qualify for Preferred Rewards, there are other ways to avoid those pesky monthly fees:
- Direct Deposits: As seen with Advantage Plus Banking, a consistent direct deposit can be a simple way to waive the fee. Set up your paycheck or other regular income to go directly into your account.
- Age-Based Waivers: If you're a student or under 25, you might automatically qualify for fee waivers on certain accounts. Make sure Bank of America has your correct age on file.
- Linking Accounts: For savings accounts, linking them to an eligible checking account can often waive the fee.
- Consider a Different Account Type: If you consistently struggle to meet the requirements for your current account, evaluate if a different Bank of America account (like Advantage SafeBalance) might be a better fit for your banking habits.
- Regular Review: Periodically review your account statements and Bank of America's fee schedules. Requirements can change, and you want to ensure you're always aware of how to avoid fees.
Step 7: What Happens If You Don't Meet the Minimum Balance?
If you don't meet the minimum balance requirement and don't qualify for any other waivers, Bank of America will typically charge you the monthly maintenance fee for that statement cycle. These fees can add up over time, so it's important to be proactive.
- Impact on Your Funds: Repeatedly incurring fees can erode your account balance.
- Overdraft Risk: If your balance is already low, these fees could potentially lead to an overdraft if you don't have enough funds to cover them, resulting in additional overdraft fees.
- Account Closure (Extreme Cases): While less common solely for minimum balance issues, prolonged periods of extremely low or negative balances could eventually lead to the bank closing your account.
Step 8: Reach Out to Bank of America if You Have Questions
If you're still unsure about your specific account's minimum balance requirements or how to avoid fees, the best course of action is to contact Bank of America directly.
- Visit a Financial Center: Speak with a personal banker who can review your accounts and provide tailored advice.
- Call Customer Service: The general customer service line (800.432.1000) can answer many of your questions.
- Check Online Banking/Mobile App: Often, detailed account information and fee schedules are available within your online banking portal or mobile app.
Knowing your minimum balance requirements and actively working to meet them (or waive them through other means) is a fundamental aspect of smart banking with Bank of America. By following these steps, you can ensure a smoother and more cost-effective banking experience.
10 Related FAQ Questions: How to...
Here are 10 frequently asked questions about Bank of America minimum balances and related topics, with quick answers:
How to check my current Bank of America account balance?
You can check your balance through online banking, the Bank of America mobile app, at any Bank of America ATM, or by calling customer service.
How to set up a direct deposit with Bank of America?
Provide your employer or payer with your Bank of America account number and routing number. You can often find a pre-filled direct deposit form within your online banking.
How to link my Bank of America checking and savings accounts?
You can request to link eligible accounts by calling Bank of America customer service or by visiting a financial center.
How to avoid overdraft fees in Bank of America?
Consider opting for Advantage SafeBalance Banking (which has no overdraft fees), link a savings account for overdraft protection, or utilize Bank of America's Balance Connect® service.
How to qualify for Bank of America Preferred Rewards?
Maintain 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 and Merrill accounts.
How to close a Bank of America account?
You can close an account by visiting a financial center, calling customer service, or by sending a written request. Ensure your balance is zero or positive before closing.
How to find my Bank of America account type?
Your account type is typically listed on your monthly statements, within your online banking details, or can be confirmed by speaking with a Bank of America representative.
How to reduce Bank of America monthly maintenance fees?
Evaluate if you can meet the minimum balance requirements, set up direct deposits, link accounts, or qualify for Preferred Rewards or age-based waivers.
How to switch to a different Bank of America account type?
You can visit a Bank of America financial center or call customer service to discuss your options and initiate the process of switching to a different account that better suits your needs.
How to get a detailed breakdown of Bank of America fees?
Refer to the "Personal Schedule of Fees" document, which is available on the Bank of America website or by request at a financial center.