You're wondering about minimum balances at Bank of America? Excellent question! It's one of the most common banking queries, and for good reason. Understanding minimum balance requirements is crucial to avoiding unnecessary fees and making sure your money works for you, not against you. Let's dive in and break down everything you need to know, step-by-step.
The Mystery of Minimum Balances: Unlocking Bank of America's Requirements
Many people assume a bank account is simply "free" once it's open. However, most traditional banks, including Bank of America, have monthly maintenance fees for their checking and savings accounts. These fees can quickly add up if you're not aware of the conditions for waiving them. Often, maintaining a specific minimum balance is one of the easiest ways to avoid these charges.
Step 1: Discover Your Account Type – The Foundation of Understanding
Are you ready to become a Bank of America fee-waiving wizard? The very first and most important step is to identify the specific type of checking or savings account you have (or are considering opening) with Bank of America. They offer several Advantage Banking accounts, each with different fee structures and waiver requirements.
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Why is this so important? Because the minimum balance needed to avoid fees varies significantly depending on whether you have an Advantage SafeBalance Banking, Advantage Plus Banking, or Advantage Relationship Banking account, among others. A one-size-fits-all answer simply doesn't exist here.
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How to find your account type:
- Check your bank statements: Your account name is usually clearly listed.
- Log in to Online Banking or the Mobile App: It will be displayed there.
- Call Bank of America Customer Service: They can tell you instantly.
- Visit a Bank of America financial center: A representative can assist you.
Once you know your account type, you're halfway to understanding your minimum balance obligations!
Step 2: Unraveling Minimum Balance Requirements by Account
Now that you know your account type, let's look at the general minimum balance requirements for some of Bank of America's popular Advantage Banking accounts. Remember, these are the minimum daily balance or combined balance figures that, if maintained, can help you avoid the monthly maintenance fee.
Sub-heading: Advantage SafeBalance Banking®
This account is designed for those who prefer to manage their spending without overdraft fees, as it doesn't allow checks to be written.
- Monthly Maintenance Fee: $4.95
- How to Waive the Fee (one of these must be met):
- Maintain a minimum daily balance of $500 or more in your account.
- An account owner is under the age of 25.
- An account owner is a member of the Preferred Rewards program.
Sub-heading: Advantage Plus Banking®
This is a common checking account offering traditional check-writing capabilities.
- Monthly Maintenance Fee: $12.00
- How to Waive the Fee (one of these must be met):
- 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.
- An account owner is a member of the Preferred Rewards program.
Sub-heading: Advantage Relationship Banking®
This account often comes with interest-earning potential and additional benefits.
- Monthly Maintenance Fee: $25.00
- How to Waive the Fee (one of these must be met):
- Maintain a minimum daily balance of $20,000 or more in your account.
- An account owner is a member of the Preferred Rewards program. (This typically requires a combined balance across eligible BofA deposit and Merrill investment accounts).
Sub-heading: Bank of America Advantage Savings
This is their standard savings account.
- Monthly Maintenance Fee: $8.00
- How to Waive the Fee (one of these must be met):
- 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 (like Advantage Relationship Banking, Advantage with Tiered Interest Checking, or Advantage Regular Checking).
- An account owner is under age 25.
- An account owner is a member of the Preferred Rewards program.
- For new accounts, the monthly maintenance fee may be waived for the first six months from account opening.
Step 3: Beyond Minimum Balance – Other Ways to Waive Fees
While maintaining a minimum balance is a common strategy, it's not always the only way to avoid monthly maintenance fees. Bank of America offers several alternative methods, which can be particularly helpful if keeping a high daily balance isn't feasible for you.
Sub-heading: Direct Deposits
For Advantage Plus Banking, a qualifying direct deposit of $250 or more per statement cycle is an excellent way to waive the fee without needing to maintain a high balance. This is often the most accessible option for many individuals.
Sub-heading: Age-Based Waivers
- For Young Adults: If an account owner on an Advantage SafeBalance Banking account or Advantage Savings account is under the age of 25, the monthly maintenance fee is typically waived. This is a fantastic benefit for students and young people.
- For Students: Historically, specific student checking accounts or waivers existed for students. While the "under 25" rule covers many students, it's always worth checking if there are any specific student-focused programs or waivers available.
Sub-heading: Preferred Rewards Program
This is a significant way to waive fees across multiple accounts if you have a larger financial relationship with Bank of America and Merrill.
- How it works: To qualify for Preferred Rewards, you generally need to maintain a combined balance of at least $20,000 across your eligible Bank of America deposit accounts (checking, savings, CDs) and/or Merrill investment accounts.
- Benefits: As a Preferred Rewards member (Gold, Platinum, Platinum Honors, Diamond, Diamond Honors tiers), you can get monthly maintenance fees waived on multiple checking and savings accounts. The higher your tier, the more benefits you unlock, including interest rate boosts, credit card rewards bonuses, and loan discounts. This is often the most comprehensive way to avoid fees if you have substantial assets with Bank of America.
Sub-heading: Linking Accounts
As seen with the Advantage Savings account, linking it to a higher-tier checking account can also waive its monthly fee. This consolidates your banking relationship and can be a smart move for fee avoidance.
Step 4: Monitoring Your Balance and Fees
It's not enough to just know the requirements; you need to actively monitor your account to ensure you're meeting them.
Sub-heading: Regular Account Checks
- Daily Balance Awareness: Understand that "minimum daily balance" means your balance must not dip below the required amount at any point during the statement cycle. Even a brief dip can trigger a fee.
- Statement Cycles: Familiarize yourself with your account's statement cycle. Fees are usually assessed at the end of this cycle based on your activity within that period.
Sub-heading: Utilize Alerts
Bank of America offers various alerts you can set up through online banking or the mobile app.
- Low Balance Alerts: Set up notifications to warn you if your balance falls below a certain threshold. This is a powerful tool to prevent accidental fee triggers.
- Fee Alerts: Some banks offer alerts when a fee is charged, allowing you to quickly identify and address any issues.
Sub-heading: Review Your Monthly Statements
Always take a moment to review your monthly statements. Look for any "Monthly Maintenance Fee" charges. If you see one and believe you met the waiver criteria, contact Bank of America immediately to clarify.
Step 5: What Happens If You Don't Meet the Minimum Balance?
If you don't meet any of the waiver criteria for your specific account type during a statement cycle, Bank of America will charge the stated monthly maintenance fee. This fee is typically deducted directly from your account.
- Impact on Budget: These fees, while seemingly small individually, can quickly eat into your savings or available funds over time, especially if you have multiple accounts incurring charges.
- Consider Alternatives: If you consistently struggle to meet the minimum balance requirements or other waiver conditions, it might be worth exploring other banking options, either within Bank of America (like switching to a SafeBalance account if you don't write checks) or with other financial institutions that offer fee-free checking or savings accounts with different requirements.
Step 6: Strategic Management for Fee Avoidance
To consistently avoid minimum balance fees, consider these strategies:
- Consolidate Funds: If you have money spread across multiple accounts at different banks, consolidating a portion into your Bank of America account might help you meet the minimum daily balance for a specific account or even qualify for Preferred Rewards.
- Automate Savings/Transfers: Set up automatic transfers from your checking account to your savings account (or vice versa) to ensure your balance stays above the minimum threshold.
- Set Up Direct Deposit: If your employer offers direct deposit, utilize it, especially for Advantage Plus Banking, as it's a straightforward way to waive the fee.
- Regular Review: Periodically review your banking needs and account types. As your financial situation changes, your ideal banking solution might also evolve.
10 Related FAQ Questions
Here are 10 "How to" FAQ questions related to Bank of America minimum balances, with quick answers:
How to find out my Bank of America account's minimum balance requirement?
Check your monthly bank statements, log into your online banking or mobile app, or contact Bank of America customer service directly.
How to avoid the monthly fee on my Bank of America SafeBalance account?
Maintain a minimum daily balance of $500, be under age 25, or be a Preferred Rewards member.
How to waive the monthly fee for my Bank of America Advantage Plus Banking account?
Maintain a minimum daily balance of $1,500, have at least one direct deposit of $250 or more, or be a Preferred Rewards member.
How to avoid the monthly fee on my Bank of America Advantage Relationship Banking account?
Maintain a minimum daily balance of $20,000 or be a Preferred Rewards member.
How to get the monthly fee waived on my Bank of America Advantage Savings account?
Maintain a minimum daily balance of $500, link it to an eligible BofA checking account, be under age 25, or be a Preferred Rewards member. New accounts also get a 6-month waiver.
How to qualify for Bank of America Preferred Rewards to waive fees?
Maintain a combined balance of at least $20,000 across your eligible Bank of America deposit accounts and/or Merrill investment accounts.
How to check my current balance with Bank of America?
You can check your balance via online banking, the Bank of America mobile app, at an ATM, or by calling customer service.
How to set up low balance alerts for my Bank of America account?
Log in to your Bank of America online banking or mobile app, navigate to the "Alerts" section, and set up a custom low balance alert.
How to switch my Bank of America account to a different type if I can't meet the minimum balance?
Contact Bank of America customer service or visit a financial center to discuss changing your account type to one that better suits your financial habits and helps you avoid fees.
How to find the official Bank of America fee schedule for all account types?
The Personal Schedule of Fees is usually available on the Bank of America website, or you can request a copy at any financial center.