Hey there, aspiring saver! Are you ready to take control of your finances and make the most of your Bank of America savings account? You're in the right place! Understanding how much money to keep in your savings account isn't just about avoiding fees; it's about building a strong financial foundation. Let's dive in!
How Much Money Do I Have to Keep in My Bank of America Savings Account?
This isn't a one-size-fits-all answer, as it depends on your specific account type and your financial goals. However, there are some key factors and minimums to be aware of to manage your Bank of America savings account effectively and avoid unnecessary fees.
Step 1: Identify Your Bank of America Savings Account Type
First things first, do you know which Bank of America savings account you have? This is crucial because different accounts have different requirements. The most common one you'll likely encounter is the Bank of America Advantage Savings account. Other types might include youth accounts or specialized savings products.
- Why this matters: Each account type has its own set of rules regarding minimum balances and fees.
Step 2: Understand the Monthly Maintenance Fee and How to Avoid It
The Bank of America Advantage Savings account typically comes with a monthly maintenance fee. As of June 2025, this fee is generally $8 per statement cycle. Nobody wants to pay avoidable fees, right? So, let's look at how you can waive this fee:
Sub-heading: Methods to Waive the Monthly Maintenance Fee
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Maintain a Minimum Daily Balance: The most common way to avoid the $8 monthly fee is to maintain a minimum daily balance of $500 or more in your Advantage Savings account. This means that on every single day of your statement cycle, your balance must not drop below $500.
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Link to a Qualifying Bank of America Checking Account: If you have an eligible Bank of America checking account, you can often link your Advantage Savings account to it to avoid the fee. Qualifying checking accounts include:
- Bank of America Advantage Relationship Banking®
- Bank of America Advantage® with Tiered Interest Checking
- Bank of America Advantage® Regular Checking Accounts
- Note: This typically applies to the first four linked savings accounts.
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Be Under the Age of 25: Bank of America waives the monthly maintenance fee for account owners under the age of 25. This is a great perk for younger savers!
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Enroll in Preferred Rewards: If you're a member of Bank of America's Preferred Rewards program and qualify for the Gold, Platinum, Platinum Honors, or Diamond Honors tier, the monthly maintenance fee for up to four (or unlimited for Diamond Honors) Advantage Savings accounts can be waived. This program is for customers with higher combined balances across their Bank of America and Merrill investment accounts.
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Important Note: Bank of America also often waives the monthly fee for the first 6 months after opening an Advantage Savings account, giving you time to meet one of the waiver requirements.
Step 3: Consider Your Financial Goals and Emergency Fund
Beyond just avoiding fees, how much money you should keep in your Bank of America savings account is deeply tied to your personal financial goals.
Sub-heading: Building an Emergency Fund
One of the primary purposes of a savings account is to hold an emergency fund. This is money set aside for unexpected expenses like job loss, medical emergencies, or car repairs.
- General Recommendation: Most financial experts recommend having 3 to 6 months' worth of essential living expenses saved in an easily accessible savings account. For example, if your essential monthly expenses are $2,000, aim for $6,000 to $12,000 in your emergency fund.
- Why Bank of America Savings?: While Bank of America's interest rates on standard savings accounts (typically 0.01% APY) are very low compared to high-yield online savings accounts, its accessibility through a vast network of ATMs and branches can be a comfort for emergency funds.
Sub-heading: Saving for Specific Goals
You might also be saving for other goals, such as:
- A down payment on a house
- A new car
- A vacation
- Education expenses
For these goals, the amount you keep will depend on the target amount and your timeline. It's often a good idea to create separate savings goals within your banking app or spreadsheet to track your progress.
Step 4: Understand Interest Rates and How They Affect Your Savings
While the focus of this post is on minimum balances, it's worth noting that Bank of America's standard Advantage Savings account offers a very low Annual Percentage Yield (APY), often around 0.01%. This means your money won't grow significantly through interest alone.
Sub-heading: Boosting Your Earnings with Preferred Rewards
As mentioned in Step 2, if you're part of the Preferred Rewards program, you can earn a slightly higher APY on your Advantage Savings account, depending on your tier:
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Gold Tier: Offers a slightly higher APY (e.g., 0.02%)
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Platinum Tier: Offers a better APY (e.g., 0.03%)
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Platinum Honors Tier: Offers the highest APY (e.g., 0.04%) for eligible savings accounts within the program.
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Consider High-Yield Alternatives: If earning significant interest is a priority for your savings (especially for funds beyond your immediate emergency needs), you might consider opening a separate high-yield savings account at an online bank. These often offer APYs many times higher than traditional brick-and-mortar banks like Bank of America.
Step 5: Managing Withdrawals and Transfers
While Bank of America savings accounts are designed for saving, you'll inevitably need to access your funds. Be aware of any limits.
Sub-heading: Regulation D and Withdrawal Limits
Historically, federal Regulation D limited certain withdrawals and transfers from savings accounts to six per calendar month or statement cycle. While Regulation D has been suspended indefinitely, banks can still impose their own limits.
- Bank of America's Policy: Bank of America's Advantage Savings account does not charge an "excessive withdrawal fee" for exceeding 6 transactions in a month. However, transactions may be declined if you don't have enough money. They generally prefer you use your checking account for day-to-day spending.
- ATM Withdrawal Limits: ATM withdrawal limits can vary based on your card type and account, but typically range from $1,000 to $2,500 per day. You can often adjust these limits via online banking or the mobile app.
- Transfer Limits: Limits for transfers (e.g., Zelle, ACH, wire transfers) from your Bank of America accounts, including savings, will vary depending on the transfer type and your account tier. You can check these within your online or mobile banking portal.
Step 6: Setting Up Direct Deposit and Alerts
Making it easy to save is key!
Sub-heading: Automate Your Savings
- Direct Deposit: Consider setting up a portion of your paycheck to be directly deposited into your Bank of America savings account. This "set it and forget it" method is incredibly effective for consistent saving. You can usually download a pre-filled direct deposit form from your online banking.
- Automatic Transfers: Set up recurring automatic transfers from your Bank of America checking account to your savings account. Even small, regular transfers add up over time.
Sub-heading: Stay Informed with Alerts
- Balance Alerts: Set up alerts through Bank of America's online or mobile banking to notify you when your balance falls below a certain threshold (e.g., $550, to stay above the $500 fee-waiver minimum).
- Deposit Alerts: Get notifications when direct deposits or other funds arrive in your account.
Step 7: Leveraging Bank of America Features
Bank of America offers some features that can help with your savings efforts:
- Keep the Change®: Enroll in this program, and Bank of America will round up your debit card purchases to the nearest dollar and transfer the difference from your checking account to your enrolled savings account. It's a subtle way to build savings.
- Spending & Budgeting Tool: Utilize the tools available in online and mobile banking to track your spending and create a budget, which can help you identify areas where you can save more.
- Balance Connect® for Overdraft Protection: While not directly about saving, this optional service allows you to link your checking account to your savings (and up to 4 other eligible Bank of America accounts) to automatically transfer funds to cover transactions if you're about to overdraw your checking account. This can prevent overdraft fees from your checking, but remember it uses your savings!
10 Related FAQ Questions
Here are 10 frequently asked questions, all starting with "How to," along with their quick answers:
How to avoid Bank of America savings account monthly fees?
You can avoid the $8 monthly fee on an Advantage Savings account by maintaining a minimum daily balance of $500, linking it to an eligible Bank of America checking account, being under 25 years old, or being enrolled in the Preferred Rewards program.
How to find my Bank of America savings account routing number?
You can find your Bank of America savings account routing number by logging into Online Banking, checking your checks, or looking on your monthly statements.
How to set up direct deposit to my Bank of America savings account?
Log in to Bank of America Online Banking to download a pre-filled direct deposit form, then provide this form to your employer's payroll department. You'll need your account number and the correct routing number.
How to transfer money from my Bank of America checking to savings?
You can easily transfer money between your Bank of America checking and savings accounts through Online Banking, the Mobile Banking app, at an ATM, or by visiting a financial center.
How to check my Bank of America savings account balance?
You can check your balance through the Bank of America Mobile Banking app, Online Banking, by calling customer service, or by visiting an ATM or financial center.
How to close a Bank of America savings account?
To close a Bank of America savings account, you can typically visit a financial center, call customer service, or sometimes submit a request online after transferring all funds out of the account.
How to open a Bank of America Advantage Savings account?
You can open a Bank of America Advantage Savings account online, by making an appointment at a financial center, or by visiting a financial center. The minimum opening deposit is usually $100.
How to get a higher interest rate on my Bank of America savings?
To get a higher interest rate on a Bank of America Advantage Savings account, you typically need to enroll in their Preferred Rewards program by meeting the combined balance requirements across your Bank of America and Merrill accounts. Alternatively, consider a high-yield savings account at an online bank.
How to use Keep the Change® with my Bank of America savings?
Enroll in the Keep the Change® program through Bank of America's online or mobile banking. Once enrolled, your debit card purchases will be rounded up to the nearest dollar, and the difference will be transferred from your checking account to your enrolled savings account.
How to manage my Bank of America savings account alerts?
You can set up and manage various alerts for your Bank of America savings account (e.g., low balance, large deposit, large withdrawal) through the Bank of America Mobile Banking app or by logging into Online Banking.
