You're ready to start building your savings, and Bank of America is on your radar – excellent choice! But before you dive in, you're probably asking, "How much money do I actually need to keep in a Bank of America savings account?" That's a crucial question, and the answer isn't a simple one-size-fits-all. It depends on several factors, primarily revolving around avoiding fees and maximizing your benefits.
This comprehensive guide will walk you through everything you need to know, from minimum balance requirements to strategies for waiving monthly maintenance fees and even boosting your savings potential. Let's get started on your path to smarter saving!
How Much Money Do You Have to Keep in Bank of America Savings? A Detailed Guide
Understanding the balance requirements for a Bank of America savings account is key to managing your money effectively and avoiding unnecessary fees. Let's break it down.
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| How Much Money Do You Have To Keep In Bank Of America Savings |
Step 1: Understand the Bank of America Advantage Savings Account
Bank of America primarily offers the Bank of America Advantage Savings account for general savings needs. This is the account we'll be focusing on for minimum balance discussions. It's important to note that Bank of America's interest rates on standard savings accounts are generally quite low compared to high-yield savings accounts offered by online banks. However, for convenience and integration with other Bank of America products, it remains a popular choice.
Sub-heading: The Monthly Maintenance Fee
The Bank of America Advantage Savings account typically comes with a monthly maintenance fee. As of the current information, this fee is usually $8 per statement cycle. No one wants to pay fees if they don't have to, right? That's why understanding how to avoid it is so important.
Step 2: Discover How to Avoid the Monthly Maintenance Fee
This is where the "how much" question really comes into play. Bank of America offers several ways to waive the $8 monthly maintenance fee. Meeting just one of these criteria during each statement cycle will prevent you from being charged.
Sub-heading: Option 2.1: Maintain a Minimum Daily Balance
This is the most direct way to avoid the fee. You must maintain a minimum daily balance of $500 or more in your Bank of America Advantage Savings account.
QuickTip: Focus on one paragraph at a time.
- What this means: Every single day of your statement cycle, your account balance must be at least $500. If it drops below $500 even for one day, you might incur the fee.
- Tip: If you're aiming for this, set up a buffer! Don't let your balance hover exactly at $500. A little extra can save you from an accidental dip.
Sub-heading: Option 2.2: Link Your Account to an Eligible Bank of America Checking Account
Bank of America encourages customers to have multiple accounts with them. If you link your Advantage Savings account to one of the following Bank of America checking accounts, the monthly maintenance fee on your savings account can be waived:
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Bank of America Advantage Relationship Banking®
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Bank of America Advantage® with Tiered Interest Checking
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Bank of America Advantage® Regular Checking Accounts
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Important Note: This waiver typically applies to the first four linked savings accounts. If you have more than four, additional fees might apply.
Sub-heading: Option 2.3: Enroll in the Preferred Rewards Program
This is a fantastic option if you have a more significant financial relationship with Bank of America and Merrill. The Preferred Rewards program offers various benefits, including fee waivers, higher interest rates, and credit card rewards.
- How it works: To qualify for Preferred Rewards, you need an eligible Bank of America personal checking account and a three-month combined average daily balance of $20,000 or more across qualifying Bank of America deposit accounts (checking, savings, CDs) and/or Merrill investment accounts.
- Tier Benefits:
- Gold Tier: $20,000 - $49,999 combined balance.
- Platinum Tier: $50,000 - $99,999 combined balance.
- Platinum Honors Tier: $100,000 - $999,999 combined balance.
- Diamond Honors Tier: $1,000,000+ combined balance.
- Benefit for Savings: Preferred Rewards members typically get the monthly maintenance fee waived on their first four savings accounts (Gold, Platinum, Platinum Honors tiers) or unlimited savings accounts (Diamond Honors tier). They may also earn slightly higher interest rates on their savings.
Sub-heading: Option 2.4: Be Under the Age of 25
Bank of America offers a great perk for younger customers. If you are under the age of 25, the monthly maintenance fee for your Advantage Savings account is typically waived. This is a fantastic way for students and young adults to start saving without worrying about fees.
- Consideration: Once you turn 25, you'll need to meet one of the other criteria to continue avoiding the fee. Plan accordingly!
Step 3: Consider the Initial Deposit
While the "money to keep in" refers to ongoing balance, it's worth noting the initial deposit requirement. For the Bank of America Advantage Savings account, the minimum opening deposit is typically $100.
- Remember: This is just to open the account. To avoid monthly fees, you'll still need to meet one of the criteria outlined in Step 2.
Step 4: Beyond the Minimum: What Should You Aim For?
While the minimum to avoid fees is $500, simply meeting that might not be your optimal strategy.
Sub-heading: Saving for Emergencies
A common financial guideline is to have 3-6 months' worth of living expenses in an easily accessible savings account for emergencies. For many, this will be significantly more than $500. While a Bank of America Advantage Savings account can be part of your emergency fund, remember its relatively low interest rate.
Tip: Break long posts into short reading sessions.
Sub-heading: Reaching Financial Goals
Are you saving for a down payment on a house, a new car, or a dream vacation? The amount you "keep in" your Bank of America savings will directly correlate with your financial goals. Set clear targets and aim to contribute regularly.
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Sub-heading: Leveraging Preferred Rewards for Better Rates
If you can reach the Preferred Rewards tiers, even the Gold tier ($20,000+), you'll start earning slightly better interest rates on your Bank of America savings accounts. While still not as high as dedicated high-yield savings accounts, it's a step up and offers integrated benefits.
Step 5: Strategies for Effective Saving with Bank of America
Once you know the "how much," let's talk about the "how to."
Sub-heading: Automate Your Savings
The easiest way to consistently build your savings is to set up automatic transfers from your checking account to your savings account. Even small, regular contributions add up over time. You can typically do this through your Bank of America online banking or mobile app.
Sub-heading: Utilize "Keep the Change®"
Bank of America offers a program called "Keep the Change®." When you enroll, your debit card purchases are rounded up to the nearest dollar, and the difference is transferred from your checking account to your enrolled savings account. This is a painless way to accumulate savings without even thinking about it.
Sub-heading: Monitor Your Balance Regularly
Even if you have automatic transfers set up, it's good practice to regularly check your savings account balance. This helps you:
QuickTip: Take a pause every few paragraphs.
- Ensure you're meeting fee waiver requirements.
- Track your progress towards financial goals.
- Identify any unauthorized transactions quickly.
Sub-heading: Consider Other Savings Options
While Bank of America offers convenience, it's crucial to acknowledge that their standard savings interest rates are very low. For truly growing your money, especially for long-term goals, you might consider:
- High-Yield Savings Accounts (HYSA): Offered by many online banks, these accounts typically offer significantly higher interest rates than traditional brick-and-mortar banks, often 10x or even 20x higher.
- Certificates of Deposit (CDs): If you can commit your money for a fixed period, CDs generally offer higher interest rates than standard savings accounts.
- Investment Accounts: For long-term goals (5+ years), investing in stocks, bonds, or mutual funds through a brokerage account (like Merrill, Bank of America's investment arm) can offer much greater growth potential, though with higher risk.
10 Related FAQ Questions
Here are some quick answers to common questions about Bank of America savings accounts:
How to avoid the Bank of America monthly savings account fee?
You can avoid the Bank of America monthly Advantage Savings fee by maintaining a minimum daily balance of $500, linking your savings account to an eligible Bank of America checking account, being enrolled in the Preferred Rewards program, or being under the age of 25.
How to link a Bank of America checking account to a savings account?
You can typically link accounts through your Bank of America online banking portal under "Account Management" or by visiting a financial center and speaking with a representative.
How to increase the interest rate on a Bank of America savings account?
The primary way to increase the interest rate on a Bank of America Advantage Savings account is by enrolling in the Preferred Rewards program and reaching higher tiers (Gold, Platinum, Platinum Honors, Diamond Honors) through your combined Bank of America and Merrill balances.
How to open a Bank of America savings account for a minor?
Bank of America offers specific accounts for minors, such as the SafeBalance® for Family Banking (parent-owned with child access) and the SafeBalance Banking® (for teens/young adults, can be co-owned). You'll generally need to visit a financial center with the minor and provide identification for both.
Tip: Read aloud to improve understanding.
How to check your Bank of America savings account balance?
You can check your Bank of America savings account balance through online banking, the Bank of America mobile app, at an ATM, or by calling customer service.
How to deposit money into a Bank of America savings account?
You can deposit money into your Bank of America savings account via direct deposit, mobile check deposit using the app, at a Bank of America ATM, or by visiting a financial center.
How to withdraw money from a Bank of America savings account?
You can withdraw money from your Bank of America savings account at a Bank of America ATM, by visiting a financial center, or by transferring funds to a linked checking account and then withdrawing.
How to find your Bank of America savings account number?
You can find your full Bank of America savings account number by logging into online banking and navigating to the "Information & Services" tab for your account, or by checking your account statement.
How to close a Bank of America savings account?
You can typically close a Bank of America savings account by visiting a financial center, calling customer service, or sometimes through online banking if the balance is zero. Ensure all linked services or automatic payments are updated before closing.
How to set up automatic transfers to a Bank of America savings account?
You can set up automatic transfers from your checking account to your savings account through Bank of America's online banking or mobile app, usually under "Transfers" or "Bill Pay & Transfers" sections.
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