Is the monthly maintenance fee on your Bank of America savings account a source of frustration? Are you tired of seeing your hard-earned savings chipped away by avoidable charges? You're not alone! Many Bank of America customers face this very issue, but the good news is that with a little knowledge and strategic planning, you can almost always eliminate these fees.
This comprehensive guide will walk you through, step-by-step, how to avoid those pesky monthly maintenance fees on your Bank of America Advantage Savings account. Let's reclaim your savings!
Understanding the Bank of America Advantage Savings Account Fee
Before we dive into the solutions, it's crucial to understand why you might be getting charged in the first place. Bank of America's Advantage Savings account typically carries an $8 monthly maintenance fee. This fee is designed to cover the operational costs of maintaining your account. However, Bank of America offers several ways to waive this fee, rewarding customers who meet certain criteria or maintain a particular relationship with the bank.
Step 1: Discover Your Current Account Status and Fee Triggers
The very first thing you need to do is identify your current situation. Do you know why you're being charged? Have you reviewed your statement recently?
Sub-heading: Review Your Bank Statement
Grab your latest Bank of America savings account statement, either a physical copy or by logging into your online banking portal. Look for a line item that says "Monthly Maintenance Fee" or "Service Fee." Note the amount and the date it's applied. This will give you a clear picture of what you're up against.
Sub-heading: Understand the Bank's Official Requirements
Bank of America publicly lists the conditions for waiving the Advantage Savings account monthly maintenance fee. Familiarize yourself with these. Generally, they revolve around:
- Maintaining a minimum daily balance.
- Having linked accounts.
- Being a student under a certain age.
- Being a Preferred Rewards member.
Step 2: Implement the Minimum Daily Balance Strategy
One of the most common and straightforward ways to avoid the monthly maintenance fee is by maintaining a specific minimum daily balance in your Advantage Savings account.
Sub-heading: The $500 Golden Rule
For the Bank of America Advantage Savings account, the primary method to waive the $8 monthly maintenance fee is to maintain a minimum daily balance of $500 or more. This means that every single day of your statement cycle, your account balance must be $500 or higher.
- Actionable Tip: If your balance dips below $500 even for one day during the statement cycle, you will likely be charged the fee. Keep a close eye on your balance and set up alerts if needed.
Sub-heading: Consistently Monitor Your Balance
It's not enough to just deposit $500 at the beginning of the month. You need to actively monitor your account to ensure it doesn't fall below this threshold.
- Set up alerts: Bank of America allows you to set up alerts for low balances. Utilize this feature! You can receive notifications via email or text message when your balance drops below a specific amount (e.g., $525, to give you a buffer).
- Regular checks: Make it a habit to check your savings account balance a few times a week, especially if you have automatic transfers or withdrawals.
Step 3: Explore Account Linking and Relationship Benefits
Bank of America often rewards customers who have a broader relationship with them. Linking your savings account to other eligible Bank of America accounts can be a fantastic way to avoid fees.
Sub-heading: Link to an Advantage Relationship Banking Account
If you have a Bank of America Advantage Relationship Banking® checking account, you can typically link your Advantage Savings account to it to avoid the monthly maintenance fee. This is because the Advantage Relationship Banking account itself has higher requirements (e.g., $20,000 combined balance across all linked accounts or Preferred Rewards membership), and the savings account benefits from this overarching relationship.
- Consult a representative: This linking process might require a conversation with a Bank of America representative to ensure it's set up correctly.
Sub-heading: Become a Preferred Rewards Member
The Bank of America Preferred Rewards program offers a multitude of benefits, including fee waivers on eligible accounts. If you qualify for Preferred Rewards (which typically involves maintaining a certain combined balance across your Bank of America and Merrill investment accounts), your Advantage Savings account fee will be waived.
- Tiered Benefits: Preferred Rewards has different tiers (Gold, Platinum, Platinum Honors, Diamond, Diamond Honors), each with increasing benefits. Even the Gold tier can waive your savings account fee.
- Consider consolidating: If you have investments elsewhere, it might be worth exploring consolidating them with Merrill (Bank of America's investment arm) to reach the Preferred Rewards tiers and unlock these waivers.
Step 4: Leverage Age-Based Waivers (If Applicable)
Bank of America offers specific waivers for younger account holders. This is a crucial consideration if you or someone on the account is under a certain age.
Sub-heading: Under 25 Waiver
Bank of America often waives the monthly maintenance fee for Advantage Savings accounts where an owner is under the age of 25. This is a great benefit for students or young adults just starting their financial journey.
- Verify eligibility: If you are under 25 or your child is, ensure this waiver is being applied. If not, contact Bank of America to update your account status.
- Automatic application: This waiver is generally applied automatically once the account holder's age is verified.
Step 5: Consider Alternatives or Account Changes
If none of the above options are feasible or desirable for your financial situation, it might be time to evaluate other possibilities within or outside of Bank of America.
Sub-heading: Six-Month New Account Waiver
For new Bank of America Advantage Savings accounts, the monthly maintenance fee is typically waived for the first six months. This provides a grace period to meet one of the waiver requirements.
- Utilize the grace period: If you're a new customer, use these six months to implement one of the strategies above. Don't wait until the last minute!
Sub-heading: Evaluate Other Bank of America Savings Options
While the Advantage Savings account is common, Bank of America might offer other savings products that have different fee structures or easier waiver requirements for your specific needs. However, the Advantage Savings account is their primary personal savings offering.
Sub-heading: Explore High-Yield Savings Accounts (Outside BofA)
If you find that meeting Bank of America's waiver requirements is consistently challenging, consider moving your savings to a high-yield online savings account from a different financial institution. Many online banks offer:
- No monthly maintenance fees: A significant number of online banks have no monthly fees, regardless of your balance.
- Higher interest rates: These accounts often offer significantly higher Annual Percentage Yields (APYs) compared to traditional brick-and-mortar banks like Bank of America, meaning your money grows faster.
Step 6: Communicate with Bank of America
Don't be afraid to reach out to Bank of America directly. Sometimes, a simple conversation can resolve fee issues or clarify options you weren't aware of.
Sub-heading: Call Customer Service
If you're unsure about your eligibility for a waiver, or if you believe you met a requirement but were still charged, call Bank of America's customer service line. Be prepared with your account details and a clear explanation of your query.
- Be polite but firm: Clearly state your case and inquire about potential solutions. They may be able to offer a one-time waiver if you're close to meeting a requirement or if there was a technical glitch.
Sub-heading: Visit a Local Financial Center
For more complex issues or if you prefer face-to-face interaction, visit a Bank of America financial center. A banking specialist can review your account in detail and provide personalized guidance.
Final Thoughts
Avoiding Bank of America's monthly maintenance fee on your savings account is entirely achievable. By understanding the waiver requirements and proactively managing your account, you can ensure your savings grow unhindered. Remember, your money should be working for you, not against you in the form of avoidable fees!
10 Related FAQ Questions
How to check my current Bank of America Advantage Savings account balance?
You can check your balance by logging into your Bank of America online banking account, using the Bank of America mobile app, calling their automated phone banking service, or visiting an ATM or financial center.
How to link my Bank of America Advantage Savings account to another eligible Bank of America account?
To link your Advantage Savings account to an eligible checking account like Advantage Relationship Banking, you typically need to contact Bank of America customer service or visit a financial center to ensure the accounts are properly associated for fee waiver purposes.
How to qualify for Bank of America Preferred Rewards to waive savings account fees?
You qualify for Bank of America Preferred Rewards by maintaining a combined balance of at least $20,000 across your eligible Bank of America deposit and Merrill investment accounts. There are different tiers (Gold, Platinum, Platinum Honors, Diamond, Diamond Honors) based on your combined balance.
How to set up low balance alerts for my Bank of America Advantage Savings account?
You can set up low balance alerts through your Bank of America online banking portal or the mobile app. Look for the "Alerts" or "Manage Alerts" section and select "Balance Alerts" to customize your notification preferences.
How to avoid the Bank of America Advantage Savings fee if I'm under 25?
If you are the primary owner or a joint owner of the Advantage Savings account and are under the age of 25, the monthly maintenance fee should be automatically waived. If it's not, contact Bank of America to verify your age and account status.
How to contact Bank of America customer service for fee inquiries?
You can contact Bank of America customer service by calling the number on the back of your debit card, the general customer service number listed on their website, or by using the secure messaging feature within your online banking account.
How to open a new Bank of America Advantage Savings account with the fee waiver in mind?
When opening a new account, be aware that the fee is waived for the first six months. Use this period to establish a routine for maintaining the $500 minimum daily balance or explore linking it to another eligible account if you plan to stay with Bank of America long-term.
How to find out the current monthly maintenance fee for Bank of America Advantage Savings?
The current monthly maintenance fee for the Bank of America Advantage Savings account is typically $8. You can confirm this on the Bank of America website's "Personal Schedule of Fees" or by reviewing your latest account statement.
How to close my Bank of America Advantage Savings account if I can't avoid the fees?
If you decide to close your account, ensure your balance is zero or transferred out. You can typically initiate an account closure by calling Bank of America customer service or visiting a financial center. Be sure to confirm that there are no pending transactions or outstanding fees before closing.
How to compare Bank of America's savings accounts with other banks' offerings?
To compare, research high-yield online savings accounts from other reputable banks. Look for accounts with no monthly fees, low or no minimum balance requirements, and competitive Annual Percentage Yields (APYs). Websites like Bankrate, NerdWallet, and Finder often provide helpful comparison tools.
