Let's face it: wire transfers, while incredibly convenient for sending money quickly and securely, often come with a price tag. And if you're a Bank of America customer, you might be looking for ways to avoid or at least minimize those pesky wire transfer fees. Good news! While it's not always possible to eliminate them entirely, there are definitely strategies you can employ.
Ready to dive into the world of fee avoidance and make your money work harder for you? Let's get started!
Step 1: Understand Bank of America's Wire Transfer Fees
Before we can avoid something, we need to know what we're up against. Bank of America charges different fees depending on whether your transfer is domestic or international, and whether you're sending or receiving the funds.
Sub-heading: Domestic Wire Transfer Fees
- Outgoing Domestic Wire: Typically, you're looking at a fee of around $30 to send money within the United States.
- Incoming Domestic Wire: If you're receiving a domestic wire, Bank of America may charge you around $15.
Sub-heading: International Wire Transfer Fees
International transfers tend to be a bit more complex and can involve additional costs.
- Outgoing International Wire (in U.S. Dollars): This can be the most expensive option, often costing around $45.
- Outgoing International Wire (in Foreign Currency): Here's a key point! Bank of America often charges no direct wire transfer fee for outgoing international wires sent in foreign currency. However, exchange rate markups will still apply, meaning the exchange rate you get might not be the mid-market rate. This is how they still make money on these "fee-free" transfers.
- Incoming International Wire: Similar to domestic incoming wires, you might face a fee of around $15 for receiving an international wire.
It's crucial to remember that these fees can change, and intermediary banks involved in international transfers might also levy their own charges, which are outside of Bank of America's control.
Step 2: Leverage Bank of America Preferred Rewards Program
This is often one of the most effective ways to reduce or even eliminate wire transfer fees, especially if you have a significant relationship with Bank of America and Merrill.
Sub-heading: What is Preferred Rewards?
Bank of America's Preferred Rewards program offers various benefits based on your combined balances in eligible Bank of America deposit accounts and Merrill investment accounts. The higher your tier (Gold, Platinum, Platinum Honors, Diamond, or Diamond Honors), the more perks you unlock.
Sub-heading: How it Benefits Wire Transfers
- Incoming Wire Fee Waivers: Many Preferred Rewards tiers offer waivers for incoming wire transfer fees. This means if someone sends you a wire, you won't be charged the $15 receiving fee.
- Outgoing Wire Fee Waivers: Higher tiers, such as Platinum Honors and Diamond Honors, may offer waivers for a certain number of outgoing wire transfers per month or year. This can be a substantial saving if you send wires frequently.
Actionable Tip: If you have substantial assets across Bank of America and Merrill, explore the Preferred Rewards program to see if you qualify for higher tiers and the associated fee waivers. It's often worth consolidating your finances to unlock these benefits.
Step 3: Explore Alternative Money Transfer Methods
Wire transfers are just one way to move money. For many situations, especially domestic transfers or smaller international amounts, there are cheaper, faster, and often free alternatives.
Sub-heading: ACH Transfers (Automated Clearing House)
- What it is: ACH transfers are electronic payments processed through a different network than wire transfers. They are widely used for direct deposits, bill payments, and person-to-person transfers.
- Why it's better for fees: ACH transfers are typically much cheaper or even free for both sending and receiving, especially for domestic transfers.
- Downside: ACH transfers are generally slower than wire transfers, often taking 1-3 business days to clear.
Sub-heading: Zelle®
- What it is: Zelle is a popular peer-to-peer payment service integrated directly into many banking apps, including Bank of America's. It allows you to send and receive money with just an email address or U.S. mobile phone number.
- Why it's better for fees: Zelle transfers are free to send and receive.
- Downside: Zelle has transaction limits (e.g., typically $2,500-$5,000 per day for Bank of America customers) and is only for domestic transfers. It's also generally recommended for sending money to people you know and trust.
Sub-heading: Online Banking Transfers (Internal & External)
- Between Your Own Accounts: Transferring money between your own Bank of America accounts is always free. You can also link external accounts and transfer funds between them, though this usually happens via ACH and might have limits.
- To Other Bank of America Customers: You can often transfer money to another Bank of America customer using their account number, often without a fee.
Sub-heading: Third-Party Money Transfer Services (for International)
For international transfers, dedicated money transfer services often offer significantly lower fees and better exchange rates than traditional banks.
- Examples: Wise (formerly TransferWise), Remitly, Xoom, etc.
- Why they're better: These services specialize in international transfers, operating with lower overheads and often using the mid-market exchange rate, charging a small, transparent fee.
- Downside: The recipient might need to have an account with the specific service or a local bank account that can receive transfers from them.
Consider this: Before initiating any transfer, especially international ones, compare the total cost (fees + exchange rate markup) across different platforms. You'll often find that a dedicated money transfer service is the most economical choice.
Step 4: Be Strategic with International Currency Selection
If you absolutely must send an international wire transfer through Bank of America, how you handle the currency can make a big difference in the fees you incur.
Sub-heading: Sending in Foreign Currency vs. USD
- Sending in Recipient's Local Currency: As mentioned, Bank of America often charges $0 for outgoing international wires when you send them in the recipient's local currency. While there's no direct wire fee, Bank of America will apply an exchange rate markup, which is how they generate revenue on the transfer. This is usually still a more cost-effective option than sending in USD.
- Sending in U.S. Dollars (USD) Internationally: This is generally the most expensive way to send an international wire through Bank of America, incurring a flat fee of $45. Additionally, the recipient's bank will then convert the USD to their local currency, and they might charge their own fees and apply their own exchange rate markup. This can lead to double conversion costs.
Key takeaway: Always aim to send international wires in the recipient's local currency if Bank of America offers that option for your destination country.
Step 5: Initiate Transfers Online When Possible
For services that do incur fees, like wire transfers, using Bank of America's online banking platform or mobile app can sometimes result in a slightly lower fee compared to going into a branch and having a teller assist you.
Sub-heading: Online Convenience
- Self-Service Savings: Banks often encourage self-service through their digital platforms, and sometimes this translates to a small discount on transaction fees.
- Faster Processing: Online wire transfers can often be initiated more quickly and at your convenience, without waiting in line at a branch.
Always double-check the fee schedule when initiating a wire, as the exact fee might vary depending on whether it's done online or in-person.
Step 6: Review Your Account Type
Sometimes, the type of checking or savings account you have with Bank of America can impact the fees you pay for various services, including wire transfers.
Sub-heading: Premium Accounts
- Higher-Tier Accounts: Certain premium or "relationship" checking accounts might include benefits like waived wire transfer fees as part of their package. These accounts typically have higher minimum balance requirements or other criteria to avoid monthly maintenance fees themselves.
- Business Accounts: If you have a business account, the fee structure for wire transfers might differ from personal accounts.
It's worth reviewing your current account benefits and considering if upgrading to a different account type could save you money in the long run, especially if you frequently send wires and meet the eligibility requirements for premium accounts.
10 Related FAQ Questions
How to check my Bank of America wire transfer fees?
You can typically check your Bank of America wire transfer fees by looking at their "Personal Schedule of Fees" or "Business Schedule of Fees" document, usually available on their website or by asking a representative at a branch.
How to send an international wire transfer in foreign currency with Bank of America?
To send an international wire transfer in foreign currency with Bank of America, log into your online banking or mobile app, navigate to the wire transfer section, select "International," and choose the recipient's country and the desired foreign currency during the setup process.
How to use Zelle with Bank of America to avoid wire transfer fees?
To use Zelle with Bank of America, enroll in Zelle through your Bank of America online banking or mobile app, then you can send money using the recipient's email address or U.S. mobile number directly from your checking or savings account for free.
How to find my Bank of America routing number for incoming wires?
For domestic incoming wires, your Bank of America wire routing number is typically 026009593. For international wires, the SWIFT code for USD is BOFAUS3N and for foreign currency it's BOFAUS6S. You can also find it in your online banking under account details.
How to become a Bank of America Preferred Rewards member?
You become a Bank of America Preferred Rewards member by maintaining a qualifying balance across your eligible Bank of America deposit accounts and Merrill investment accounts. The minimum combined balance for the Gold tier is typically $20,000.
How to make an ACH transfer with Bank of America?
You can make an ACH transfer with Bank of America through online banking or the mobile app by initiating a transfer to an external account. You will need the recipient's bank name, routing number, and account number.
How to know if an international wire transfer will incur intermediary bank fees?
It's difficult to know definitively beforehand, as intermediary banks are often involved in international transfers, especially if the sending and receiving banks don't have a direct relationship. Sending in the recipient's local currency can sometimes reduce the chances of additional fees, but it's not guaranteed.
How to compare Bank of America's exchange rates for international wires?
You can compare Bank of America's exchange rates by initiating an international wire transfer online and reviewing the exchange rate offered before confirming the transfer. Then, compare that rate to the mid-market rate (easily found on currency conversion websites) and the rates offered by dedicated money transfer services.
How to receive a wire transfer to my Bank of America account without fees?
To receive a wire transfer to your Bank of America account without fees, you would typically need to be a member of the Bank of America Preferred Rewards program at a tier that waives incoming wire transfer fees. Otherwise, a standard incoming wire fee will apply.
How to use alternative services like Wise instead of Bank of America for international transfers?
To use alternative services like Wise, you would sign up for an account with them, initiate a transfer by providing the recipient's bank details, and then fund the transfer from your Bank of America account (often via a local bank transfer or ACH to Wise), allowing Wise to handle the international leg with their generally lower fees and better exchange rates.