Your Ultimate Guide: How to Keep Your Bank of America Account Free!
Are you tired of seeing those pesky monthly maintenance fees chip away at your hard-earned money? Do you wish you could enjoy the convenience of Bank of America without the added cost? You're not alone! Many account holders are looking for ways to keep their banking free, and the good news is, it's entirely possible. This comprehensive guide will walk you through, step-by-step, how to navigate Bank of America's fee structure and ensure your account stays free. Let's dive in!
Step 1: Discover Your Account Type – The First Key to Freedom!
Before you can effectively strategize, you need to understand which Bank of America checking account you currently have. Different accounts have different fee structures and waiver requirements.
Understanding the Advantage Banking Lineup:
Bank of America primarily offers three Advantage Banking checking accounts, each with its own monthly maintenance fee and ways to waive it:
- Advantage SafeBalance Banking®: Designed for straightforward banking with no overdraft fees. This account is great for those who prefer digital transactions and manage their spending carefully.
- Monthly Fee: $4.95
- Advantage Plus Banking®: A more traditional checking account with standard features.
- Monthly Fee: $12
- Advantage Relationship Banking®: An interest-bearing account offering more perks, often suited for those with higher balances.
- Monthly Fee: $25
Action: Take a moment to check your account statement or log into your Bank of America online banking. Identify your specific account type. This is crucial for determining the right fee-avoidance strategy for you!
Step 2: Master the Art of Fee Waivers – Your Path to $0 Monthly Fees
Now that you know your account type, let's explore the various ways to waive those monthly maintenance fees. Bank of America provides several options, catering to different financial habits.
Sub-heading 2.1: Maintain Minimum Balances
This is one of the most common ways to avoid fees. Each account type has a specific minimum balance requirement you need to maintain throughout your statement cycle.
- For Advantage SafeBalance Banking®: Maintain a minimum daily balance of $500 or more.
- For Advantage Plus Banking®: Maintain a minimum daily balance of $1,500 or more.
- For Advantage Relationship Banking®: Maintain a minimum daily balance of $20,000 or more in your account, OR a combined average daily balance of $20,000 or more across eligible linked Bank of America deposit accounts and Merrill investment accounts.
Pro Tip: If you struggle to consistently maintain the minimum daily balance, consider setting up an automated transfer from a savings account to your checking account before your statement cycle ends. Just remember to move it back if needed!
Sub-heading 2.2: Set Up Qualifying Direct Deposits
For some accounts, a regular direct deposit can be your ticket to fee-free banking.
- For Advantage Plus Banking®: Have at least one qualifying direct deposit of $250 or more made to your account each statement cycle.
What counts as a "qualifying direct deposit"? This typically refers to regular income like your salary, pension, or government benefits (e.g., Social Security) deposited by your employer or other payer using your account and routing numbers. Transfers from other bank accounts, ATM deposits, or mobile check deposits generally do not qualify.
Sub-heading 2.3: Leverage Your Age – The Under 25 Advantage!
Bank of America offers a fantastic waiver for younger customers.
- For Advantage SafeBalance Banking® and Advantage Savings accounts: The monthly maintenance fee is waived if an account owner is under the age of 25. This is particularly beneficial for students or young adults just starting their financial journey.
Sub-heading 2.4: Become a Preferred Rewards Member
If you have a significant banking and/or investing relationship with Bank of America and Merrill, the Preferred Rewards program can unlock a host of benefits, including waived monthly maintenance fees on eligible checking and savings accounts.
- How it works: Your tier (Gold, Platinum, Platinum Honors, Diamond, Diamond Honors) is determined by your combined eligible balances across Bank of America deposit accounts and Merrill investment accounts. As you move up in tiers, the benefits increase. All tiers offer monthly maintenance fee waivers on eligible accounts.
Consider This: If you have investments with Merrill, or substantial savings/checking balances, exploring the Preferred Rewards program could be a highly advantageous way to eliminate fees across multiple accounts.
Step 3: Optimize Your Account Usage – Beyond the Monthly Fee
While the monthly maintenance fee is often the biggest concern, other fees can sneak up on you. Being mindful of your banking habits can save you even more money.
Sub-heading 3.1: Utilize Bank of America ATMs
Out-of-network ATM fees can add up quickly. Bank of America has a vast network of ATMs.
- Strategy: Always use a Bank of America ATM for withdrawals and balance inquiries. If you absolutely must use an out-of-network ATM, be aware of the fees from both Bank of America and the ATM operator. Preferred Rewards members in higher tiers may receive waivers for out-of-network ATM fees.
Sub-heading 3.2: Avoid Overdrafts
Overdraft fees can be costly. Bank of America charges a fee (typically $10) for each overdraft item on Advantage Plus and Advantage Relationship Banking accounts (with a maximum of two per day). Advantage SafeBalance Banking has no overdraft fees as transactions will be declined if you don't have enough funds.
- Solutions:
- Monitor your balance regularly: Use online banking or the mobile app to keep a close eye on your account.
- Set up alerts: Bank of America allows you to set up alerts for low balances, large transactions, and more.
- Link a backup account (Balance Connect®): Consider linking a Bank of America savings account or another eligible account to automatically transfer funds to cover potential overdrafts. This can prevent overdraft fees from individual transactions, though a transfer fee might apply (often lower than multiple overdraft fees).
Sub-heading 3.3: Go Digital with Statements and Services
Many banks, including Bank of America, encourage customers to opt for digital statements to reduce paper and processing costs.
- Action: Enroll in eStatements through your online banking. This simple step can sometimes contribute to meeting certain fee waiver requirements or simply reduces paper clutter.
Sub-heading 3.4: Be Mindful of International Transactions
If you travel frequently or make purchases in foreign currencies, be aware of international transaction fees (often a percentage of the transaction).
- Consider: Using a credit card with no foreign transaction fees or exchanging currency beforehand.
Step 4: Review and Adjust – Stay Proactive!
Your financial situation can change, and so can Bank of America's fee policies. It's essential to regularly review your accounts.
Sub-heading 4.1: Periodically Check Your Account Statements
Don't just glance at your balance! Carefully review your statements for any unexpected fees. If you see a fee you believe you should have avoided, contact Bank of America customer service.
Sub-heading 4.2: Stay Informed on Bank of America Policies
Banks occasionally update their fee schedules. Keep an eye on any communications from Bank of America regarding changes to their account terms and conditions.
Remember: Keeping your Bank of America account free is an ongoing effort. By understanding your account, diligently meeting waiver requirements, and being mindful of other fees, you can enjoy the convenience of banking without the extra cost!
10 Related FAQ Questions:
How to check my Bank of America account type?
You can easily check your Bank of America account type by logging into your online banking or mobile app, or by reviewing your monthly bank statement.
How to set up a qualifying direct deposit with Bank of America?
To set up a qualifying direct deposit, provide your employer's payroll department with your Bank of America account number and routing number. You can often download a pre-filled direct deposit form from your Bank of America online banking.
How to link accounts for balance requirements at Bank of America?
For Advantage Relationship Banking, accounts are typically linked automatically if they fall under the same customer profile. For other accounts, you may need to speak with a Bank of America representative or check your online banking options for linking eligible accounts.
How to qualify for Bank of America Preferred Rewards?
You qualify for Bank of America Preferred Rewards based on your combined eligible balances in your Bank of America deposit accounts and/or Merrill investment accounts, with different tiers having different balance requirements.
How to avoid ATM fees at Bank of America?
To avoid ATM fees, always use a Bank of America ATM for withdrawals and balance inquiries. Using out-of-network ATMs will typically incur a fee from both Bank of America and the ATM operator.
How to prevent overdraft fees on my Bank of America account?
To prevent overdraft fees, regularly monitor your balance, set up low-balance alerts, and consider linking a Bank of America savings or other eligible account for Balance Connect® transfers to cover potential overdrafts.
How to enroll in eStatements for my Bank of America account?
You can enroll in eStatements by logging into your Bank of America online banking, navigating to your account settings or statement preferences, and selecting the option for electronic statements.
How to contact Bank of America customer service about fees?
You can contact Bank of America customer service by calling the number on the back of your debit card, through the "Contact Us" section on their website, or by visiting a local financial center.
How to close a Bank of America account if I can't avoid fees?
If you decide to close your account, ensure your balance is zero, withdraw all funds, and then contact Bank of America customer service or visit a branch to formally close the account. Confirm in writing that the account has been closed and there are no outstanding fees.
How to find out if I am eligible for the "under 25" fee waiver at Bank of America?
If you are an owner on an Advantage SafeBalance Banking or Advantage Savings account, and you are under 25 years old, the monthly maintenance fee should automatically be waived. You can verify this by checking your account statement for fee charges.
