- Offers competitive mortgage rates.
- Checking accounts offer a variety of options for students or those who have additional checking and savings accounts.
- Offers a variety of small business products, including auto loans.
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Updated March 7, 2024
In a nutshell
Headquartered in Charlotte, North Carolina, Bank of America has approximately 3,900 retail financial centers and 15,000 ATMs across the country.
- Bank of America has a variety of product offerings, including savings, checking, and CD accounts, along with home and auto loans.
- It is the second-largest bank in the country with domestic assets of over $2.4 trillion.
- Bank of America also offers business banking solutions and commercial banking.
Pros:
Cons:
- Does not offer personal loans.
- Does not offer the highest CD rates.
- Does not offer MMAs.
Bank of America checking
Bank of America has three distinct checking accounts: Safe Balance, Advantage Plus Banking, and Advantage Relationship Banking.
Safe Balance is a checking account specifically for beginners, students, and young adults. The account has no overdraft fees, though there is a $4.95 monthly fee. The fee can be waived, however, if the owner of the account is under 25 years old, maintains a minimum daily balance of $500 in the account, or is a member of the Bank of America Preferred Rewards program.
Bank of America Advantage SafeBalance Banking
Bank of America Advantage SafeBalance Banking
APY*
N/A
Min. deposit
$25
Monthly fee
$4.95
The Advantage Plus Banking account has an option to enroll in overdraft balance protection, and has a $12 monthly fee. The fee can be waived if there is one direct deposit of $250 or more made to the account a month, the customer keeps a minimum daily balance of $1,500, or is a member of the Preferred Rewards program offered by the bank.
Bank of America Advantage Plus Banking
Bank of America Advantage Plus Banking
APY*
N/A
Min. deposit
$100
Monthly fee
$12
Advantage Relationship Banking is an account that offers interest on your balance, has no fees on selected banking services, no monthly maintenance fees on up to seven eligible accounts when you ask to link them to your primary account, and has an option to enroll in overdraft connection.
The Advantage Relationship Banking account has a monthly fee of $25, which can be waived if there’s a minimum daily balance of $20,000 in the account or if the customer is a member of Bank of America’s Preferred Rewards program.
Bank of America Advantage Relationship Banking
Bank of America Advantage Relationship Banking
APY*
0.01-0.02%
Min. deposit
$100
Monthly fee
$25
Bank of America savings
Bank of America Advantage Savings
Bank of America Advantage Savings
APY*
0.01% to 0.04% on all balances
Min. deposit
$100
Monthly fee
$8
Bank of America’s savings account is called Bank of America Advantage and it has a 0.01% interest rate. Note, however, that interest rates are variable and can change without notice.
Preferred Rewards members can earn 0.03% and 0.04% interest, depending on their account balance and the type of tier they have.
The monthly fee on this account is $8, which can be waived if the customer has a minimum daily balance of at least $500, is an account owner under the age of 18, or is a student under the age of 25. The minimum opening deposit is $100.
Bank of America certificates of deposit (CDs)
There are three types of CDs that Bank of America offers: Featured CDs, Fixed Term CDs, and Flexible Account CDs.
| Title | APY* | Min. deposit | Term |
|---|---|---|---|
Bank of America Featured CD account | 0.05–4.85% | $1,000 | 7 month to 37 month |
Bank of America Fixed Term CD account | 0.03% to 4.00% | $1,000 | 28 days to 10 years |
Bank of America Flexible CD account | 3.51–3.51% | $1,000 | 12 month term online, the product will auto-renew into a 9 month flexible CD. |
The Featured CD accounts are accounts that have a term of seven to 37 months. Depending on the balance and the term, your APY will range from 0.05% to 4.85%. These products earn the highest APY of the set, but they also are only available for longer terms.
Fixed Term CD accounts have terms of 28 days to 10 years. Depending on the balance and the term, your APY will range from 0.03% to 4.00%. The benefit of these CDs is that they allow for short terms, albeit with lower APYs.
Flexible Account CDs have a 12 month term and the product renews into a nine month term Flexible Account CD. This product is designed to allow you greater access to your funds than a traditional CD while still earning a respectable return.
Mortgages
For its mortgages, Bank of America has calculators that give you an idea for your mortgage, as well as the closing and affordability. Based on a $200,000 loan ($250,000 property with $50,000 downpayment) in ZIP code 95464, the annual percentage rate (APR) for a thirty year fixed mortgage is 7.16%. That calculation includes 0.886 points, which makes the monthly payment is $1,314. Your mortgage rate will vary based on other factors like your credit score, location and the amount of your down payment.
Bank of America customers who are in the Preferred Rewards program may qualify for a rate reduction based on the tier of their program tier.
Bank of America credit cards
Bank of America has a variety of credit cards for different goals and uses. These include cash back credit cards, travel and airline rewards cards, lower interest rate cards, points rewards cards, cards to build or rebuild credit, and cards for students.
For its cash back cards, for example, the bank offers its card_name with 3% cash back in the category of your choice and intro_apr_rate,intro_apr_duration, and anywhere between reg_apr,reg_apr_type thereafter.
Bank of America(R) Customized Cash Rewards credit card
Bank of America(R) Customized Cash Rewards credit card
Annual fees
annual_fees
Credit score needed
credit_score_needed
For new card_name holders, customers earn bonus_miles_full. This credit card has intro_apr_rate,intro_apr_duration and reg_apr,reg_apr_type thereafter.
Bank of America(R) Travel Rewards Visa(R) credit card
Bank of America(R) Travel Rewards Visa(R) credit card
Annual fees
annual_fees
Credit score needed
credit_score_needed
Bank of America business banking
For business banking, Bank of America has checking, savings, and CD accounts, as well as credit cards, payment services, and loan offerings.
There are two types of business checking accounts: Business Advantage Fundamentals Banking and Business Advantage Relationship Banking.
As for the first account mentioned, the Business Advantage Fundamentals Banking account has a $16 monthly fee that can be waived if the customer maintains a $5,000 combined average monthly balance, spends at least $250 in new net qualified debit card purchases, or becomes a Preferred Rewards for Business member.
Bank of America Business Advantage Fundamental Banking
Bank of America Business Advantage Fundamental Banking
APY*
N/A
Monthly fee
$16 or maintains a $5,000 average monthly balance to waive off.
The second account mentioned is the Business Advantage Relationship Banking account. It has a monthly fee of $29.95. The fee can be waived with a $15,000 combined average monthly balance or if the customer becomes a Preferred Rewards for Business member.
Bank of America Business Advantage Relationship Banking
Bank of America Business Advantage Relationship Banking
APY*
N/A
Monthly fee
$29.95 or maintains a $15,000 average monthly balance to waive off.
As for savings accounts, there is one offering. The APY for an account holder with less than $99,000 in the account is 0.01%. For those enrolled in the Preferred Rewards for Business program, the APY jumps to 0.02%, 0.03%, and 0.04%, depending on the tier.
Bank of America Business Advantage Savings Account
Bank of America Business Advantage Savings Account
APY*
0.01% to 0.04%
Monthly fee
$10 or maintain a $2,500 minimum daily balance to waive monthly fee.
Min. deposit
$100
Bank of America offers credit cards for small businesses with rewards, such as travel, cash back, and lower interest rate.
For lending, the bank offers an unsecured line of credit, a cash secured line of credit, and an unsecured loan, as well as auto loans, among others.
Bank of America auto loans
If you’re on the hunt for loans to purchase a car, the auto loans with Bank of America have fixed rates starting at 6.33% for a new car and 6.79% for a used car bought through a dealership, as of February, 2024. Once you get your rate, you have 30 days to shop for your car and keep that same rate.
Bank of America Auto Loans
Bank of America Auto Loans
APR
6.33% for a new car and 6.79% for a used car
Term
60 month
Bank of America’s customer experience
The Better Business Bureau gives Bank of America an A- because of the government’s actions against Bank of America. In July 2023, the Consumer Financial Protection Bureau sued Bank of America for illegally charging junk fees, withholding credit card rewards, and opening fake accounts. However, in the J.D. Power 2023 U.S Retail Banking Advice Satisfaction Study, J.D. Power ranked Bank of America number one in the U.S. for its retail banking advice.
How does Bank of America compare?
Bank of America vs. Chase
Both banks have a national footprint, so if you prefer to go into a physical location, both of these banks will be a good fit.
Chase has a wide variety of checking accounts for different stages in life (for instance, there are cards just for kids and students and others that are premium for advanced bankers with a higher balance). Chase has six checking account offerings and Bank of America has only three accounts. Overdraft fees with Chase, however, are higher ($34 with a maximum of three per day) compared to Bank of America’s fees ($10 with a maximum of two per day).
Bank of America vs. Citi
For its checking accounts, Bank of America has higher fees for its simple checking account and a minimum opening deposit requirement of $100, whereas Citi does not have monthly fees if you meet certain criteria or a minimum deposit requirement. If you’re looking for a bank with these benefits, then Bank of America could be a better choice.
When it comes to its savings accounts, however, Citi has higher APYs and lower monthly fees than Bank of America. Citi’s APY is 0.03% and its monthly fee is $4.50, with options to waive this fee, as of February, 2024. Bank of America has an APY of 0.01% and a monthly fee of $8, as of February, 2024.
Overall, Bank of America has more branches and Citibank has a larger ATM network. Citi’s strength is that it offers no overdraft fees and offers higher CD rates than Bank of America.
Bank of America vs. U.S. Bank
For their savings accounts, both banks offer a 0.01% APY, however Bank of America has higher monthly maintenance fees than U.S. Bank. Bank of America’s fee is $8 and U.S. Bank’s fee is $4. Both banks offer ways to waive these fees. The minimum opening deposit is also higher at Bank of America ($100) than at U.S. Bank ($25).
U.S. Bank has many options for beginners and those who are new to banking. Bank of America offers checking accounts that offer a variety of options for students or those who have additional checking and savings accounts with the bank.
As for other services, Bank of America does not offer MMAs and U.S. Bank does. However, Bank of America has more small business offerings.
Methodology
By employing this comprehensive review methodology, we aim to empower consumers like you to make informed decisions when choosing a consumer bank that aligns with your financial goals and preferences. We evaluate key factors such as interest rates, fees, minimum balance requirements, access to funds, and more to help you make informed decisions. Please note that our reviews are based on publicly available information, and we recommend verifying the latest details directly from the respective financial institutions.
Frequently asked questions (FAQs)
Is Bank of America FDIC insured?
Yes, it is. As the bank states in its website, “the FDIC insurance covers all types of deposit accounts (checking, savings, money market savings and CDs), as well as bank individual retirement accounts (IRAs).”
Is Bank of America a good or bad bank?
Bank of America is a good bank, based on its Fitch ratings of AA-.
Is Bank of America a good bank for beginners?
Bank of America has a variety of offerings for beginners in most of their product offerings, including checking, savings, and CD accounts.
Who owns Bank of America?
Bank of America is owned by Bank of America Corporation. Its common shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol "BAC".
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.