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Bank of America Savings Account Review
Bank of America at a glance
|Bank||Min. Deposit||APY||Fees||Key Benefit|
|Bank of America||$100||0.01%||$8 monthly maintenance, but waivable||Fee-free account for minors|
What we like about it
The Bank of America savings account has one of the lowest monthly fees at only $8. Additionally, the requirements to get that fee waived are easily attainable. Bank of America also offers fee-free savings accounts for minors under the age of 18, which may be great for parents looking to teach their children about money and savings. For parents looking to set their children up for success in life, the bank also offers custodial savings accounts for the same low, easily-avoidable monthly fee.
On top of this, Bank of America has one of the highest-rated apps for iOS and Android that delivers easy account management tools and virtual assistance.
Things to consider
While the minimum deposit to open a Bank of America savings account is low at $100, there are comparable banks with savings account options that offer a $0 minimum. This won’t be a major deterrent for many, but it could be for some. Additionally, the APY rate is on par with other traditional brick-and-mortar banks, but it does fall short when compared to other high-yield savings accounts available at online banks.
What you need to know
The Bank of America interest rate on a savings account carries a 0.01% APY. Gaining tier status requires an active checking account with Bank of America and certain minimum total asset levels for each tier. The standard savings account can be opened with a $100 minimum deposit. If you’re an existing Bank of America customer, you can easily link your rewards savings account to your other Bank of America accounts.
If you’re looking to get started and open an account now, here are the steps.
- Decide if you want to apply online or at a branch location. Bank of America allows prospective customers to open a savings account online or at one of the many branch locations located throughout the country. If you need to fund your account in cash, have had issues with ID verification in the past, or are depositing over $100,000 you will need to apply at a branch location.
- Collect the necessary documents. You will need your Social Security number, date of birth, phone number, email address, physical U.S. address, and a debit card or other method to fund your account.
- Complete the application and fund your account. The last step is to complete your application and wait for approval. It may take a few days for your initial deposit to post into your savings account, but the account should be active the same day for most people.
Fees and charges
Bank of America has an $8 monthly maintenance fee on all checking accounts. The good news is that this fee is waivable if you maintain a minimum daily balance of $500, link your account to a Relationship Banking account or if you’re a preferred rewards client.
The fee for any transaction over the federally mandated limit of six per month is $10, which is fairly standard among most banks. Bank of America’s overdraft fee is $35, but you can link another account to your Bank of America savings account to protect against overdraft. but this feature comes with a $12 fee for each time it’s used.
Mobile app platform
The Bank of America app scored a 4.8/5.0 in the App Store with over 2.1 million ratings and a 4.7/5.0 in the Google Play store with over 680,000+ ratings. Features of the app include the ability to review all accounts in real-time, make changes and transactions, and send or request money through Zelle. Additionally, the app has a virtual assistant named Erica that can help answer questions and find information.
Other products and tools
Bank of America offers a full array of banking products for individuals, small businesses and major corporations. These products include mortgages, investment assistance, checking accounts, credit cards, small business loans and auto loans. Bank of America does not offer any forms of credit monitoring but does offer credit counseling services.
For additional savings options, the bank also offers minor savings accounts for kids under the age of 18 and custodial savings accounts (UTMAs). The custodial savings accounts carry the same monthly fee structure as the traditional savings account, but the minor savings account is available fee-free.
How do I pick the best savings account?
Finding the right savings account is an essential step in your financial journey, as you will most likely keep the account for years. When selecting a checking account, you’ll want to consider more than just the interest rate return.
Some of these other factors to look at include associated fees, how fees are avoided, available overdraft protections, customer service options and the account minimums needed to open an account. While you might not be able to find an account that checks all of the boxes, determine which factors are the most important and which are deal-breakers, then prioritize them.