At A Glance
Bank of America is a multinational banking and financial service corporation headquartered in Charlotte, North Carolina. It is one of America’s ‘Big Four’ banks. Bank of America also has major hubs in the following cities across the globe: New York City, Minneapolis, London, Hong Kong, and Toronto (Canada). It is known to be a digital leader with a global presence and roughly 67 million customers. On that note, it is the second largest bank holding company in the United States by assets after Chase Bank.
As a leader in the industry they have a full lineup of products and services to offer individuals, businesses, families and even students which include – but is not limited to checking, savings, credit cards, loans.
Mission Statement: “Life’s Better when we’re Connected”
Bank of America is helping to make financial lives better through the power of every connection.
Types of Accounts
Bank of America offers an extensive line-up of personal and business financial products. With so many to choose from there are options for just about everyone’s needs:
Bank of America offers one checking account the Bank of America Advantage Banking, that can be customized one of three ways to fit your day-to-day banking needs:
Advantage Banking Account Options
|Type of Accounts||Monthly Fee||Mo. Waiver Requirement||Min. Deposit||APY %|
|Advantage SafeBalance||$4.95||· Student under 24|
· Preferred Rewards members
|Advantage Plus||$12||· Student under 24|
· a minimum daily
· balance of $1,500 one
· qualifying direct deposit of $250
· Preferred Rewards members
|· a minimum combined balance of $10,000 in eligible linked accounts|
· Preferred Rewards members
|$100||0.03% – 0.06%|
Unfortunately, the savings account options are limited at Bank of America. You only have one choice for a standard savings account, while the bank offers two options for child accounts:
Advantage Savings: this savings account keeps things simple but also offers the possibility of accumulating rewards while you save. To open the account a $100 deposit is required but the $8 monthly maintenance fee can be waived following the below conditions:
- Maintain a minimum daily balance of at least $500
- Link your Bank of America Advantage Savings account to your Bank of America Advantage Relationship checking account
- When you are a Bank of America Preferred Rewards client
- For new Bank of America Advantage Savings accounts, the fee is waived for the first 6 months
- Students under 24 also are entitled to no monthly fees
This particular savings account is subject to only 6 withdrawals per month. A 1$ fee is charged on excess withdrawals, but this fee is waived with a minimum account balance of $300.
Standard savings APY%:
|Account balance||Standard APY|
|Less than $2,500||0.03%|
|$2,500 – $500,000||0.03%|
|$500,000 and over||0.03%|
If you’re enrolled in Preferred Rewards, you become eligible for an increased APY:
|Account balance||Gold Tier APY||Platinum Tier APY||Platinum Honors Tier APY|
|Less than $2,500||0.04%||0.05%||0.06%|
|$2,500 – $500,000||0.04%||0.05%||0.06%|
|$500,000 and over||0.04%||0.05%||0.06%|
Minor Savings Account: this savings account allows the parent or guardian open an account and begin to save and teach a minor on banking. The minor can have access to this account before they turn 18, with the ability to make transfers. Bank of America requires a minimum deposit of $25 to open the account, but there are no fees for this account until the minor comes of age (18years old).
- Limited to 6 withdrawals per month
- This Savings Account earns interest, based on the same rates above
Custodial (UTMA) Savings Account: This account offers parents or legal guardians the opportunity to deposit funds as a gift for when the child comes of age. The account offers the standard savings APY of 0.03%. You must also make an initial $100 deposit to open the account and the monthly maintenance fee for this account is a small $8 but can be waived:
- Minimum daily balance of $500
- For any new accounts, the fee is waived for the first 6 months
Certificates of Deposits
Bank of America offers two types of term CDs, their Standard CD and Featured CD.
- The Standard Term CD account offers terms ranging from 28 days to 10years, and APR’s ranging from 0.03% to 0.75%, with a minimum investment of $1,000.
This account bares no annual fees or transfer fees. This account if fully flexible and allows you to choose the term that Is best suited for your needs.
- The Featured CD account is a fixed CD rate., that come in terms of 12 months, 13 months, 25 months, and 37 months, with a minimum investment of $10,000.
APY % range from 0.07% to 1.40%. Like the standard term CD, this account has no annual fees or transfer fees.
Early withdrawal penalties on CDs at Bank of America are as follows:
- Terms of less than 90 days, the greater of all interest earned on the amount withdrawn or an amount equal to seven days interest on the amount withdrawn
- Terms of 90 days up to 12 months, the penalty is an amount equal to 90 days interest on the amount withdrawn
- Terms of 12 months up to 60 months, the penalty is an amount equal to 180 days interest on the amount withdrawn
- Terms of 60 months or longer, the penalty is an amount equal to 365 days interest on the amount withdrawn
Bank of America offers the 2 most common types of IRAs: Traditional and Roth. These accounts mimic the CDs available however with an IRA framework. A Standard IRA requires only a minimum deposit of $1,000 whereas the featured IRA will cost you $2,000. IRA rates are the same as the CD rates.
Bank of America offer savings IRAs under many umbrellas allowing you to find the perfect fit. You can choose a Traditional or Roth IRA as a Money Market IRA, a Featured CD IRA, or a Standard Term CD IRA. If you are looking to invest your IRA to boost your bankroll for your retirement, they offer Investments IRA via Merrill Edge, Bank of America’s online, discount brokerage service.
At Bank of America credit card various credit card options are available to you. They have a full line-up of cards under different categories including student cards, cash rewards cards, travel and airlines rewards cards, lower interest rate cards, points rewards cards, cards to build or rebuild credit and small business cards. Here’s a look at their featured cards:
Bank of America Cash Rewards:
- $200 cash rewards bonus
- 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale stores and unlimited 1% cash back on all other purchases
- No annual fee
- Low Introductory APR Offer
- Save on interest
- No fee balance transfer fee for the first 60 days
- No Annual Fee
- No penalty APR
Bank of America Travel Rewards:
- 25,000 bonus points offer, a value of $250
- Earn unlimited 1.5 points for every $1 you spend on all purchases
- Redeem points for travel whenever; no blackout dates
- Points do not expire
- No foreign transaction fees
- No annual fee
Bank of America Premium Rewards:
- 50,000 bonus points offer, a $500 value
- Earn 2 points for every $1 spent on travel and dining purchases and 1.5 points per $1 on all other purchases
- Get up to $200 in combined Airline Incidental and TSA Pre✓
- Access to world class travel perks: luxury hotels, travel protection, and more
- Redeem cash back into your Bank of America checking or savings account
- No foreign transaction fees
- Low $95 annual fee
Bank of America also offers other financial products and loans, including mortgages, refinancing options for your home, home equity loans and auto loans. They also offer financing tools on their website like calculators that help you plan ahead and budget.
If you have a Preferred Rewards card, you can get additional discounts on auto loan rates, ranging from 0.25% to 0.50% APY. Bank of America also offers competitively priced home loans for purchases and refinances, with loan types that include fixed rates and adjustable-rate mortgages.
As a full-service bank, Bank of America also offers business banking for small business owners. Business services provided include checking and savings accounts, as well as credit card payment processing, cash management tools, payroll services, remote deposits, invoicing and payments, tax services and more.
Another perk offered by the Bank of America under its investment umbrella is the 529 College Savings Plan and the NextGen Direct Plan. The 529 fund offers a tax-free growth on money deposited by a parent or guardian into this account. While the NextGen plan has no annual account fee, no closeout fee and requires only a $25 deposit.
- Cashback Rewards can be earned on regular purchases and deposited automatically into your checking account. With BankAmeriDeals you can opt in to receive rewards with certain purchases.
- Keep the change is a program designed to help boost your bankroll. When you make purchases with your Bank of America debit card, Bank of America will be rounded up to the nearest dollar your purchases, and the difference will be transferred from your checking account to your Savings account.
- Security on your Bank of America debit card is made convenient and easy. If you think you have misplaced your card or lost it, you simply need to login through the mobile app and lock your card. If found, it can also be unlocked. You are also able to add your picture on the front of your debit card to avoid any further fraudulent activity.
- Financial tools are made available for all customers to use. There are multiple budgeting articles, calculators and money management tools spread across Bank of America’s website and mobile app. Under the Family matters page, there is also tips and tools for parents to instill good money habits for their kids.
- Virtual Assistant named Erica works with the Bank of America banking app and helps you set alerts and reminders. She also can give you insight on your spending habits and tools to manage your money. She’s BofA’s very own Alexa
- FDIC Insurance covers your deposits at Bank of America up to $250,000 per account. This feature however, is not applicable to any investments made with Merrill Edge or Merril Lynch – investments partners of BofA.
About Bank of America
Bank of America’s roots go back to 1904, when it was started by Amadeo Pietro Giannini as the Bank of Italy in San Francisco. After multiple acquisitions and mergers Bank of America was born in 1998, it’s said to have $2.34 trillion in assets, making it the second largest bank in the United States. It operates globally in over 35 countries around the world. Providing more than half of American households with various banking products and services including credit cards and checking accounts, more than 5,000 branches nationwide, a whopping 16,300 ATMs, and more than 150,000 employees.
This bank carries a wide range of financial products, such as credit cards, auto loans, home loans, investment accounts and checking, savings, CD and IRA accounts as well. It is known to be a global leader in online banking with a stellar mobile banking app experience.
The Bottom Line
Bank of America is a great option for those who like the security and multiple options a bigger bank has to offer. If you’re looking to consolidate all of your banking under one roof, Bank of America makes it easy to do.
If, however, you want to earn the best rates and pay minimal fees we recommend another bank.