Bank of America is one of the largest U.S. banks, with branches nationwide and a range of account types for different savings and spending needs

Bank of America (BofA) operates over 4,600 branches and 16,000 ATMs across the country, making it one of the easiest banks to access in person. The bank offers checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). Each account type comes with different features, fees, and minimum balance requirements — so what works for one person may not work for another.

The bank also provides investment services, credit cards, and loans, but this guide focuses on deposit accounts where you store and save money. BofA's deposit accounts are FDIC-insured up to $250,000 per account type per depositor, which means your money is protected if the bank fails.

Key Takeaways

  • Bank of America offers checking, savings, money market, and CD accounts, each with different fee structures and minimum balance requirements that vary by account tier.
  • Most BofA checking accounts waive monthly fees if you maintain a minimum balance or set up direct deposit, but fees range from $12 to $25 if you don't meet these conditions.
  • Savings account interest rates at BofA are typically lower than rates at online-only banks, so comparing rates before opening an account matters if earning interest is a priority.
  • Bank of America's Preferred Rewards program offers higher interest rates and fee waivers if you maintain a relationship with the bank (checking account, credit card, or investments).

Checking accounts: fees and how to avoid them

BofA's main checking account is the Advantage Banking account. It charges a $12 monthly fee, but you can waive it by meeting one of these conditions: maintaining a $1,500 minimum daily balance, setting up direct deposit of at least $250 per month, or keeping $20,000 or more in linked savings or money market accounts.

The Preferred Rewards Checking account carries a $25 monthly fee and is designed for customers who also hold investments or credit products with BofA. It waives the fee if you maintain a $2,500 minimum balance or set up direct deposit. This account includes higher ATM reimbursement limits and other perks tied to your Preferred Rewards tier.

Both accounts come with a debit card, online banking, and access to BofA's branch and ATM network. If you rarely visit branches and want to avoid fees entirely, online banks typically offer checking accounts with no monthly fee and no minimum balance requirement — a trade-off worth considering if you don't need in-person service.

Savings accounts and interest rates

BofA offers a Regular Savings Account and a Money Market Savings Account. The regular savings account has no monthly fee and no minimum balance requirement, but the interest rate is very low — often well below 0.01% annually. The money market account requires a higher opening balance (typically $2,500) and offers a slightly higher rate, but still lags behind online banks.

Interest rates at BofA change based on Federal Reserve decisions and market conditions, so the rate you see today may not be the rate you earn next month. If you're saving for a specific goal and want to maximize interest, comparing BofA's current rates against online savings accounts and high-yield savings accounts is worth the time. Online banks often pay 4% to 5% annually on savings accounts, while BofA typically pays less than 0.5%.

If you're a Preferred Rewards member, BofA offers a tiered bonus on savings account interest — meaning your rate goes up slightly if you maintain higher balances or have other accounts with the bank. The boost is modest but real if you're already banking there.

Certificates of Deposit (CDs) and fixed-rate savings

BofA CDs let you lock in a fixed interest rate for a set period — typically 3 months, 6 months, 1 year, 2 years, 3 years, or 5 years. The longer the term, the higher the rate. If you withdraw money before the term ends, you pay an early withdrawal penalty, which varies by CD length.

BofA's CD rates are competitive with other large banks but typically lower than rates offered by online banks and credit unions. Before opening a CD at BofA, check what online banks are offering for the same term. A 1-year CD at an online bank might pay 4.5% to 5%, while BofA might pay 4% or less — a difference that adds up if you're saving a larger amount.

One advantage of BofA CDs is that you can open one in a branch if you prefer to do business in person, and you have access to customer service by phone or in-branch if questions come up during the CD term.

Preferred Rewards and how it affects your rates

Bank of America's Preferred Rewards program is a tiered membership based on how much money you have with the bank across all accounts and investments. The three tiers are Silver (at least $20,000), Gold (at least $50,000), and Platinum ($100,000 or more). Each tier unlocks higher interest rates on savings and money market accounts, fee waivers, and other perks.

For example, a Silver member might earn 0.02% on a savings account, while a Platinum member earns 0.05% — a small difference on small balances, but meaningful if you're saving $50,000 or more. Preferred Rewards also waives certain fees and offers higher ATM reimbursement limits if you use ATMs outside the BofA network.

If you're considering BofA partly for the higher rates through Preferred Rewards, calculate whether the extra interest you'd earn actually justifies keeping a large balance there instead of moving it to a higher-yielding account elsewhere. Sometimes it does; often it doesn't.

When BofA makes sense versus other banks

Bank of America is a good fit if you value in-person banking, live or work near a branch, and don't mind paying monthly fees in exchange for convenience and customer service. The branch network is extensive, and you can handle most banking tasks without leaving your neighborhood.

BofA is less ideal if your priority is earning the highest interest rate on savings or CDs, or if you want to avoid monthly fees without meeting balance requirements. Online banks and credit unions often beat BofA on both counts. If you're comparing BofA to another large bank like Wells Fargo or Chase, the differences in fees and rates are usually small — the choice often comes down to which branch locations are most convenient for you.

If you already have a BofA checking account and are considering where to save, you might keep checking there for convenience but open a high-yield savings account elsewhere for the interest rate difference. Many people maintain accounts at multiple banks for exactly this reason.

How to open an account at Bank of America

You can open a BofA checking or savings account online, by phone, or in a branch. Online applications typically take 10 to 15 minutes and require your Social Security number, date of birth, address, and initial deposit information. You'll need a valid government-issued ID to verify your identity.

If you open in a branch, bring your ID and the minimum opening deposit (usually $25 for checking or savings). The banker can answer questions about fees and features on the spot and help you set up online banking access right away.

Once your account is open, you can link it to other accounts you hold elsewhere, set up direct deposit, and customize your account settings through BofA's website or mobile app. The app lets you check balances, transfer money, deposit checks by photo, and pay bills.

Frequently Asked Questions

Does Bank of America charge a fee to open an account?

No, there is no fee to open a checking or savings account at BofA. You do need to make an initial deposit, which is typically $25 or more depending on the account type. Monthly maintenance fees apply only after the account is open, and you can waive them by meeting the conditions listed for each account.

Can I avoid the monthly fee on a BofA checking account?

Yes. The Advantage Banking account waives its $12 monthly fee if you maintain a $1,500 minimum daily balance, set up direct deposit of at least $250 per month, or keep $20,000 or more in linked savings or money market accounts. If none of these options work for you, an online bank checking account with no monthly fee might be a better fit.

How does BofA's interest rate compare to online banks?

BofA's savings and CD rates are typically lower than rates at online-only banks. As of now, online savings accounts often pay 4% to 5% annually, while BofA pays less than 0.5%. Rates change frequently, so check current rates at both BofA and an online bank before deciding where to save.

What happens if I withdraw money from a BofA CD early?

You pay an early withdrawal penalty, which is a fee that reduces the interest you've earned or comes out of your principal. The penalty amount depends on the CD's term length — longer-term CDs typically have larger penalties. BofA discloses the exact penalty when you open the CD, so you know the cost upfront.

Is my money safe at Bank of America?

Yes, BofA is FDIC-insured, which means deposits up to $250,000 per account type per depositor are protected if the bank fails. This protection covers checking accounts, savings accounts, money market accounts, and CDs separately, so you can hold up to $250,000 in each type and remain fully covered.