Bank of America is the second-largest US bank by assets with $3.3 trillion and 3,900+ branch locations. It offers solid day-to-day banking infrastructure, an excellent mobile app, and the most compelling loyalty program of any major US bank — Preferred Rewards. The main weakness: savings rates are among the lowest in the industry at 0.01% APY.
The short version: BofA for checking, credit cards, and the Preferred Rewards program. An online bank for savings.
Bank of America at a Glance
| Feature | Details |
|---|---|
| Branches | 3,900+ nationwide |
| ATMs | ~15,000 fee-free |
| Checking monthly fee | $12 (Advantage Plus, waivable) |
| Savings APY | 0.01% |
| Overdraft fee | $10 per item |
| Minimum to open | $25 (checking) |
| FDIC insured | Yes |
| Preferred Rewards | Yes (20K+ in accounts) |
Bank of America Checking Accounts
Advantage Plus Banking — the standard account for most consumers:
- $12/month fee — waived with $250 DD, $1,500 daily balance, or Preferred Rewards/student status
- Full debit card, online banking, Zelle, bill pay, mobile deposit
- $10 overdraft fee (significantly lower than Chase’s $34 or Wells Fargo’s $35)
Advantage SafeBalance Banking — the no-overdraft option:
- $4.95/month, no waiver available
- Transactions declined when funds insufficient — no overdraft fees
- Best for customers who struggle with overdrafts
Advantage Relationship Banking — for high-balance customers:
- $25/month, waived with $10,000+ across linked BofA accounts
- Interest earned (0.01%), free outgoing wires, BofA relationship pricing
- Pairs well with Merrill investment accounts for Preferred Rewards qualification
Overdraft Fees: BofA Is Better Than Chase and Wells Fargo
Bank of America’s overdraft fee is $10 per item — substantially lower than Chase ($34) or Wells Fargo ($35). You can overdraft up to twice per day for a maximum of $20 in fees.
Preferred Rewards members can set up free overdraft protection that transfers from savings at no charge.
For customers who occasionally overdraft, BofA’s $10 fee structure is meaningfully more forgiving than the big-bank standard.
The Preferred Rewards Program
Preferred Rewards is Bank of America’s most differentiated feature. It benefits customers who keep $20,000 or more in combined Bank of America bank accounts and Merrill investment accounts.
| Tier | Combined Balance | Credit Card Rewards Boost | Monthly Fees |
|---|---|---|---|
| Gold | $20,000–$49,999 | 25% boost | Waived |
| Platinum | $50,000–$99,999 | 50% boost | Waived |
| Platinum Honors | $100,000+ | 75% boost | Waived |
| Diamond | $1,000,000+ | 75% boost + concierge | Waived |
How the credit card boost works: The BofA Customized Cash Rewards card earns 3% on a category of your choice. A Platinum Honors member earns 5.25% on that category. The BofA Travel Rewards card becomes one of the best flat-rate travel cards at this tier.
Who this matters for: If you have $100K in investments that are currently at a brokerage like Fidelity or Schwab, moving them to Merrill would qualify you for Platinum Honors status — potentially worth hundreds of dollars per year in enhanced credit card rewards.
Savings Account
Bank of America Advantage Savings earns 0.01% APY with a $8/month fee (waived with $500 balance, linked checking, Preferred Rewards, or student status).
On a $20,000 savings balance:
- BofA at 0.01%: $2/year
- Ally at 4.20%: $840/year
- Difference: $838/year
See the full BofA savings account guide for details on alternatives.
Bank of America Fees Summary
| Fee | Amount | How to Avoid |
|---|---|---|
| Checking monthly fee | $12 | $250 DD or $1,500 balance |
| Savings monthly fee | $8 | $500 balance or linked checking |
| Overdraft | $10 | Opt out OR link accounts |
| Non-BofA ATM | $2.50 | Use BofA/Allpoint ATMs |
| Domestic wire (outgoing) | $30 | Use Zelle (free) |
| International wire | $45 | — |
| Stop payment | $30 | — |
See the full BofA fee guide for the complete breakdown.
Mobile App and Digital Banking
BofA’s mobile app (Erica AI assistant) is consistently ranked among the top banking apps. Erica can answer account questions, find transactions, send balance alerts, and help with bill pay. The app handles mobile deposit, Zelle transfers, instant account opening, and investment management via Merrill.
Who Should Bank With Bank of America
BofA is a strong fit if you:
- Have $20,000+ across bank accounts and investments and want Preferred Rewards
- Use BofA credit cards and want enhanced rewards via the loyalty program
- Want a full-service bank with branches and online banking in one place
- Occasionally overdraft and value a $10 fee vs. $34 elsewhere
Consider an online bank instead if you:
- Primarily care about savings yield
- Want to avoid monthly fees entirely
- Never visit a physical branch
See also: BofA checking account guide | BofA savings account | BofA vs. Wells Fargo | BofA fees
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