Bank of America, ranked the second-largest bank in the world, has boasted $1.3 trillion in deposits as of 2018’s first quarter to become one of the nation’s bulge bracket investment banks and a global giant in banking. With operations in consumer banking, global banking, wealth management and investment management, it currently manages eight lines of business for anyone in need of financial support yet maintains service-oriented features designed for the average consumer.
Keep reading more in this BofA savings account review about account features as you consider what is important for you to understand before you open a savings account.
Bank of America Savings Account Review
The online application for most BofA savings accounts takes around 10 minutes, and the website also gives suggestions for in-person applications depending on your credit history and checking history. Three standard types of savings accounts are available, depending on your initial deposit and personal needs. All BofA savings account holders can access the following benefits and features:
- Keep the Change program
- Mobile banking app
- Preferred rewards
- Customizable alerts
- Monthly maintenance fee waivers, subject to eligibility
- Spending and budgeting tools
- Short-term savings calculator
- Family life banking
See Why BofA Is a Top Bank: 10 Best National Banks of 2018
Bank of America Savings Account Types
With so many savings account options and features available, your search for a savings account can be tailored based on your needs. You might even decide to use more than one savings account for your family. Consider whether you want to earn rewards or whether another savings option might be better suited for your short- or long-term savings goals. Bank of America savings account fees, account deposit or balance requirements, or other terms might factor into your decision.
Quick Tips: How to Open a Savings Account
Rewards Savings With Preferred Rewards, BankAmeriDeals and More
BofA Rewards Savings accounts have the option to sign up for BankAmeriDeals, which allows users to get up to 15 percent cash back on your everyday purchases, as well as Keep The Change, a program that rounds up the cost of your daily purchases to the nearest dollar and deposits the difference back into your account. Reward Savings account holders must keep in mind:
- The standard APY is 0.03 percent, but increases when you enroll in the Preferred Rewards system.
- For Preferred Rewards members, APYs can reach up to 0.06 percent for Platinum Honor Tier members, as of July 2018.
- All interest is compounded and credited to saving accounts monthly.
- Interest for Rewards Savings accounts begins to accrue the day the account is processed, but is processed at the rate of the application submission date.
Rewards Account Fees and Requirements
Bank of America requires an opening deposit of $100 for this account and has a withdrawal limit fee of $10 for each withdrawal or transfer after the sixth one in a monthly cycle statement, depending on the type of withdrawal or transfer. Additionally, in order to waive the monthly maintenance fee of $8, the customer must maintain a BofA savings account minimum balance of $100, link their BofA Interest Checking Account to their Rewards Savings account, or enroll in the BofA Preferred Rewards Systems. This waiver only applies to the first four savings accounts.
BofA Student Savings Accounts
Also known as a Uniform Transfer to Minors Account, Bank of America Custodial Account holders can enjoy all the same benefits as Reward Savings account holders, but with a few special adjustments to help parents and guardians assist their children in becoming financially independent. When opening a Custodial account, consider:
- The standard APY for BofA’s Custodial Savings is 0.03 percent.
- Custodial Savings accounts can avoid the withdrawal limit fee by maintaining a balance of $20,000 or more.
- Like Rewards Savings accounts, BofA UTMAs are also eligible for automatic transfers and the Keep the Change program. A key difference is the simple custodial access that enables a custodian to manage the minor’s fund distribution.
Minor Savings is another option for young people learning how to manage their money. With this account type, minors have access to account funds before the age of 18, and the account is jointly owned by the minor and parent or guardian. All the same standard benefits apply to this account.
Youth Account Fees and Terms
There is no monthly maintenance fee for account owners under 18, and waiving the withdrawal limit fee requires a minimum daily balance of $300. With accounts under this balance threshold, the fee is only $1, as opposed to $10 for UTMAs and Rewards Savings accounts.
The required minimum deposit and monthly maintenance fees for a BofA Custodial Account are the same as Reward Savings — $100 to set up an account and hold at least $500 to avoid paying maintenance. Minors do not have access to manage the account, and personal fees can also vary, depending on fee type and credit history.
The minimum opening balance for a BofA Minor Savings account is $25. When the account holder turns 18, the account automatically converts into a standard Rewards Savings account, and applicable fees will be activated.
BofA CD Accounts
BofA CD accounts automatically renew and do not require additional deposits until maturity. You can choose between standard and featured CD accounts. For BofA Standard Term CD account holders, some things to keep in mind include:
- Minimum initial deposit requirement of $1,000.
- You can choose your term, ranging from 28 days to 10 years.
- Standard APY varies depending on term and balance.
Unlike the Standard Term CD Account, BofA Featured CD Accounts have a:
- Fixed APY of 0.07 percent as of July 2018 on all balances, and a term of 12 months.
- Required minimum opening deposit of $10,000.
Early-withdrawal penalties apply to all BofA CD accounts, calculated based on the principal amount withdrawn and the interest rate in effect at the date of withdrawal.
BofA Retirement Accounts
If you’re planning for retirement, BofA offers individual retirement account options, including:
- Money market IRA
- Featured CD IRA
- Standard Term CD IRA
Each option offers its own APY, term limit, minimum opening deposit and additional deposit.
Are You a BofA Customer? How to Find and Use Your Bank of America Login
Bottom Line: BofA’s Options Can Foster a Long-Term Relationship
For young people looking for a low-barrier entry to saving, Bank of America offers several accounts that can enable good savings habits. And for over-18s, the combination of mobile technology, money-management tools and prolific access makes BofA a convenient option. With additional long-term savings tools, the bank offers a savings environment in which customers can maintain their savings through different life stages. Fees and minimum balance requirements might be higher than other financial institutions’ account terms, however.
More on Savings
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- How Much Would You Have If You Saved $1 a Day for Your Entire Life?
- Can My Spouse Access My Savings Account Without Permission?
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