With over 2 trillion dollars in total assets and 20 million-plus customers, Bank of America is the nation's second-largest bank
after JP Morgan Chase. At last count, the Charlotte, North Carolina-based business held a whopping 12.2 percent of all bank
deposits in the U.S. Although BofA offers a sophisticated selection of products and services, its most popular banking product is its
basic savings account.
Bank Of America Savings Account Minimum
With a $25 minimum deposit ($100 for Rewards Savings), anyone age 18 and over can open a savings account with BofA; those under 18 must open a joint account with
their parent or guardian. These simple, no-frills accounts help customers put money aside and build their savings one step at a time.
But because they are offered by one of the world's biggest banks, even a regular savings account at Bank of America gives users access to
helpful, optional features. Let us take a moment to discuss them individually.
Bank Of America Savings Account Interest Rate
BofA offers a relatively low annual percentage rate (APR) of just 0.01% on its regular savings account.
So until interest rates rise, most of the savings gains BofA's customers will make from other accounts.
For instance, CIT bank currently offers
2.25% APR on its savings account.
Bank of America also offers Rewards Savings account, which they tout as
high interest savings.
But the rates there are only 0.03%, 0.04%, 0.05%, 0.06% APY for different rewards tiers.
Bank Of America Savings Account Fees
Another drawback of the Bank of America's savings account is a monthly maintenance fee, which is $5 and $8 for the regular and the Rewards
Savings account, respectively. At first glance it seems like not a big deal, yet it will decrease already insignificant returns, and may
even decrease the principal.
BofA offers ways to avoid the monthly fee. It is waived for customers who maintain a minimum daily balance of at least $100 and $500 for the regular
and the Rewards Savings account, respectively. Customers can also link their Bank of America Interest Checking account to remove the charge. The fee
is also waived for Bank of America proffered rewards customers.
Bank Of America Savings vs CIT Bank Savings
Unlike BofA, CIT Bank makes everything much easier for its customers. It offers much higher interest rates and does not
charge a monthly fee, therefore the bank does not require a minimum balance to waive monthly fee.
|
CIT Savings Account |
Bank Of America Savings Account |
| APY |
1.55% |
0.01%-0.06% |
| Monthly Fee |
$0 |
$8 |
| Minimum Balance Required to Waive Monthly Fee |
$0 |
$500 |
| Minimum Opening Deposit |
$100 |
$25 |
| Annual Interest Earned on $5,000 Balance |
$77.50 |
$0.50 |
| Open an Account |
CIT Savings Account |
Bank Of America Savings Account |
Bank Of America Savings Account Advantages
Even with its extremely low APR, Bank of America's savings account is a convenient and popular choice among Bank of America customers.
It offers online and mobile banking, overdraft protection, and the Keep the Change savings program. These features help make it a good option for
anyone interested in building a long-term relationship with one of the world's biggest banks. Let's take a look at the features of BofA's savings accounts:
-
Overdraft protection. To shield yourself from onerous fees, it is always a good idea to cover
unexpected shortfalls with overdraft protection. By linking your personal checking to your savings account, Bank of America
will automatically subtract any deficit from your savings should your checking account have insufficient funds.
This will help you avoid the embarrassment and expense of a bounced check.
- Online access. You can access your BofA savings account anywhere, anytime. You can check balances, make transfers, even deposit checks via computer,
tablet, or mobile phone. Those who enroll in the online banking program can also receive banking alerts via email. This simple and
convenient service makes managing your money and avoiding bank charges much easier.
- Keep the Change Program.
Designed to encourage savings, BofA's Keep the Change® program rounds up every debit card purchase to the nearest dollar, then transfers
the remainder from your checking to your savings account. For example, if you were to purchase a cup of coffee for $1.58,
the price would be rounded up to $2 and the 42-cent difference would be transferred into your savings account. This easy and automatic way to
save can really add up over time, especially if you use your debit card regularly.
Bank Of America Savings Account Review Summary
Bank of America customers get a few nice features with their savings account. But with rates close to 0% APR, it's hard to make a case
to use BofA savings as the main savings account.
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