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Has many branches but lacks competitive interest rates on savings and CDs
By
Lee Huffman
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Full Bio
Lee Huffman is an expert on bank reviews with 18 years of experience as a financial planner and corporate finance manager. Lee has been writing about personal finance, credit cards, and travel rewards since 2012, with his work having appeared in outlets like Forbes, NerdWallet, and The Points Guy. He received his Bachelors in Business Management from Pepperdine University.
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Updated March 13, 2024
Fact checked by
Michael Logan
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Fact checked byMichael Logan
Full Bio
Michael Logan is an experienced writer, producer, and editorial leader. As a journalist, he has extensively covered business and tech news in the U.S. and Asia. He has produced multimedia content that has garnered billions of views worldwide.
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The oldest parts of Bank of America date back 240 years. With the merger of BankAmerica and NationsBank in 1998, it became the first coast-to-coast bank in the U.S. Now, Bank of America serves approximately 68 million consumer and small business clients through its 3,900 branches. This in-depth review of the retail banking giant can help you decide if its deposit accounts are right for you. Pros & Cons Pros Unparalleled access with approximately 3,900 branches and 15,000 ATMs Low minimums to open checking or savings accounts Higher rates and lending discounts via Preferred Rewards Cons No high-yield savings account options ATM fees not waived or reimbursed Company Overview Table of Contents Bank of America Bank Review Pros Explained Cons Explained Best for Bank Offerings Other Products Customer Service How to Bank Final Verdict Methodology Bank of America is best for customers who value ease of access over higher interest rates. It may be particularly good for customers who want to: As one of the world’s leading financial institutions, Bank of America offers an extensive array of deposit accounts, lending products, and investment choices. Bank of America provides three checking accounts that can be opened with $100 or less. Preferred Rewards members get their monthly fees waived on all three checking accounts. Using another bank’s ATM will cost you $2.50 per transaction plus whatever the other bank charges. These fees are not waived or reimbursed with your Bank of America checking account. Using the bank’s debit card for purchases, you can enroll in Bank of America’s Keep the Change program to build your savings. It rounds up your purchases to the next dollar and transfers that amount to your savings account. Customers have one savings account option: Bank of America Advantage Savings. This account provides tiered interest rates that grow with your relationship with the bank. It requires a $100 deposit to open the account. The monthly fee of $8 can be waived by keeping a minimum daily balance of $500, linking this account to your Bank of America Advantage Relationship Banking checking account, or by becoming a Bank of America Preferred Rewards client. Eligibility for Preferred Rewards requires a checking account and a combined three-month average daily balance of at least $20,000 in Bank of America accounts and Merrill investment accounts. New accounts receive a waiver of the monthly fee for the first six months. Students who are enrolled in school and are under the age of 25, or enrollees under the age of 18 may also qualify for a waiver. Bank of America offers standard-term CDs with a $1,000 minimum deposit requirement. Standard CDs are available at terms ranging from one month to 10 years, with annual percentage yields (APYs) starting at 0.03%. Featured CDs are promotional CDs that require a $1,000 minimum deposit. They have fewer term options, but customers can lock in a higher promotional APY. Unless specifically noted, all CDs renew at the end of their term. Customers have a grace period of up to seven days after maturity, depending on the term of the CD, to cancel the renewal and withdraw without penalty. The bank does charge an early withdrawal penalty if you close the CD before its maturity date. Penalties vary depending on the term of the CD. Bank of America has numerous credit cards that earn cash back, travel rewards, or support charitable causes. Some credit cards earn higher rewards when you are enrolled in Preferred Rewards and maintain a larger relationship with the bank. For example, you can earn up to 75% more rewards on every purchase with the Bank of America Customized Cash Rewards Visa. The bank also offers exclusive deals when you use your debit or credit card to make purchases at participating retailers. You must manually activate these promotions online or through the bank’s mobile app before making your purchase. BankAmeriDeals earns cash back on your transactions. Bank of America also has a wide variety of other banking, lending, and investment accounts to meet your needs. In November 2023, Bank of America agreed to pay a $12 million fine to the Consumer Financial Protection Bureau for not asking mortgage applicants their race, ethnicity, and sex, and then saying the applicants didn’t provide that information. The government collects that info from lenders to identify potential patterns of discrimination in mortgage lending. The money from the fine paid will go to a victim compensation fund. Customers can connect with Bank of America customer service in three ways: in person, over the phone, or online. Phone support is available at 1-800-432-1000 with the following hours: The bank has more than 3,900 branches at which you can schedule an appointment or walk in to speak with someone in person. Customers also have access to 15,000 ATMs. Additionally, you can send customer service a message online through the bank’s mobile app or direct messages on Facebook or X (formerly Twitter). The Bank of America mobile app is available for both Apple and Android devices. They both receive strong reviews from customers. Bank of America ranks seventh out of nine banks in J.D. Power's 2022 National Banking Satisfaction Study. Its score of 641 on a 1,000-point scale was just shy of the industry average of 648. Capital One topped the study for the third consecutive year with a score of 694. Customers have many choices to conduct business with Bank of America. Accounts can be opened online, on mobile devices, in person, or over the phone. Once your accounts are established, you can perform online transfers, deposit checks through your mobile device, withdraw, or deposit at an ATM, and more. Bank of America is a good choice for customers who want the comfort of having a bank branch or an ATM close by. However, that convenience is offset by savings accounts and CDs that have lackluster interest rates. Although customers can earn additional rewards with their balances through Preferred Rewards, they may be better off with more-competitive interest rates on their savings at other banks. Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks—including products available, interest rates, fees, and accessibility—to ensure that our content helps users make the right decision for their savings and banking needs. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Bank of America. "CD Accounts." Consumer Financial Protection Bureau. "CFPB Orders Bank of America to Pay $12 Million for Reporting False Mortgage Data." J.D. Power. "Largest National Banks See Declining Satisfaction Among Younger Customers, J.D. Power Finds." Investopedia is part of the Dotdash Meredithpublishingfamily. Please review our updatedTerms of Service.:fill(white):max_bytes(150000):strip_icc()/bank-of-america-70f86d695d234eb59b3723dcf71efc2a.png "Bank of America Bank Review (3)")
Pros Explained
Cons Explained
Who Is Bank of America Best for?
What Does Bank of America Offer?
Checking Accounts
Bank of America Checking Accounts Account Name Minimum Opening Deposit Monthly Fee Annual Percentage Yield (APY) SafeBalance $25 $4.95 None Advantage Plus $100 $12 None Advantage Relationship $100 $25 0.01% for balances less than $50,000 or 0.02% for balances greater than $50,000 Savings Accounts
Bank of America Savings Accounts Account Name Minimum Opening Deposit Monthly Fee Annual Percentage Yield (APY) Advantage Savings $100 $8 0.01%; Preferred Rewards members can earn up to 0.04% based on Tier. CDs
Bank of America CD Rates Term Annual Percentage Yield (APY) 28 to 89 days 0.03% 90 to 179 days 4.00% 6 to 120 months 0.03% Bank of America Featured CD Rates Term Annual Percentage Yield (APY) 7 months 4.75% 10 months 0.05% 12 months 4.00% 13 months 4.30% 25 months 3.00% 37 months 0.05% Bank of America CD Early Termination Penalties Term Penalty Less than 90 days The greater of interest earned or seven days interest 90 days to 12 months 90 days interest 12 months to 60 months 180 days interest More than 60 months 365 days interest Credit Cards
Cash Back Credit Cards
Travel Rewards Credit Cards
Secured Credit Cards
Other Credit Cards
Other Financial Products Offered by Bank of America
Bank of America Customer Service
How to Bank with Bank of America
Final Verdict
Methodology
