What Advantage Plus Banking Actually Is

Bank of America Advantage Plus Banking is a checking account, but it functions differently from a standard checking account because it combines checking features with savings features in one account. You get a single account number, a debit card, and check-writing ability—all the hallmarks of a checking account—but the account also earns interest on your balance, which is more typical of a savings account.

The account is designed for people who want to keep their money in one place rather than splitting deposits between a separate checking and savings account. You can write checks, use the debit card for everyday purchases, set up direct deposit, and pay bills online. At the same time, any money you hold in the account earns a small amount of interest, which changes based on the Federal Reserve's rate decisions.

Bank of America markets this account as a way to simplify banking for people who don't need multiple accounts. It's not a money market account or a certificate of deposit—it's a hybrid checking product that sits between a traditional checking account and a traditional savings account.

Key Takeaways

  • Advantage Plus Banking gives you checking account features (debit card, checks, bill pay) plus interest earnings on your balance.
  • The account has a monthly maintenance fee that can be waived if you meet deposit or balance requirements, or if you set up direct deposit.
  • Interest rates on this account are typically very low and change when the Federal Reserve adjusts its rates.
  • You can access your money anytime without penalty, unlike certificates of deposit or some savings products with withdrawal restrictions.

How the Monthly Fee Works

Advantage Plus Banking charges a monthly maintenance fee, currently $12 per month, though this amount can change. Bank of America waives the fee if you meet one of these conditions: maintain a minimum daily balance of $1,500, have at least $3,000 in combined Bank of America deposits, or set up a direct deposit to the account.

The direct deposit waiver is the most common way to avoid the fee, since many people already receive paychecks or government benefits via direct deposit. If you don't meet any of the waiver conditions, the $12 fee is deducted from your account each month on the same date.

Bank of America also charges additional fees for certain transactions: overdraft fees if you spend more than your balance, out-of-network ATM fees if you withdraw cash from an ATM that isn't part of the Bank of America network, and wire transfer fees if you send money electronically to another bank. These fees are separate from the monthly maintenance fee.

Interest Earnings and Current Rates

The interest rate on Advantage Plus Banking is set by Bank of America and changes when the Federal Reserve adjusts its benchmark rate. As of late 2024, the rate is very low—typically less than 0.01% annually on most balances. This means if you hold $10,000 in the account for a full year, you might earn less than $1 in interest.

Interest is calculated daily based on your account balance and paid monthly. The rate you earn depends on your account type and current market conditions, not on how much money you have in the account. Bank of America publishes current rates on its website, but they change frequently and without advance notice.

If you're looking for a checking account primarily to earn interest, this account will not meet that goal. High-yield savings accounts and money market accounts at online banks currently offer rates 10 to 20 times higher than Advantage Plus Banking. This account is better suited for people who want a single account for everyday spending and don't prioritize interest income.

When to Use Advantage Plus Banking vs. a Regular Checking Account

Choose Advantage Plus Banking if you want to keep all your money in one account and don't mind paying a monthly fee (or can easily waive it with direct deposit). The interest earnings are minimal, so the real benefit is convenience—one account number, one login, one place to track your balance.

Choose a regular Bank of America checking account (such as the Advantage Checking account) if you want to avoid monthly fees without meeting the waiver conditions, or if you prefer a simpler product without the interest component. Bank of America's basic checking accounts have lower or no monthly fees and function identically for everyday banking tasks.

If you're comparing Bank of America to other banks entirely, consider that many online banks and credit unions offer checking accounts with no monthly fees, no minimum balance requirements, and higher interest rates. The choice depends on whether you value Bank of America's branch network and brand recognition enough to accept lower rates and higher fees.

How to Avoid the Monthly Fee

The easiest way to waive the $12 monthly fee is to set up direct deposit of your paycheck or benefits. Bank of America doesn't require a minimum deposit amount—even a small recurring direct deposit qualifies. If you receive Social Security, a pension, unemployment benefits, or a paycheck via direct deposit, you automatically waive the fee.

If direct deposit isn't an option, maintain a minimum daily balance of $1,500 throughout the month. This means your balance must stay at or above $1,500 every single day; if it dips below that even once, you don't may have access to for the waiver that month. Alternatively, keep $3,000 or more in combined Bank of America deposit accounts (checking, savings, money market, or certificates of deposit combined).

If you can't meet any of these conditions, the $12 fee will be charged each month. Over a year, that's $144 in fees, which is worth considering when comparing accounts. Some people decide to switch to a different bank's checking account to avoid the fee entirely.

Accessing Your Money and Limits

Advantage Plus Banking has no withdrawal limits or restrictions. You can write checks, use your debit card, transfer money online, or visit a branch to withdraw cash whenever you need it. Unlike certificates of deposit or some savings accounts, there's no penalty for accessing your money early or frequently.

Bank of America limits the number of transfers you can make from the account per month (typically six transfers via online banking, phone, or automatic transfer), but debit card purchases, checks, and in-branch withdrawals don't count toward this limit. If you exceed the transfer limit, Bank of America may charge a fee or convert your account to a different type.

You can also link the account to other banks' accounts for transfers, set up bill pay to send money to creditors, and use mobile banking to check your balance and monitor transactions. The account works like a standard checking account in terms of access and convenience.

Frequently Asked Questions

Can I write checks with Advantage Plus Banking?

Yes. Bank of America provides a checkbook with the account, and you can order additional checks through the bank or third-party check printers. Checks clear through the standard banking system and are deducted from your account balance immediately.

What's the difference between Advantage Plus and regular Advantage Checking?

Advantage Plus earns interest on your balance; regular Advantage Checking does not. Both charge a monthly fee, but Advantage Checking's fee is lower ($10 per month) and has different waiver conditions. Regular Advantage Checking is simpler if you don't care about interest earnings.

Will I get a debit card with this account?

Yes. Bank of America issues a debit card automatically when you open Advantage Plus Banking. You can use it to make purchases, withdraw cash from ATMs, and access funds anywhere Visa is accepted. The card is linked directly to your account balance.

Can I have overdraft protection on this account?

Yes. Bank of America offers overdraft protection, which links your Advantage Plus account to another account (like a savings account or credit line) and automatically transfers money if you spend more than your balance. You can also opt out of overdraft protection to prevent charges.

Is my money safe in this account?

Yes. Bank of America is a member of the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000 per account holder per bank. Your Advantage Plus account is covered by this insurance, so your money is protected even if the bank fails.