Advantage Savings is Bank of America's basic savings account with no monthly fee if you meet one simple condition

Advantage Savings is a savings account from Bank of America that charges no monthly maintenance fee as long as you keep a $300 minimum balance. If your balance drops below $300, you pay $12 per month. The account earns interest on your balance, though the rate is typically very low — Bank of America's savings rates are among the lowest in the industry.

This account is designed for people who want a straightforward savings vehicle tied to their Bank of America checking account, not for people trying to maximize interest earnings. If you already bank with Bank of America and want a place to set aside money without paying fees, this account works. If you're shopping for the best interest rate on savings, you'll find much higher rates at online banks and credit unions.

Key Takeaways

  • Advantage Savings has no monthly fee if you maintain a $300 minimum balance; you pay $12 per month if the balance falls below that threshold.
  • The interest rate on Advantage Savings is typically lower than rates offered by online banks and credit unions, so it's not a tool for building savings through interest.
  • You can link Advantage Savings to a Bank of America checking account for easy transfers between accounts.
  • The account comes with a debit card and online access, so you can withdraw money or check your balance anytime.

How the $300 minimum balance works

The $300 minimum is a daily balance requirement, not an average. That means your account balance must be at least $300 every single day to avoid the $12 monthly fee. If you dip to $299 on any day, the fee applies that month.

The fee posts automatically if the condition is not met. You don't have to do anything — Bank of America will deduct $12 from your account. If you're carrying a balance close to $300, watch your account regularly or set up a transfer from checking to keep yourself above the threshold.

Interest rates and how they compare

Bank of America's savings rates change based on market conditions and your account type. As of now, Advantage Savings rates are typically below 0.05% annual percentage yield (APY), though this varies. You can check the current rate on Bank of America's website or by calling their customer service line.

For comparison, online banks and credit unions often offer rates between 4% and 5% APY on savings accounts. On a $1,000 balance, Bank of America's rate might earn you less than $1 per year, while a 4.5% rate would earn roughly $45. The difference compounds over time, so if you're serious about saving, Advantage Savings is not the right tool.

When Advantage Savings makes sense

Advantage Savings works best if you already have a Bank of America checking account and want to keep your money in one place. The account is easy to manage — you can transfer money between your checking and savings instantly through the app or online banking. There's no paperwork, no separate login, and no waiting period.

It also works if you need a savings account just to hold money temporarily — for example, if you're saving for a specific purchase in the next few months and don't care about interest. The low rate matters less when you're only holding money for a short time.

Fees beyond the monthly maintenance charge

Advantage Savings doesn't charge fees for most common transactions. You won't pay to transfer money between your Bank of America accounts, to withdraw cash at an ATM, or to check your balance online.

However, Bank of America does charge fees for certain actions: overdraft fees if you try to withdraw more than you have, fees for wire transfers, and fees if you exceed six withdrawals per month (though this rule is less common now). Read the account terms carefully or ask a representative about any fees that might apply to your specific use.

How to open an Advantage Savings account

You can open an Advantage Savings account online, in a Bank of America branch, or by phone. If you already have a Bank of America checking account, the process is faster — you'll just need to provide your Social Security number and choose a starting balance.

If you don't have a Bank of America account yet, you'll need to provide identification, proof of address, and your Social Security number. The whole process usually takes 10 to 15 minutes online or in person. Once the account opens, you can start transferring money immediately.

Frequently Asked Questions

What happens if my balance drops below $300?

Bank of America charges a $12 monthly maintenance fee. The fee is automatic — you don't have to do anything to trigger it. If your balance stays below $300 for multiple months, you'll pay $12 each month until you bring the balance back up.

Can I use the debit card to withdraw money from other banks' ATMs?

Yes, but you may be charged a fee by the other bank. Bank of America doesn't charge you to use their own ATMs, but third-party ATMs often charge $2 to $3 per withdrawal. Using Bank of America ATMs is free.

Is there a limit to how much money I can keep in Advantage Savings?

No. There's no maximum balance. You can keep as much as you want in the account without triggering additional fees or restrictions.

Can I close the account anytime?

Yes. You can close Advantage Savings at any time by visiting a branch, calling Bank of America, or using their app. There's no penalty for closing early. Bank of America will send you the remaining balance by check or transfer it to another account.

Does Advantage Savings count toward Bank of America's account requirements for other benefits?

Yes. Some Bank of America accounts and services offer benefits if you maintain a certain number of accounts or a minimum combined balance. Advantage Savings counts toward those thresholds. Check your specific account terms to see if you may have access to for any benefits.