Bank of America is a retail and commercial bank where you can hold deposits, borrow money, and move funds

Bank of America (BofA) is one of the largest banks in the United States. It takes deposits from individuals and businesses, lends money through mortgages and credit cards, and processes payments. When you open a checking or savings account there, your money sits in their system. When you use a BofA credit card or take out a loan, you are borrowing from them and paying interest on what you owe.

The bank operates physical branches in most states, plus online banking and a mobile app. You can walk into a branch to deposit cash, speak to someone about a loan, or handle account issues in person. You can also do most transactions online or through their app without visiting a branch at all.

BofA is a publicly traded company, meaning it is owned by shareholders and regulated by federal banking authorities. It is not a government agency, and your money is not may provide by the government simply because you bank there—but deposits up to $250,000 per account type are insured by the Federal Deposit Insurance Corporation (FDIC), a real federal program that protects depositors if a bank fails.

Key Takeaways

  • Bank of America holds deposits, issues credit cards, makes loans, and processes payments for millions of customers.
  • You can bank with BofA through physical branches, online banking, or their mobile app.
  • Deposits up to $250,000 per account type are protected by FDIC insurance, not by the bank itself.
  • BofA charges fees for some services—overdrafts, monthly maintenance, wire transfers—and pays interest on savings accounts and money market accounts at rates that change over time.
  • If you have a problem with a transaction or account, you can dispute it through BofA's customer service or file a complaint with the Consumer Financial Protection Bureau.

How deposits and accounts work at Bank of America

When you open a checking account at BofA, you deposit money and receive a debit card and checks. The bank holds your money and lets you withdraw it whenever you want. You can set up direct deposit so your paycheck goes straight into the account. You can also transfer money to other people's accounts, pay bills online, or write checks.

Savings accounts and money market accounts work differently. You deposit money and earn interest—a small percentage that the bank pays you for letting them use your money. The interest rate changes based on what the Federal Reserve does with interest rates. Right now, BofA's savings rates are lower than many online banks offer, but the tradeoff is that you can walk into a branch if you need help.

BofA charges fees for some account actions. Monthly maintenance fees apply to some checking accounts unless you meet a minimum balance or set up direct deposit. Overdraft fees happen when you spend more than you have in the account. Wire transfer fees, ATM fees outside the BofA network, and stop-payment fees all cost money. You can see the full fee schedule on BofA's website or ask at a branch.

Credit cards and borrowing through Bank of America

BofA issues credit cards with different rewards programs and interest rates depending on your credit score. When you use a BofA credit card, you are borrowing money from the bank. At the end of the month, you get a bill. If you pay the full balance, you owe no interest. If you pay only part of it, the bank charges you interest on what remains—usually between 15% and 25% per year, depending on the card and your creditworthiness.

The bank also makes home loans (mortgages), auto loans, and personal loans. These work the same way: you borrow a sum, agree to pay it back over a set period, and pay interest. The interest rate depends on the type of loan, how much you borrow, how long you take to repay it, and your credit score. A mortgage might have a rate around 6% to 8% right now, while a personal loan could be 10% to 36%.

If you fall behind on a credit card or loan payment, BofA will contact you to collect. If you stay behind for several months, they may close the account, send it to a collection agency, or sue you. A missed payment also damages your credit score, which makes it harder and more expensive to borrow money in the future.

How payments move through Bank of America

When you send money from a BofA account to someone else, the bank processes the transaction. If you send it to another BofA customer, it usually arrives the same day or next business day. If you send it to a different bank, it goes through the ACH network (Automated Clearing House), which takes one to three business days.

Wire transfers are faster—usually same-day or next-day—but cost more (typically $15 to $30). When you pay a bill online through BofA's bill pay service, the bank mails a check or sends an ACH transfer on your behalf, which takes a few days. If you use your debit card at a store, the transaction is processed immediately, but the money may not leave your account for a day or two.

When someone sends you money to a BofA account, the timing depends on how they send it. A direct deposit from an employer takes one business day. A wire transfer from another bank arrives the same day. An ACH transfer takes one to three business days. Until the money actually lands in your account, you cannot spend it, even if BofA shows it as "pending."

What happens if a transaction goes wrong

If you see a charge on your account that you did not make, you can dispute it. Call BofA's fraud line or log into your account online and report the transaction. The bank will investigate—usually within 10 business days for debit card fraud, or up to 60 days for credit card disputes. During the investigation, the bank may temporarily credit your account while they look into it.

If a payment you sent never arrived, contact BofA to trace it. For ACH transfers and bill payments, this can take several weeks because the money has to move through multiple banks. For wire transfers, the bank can usually locate the money faster, but once it leaves BofA's system, recovery is harder. If the money went to the wrong account by mistake, you may have to ask the receiving bank to return it, and they are not required to do so.

If you believe BofA made an error on your account—a wrong balance, a duplicate charge, a missing deposit—write to the bank's dispute department. Federal law gives you 60 days from when you first see the error on a statement to report it. BofA must investigate within 30 days and tell you the result.

Fees, interest rates, and what it costs to bank with Bank of America

The cost of banking with BofA depends on which accounts you use and how you use them. A basic checking account with direct deposit may have no monthly fee. Without direct deposit, the monthly fee is usually $12 to $15, though you can waive it by keeping a minimum balance (often $1,500 or more). Savings accounts typically have no monthly fee but earn very little interest—often less than 0.01% per year.

Overdraft fees are $35 per transaction if you spend more than your balance. If you overdraft multiple times in one day, you can be charged $35 for each one. Some banks cap overdraft fees per day; BofA's policies vary by account type. ATM fees outside the BofA network are usually $2 to $3 per withdrawal. Wire transfers cost $15 to $30 depending on whether they are domestic or international.

Interest rates on savings accounts and money market accounts change based on Federal Reserve decisions. Right now, BofA's rates are lower than online banks like Marcus or Ally, which can offer 4% to 5% on savings. The tradeoff is convenience and access to branches. Credit card interest rates (called APR, or annual percentage rate) range from 15% to 25% depending on the card and your credit score.

How to contact Bank of America and resolve problems

You can reach BofA customer service by phone, through their website, in a branch, or through their mobile app. The phone number for customer service is on your statement or card. Wait times vary, but you can usually reach someone within 10 to 20 minutes during business hours. For fraud or security issues, call the number on the back of your card—that line is staffed 24/7.

If you have a complaint about BofA that customer service does not resolve, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB is a federal agency that investigates complaints about banks and other financial companies. You can also file a complaint with your state's banking regulator or the Office of the Comptroller of the Currency (OCC), which oversees national banks like BofA.

Keep records of every conversation—dates, names, what was said, and what was promised. If you dispute a charge or report fraud, follow up in writing (email or certified mail) so you have proof you reported it. This matters if the dispute takes weeks to resolve or if you need to escalate the complaint.

Frequently Asked Questions

Is my money safe if I bank with Bank of America?

Deposits up to $250,000 per account type are insured by the FDIC, a federal program that protects you if the bank fails. Amounts over $250,000 are not insured. Your money is also protected by BofA's security systems and fraud monitoring, but the bank is not responsible for unauthorized transactions if you gave someone your PIN or password.

How long does it take to transfer money from Bank of America to another bank?

ACH transfers take one to three business days. Wire transfers take the same day or next business day but cost $15 to $30. If you use BofA's bill pay service, checks are mailed or ACH transfers are sent, which takes three to five business days depending on the payee's location.

What should I do if I see a fraudulent charge on my BofA account?

Call the fraud line on the back of your card or log into your account online and report it immediately. The bank will investigate within 10 business days for debit cards or up to 60 days for credit cards. During the investigation, you may receive a temporary credit while BofA looks into the charge.

Can I get my monthly fee waived?

Yes. Most BofA checking accounts waive the monthly fee if you set up direct deposit, keep a minimum balance (usually $1,500 or more), or maintain a certain account relationship. Ask a branch representative or check your account terms online to see which options apply to your account.

What is the difference between a BofA savings account and a money market account?

Both earn interest, but money market accounts usually offer a slightly higher rate and may come with a debit card or checks. Savings accounts are simpler and have no minimum balance requirement on most accounts. Both rates are set by BofA and change when the Federal Reserve adjusts interest rates.