Bank of America's main account categories

Bank of America offers three broad account types: checking accounts, savings accounts, and money market accounts. Within each category, the bank provides different tiers based on how much money you keep on deposit and what features matter to you. A checking account is for everyday spending and bill payments. A savings account is for money you want to set aside and earn interest on. A money market account combines features of both — it pays interest like savings but lets you write checks or make transfers like checking.

The specific account you choose affects your monthly fees, the interest rate you earn, minimum balance requirements, and which services come included. Bank of America also offers investment accounts and retirement accounts (like IRAs), but those are separate products designed for long-term growth rather than daily banking.

Key Takeaways

  • Bank of America checking accounts range from basic accounts with no monthly fee to premium accounts that waive fees if you maintain a minimum balance or set up direct deposit.
  • Savings accounts at Bank of America earn interest, but the rate varies by account tier and changes based on Federal Reserve decisions.
  • Money market accounts require a higher opening deposit than savings accounts but typically pay a higher interest rate.
  • Bank of America's premium tiers (Preferred Rewards) offer better interest rates and fee waivers if you maintain higher balances or have other accounts with the bank.

Checking accounts: everyday spending and bills

Bank of America offers several checking account options. The Core Checking account has no monthly maintenance fee and no minimum opening deposit. You get a debit card, online banking, and the ability to write checks. This account is designed for people who want basic checking without frills.

The Advantage Banking checking account charges a monthly fee (typically $12 per month) unless you meet one of these conditions: maintain a minimum daily balance, set up direct deposit, or link it to a Bank of America savings or money market account. This account includes overdraft protection and slightly more features than Core Checking.

The Premium Checking account (part of the Preferred Rewards program) requires you to maintain a higher balance or have a certain amount invested with Bank of America. It waives monthly fees and often includes perks like higher interest rates on linked savings accounts and fee waivers on other services.

Savings accounts: interest-bearing deposits

Bank of America savings accounts let you earn interest on money you deposit. The interest rate changes based on decisions by the Federal Reserve and Bank of America's own pricing. All Bank of America savings accounts are FDIC insured up to $250,000 per account holder per bank.

The Regular Savings Account has no monthly fee and no minimum opening deposit. The interest rate is typically the lowest among Bank of America's savings options. This account works if you want a simple place to hold money and earn a small return.

The Advantage Savings Account charges a monthly fee (typically $5) unless you maintain a minimum daily balance or link it to an Advantage Banking checking account. The interest rate is slightly higher than Regular Savings. The Premium Savings Account (part of Preferred Rewards) requires a higher balance but pays a better interest rate and waives the monthly fee.

Money market accounts: higher rates with check-writing

A money market account combines features of checking and savings. You can write checks or make transfers like a checking account, but you earn interest like a savings account. Bank of America typically requires a higher opening deposit for money market accounts than for savings accounts — often $2,500 or more, though this can change.

Money market accounts at Bank of America come in regular and premium tiers, similar to savings accounts. The premium tier (part of Preferred Rewards) pays a higher interest rate if you maintain the required balance. Money market accounts are also FDIC insured up to $250,000.

Preferred Rewards: Bank of America's tiered benefits program

Preferred Rewards is Bank of America's program that rewards customers who keep money with the bank or invest through them. The program has three tiers: Gold, Platinum, and Diamond. Each tier unlocks better interest rates on savings and money market accounts, waives certain monthly fees, and may offer other perks like higher ATM fee reimbursements or travel benefits.

To reach Gold tier, you typically need $20,000 in combined deposits or investments. Platinum requires $50,000, and Diamond requires $100,000. These thresholds can vary. The higher your tier, the better the interest rates on your savings and money market accounts. If you have direct deposit set up or maintain a high balance in checking, you may also may have access to for fee waivers on Advantage Banking accounts.

Investment and retirement accounts

Bank of America also offers brokerage accounts for buying stocks, bonds, and mutual funds, and retirement accounts including Traditional IRAs, Roth IRAs, and SEP IRAs. These are separate from checking and savings accounts and are designed for long-term investing rather than everyday banking. Retirement accounts have tax advantages but come with rules about when you can withdraw money without penalty.

If you are interested in investing or saving for retirement, you would open these accounts in addition to your checking and savings accounts, not instead of them.

How to choose the right account

Start by asking yourself: Do I need everyday checking, or am I mainly saving? If you spend money regularly and pay bills, you need a checking account. If you want to set money aside and earn interest, a savings account works. If you do both and want one account that handles both, a money market account is an option — but it usually requires a higher opening deposit.

Next, consider your balance. If you keep less than $500 in the bank most months, a basic account with no minimum balance (Core Checking or Regular Savings) makes sense. If you keep $20,000 or more, the Preferred Rewards program may save you money through fee waivers and higher interest rates. If you are somewhere in between, calculate whether the monthly fee on an Advantage account is worth it based on the interest you would earn or the fee waiver you would get.

Finally, think about how you bank. If you use Bank of America's ATM network heavily, online banking, or mobile app, those features are available on all accounts. If you need to write checks frequently, make sure the account you choose allows it — regular savings accounts do not, but checking and money market accounts do.

Frequently Asked Questions

Does Bank of America charge a monthly fee on all accounts?

No. Core Checking and Regular Savings have no monthly fee. Advantage Banking and Advantage Savings charge monthly fees (typically $12 and $5 respectively) unless you meet certain conditions like maintaining a minimum balance or setting up direct deposit. Premium accounts waive fees if you are in the Preferred Rewards program.

What interest rate will I earn on a Bank of America savings account?

Interest rates vary by account tier and change frequently based on Federal Reserve decisions. Premium Savings and money market accounts in the Preferred Rewards program pay higher rates than basic savings accounts. Check Bank of America's website or call a branch for current rates, as they are not fixed and may change monthly.

Can I have multiple checking accounts at Bank of America?

Yes. You can open multiple checking accounts at Bank of America. Some people do this to separate spending categories or to take advantage of different fee structures. Each account is FDIC insured separately up to $250,000.

What is the minimum deposit to open a Bank of America account?

Most checking and savings accounts have no minimum opening deposit. Money market accounts typically require a higher opening deposit, often $2,500 or more. Exact minimums can change, so confirm with the bank before opening an account.

Is my money safe in a Bank of America account?

Checking and savings accounts are protected by FDIC insurance up to $250,000 per account holder per bank. This means if Bank of America fails, the federal government guarantees your deposits up to that limit. Money market accounts have the same protection.