Bank of America fees are charges for services, transactions, or account maintenance. At bankprofits.net, we will help you understand these fees, so you can make informed financial decisions and potentially minimize costs, while maximizing your banking profits. Let’s explore the different types of fees, how to avoid them, and how Bank of America’s fee structure compares to other banks.
1. What Are the Most Common Bank of America Fees?
The most common Bank of America fees include monthly maintenance fees, overdraft fees, ATM fees, and wire transfer fees. Understanding each of these can help you manage your account more effectively and avoid unexpected charges.
1.1. Monthly Maintenance Fees
Monthly maintenance fees are charged to keep your account open. These fees vary depending on the account type. For example, Advantage Plus Banking® has a $12 monthly fee, while Advantage Savings has an $8 monthly fee.
- How to avoid it: You can typically waive these fees by meeting certain requirements, such as maintaining a minimum daily balance, receiving direct deposits of a certain amount, or being enrolled in Preferred Rewards.
1.2. Overdraft Fees
Overdraft fees occur when you spend more money than you have in your account. Bank of America charges $35 for each overdraft transaction, up to a maximum of four fees per day.
- How to avoid it: Enroll in Balance Connect for overdraft protection, which transfers funds from a linked account. Another option is to use the Keep the Change program, which rounds up debit card purchases to the nearest dollar and transfers the difference to your savings account, helping you build a buffer.
1.3. ATM Fees
ATM fees are charged when you use an ATM that is not part of Bank of America’s network. Bank of America charges $2.50 for each out-of-network ATM withdrawal in the U.S., and $5 for international ATM withdrawals, plus a 3% international transaction fee.
- How to avoid it: Use Bank of America ATMs or partner ATMs to avoid these fees. Bank of America also has partnerships with international banks, allowing fee-free withdrawals in certain countries.
1.4. Wire Transfer Fees
Wire transfer fees are charged when you send money electronically to another bank. Bank of America charges $15 for incoming domestic wire transfers and $45 for outgoing domestic wire transfers. International wire transfer fees vary depending on the currency and destination.
- How to avoid it: Consider using alternative money transfer services like Zelle® for fee-free transfers to other Bank of America customers or those at participating banks.
1.5. Other Potential Fees
Other potential fees include stop payment fees ($32), returned item fees ($35), and paper statement fees ($3).
- How to avoid it: Set up electronic statements to avoid paper statement fees and double-check account details before making payments to avoid returned item fees.
2. What Are Bank of America’s International Fees?
Bank of America’s international fees include transaction fees and ATM usage fees. These fees can significantly impact your spending while traveling abroad.
2.1. International Transaction Fees
International transaction fees are charged when you use your debit or credit card to make purchases in a foreign currency. Bank of America typically charges a 3% fee on the converted U.S. dollar amount for each transaction.
- How to avoid it: Use a credit card with no international transaction fees or withdraw cash from ATMs of partner banks to reduce fees.
2.2. International ATM Usage Fees
International ATM usage fees include a $5 fee for each withdrawal, transfer, or balance inquiry at non-Bank of America ATMs, plus the ATM operator access fee and the 3% international transaction fee.
- How to avoid it: Use Bank of America’s partner ATMs to avoid the $5 usage fee. Partner banks include Barclays in the UK, BNP Paribas in France, and Scotiabank in various countries across the Americas.
2.3. Currency Conversion Fees
Currency conversion fees may be applied when you withdraw money from an international ATM. Foreign ATM operators may offer to do the currency conversion for you, but they may charge a higher fee.
- How to avoid it: Refuse the ATM operator’s offer to convert the amount of the transaction to ensure that your currency conversion does not incur a fee higher than 3%.
3. How Can You Avoid Bank of America Fees?
Avoiding Bank of America fees involves understanding the fee structure and taking proactive steps to manage your accounts effectively.
3.1. Maintain Minimum Balances
Maintaining minimum balances in your checking and savings accounts is one of the easiest ways to waive monthly maintenance fees. The required minimum balance varies depending on the account type.
- Advantage Plus Banking®: Maintain a combined average daily balance of $5,000 across linked accounts to waive the $12 monthly fee.
- Advantage Savings: Maintain a minimum daily balance of $500 to waive the $8 monthly fee.
3.2. Set Up Direct Deposit
Setting up direct deposit can also help you avoid monthly maintenance fees. For example, the Advantage Plus Banking® account waives the monthly fee if you receive direct deposits of at least $250 each month.
- Benefits of Direct Deposit: Direct deposit ensures that your income is automatically deposited into your account, helping you meet the requirements to waive fees.
3.3. Use Bank of America ATMs
Using Bank of America ATMs for withdrawals and balance inquiries can help you avoid out-of-network ATM fees. Bank of America has a large network of ATMs across the United States.
- ATM Locator: Use Bank of America’s ATM locator tool on their website or mobile app to find the nearest ATM.
Alternative text: Person using a Bank of America ATM to withdraw cash, emphasizing convenience and accessibility.
3.4. Enroll in Overdraft Protection
Enrolling in overdraft protection services can help you avoid overdraft fees. Bank of America offers several options, including Balance Connect and Keep the Change.
- Balance Connect: This service transfers funds from a linked account to cover overdrafts.
- Keep the Change: This program rounds up debit card purchases and transfers the difference to your savings account, building a buffer to prevent overdrafts.
3.5. Monitor Your Account Regularly
Monitoring your account regularly can help you identify and address potential issues before they result in fees.
- Online Banking: Use Bank of America’s online banking platform or mobile app to check your account balance and transaction history.
- Alerts: Set up alerts to notify you when your balance falls below a certain level or when a large transaction occurs.
3.6. Avoid Paper Statements
Opting for electronic statements can help you avoid paper statement fees. Bank of America charges a $3 fee for paper statements.
- How to Switch to E-Statements: Log in to your online banking account and change your statement delivery preference to electronic.
3.7. Use Zelle® for Transfers
Using Zelle® for money transfers can help you avoid wire transfer fees. Zelle® allows you to send and receive money for free with other Bank of America customers and those at participating banks.
- Benefits of Zelle®: Zelle® offers a convenient and fee-free way to transfer money to friends and family.
4. What Are Bank of America’s Account-Specific Fees?
Bank of America offers various account types, each with its own fee structure. Understanding the fees associated with each account can help you choose the best option for your needs.
4.1. Advantage Plus Banking® Fees
Advantage Plus Banking® is a checking account with a $12 monthly maintenance fee.
- How to waive:
- Maintain a combined average daily balance of $5,000 across linked accounts.
- Receive direct deposits of at least $250 each month.
- Enroll in Preferred Rewards.
4.2. Advantage SafeBalance Banking® Fees
Advantage SafeBalance Banking® is a checking account designed to help you avoid overdraft fees. It has a $4.95 monthly maintenance fee.
- How to waive:
- Be under 25 years old.
- Enroll in Preferred Rewards.
4.3. Advantage Relationship Banking® Fees
Advantage Relationship Banking® is a premium checking account with a $25 monthly maintenance fee.
- How to waive:
- Maintain a combined average daily balance of $20,000 across linked accounts.
- Enroll in Preferred Rewards Platinum tier or higher.
4.4. Advantage Savings Fees
Advantage Savings is a savings account with an $8 monthly maintenance fee.
- How to waive:
- Maintain a minimum daily balance of $500.
- Link the account to an Advantage Relationship Banking® account.
- Enroll in Preferred Rewards.
- Be under 18 years old.
4.5. Credit Card Fees
Bank of America offers a variety of credit cards, each with its own fee structure. Common credit card fees include annual fees, late payment fees, and cash advance fees.
- Annual Fees: Some Bank of America credit cards charge an annual fee, while others do not.
- Late Payment Fees: Late payment fees are charged when you fail to make your minimum payment by the due date.
- Cash Advance Fees: Cash advance fees are charged when you use your credit card to withdraw cash from an ATM.
5. How Do Bank of America Fees Compare to Other Banks?
Comparing Bank of America fees to those of other banks can help you determine whether you are getting a good deal. Different banks have different fee structures, so it’s important to shop around and compare.
5.1. Monthly Maintenance Fees Comparison
Many banks charge monthly maintenance fees, but the amounts vary. Some banks, like Chase and Wells Fargo, have similar fee structures to Bank of America. Online banks, like Ally Bank and Capital One 360, often offer accounts with no monthly fees.
| Bank | Checking Account | Monthly Fee | How to Waive |
|---|---|---|---|
| Bank of America | Advantage Plus Banking® | $12 | $5,000 combined balance, $250 direct deposit, or Preferred Rewards |
| Chase | Chase Total Checking® | $12 | $1,500 minimum daily balance, $500 in direct deposits, or $5,000 combined balance |
| Wells Fargo | Wells Fargo Everyday Checking® | $10 | $500 minimum daily balance, $500 in direct deposits, or 10 debit card purchases |
| Ally Bank | Interest Checking | $0 | No monthly fee |
| Capital One 360 | 360 Checking® | $0 | No monthly fee |
5.2. Overdraft Fees Comparison
Overdraft fees are a common source of frustration for bank customers. Bank of America charges $35 per overdraft transaction, which is similar to many other large banks. However, some banks offer lower fees or alternative overdraft protection options.
| Bank | Overdraft Fee | Overdraft Protection Options |
|---|---|---|
| Bank of America | $35 | Balance Connect, Keep the Change |
| Chase | $34 | Overdraft Protection, Chase Debit Card Coverage |
| Wells Fargo | $35 | Overdraft Protection, Debit Card Overdraft Service |
| Ally Bank | $0 | CoverDraft (up to $250 with no fee) |
| Capital One 360 | $0 | No-Fee Overdraft (eligible customers) |
5.3. ATM Fees Comparison
ATM fees can add up quickly if you frequently use out-of-network ATMs. Bank of America charges $2.50 for domestic out-of-network ATM withdrawals and $5 for international withdrawals. Online banks often reimburse ATM fees, making them a good option for frequent travelers.
| Bank | Domestic Out-of-Network ATM Fee | International ATM Fee |
|---|---|---|
| Bank of America | $2.50 | $5 + 3% transaction fee |
| Chase | $2.50 | $5 + 3% transaction fee |
| Wells Fargo | $2.50 | $5 + 3% transaction fee |
| Ally Bank | Up to $10 reimbursement | Up to $10 reimbursement |
| Capital One 360 | No fee at Allpoint ATMs | No fee at Allpoint ATMs |
5.4. Wire Transfer Fees Comparison
Wire transfer fees can be expensive, especially for international transfers. Bank of America charges $15 for incoming domestic wire transfers and $45 for outgoing domestic wire transfers. Online services like Wise (formerly TransferWise) and Xoom often offer lower fees for international transfers.
| Bank | Incoming Domestic Wire Transfer | Outgoing Domestic Wire Transfer |
|---|---|---|
| Bank of America | $15 | $45 |
| Chase | $15 | $25 – $30 |
| Wells Fargo | $15 | $30 |
| Wise | Varies | Varies |
6. What is Bank of America’s Preferred Rewards Program?
Bank of America’s Preferred Rewards program offers benefits and perks to customers based on their banking relationship. Enrolling in this program can help you waive fees and access additional services.
6.1. Eligibility and Tiers
The Preferred Rewards program has four tiers: Gold, Platinum, Platinum Honors, and Diamond. Eligibility is based on your combined balances in Bank of America deposit accounts and Merrill investment accounts.
- Gold: $20,000 to $49,999
- Platinum: $50,000 to $99,999
- Platinum Honors: $100,000 to $999,999
- Diamond: $1,000,000 or more
6.2. Benefits of Preferred Rewards
Benefits of the Preferred Rewards program include:
- Bonus Rewards: Earn bonus rewards on Bank of America credit cards.
- Interest Rate Boosts: Receive interest rate boosts on Bank of America savings accounts.
- Fee Waivers: Waive monthly maintenance fees on checking and savings accounts.
- Mortgage and Auto Loan Discounts: Receive discounts on mortgage and auto loan interest rates.
- Dedicated Service: Access dedicated service and support.
6.3. How to Enroll
To enroll in the Preferred Rewards program, you must have an eligible Bank of America checking account and meet the balance requirements. You can enroll online or at a Bank of America branch.
7. What Are Some Alternatives to Bank of America?
If you are unhappy with Bank of America’s fees or services, there are several alternative banks to consider.
7.1. Online Banks
Online banks like Ally Bank, Capital One 360, and Discover Bank often offer accounts with no monthly fees and competitive interest rates.
- Benefits of Online Banks:
- No monthly fees
- Competitive interest rates
- Convenient online and mobile banking
7.2. Credit Unions
Credit unions are not-for-profit financial institutions that often offer lower fees and better interest rates than traditional banks.
- Benefits of Credit Unions:
- Lower fees
- Better interest rates
- Personalized service
7.3. Regional Banks
Regional banks may offer a good balance between the convenience of a large bank and the personalized service of a community bank.
- Benefits of Regional Banks:
- Competitive fees
- Personalized service
- Local presence
8. How Does Bank of America Handle Overdraft Fees?
Bank of America has faced scrutiny over its overdraft fee policies. Understanding these policies can help you avoid unexpected charges.
8.1. Overdraft Fee Amount
Bank of America charges $35 for each overdraft transaction, up to a maximum of four fees per day.
8.2. Overdraft Protection Options
Bank of America offers several overdraft protection options, including:
- Balance Connect: Transfers funds from a linked account to cover overdrafts.
- Keep the Change: Rounds up debit card purchases and transfers the difference to your savings account.
- Overdraft Coverage: Allows you to overdraw your account, but you will be charged an overdraft fee.
8.3. Recent Changes to Overdraft Policies
In recent years, Bank of America has made changes to its overdraft policies, including:
- Eliminating non-sufficient funds (NSF) fees: NSF fees are charged when a payment is returned due to insufficient funds.
- Reducing the overdraft fee amount: Bank of America reduced its overdraft fee from $35 to $10 in 2022.
- Offering Balance Assist: A low-cost loan option to cover short-term cash needs.
Alternative text: Illustration showing Bank of America’s overdraft protection options, highlighting Balance Connect and Keep the Change services.
9. What Are the Key Takeaways on Bank of America Fees?
Understanding Bank of America fees is crucial for managing your finances effectively. Here are some key takeaways:
9.1. Know Your Account Fees
Be aware of the fees associated with your Bank of America accounts, including monthly maintenance fees, overdraft fees, and ATM fees.
9.2. Take Steps to Avoid Fees
Take proactive steps to avoid fees, such as maintaining minimum balances, setting up direct deposit, and using Bank of America ATMs.
9.3. Consider Alternative Banks
If you are unhappy with Bank of America’s fees, consider alternative banks that offer lower fees or better services.
9.4. Monitor Your Account Regularly
Monitor your account regularly to identify and address potential issues before they result in fees.
9.5. Utilize Preferred Rewards
Take advantage of Bank of America’s Preferred Rewards program to waive fees and access additional benefits.
10. Frequently Asked Questions (FAQs) About Bank of America Fees
Here are some frequently asked questions about Bank of America fees:
10.1. What is the monthly maintenance fee for Bank of America Advantage Plus Banking®?
The monthly maintenance fee for Bank of America Advantage Plus Banking® is $12.
10.2. How can I waive the monthly maintenance fee on my Bank of America checking account?
You can waive the monthly maintenance fee by maintaining a minimum balance, setting up direct deposit, or enrolling in Preferred Rewards.
10.3. What is the overdraft fee at Bank of America?
The overdraft fee at Bank of America is $35 per transaction.
10.4. How can I avoid overdraft fees at Bank of America?
You can avoid overdraft fees by enrolling in overdraft protection services like Balance Connect or Keep the Change.
10.5. What is the fee for using an out-of-network ATM with my Bank of America debit card?
The fee for using an out-of-network ATM in the U.S. is $2.50. For international ATM withdrawals, the fee is $5 plus a 3% international transaction fee.
10.6. Does Bank of America charge a fee for paper statements?
Yes, Bank of America charges a $3 fee for paper statements.
10.7. What is Zelle®, and how can it help me avoid fees at Bank of America?
Zelle® is a free money transfer service that allows you to send and receive money with other Bank of America customers and those at participating banks. Using Zelle® can help you avoid wire transfer fees.
10.8. What is Bank of America’s Preferred Rewards program?
Bank of America’s Preferred Rewards program offers benefits and perks to customers based on their banking relationship. Benefits include bonus rewards, interest rate boosts, and fee waivers.
10.9. How do I enroll in Bank of America’s Preferred Rewards program?
To enroll, you must have an eligible Bank of America checking account and meet the balance requirements. You can enroll online or at a Bank of America branch.
10.10. Are there any alternatives to Bank of America that offer lower fees?
Yes, online banks like Ally Bank and Capital One 360, as well as credit unions, often offer lower fees and better interest rates than traditional banks.
Understanding bank fees is essential for financial health. By being informed and proactive, you can minimize expenses and maximize your banking profits. For more in-depth analysis, effective strategies, and valuable insights into bank profitability, visit bankprofits.net today. Contact us at Address: 33 Liberty Street, New York, NY 10045, United States or call us at Phone: +1 (212) 720-5000.
