What Bank of America Offers and Who It Works Best For

Bank of America is a large national bank with broad services, but whether it suits you depends on what you need and how you bank

Bank of America operates nearly 4,000 branches and 15,000 ATMs across the United States, making it one of the largest banks by branch count. The bank offers checking and savings accounts, credit cards, mortgages, investment services, and business banking. Whether it is a good fit for you depends on your banking habits, how much you keep on deposit, and what fees matter most to your situation.

The bank's strength is convenience — if you travel or live in multiple states, the branch and ATM network means you can handle banking in person almost anywhere. Its weakness is fees. Bank of America charges monthly maintenance fees on most accounts unless you meet balance or deposit requirements, and out-of-network ATM fees are higher than some competitors. The bank also does not offer the highest interest rates on savings accounts or money market accounts compared to online-only banks.

Key Takeaways

• Bank of America charges $12 to $15 monthly maintenance fees on most checking accounts unless you maintain a minimum balance or set up direct deposit.
• The bank's main advantage is its large branch and ATM network, which matters most if you need in-person banking or travel frequently.
• Savings account interest rates at Bank of America are typically lower than rates offered by online banks or credit unions.
• Bank of America offers investment and wealth management services that may be useful if you have significant assets, but these come with higher account minimums.

Monthly fees and how to avoid them

Bank of America's checking account comes with a $12 monthly maintenance fee unless you meet one of three conditions: keep a $1,500 minimum daily balance, set up direct deposit of at least $250 per month, or maintain a linked savings account with a $300 minimum balance. For many people, the direct deposit requirement is easiest to meet if your employer offers it.

The bank's savings account carries a $5 monthly fee unless you keep a $300 minimum balance. These fees are higher than what you will find at online banks like Ally or Marcus, which typically charge no monthly fees at all. If you carry low balances or do not have direct deposit, the fees add up quickly — $144 per year on a checking account alone.

Bank of America also charges $2.50 per transaction when you use an out-of-network ATM, plus whatever fee the other bank charges. If you use ATMs frequently outside the Bank of America network, this becomes expensive. The bank's own ATM network is large, but not universal — you may still encounter out-of-network fees depending on where you live or travel.

When Bank of America's branch network matters

The main reason to choose Bank of America over an online bank is physical access. If you need to deposit checks in person, speak to someone face-to-face about a loan, or handle banking while traveling, the 4,000-branch network is a real advantage. This matters most if you do not have reliable internet access, prefer in-person service, or travel frequently within the United States.

For people who bank entirely online and never need a branch, this advantage disappears. Online banks like Ally, Charles Schwab, and Discover offer no monthly fees, higher interest rates, and nationwide ATM networks through partnerships. If you are comfortable depositing checks by phone camera and managing accounts through an app, you will likely pay less at an online bank.

Interest rates compared to other banks

Bank of America's savings account interest rate varies by account type and changes based on Federal Reserve decisions. As of recent months, the rate has been significantly lower than what online banks offer. For example, online savings accounts at banks like Ally or Marcus have offered rates two to three times higher than Bank of America's standard savings account.

If you keep a large balance in savings, the difference in interest compounds over time. A $10,000 balance earning 0.01% at Bank of America generates roughly $1 per year in interest, while the same balance at an online bank earning 4% or higher generates $400 or more annually. Credit unions often offer competitive rates as well, especially if you are a member.

Bank of America does offer a Money Market Account with a higher interest rate, but it requires a larger minimum balance — typically $2,500 or more — and still does not match online bank rates.

Investment and wealth management services

Bank of America offers investment accounts, brokerage services, and wealth management through its Merrill Edge and Merrill Wealth divisions. These services are useful if you want to invest in stocks, bonds, or mutual funds through the same institution where you bank. The bank also offers financial advisory services for customers with significant assets.

However, these services come with higher account minimums and fees. Merrill Wealth management typically requires $250,000 or more in assets to access. If you have a smaller investment portfolio, you may find lower-cost options through discount brokers like Fidelity, Schwab, or Vanguard, or through robo-advisors that charge lower fees.

Credit card options and rewards

Bank of America offers several credit cards with different rewards structures — cash back, travel rewards, and cards for specific spending categories. The bank's cards are competitive but not exceptional. Many cards charge annual fees, and the rewards rates are similar to what other major banks offer.

If you already bank with Bank of America, a credit card from the same bank can simplify account management and may offer small bonuses for existing customers. However, if rewards or low fees are your priority, you may find better terms elsewhere. Compare the specific card's annual fee, rewards rate, and sign-up bonus against cards from other issuers before deciding.

Who Bank of America works best for

Bank of America is a reasonable choice if you value branch access, travel frequently within the United States, or prefer to keep all your banking and investing in one place. It works well for people who have direct deposit set up, maintain minimum balances easily, or need in-person service regularly.

Bank of America is less suitable if you want the lowest fees, the highest interest rates, or plan to bank entirely online. If you rarely visit a branch, do not have direct deposit, and keep modest balances, an online bank or credit union will likely cost you less over time.

Frequently Asked Questions

Can I avoid Bank of America's monthly checking fee?

Yes. Set up direct deposit of at least $250 per month, maintain a $1,500 minimum daily balance, or link a savings account with a $300 minimum balance. Direct deposit is the easiest option for most people with regular paychecks.

Does Bank of America offer ATM access outside its network?

Bank of America charges $2.50 per transaction at out-of-network ATMs, plus any fee the other bank charges. Some online banks like Charles Schwab reimburse out-of-network ATM fees, which can save money if you travel or live in areas with few Bank of America ATMs.

What is the interest rate on Bank of America savings accounts?

Bank of America's savings account interest rate changes with Federal Reserve decisions and is typically lower than online banks. Check the bank's website for the current rate, but expect it to be significantly less than what Ally, Marcus, or other online savings banks offer.

Is Bank of America good for investing?

Bank of America offers investment services through Merrill Edge and Merrill Wealth, but fees and account minimums are higher than discount brokers like Fidelity or Schwab. Compare the specific services and costs against standalone investment firms before deciding.

Should I switch from Bank of America to an online bank?

If you rarely use branches, do not have direct deposit, and want lower fees and higher interest rates, an online bank will likely cost less. If you need in-person service, travel frequently, or value having everything in one place, Bank of America's convenience may be worth the higher fees.