Avoiding Fees on Your Bank of America Savings Account

Quick answer

• Understand the minimum balance requirement for your specific account.
• Set up an automatic transfer from a BoA checking account to cover potential fees.
• Link your savings account to a BoA checking account to waive monthly maintenance fees.
• Opt for paperless statements to avoid potential paper statement fees.
• Be mindful of transaction limits to prevent excessive withdrawal fees.
• Regularly review your account statements for any unexpected charges.

Who this is for

• Bank of America customers who want to avoid monthly maintenance fees on their savings accounts.
• Individuals looking for simple, actionable steps to manage their BoA savings account effectively.
• Anyone seeking to maximize their savings by preventing unnecessary charges from eroding their balance.

What to check first (before you act)

Your Account Type and Fee Structure

Different Bank of America savings accounts have varying fee structures and requirements. Before taking any action, identify the exact type of savings account you have. This information is typically found on your account statements, in your online banking portal, or by contacting Bank of America directly. Knowing your specific account’s rules is the first step to avoiding fees.

Current Balance and Minimum Requirements

Many savings accounts, including some at Bank of America, waive monthly maintenance fees if you maintain a minimum daily balance. Check the official requirements for your account. If your current balance frequently dips below this threshold, you may be subject to fees.

Existing BoA Checking Account Relationship

Bank of America often offers fee waivers for savings accounts when linked to a qualifying checking account from the same institution. Determine if you have a BoA checking account and if it meets the criteria for waiving savings account fees. This is a common and effective strategy for many customers.

Your Savings Goals and Timeline

Consider why you are saving and when you might need access to these funds. This can influence how you manage your account. For example, if you need to access funds frequently, you might be more prone to exceeding transaction limits, which can incur fees. Understanding your goals helps you anticipate potential fee-generating activities.

Emergency Fund Status

Your savings account might serve as your emergency fund. If so, ensure it has enough buffer to cover unexpected expenses without falling below minimum balance requirements or triggering other fees. A robust emergency fund is crucial for financial stability and can indirectly help you avoid savings account fees.

Step-by-step (simple workflow)

1. Identify Your Specific Savings Account:

• What to do: Log in to your Bank of America online banking or check a recent statement to find the exact name of your savings account (e.g., Savings Account, Advantage Savings).
• What “good” looks like: You know the precise name and terms of your savings account.
• Common mistake: Assuming all BoA savings accounts have the same rules.
• How to avoid it: Verify directly with your account documentation or BoA.

2. Review the Monthly Maintenance Fee Waiver Conditions:

• What to do: Locate the fee schedule for your specific account. Look for requirements like minimum balance, linked accounts, or other conditions that waive the monthly fee.
• What “good” looks like: You clearly understand what you need to do to avoid the monthly maintenance fee.
• Common mistake: Not knowing the specific waiver conditions.
• How to avoid it: Read the official account disclosures or ask a banker.

3. Check Your Current Average Daily Balance:

• What to do: Monitor your account balance over a typical month. If a minimum balance requirement exists, ensure your balance consistently stays above it.
• What “good” looks like: Your balance stays above the required minimum daily balance throughout the month.
• Common mistake: Letting the balance drop below the minimum, even for a short period.
• How to avoid it: Set a reminder or use alerts to notify you if your balance gets too low.

4. Link to a BoA Checking Account (if applicable):

• What to do: If you have a Bank of America checking account that qualifies for fee waivers, link your savings account to it. This often waives the savings account’s monthly fee.
• What “good” looks like: Your savings account is successfully linked to a qualifying checking account, and you receive confirmation of the fee waiver.
• Common mistake: Not realizing a linked checking account is an option or not having a qualifying checking account.
• How to avoid it: Inquire with Bank of America about the benefits of linking accounts.

5. Set Up Automatic Transfers:

• What to do: If maintaining a minimum balance is challenging, set up a recurring automatic transfer from your BoA checking account to your savings account to ensure it stays above the required threshold.
• What “good” looks like: Funds are automatically moved to your savings account, keeping it at or above the minimum balance.
• Common mistake: Forgetting to manually transfer funds or relying on infrequent deposits.
• How to avoid it: Automate the process to remove the possibility of human error.

6. Opt for Paperless Statements:

• What to do: Go into your online banking settings and select “paperless” or “e-statements” for your savings account.
• What “good” looks like: You receive your statements electronically via email or online, and there’s no paper statement fee.
• Common mistake: Continuing to receive paper statements when a fee is associated with them.
• How to avoid it: Actively change your statement preference in your account settings.

7. Monitor Transaction Activity:

• What to do: Be aware of the number of withdrawals or transfers you make from your savings account each month. Some accounts have limits before fees apply.
• What “good” looks like: You stay within the allowed number of transactions, avoiding excess withdrawal fees.
• Common mistake: Making frequent withdrawals or transfers without tracking them.
• How to avoid it: Use your savings account primarily for saving, and use your checking account for daily transactions.

8. Review Account Statements Regularly:

• What to do: At the end of each statement cycle, review your statement for any fees that may have been charged.
• What “good” looks like: You identify any unexpected fees promptly.
• Common mistake: Not checking statements and missing fee charges.
• How to avoid it: Make reviewing your statement a monthly habit.

9. Contact Bank of America if Unsure:

• What to do: If you have any questions about your account, fees, or waiver conditions, reach out to Bank of America customer service or visit a branch.
• What “good” looks like: You have received clear answers and feel confident about managing your account to avoid fees.
• Common mistake: Guessing about account rules or fees.
• How to avoid it: Always seek clarification from the official source.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not knowing your account type	You might follow the wrong fee waiver rules, leading to unexpected charges.	Identify your exact account type and review its specific terms and conditions.
Ignoring minimum balance requirements	Monthly maintenance fees will be charged, reducing your savings balance.	Consistently monitor your balance and ensure it stays above the required minimum daily balance, or set up automatic transfers.
Not linking to a qualifying checking account	You may miss out on a simple way to waive monthly maintenance fees.	Check if your BoA checking account qualifies for linking and fee waivers. If not, consider opening one or maintaining the minimum balance.
Making too many withdrawals/transfers	You could incur excessive withdrawal fees, especially if your account has transaction limits.	Use your savings account for saving and your checking account for frequent transactions. Track your transactions to stay within limits.
Forgetting to set up automatic transfers	Your balance might dip below the minimum, triggering fees.	Automate transfers from your checking to savings account to ensure the minimum balance is always met.
Continuing to receive paper statements	If your account has a paper statement fee, you’ll continue to be charged.	Switch to paperless statements through your online banking portal.
Not reviewing statements regularly	Unnoticed fees can accumulate, eating into your savings over time.	Make a habit of reviewing your monthly statements for any discrepancies or unexpected charges.
Assuming fee structures are universal	You might be subject to fees that could have been avoided if you knew the specific rules for your account.	Always refer to the official fee schedule for your specific account type.
Not understanding overdraft protection rules	If your savings account is linked for overdraft protection, unexpected transfers could incur fees.	Understand how overdraft protection works and its associated fees. Consider disabling it if you don’t need it for your savings account.
Relying solely on memory for fee avoidance	It’s easy to forget specific dates or balance requirements, leading to fees.	Implement automated systems (like transfers) and set reminders for critical tasks.

Decision rules (simple if/then)

• If your Bank of America savings account has a monthly maintenance fee, then check the waiver conditions because different accounts have different requirements.
• If you have a Bank of America checking account, then explore linking it to your savings account because this often waives savings account fees.
• If your average daily balance tends to fall below the minimum requirement, then set up automatic transfers from your checking account because this ensures you meet the balance threshold.
• If your account has a per-item fee for paper statements, then switch to paperless statements because this eliminates that specific charge.
• If you frequently need to access funds from your savings account, then monitor your transaction count because exceeding limits can result in fees.
• If you are unsure about a specific fee or waiver, then contact Bank of America customer service because they can provide accurate information about your account.
• If your primary goal is to grow savings without incurring fees, then prioritize meeting the minimum balance or linked account requirements because these are the most common fee waivers.
• If you notice a fee on your statement that you believe is incorrect, then dispute it with Bank of America promptly because timely action is often required.
• If you are considering opening a new savings account with Bank of America, then review the fee structure and waiver options before opening because you can choose an account that best fits your needs.
• If your savings account is also used for overdraft protection, then understand the associated fees because these transfers can sometimes trigger charges.
• If you’ve made a significant deposit, then ensure it pushes your balance above the minimum requirement for the entire statement cycle because some waivers are based on average daily balance.
• If you are a student, then check for student-specific account benefits, as some accounts may have different fee structures or waivers.

FAQ

Q: What is the most common fee on a Bank of America savings account?

A: The most common fee is the monthly maintenance fee. This fee is typically waived if you meet certain requirements, such as maintaining a minimum balance or linking your account to a qualifying BoA checking account.

Q: How can I avoid the monthly maintenance fee on my Bank of America savings account?

A: You can usually avoid the monthly maintenance fee by maintaining a minimum daily balance, linking your savings to a qualifying BoA checking account, or by meeting other specific criteria outlined in your account’s fee schedule.

Q: Are there limits on how many times I can withdraw money from my Bank of America savings account?

A: Yes, many savings accounts have a limit on certain types of withdrawals or transfers per month. Exceeding these limits can result in excess transaction fees. It’s best to use your checking account for frequent transactions.

Q: Does Bank of America charge a fee for paper statements?

A: Some Bank of America savings accounts may charge a fee for paper statements. Opting for paperless statements through online banking will typically avoid this fee.

Q: What happens if my Bank of America savings account balance drops below the minimum requirement?

A: If your account balance falls below the specified minimum daily balance requirement, Bank of America may charge a monthly maintenance fee.

Q: Can I link my savings account to my BoA checking account to avoid fees?

A: Yes, linking your Bank of America savings account to a qualifying Bank of America checking account is a common way to have the monthly maintenance fee waived. Check with BoA for specific account eligibility.

Q: How do I find out the specific fee requirements for my Bank of America savings account?

A: You can find this information in your account’s official fee schedule, by logging into your online banking portal, or by contacting Bank of America customer service directly.

Q: Are there fees for overdrafts on a savings account?

A: If your savings account is linked to your checking account for overdraft protection, there may be fees associated with those transfers. Understand these rules to avoid unexpected charges.

What this page does NOT cover (and where to go next)

• Specific interest rates and APYs: This guide focuses on fees. For current interest rates, check Bank of America’s official website or speak with a banker.
• Investment advice: This page is about managing a savings account, not investing in stocks, bonds, or other securities. Consult a financial advisor for investment guidance.
• Opening new accounts: While we touch on linking accounts, detailed information on opening different types of Bank of America accounts (checking, money market, CDs) is beyond the scope here.
• International transaction fees: This guide focuses on domestic account management. Fees for international transactions or banking abroad are not covered.
• Tax implications of savings account interest: While interest earned is generally taxable, specific tax advice should come from a qualified tax professional.