Bank of America: Checking Accounts
With more than 5000 branches and 16,000+ ATMs, along with $2.1 trillion in assets,
Bank of America holds the position of second largest bank in the United States
(behind only JP Morgan Chase) and is firmly placed in the world’s top 20 financial
institutions.
Like other national and multi-national financial entities, Bank of America hosts a
vast array of products ranging from personal banking to retirement planning. With
at least one branch or ATM in almost every retail market in the continental US, Bank
of America is also able to put a face with their multi-trillion dollar industry.
Selecting the Right Checking Account for You
Bank of America’s online banking portal is both powerful and intuitive, providing a
user-friendly experience for all account holders. Access to this platform comes
standard with every Bank of America account, including their two checking options:
Bank of America Core Checking
Minimum to open: $5
Monthly fee: $12
The lower tier of their personal banking products, Bank of America’s Core Checking
account is as simple and straightforward as they come. The account can be opened
and linked with a Bank of America Regular Savings account, to provide easy access
to short- and long-term savings opportunities, along with overdraft protection. Like
all Bank of America products, the account also comes with online access and mobile
features, such as check deposits, account transfers and more. The monthly
maintenance fee can be waived when one of three conditions are met: having a
qualifying direct deposit of $250 per month sent to the account, maintaining an
average daily balance of at least $1500, or enrolling in Bank of America’s Preferred
Rewards program*. This account is also available to students (under the age of 23)
with a waived monthly fee, making it a viable student checking account.
Bank of America Interest Checking
Minimum to open: $100
Monthly fee: $25
The second tier of Bank of America checking products, their Interest Checking
account is designed for individuals who typically keep high balances in multiple
accounts and want a product that yields interest for their day-to-day needs.
Depending on the account balance, this checking account yields between .01-.03%,
with increased rates for higher balance tiers. In order to avoid the monthly fee,
account holders must have $10,000 in combined Bank of America account balances
(checking, savings, money market, CDs and IRAs) and Merrill Lynch investment
account balances. Alternatively, users can enroll in Bank of America’s Preferred
Rewards program*. This account also offers a few additional perks, such as no fees
for cashier’s checks or money orders, as well as free overdraft protection (from
linked accounts). It can also be linked for free with a Bank of America Rewards
Money Market Savings account, which yields a higher interest rate than the Regular
Savings account.
*Bank of America’s Preferred Rewards program requires a combined total of at least
$20,000 in all Bank of America and Merrill Lynch investment products to be eligible
for enrollment.
Fees & Service Charges
Like similar providers, Bank of America has a full coterie of fees and charges that
apply to various services, in addition to monthly maintenance fees for their
accounts. Their $35 overdraft and NSF (non-sufficient funds) charges is higher than
the national average, but can be mitigated with overdraft protection on linked
accounts. For debit card withdrawals at non-Bank of America ATMs, there is a $2.50
fee – also higher than many other financial institutions. Other common charges, such
as stop payments ($35), may be waived depending on the account holder’s
enrollment in the Preferred Reward programs or with a higher tiered account.
Online Banking
All the features of the online banking portal are easy to find and easy to use. You can sort your transactions right on the screen,
or else export them to play with in Excel. We especially like being able to transfer money between my accounts or pay bills at any time.
We also like that going paperless isn’t just an all or nothing feature. Instead, we can choose which types of communications to receive
online and which to receive in the mail.
ATMs
An ATM is an ATM, but Bank of America’s ATMs accept check deposits and then print the check image right on the receipt.
Also, the Bank of America ATM card proves useful while overseas, as they have several partners whose ATMs you can use with no extra fee.
Pros
- Powerful, easy-to-use online interface
- Mobile application (featuring mobile deposit, account transfers, etc.)
- Exceptionally dense market penetration in most of the continental US
- Lots of branches and ATMs
- Fast in-person service at branches
- Platinum Privileges benefits like free safety deposit box, free checks, free overdraft protection, dedicated customer service, etc.
Cons
- Limited account options
- Very high surcharge for non-Bank of America ATMs
- Above average fees for standard services
- Low interest rates for personal banking products (higher interest available at online banks
Bank of America Checking Accounts Review Summary
With any financial institution, there is a certain element of increased power as a
result of increased assets. Bank of America’s high market penetration has led to
great success, at the cost of the customer service and beneficial programs that a
smaller bank may offer to increase their competitive advantage. With only two
checking account options, Bank of America eliminates the customer’s ability to
right-size, instead offering a two-tiered approach that may (or may not) appeal to a
broad spectrum of customers. Additionally, with no need to compete on fees and
service charges, Bank of America can be a costly place for some individuals to do
business. In short, Bank of America is a financially stable institution that offers solid
products; however, customers looking for personalized attention, higher interest
rates, and more competitive offerings might consider looking elsewhere.
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