About Bank of America
Bank of America is a world class financial institution. They are ranked ninth on the Fortune 500 list, and consistently place among the top ten banks in the world. They have operations in all 50 US States, and in 40 other countries. Almost 300,000 people are employed by Bank of America, and they have nearly 6,000 banking centers around the United States. In fact, they account for 12.2% of all domestic deposits, and their annual revenue exceeds $150 billion.
Unlike credit unions, Bank of America is a publicly traded holding company under the stock ticker BAC. This makes them a for profit institution, and that mindset is very much reflected in their account offerings and particularly in their fees. Combined with other factors, both negative and positive, there is little middle ground in terms of customer opinion with Bank of America. People either hate them or love them, but fundamentally they are just a bank like any other.
Bank of America Regular Savings Account Review
Their basic savings account is aptly named the Regular Savings Account. It is a foundation account, in that it can be tied to or attached to a number of other accounts and services, such as overdraft protection. As it is a savings account, interest is earned on deposited funds. At the time of this writing the annual percentage yield (APY) of deposited funds was 0.01%.
Bank of America Regular Savings Account Fees
To open an account, a minimum deposit of $25 is required. However, this is somewhat misleading, as simply opening an account with $25 will result in a monthly maintenance fee of $5. This would be one of the reasons Bank of America is hated by some people. Additionally, the account is limited to three withdrawals per month. After that, there is a $3 fee imposed for each withdrawal, unless the minimum daily account balance is $2,500 or more.
Avoiding Bank of America Regular Savings Fees
There are a number of things one can do to prevent these fees, but in every case that prevention involves additional accounts with Bank of America, or larger account balances in the BOFA Regular Savings Account. For example, any monthly automatic transfer of $25 or more will prevent the monthly maintenance fee. One could open a checking account, and simply arrange an automated transfer of $25 from one account to the other, but this can be tedious, and is really an unnecessary inconvenience imposed by the bank.
Other methods for avoiding the fees are typical of most banks, such as maintaining a minimum balance. In this case, $300, but there is a big difference between maintaining the monthly minimums many other banks charge and the daily minimums required by Bank of America. Lastly, the account can be linked to the Bank of America Advantage with Tiered Interest Checking Account. While this avoids fees on the savings account, the $25 minimum balance fee simply reappears in the checking account, and can actually be assessed against both accounts if the minimum requirements are not met each.
This is not to say that the account is bad. Rather, it is to say that the account is not for everyone. For example, if it is a starter savings account for a child, there are much better options elsewhere. Alternatively, if it is a short term savings account where online access and features are important, and the minimum balances are not a concern, then the account will work fine.
Bank of America Regular Savings Security
Another thing to consider is that Bank of America has consistently received outstanding ratings for their security in terms of Internet Banking. They have won awards year after year for innovative online systems that have set industry standards for security. While these systems are also supported by a wide range of phone options, the sheer number of accounts, options, and details when calling can leave some people lost, and so may not be for everyone.
As an example, if account details are entered incorrectly a number of times, one can be locked out of their account and need to call the bank hotline to correct the problem. Calling in forces one to wade through menu options before an operator is reached, and can be extremely frustrating to those who are not familiar with the technology or in a hurry.
In summary, your money is safe, according to the terms of the account, but you might not always be able to access it online if you aren’t technically savvy or willing to wade through call center menus.
Likewise the minimum account balances may be something that savvy investors will prefer to invest elsewhere at a higher rate of return
particularly in light of the exorbitant monthly maintenance fees.
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