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Bank of America Advantage Savings Review: Good for Branch and ATM Access, but APY Is Near-Zero

Review Updated
Dana George
Robin Hartill, CFP
By: Dana George
Dana George
Dana George
Writer

Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.

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 and  Robin Hartill, CFP
Robin Hartill, CFP
Robin Hartill, CFP
Writer

Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column. She is based in St. Petersburg, Florida.

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Our Banking Experts

Nathan Alderman
Check IconFact Checked Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Our quick take: The Bank of America Advantage Savings is best-suited for those who want the stability and convenience associated with banking at Bank of America, but aren't especially concerned about APY.

  • Our team of experts assessed 100+ banking institutions
  • We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
  • Our bank ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.

Ratings Methodology
Rates as of Oct 03, 2024

Bank of America Advantage Savings

Member FDIC.
Rating image, 2.50 out of 5 stars.
2.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 2.50 out of 5 stars.
2.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
APY
0.01% Rate info Circle with letter I in it. Preferred Rewards members are eligible for higher APY. Gold tier earns 0.02%, Platinum earns 0.03%, and Platinum Honors earns 0.04%.
Min. To Earn APY
N/A
  • FDIC insured 
  • Large network of local branches
  • Relationship benefits for Preferred Rewards members
  • Mobile check deposits
  • Low APY
  • Only one savings account option
  • Monthly fee unless you meet monthly requirements
  • Requires a $100 minimum opening deposit

Bank of America Advantage Savings does not earn a competitive APY, even for Preferred Rewards members, and it carries a monthly fee except for minor and college students under 25 years of age. Still, the savings account is a viable option for those wanting in-person local banking or an account with an established big bank.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.50%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
4.83%
Rate info Circle with letter I in it. To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
N/A
4.10%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Sept. 27, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

We tried it: Our team's firsthand experience

Here at The Motley Fool Ascent, we pride ourselves as real users of most of the products across our site. One of our writers, Robin Hartill, uses the Bank of America Advantage Savings account herself.

Here's Robin's experience:

When I was 16 and had my first job, my mom took me to Bank of America, where I opened my first checking and savings accounts. I still have both of those accounts today, mostly out of convenience. Most of my liquid savings is parked in a high-yield savings account, but tapping that money can be a bit of a headache.

I've saved several thousand dollars over the years in my Bank of America Advantage Savings account through Bank of America's Keep the Change® Savings Program, which rounds up your debit card purchases to the nearest dollar and deposits them in your savings account.

Pretty much every cent in the account comes from Keep the Change® savings. The money earns virtually nothing in interest, but it gives me peace of mind to know that I have savings I can easily access at a Bank of America branch or ATM if necessary.

Full Bank of America Advantage Savings review

Let's take a look at the shortcomings and benefits of this savings account in this Bank of America Advantage Savings review.

Bank of America Advantage Savings interest rate

Account APY Minimum Deposit
Bank of America Advantage Savings 0.01% $100
Data source: Bank of America.

If you're chasing maximum APY, look elsewhere. While the top high-yield savings accounts offer rates of 4% and higher, the Bank of America Advantage Savings account's standard APY is an abysmal 0.01%. Preferred Rewards members can earn slightly higher APYs, but even the highest rate is roughly one-tenth the national savings account average APY of 0.46%.

Fees

The Bank of America Advantage Savings account has an $8 monthly fee that's waived for the first six months. After that, the charge can be waived in the following circumstances:

  • You maintain a daily balance of at least $500
  • You link the account to an approved Bank of America checking account
  • You're a member of the Preferred Rewards program and qualify for the Gold, Platinum, Platinum Honors, Diamond, or Diamond Honors tier.
  • You're younger than 25.

The account doesn't have overdraft fees. If you attempt to withdraw more money than you have in your account, the transaction will be declined.

Minimum balance

The account requires a $100 opening deposit. If you don't maintain a daily balance of at least $500, you could get hit with an $8 monthly fee if you don't meet the other criteria for a fee waiver.

These requirements aren't unusual for a brick-and-mortar bank, though many free savings accounts offered by online banks have no minimum opening deposit or minimum balance.

Withdrawal limit

Bank of America says there may be limits on how much you can withdraw from ATMs based on several factors, including the type of account and the specific ATM's capabilities. It doesn't specify withdrawal limits for the Bank of America Advantage Savings account.

Mobile app

Bank of America's mobile app gets an average rating of 4.8 stars in the Apple App Store and 4.6 stars in the Google Play store.

You can use the app to manage your account, transfer funds, send money with Zelle, make mobile check deposits, monitor your credit score, and more. You can also get help from Bank of America's AI-powered virtual assistant, Erica®.

How to access your money

One advantage Bank of America has over online banks is how quickly you can access your money. With approximately 3,800 brick-and-mortar locations and 15,000 ATMs, it's easy to get your money when needed.

Deposit options

There are multiple ways to deposit cash or checks into your Bank of America Advantage Savings account, including:

  • Direct deposit
  • Mailing a deposit
  • Dropping a deposit off at a Bank of America ATM
  • Transfer from existing Bank of America accounts
  • Via mobile check deposit
  • Wire transfer

Withdrawal options

Similarly, there are also a multitude of ways to withdraw cash from your account.

  • In-branch withdrawal
  • ATM withdrawal
  • Electronic bank transfer
  • Wire transfer
  • Transfer to another Bank of America account

Online user reviews

The big complaint online reviewers have about the Bank of America Advantage Savings account is its minuscule APY. Many users say they've switched to high-yield savings accounts or certificates of deposit (CDs) to earn better rates on their savings.

However, some users suggest keeping a small amount in a Bank of America savings account, despite the low APY, since the money is easy to access, and keeping the remainder of savings in an account with more earnings potential.

Top perks

Branch and ATM access: Bank of America has roughly 3,800 branches and 15,000 ATMs, making it a good option for those who prefer brick-and-mortar banking.

Ease of making withdrawals: Some online banks with high-yield savings accounts require you to transfer money to a checking account to access your savings. If the checking account is at another institution, you may need to wait a couple of days for your funds. The Bank of America Advantage Savings account offers multiple ways to access your funds, though.

Easier to hit Preferred Rewards status. Balances in your Bank of America Advantage Savings account can help you reach Bank of America Preferred Rewards status. One perk of this status is a savings interest rate booster, but let's be honest: No one's going to jump for joy over the maximum APY that the status affords you. Several other perks are potentially more valuable, though -- like a credit card rewards booster, discounts on origination fees for mortgages and refinances, and savings on home equity loan and auto loan interest.

What could be improved

Low APY: Hands-down, the biggest drawback of the Bank of America Advantage Savings account is its near-zero interest rates. Some of the top-rated high-yield savings accounts pay 400 to 500 times the account's standard 0.01% APY.

Potential for monthly fees: If you don't meet at least one of the account's criteria for a fee waiver, like maintaining a $500 daily balance, you could get hit with an $8 monthly fee. The fee could erode your savings quickly if you have a fairly small balance.

Minimum opening deposit: The Bank of America Advantage Savings account's $100 minimum opening deposit isn't especially unusual, but many savings accounts have a lower opening deposit -- or none at all.

Is Bank of America Advantage Savings FDIC insured?

Yes, the Bank of America Advantage Savings account is FDIC insured. Deposits of up to $250,000 per depositor, per institution, per ownership category are federally insured, meaning you'll be able to access your funds in the event of a catastrophe, like a bank run or collapse.

Bank of America Advantage Savings is right for you if:

The account could be right for you if you do your other banking at Bank of America and want the convenience of handling all your financial needs in one place, particularly if you're a fan of in-person banking. However, if earning top dollar on your savings is important to you, look elsewhere.

Keep reading about Bank of America

Our savings account methodology

At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

  • APY: 50%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

  • Depending on your Preferred Rewards tier, your rate may be as low as 0.01%.

  • A Bank of America Advantage Savings account is a convenient place to save money for anyone with an existing Bank of America checking account, as the ability to quickly transfer money could come in handy in an emergency situation.

  • To avoid the $8 monthly fee, you can maintain a daily balance of at least $500, link the account with a Bank of America checking account, or become a Preferred Rewards member. The fee is also waived if you're younger than 25.