Bank of America Advantage Savings Review: Is It Right for You?
Written by
Chris Ozarowski
Edited by
Joe Evans
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GOBankingRates Score
Bank of America
-
APYs
3.5
-
Benefits
5.0
-
Access To Cash
5.0
-
Fees
4.0
Pros
- Can get discounts on mortgages and other loan products depending on your account tier
- Large network of brick-and-mortar locations
- Gold, Platinum and Diamond tiers have access to increased credit card rewards
Cons
- $100 minimum deposit to open an account
- APY rates are much lower than some competitors
- Customers must maintain a $500 balance to avoid fees
Bank of America Advantage Savings Overview
The Bank of America, Member FDIC, Advantage Savings account is part of Bank of America’s Preferred Rewards program. While interest rates are on par with offerings from other brick-and-mortar banks, the “advantage” lies in relationship banking. You can unlock rewards depending on your tier.
Here’s a breakdown:
- The Gold tier requires your daily combined balance across your Advantage Savings account and Merrill Lynch investment accounts to be between $20k and $50k. This tier gives a 25% credit card reward bonus, a savings APY and a 0.25% discount on auto loans.
- The Platinum tier requires you to have a daily combined balance between $50k and $100k. It gives a 50% credit card reward bonus, a savings APY, a 0.35% discount on auto loans and 12 fee-free ATM transactions.
- The Platinum Honors tier requires you to have over $100k in Advantage Savings and Merrill Lynch accounts. It gives a 75% credit card reward bonus, a savings APY, a 0.50% discount on auto loans and unlimited fee-free ATM transactions.
- The Diamond tier is reserved for those with over $1,000,000 in Advantage Savings and Merrill Lynch accounts. It includes the same rewards as the Platinum Honors tier, as well as a 0.25% discount on mortgage interest and a rotating selection of lifestyle offers, events and experiences.
Key Features
Consider the following key features to determine if Bank of America Advantage Savings is right for you.
APYs
The Bank of America Advantage Savings account offers a base APY of . While this may appear low in comparison to some online savings accounts, Advantage Savings account holders can get slightly higher rates through the Preferred Rewards program. Rewards for holding higher balances include boosted interest rates, which can push the APY up to for eligible customers.
Benefits
Depending on the balance held in your account, you can qualify for the Gold, Platinum or Platinum Honors Tiers of the Bank of America Preferred Rewards program. Each tier comes with its perks, such as:
- Interest rate boosters on your savings account
- Increased credit card rewards
- Discounts on loans
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This makes the account a worthy consideration for those who plan to keep significant funds in the bank or already have other accounts with Merrill Lynch.
Access To Cash
Bank of America Advantage Savings account holders have the benefit of accessing one of the most extensive branch and ATM networks in the United States. This makes withdrawing and depositing money relatively easy, convenient and accessible.
Additionally, customers can utilize Bank of America’s mobile app for digital banking needs. This feature provides 24/7 account access. Bank of America allows customers six fee-free withdrawals or deposits per month.
Fees
The Bank of America Advantage Savings account requires a minimum deposit of $100 to open an account and a $500 daily balance to avoid an $8 monthly fee. There are other ways to waive the monthly maintenance fee as well.
For example, it can be waived for those who are under 25. There is a $10 fee for any withdrawals exceeding the free six every month.
How Bank of America Advantage Savings Stands Out
While the APY offered by the Bank of America Advantage Savings account may lag behind digital competitors, it distinguishes itself through the unique benefits provided via the Preferred Rewards program. This includes better interest rates, boosted credit card rewards and discounts on loan products for customers with larger deposits in savings or Merrill Lynch investment accounts.
Comparable Savings Account Options
If Bank of America Advantage Savings is not a good fit for you, here are a few other options. Be sure to compare thoroughly before deciding on a savings account.
Ally Bank Savings Account
The Online Savings account from Ally Bank is a great alternative for those seeking a higher APY. It offers an APY of and doesn’t require a minimum balance. However, because it is an online bank, it lacks the physical branch presence that Bank of America provides.
Capital One 360 Performance Savings
Capital One 360 Performance Savings offers an APY of * and doesn’t charge monthly maintenance fees. However, customers must use online banking or go to a branch to withdraw money. Keep in mind that this account does not offer debit cards, ATM cards or check-writing capabilities.
How To Apply
The application for the Bank of America Advantage Savings account is straightforward and can be completed online, over the phone or at one of their physical branches. You’ll need to provide some basic information, including your Social Security number, name and date of birth.
Who Bank of America Advantage Savings Is Best For
The Bank of America Advantage Savings account is a strong contender for existing Bank of America customers or those planning to make significant deposits with the bank. The benefits from the Preferred Rewards program could offset the lower interest rates for these customers, making it a potentially lucrative option.
Final Take
While the Bank of America Advantage Savings account may not offer the highest yields in the market, it comes with numerous benefits for customers, particularly those in the higher tiers of the Preferred Rewards program. When evaluating if this account is the right fit for you, consider your overall banking relationship and whether the relationship banking benefits can offset the lower APY. Always compare features, rates and fees from multiple banks to make your decisions.
FAQ
Here are the answers to some of the most frequently asked questions regarding the Bank of America Advantage Savings account.- What is Advantage Savings with Bank of America?
- Bank of America Advantage Savings is a personal savings account. The base APY is 0.01%, however, because Advantage Savings accounts are part of Bank of America Preferred Rewards there are various rewards for account holders who deposit $20,000 or more.
- How do I avoid fees with Bank of America Advantage Savings?
- To avoid fees on a Bank of America Advantage Savings account, you must either be below 25 years of age or have a minimum daily balance of $500. Another way to wave the fee: your Advantage Savings account is linked to another Bank of America account such as the Advantage Relationship Banking, Bank of America with Tiered Interest Checking or Bank of America Advantage Regular Checking account. If you are eligible, you can be enrolled in Preferred Rewards and have Gold, Platinum, Platinum Honors, Diamond or Diamond Honors tier level. Otherwise, you will have to pay $8 a month.
- What is the interest rate for a Bank of America Advantage Savings account?
- The Bank of America Advantage Savings account offers a base interest rate of 0.01%. Preferred rewards members can get a rate between 0.02% and 0.04%.
- Is the Advantage Savings account good?
- If you're looking for a savings account that will give you the best bang for your buck, Bank of America Advantage Savings may not be your first choice. However, customers with deposits above $20,000 receive increased Bank of America credit card rewards and interest discounts on home, car and equity loans. This may make Advantage Savings a good option for some.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 10, 2024.
*Capital One interest rates are accurate as of 10/10/24. See the website for all current rates.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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