Bank of America is the second-largest bank in the US with over 3,800 branches. Its fee structure is tightly linked to its Preferred Rewards program — the more money you keep with BofA and Merrill, the better your fee waivers and rate boosts. Here’s how every minimum balance works.
Bank of America Checking Account Minimums
| Account | Monthly Fee | Minimum Balance to Waive | Other Waivers |
|---|---|---|---|
| Advantage SafePass | $4.95 | Not balance-based | Any qualifying direct deposit, or under age 25 |
| Advantage Plus | $12 | $1,500 combined daily | $250+ direct deposit |
| Advantage Relationship | $25 | $20,000 combined daily | Preferred Rewards Gold status ($20K+ with BofA/Merrill) |
How “Combined Daily Balance” Works at BofA
Bank of America calculates combined daily balance across these accounts:
- Checking accounts
- Savings accounts
- CDs
- IRAs held at BofA
- Merrill investment accounts (brokerage, 401k, IRA)
Example: If you have $500 in checking, $1,000 in savings, and no investments, your combined daily balance is $1,500 — enough to waive the Advantage Plus fee. The balance is checked every day, and all days must be at or above the threshold.
Advantage SafePass: BofA’s Easiest Account
| Feature | Details |
|---|---|
| Monthly fee | $4.95 |
| Waiver | Any qualifying direct deposit (no minimum amount) or under 25 |
| Check writing | Not included |
| Overdraft | Transactions declined (no overdraft fees) |
| ATM access | All BofA ATMs (no fee) |
| Annual cost if not waived | $59.40 |
The key advantage over Chase Secure Banking: BofA waives the fee with any direct deposit, while Chase Secure Banking’s $4.95 fee cannot be waived at all.
Advantage Plus: Standard Checking
The $250+ direct deposit waiver is the lowest among big banks:
| Bank | Minimum Direct Deposit to Waive Fee |
|---|---|
| Bank of America | $250 |
| Chase | $500 |
| Wells Fargo | $500 |
| Citibank | Varies by account |
| US Bank | $1,000 |
This makes BofA Advantage Plus one of the easier big bank accounts to keep fee-free if you receive regular deposits.
Advantage Relationship: Premium Checking
Best for customers with $20,000+ across all BofA and Merrill accounts. Benefits include:
| Benefit | Details |
|---|---|
| Monthly fee waived | With $20K+ combined balance |
| Savings bonus | Higher rates on Advantage Savings |
| ATM fees | Refunds for non-BofA ATM fees |
| Safe deposit box | Discounted |
| Priority service | Dedicated phone line |
Bank of America Preferred Rewards Program
This is the key to understanding BofA’s fee structure. Everything revolves around your combined 3-month average balance across BofA and Merrill accounts.
| Tier | Balance Required | Checking Fee Waiver | Key Benefits |
|---|---|---|---|
| Gold | $20,000 | Advantage Relationship ($25) waived | 5% credit card bonus, savings rate boost |
| Platinum | $50,000 | All checking fees waived | 25% credit card bonus, free checks, no-fee trades |
| Platinum Honors | $100,000 | All checking fees waived | 75% credit card bonus, priority service |
| Diamond | $1,000,000 | All fees waived | Dedicated advisor, highest boosts |
| Diamond Honors | $10,000,000 | All fees waived | Concierge service, premium benefits |
Credit card bonus example: A Bank of America Customized Cash Rewards card earns 3% in a chosen category. With Platinum Honors (75% boost), that becomes 5.25% — one of the highest flat-rate category bonuses available.
How Preferred Rewards Balance Is Calculated
- Uses the 3-month average combined balance
- Includes Bank of America deposit accounts (checking, savings, CDs, IRAs)
- Includes Merrill Edge brokerage and managed account balances
- 401(k) balances through Merrill do count
- Mortgage or loan balances do not count
Bank of America Savings Account Minimums
| Account | Monthly Fee | Minimum Balance to Waive | Other Waivers |
|---|---|---|---|
| Advantage Savings | $8 | $500 daily balance | Linked Advantage Relationship checking, Preferred Rewards Gold+, or under 25 |
Advantage Savings Fee Details
The $8 monthly fee ($96/year) applies unless you meet one of these:
- $500 minimum daily balance — Your balance cannot drop below $500 on any day during the statement period
- Linked to Advantage Relationship checking — Automatically waived
- Preferred Rewards Gold tier or above — Automatically waived
- Under 25 years old — Automatically waived
Rate reality: BofA Advantage Savings pays 0.01-0.04% APY. On a $500 balance, that’s $0.05-$0.20 per year. If you miss the minimum and pay the $8 fee, you’re paying $8 to earn $0.10. High-yield savings accounts pay 4-5% APY with no minimums.
Bank of America CD Minimums
| CD Term | Minimum Deposit | Typical APY | Preferred Rewards Bonus |
|---|---|---|---|
| 7 days | $10,000 | 0.03% | — |
| 28 days | $1,000 | 0.03% | — |
| 3 months | $1,000 | 0.03-2.00% | Up to 0.05% boost |
| 6 months | $1,000 | 0.03-2.50% | Up to 0.05% boost |
| 1 year | $1,000 | 0.05-3.50% | Up to 0.05-0.10% boost |
| 13 months (Featured) | $1,000 | 3.50-4.15% | Additional boost |
| 2 years | $1,000 | 0.05-3.00% | Up to 0.05% boost |
| 3 years | $1,000 | 0.05-2.50% | Up to 0.05% boost |
| 5 years | $1,000 | 0.05-2.50% | Up to 0.05% boost |
Note: BofA occasionally offers “Featured CDs” with promotional rates that are competitive with online banks. The standard CD rates (0.03-0.05%) are among the lowest in the industry. Always check for Featured CD availability before locking in.
Early Withdrawal Penalties
| CD Term | Penalty |
|---|---|
| Less than 12 months | 90 days interest |
| 12-23 months | 180 days interest |
| 24+ months | 365 days interest |
Merrill Edge Investment Minimums
| Account | Minimum to Open | Notes |
|---|---|---|
| Self-Directed Brokerage | $0 | $0 stock and ETF commissions |
| Merrill Guided Investing (robo) | $1,000 | 0.45% annual advisory fee |
| Merrill Guided Investing with Advisor | $20,000 | 0.85% annual advisory fee |
| Merrill Private Wealth Advisor | $250,000+ | Negotiable fee |
Key benefit: Merrill Edge balances count toward Preferred Rewards tiers. A $20,000 Merrill brokerage balance qualifies you for Gold tier, which waives checking fees and boosts credit card rewards.
The True Cost of BofA Minimums
Scenario: Customer with Advantage Plus Checking + Savings
| If You… | Monthly Fees | Annual Cost |
|---|---|---|
| Have $250+ direct deposit | $0 checking + $8 savings = $8 | $96 |
| Also maintain $500 in savings | $0 checking + $0 savings = $0 | $0 |
| Meet neither requirement | $12 checking + $8 savings = $20 | $240 |
Opportunity Cost
That $1,500 minimum balance earning 0.01% at BofA could earn:
| Alternative | APY | Annual Earnings on $1,500 | Difference |
|---|---|---|---|
| BofA checking | 0.01% | $0.15 | — |
| High-yield savings | 4.25% | $63.75 | +$63.60 |
| 1-year CD (online) | 4.75% | $71.25 | +$71.10 |
How to Minimize BofA Fees
Strategy 1: Direct Deposit + Linked Accounts
Set up any direct deposit ($250+ for Advantage Plus) and link your checking and savings to auto-waive the savings fee. Cost: $0.
Strategy 2: Preferred Rewards Consolidation
If you have investments, consolidate at Merrill Edge. A $20,000 balance gets Gold tier, which waives checking fees and gives credit card boosts worth $100-$300/year.
Strategy 3: SafePass + Direct Deposit
If you can’t maintain $1,500, downgrade to Advantage SafePass ($4.95/month, waived with any direct deposit). You lose check writing but avoid all fees.
Strategy 4: Switch to Online Banking
If you don’t need BofA branches, switch to an online bank and save $96-$240/year in fees while earning 4%+ on savings.
Bank of America vs. No-Minimum Alternatives
| Feature | BofA Advantage Plus | Ally Bank | Capital One 360 |
|---|---|---|---|
| Monthly fee | $12 | $0 | $0 |
| Minimum balance | $1,500 (or $250 DD) | $0 | $0 |
| Savings APY | 0.01-0.04% | 4.00-4.20% | 4.00-4.25% |
| ATM network | 16,000 BofA ATMs | 43,000+ Allpoint | 70,000+ |
| Branches | 3,800+ | None | 280+ |
| Overdraft fee | $10 per item | $0 | $0 |
| Preferred Rewards | Yes (major value at $20K+) | No | No |
| Zelle | Yes | Yes | Yes |
BofA’s advantage: The Preferred Rewards program makes BofA worthwhile if you have $20,000+ in combined balances. The credit card bonus alone (up to 75% boost) can be worth $300-$1,000+/year for heavy spenders. Below $20,000, online banks are better value.
The Bottom Line
| Account | Monthly Fee | Easiest Waiver |
|---|---|---|
| Advantage SafePass | $4.95 | Any direct deposit |
| Advantage Plus | $12 | $250+ direct deposit |
| Advantage Relationship | $25 | $20K+ combined or Preferred Rewards Gold |
| Advantage Savings | $8 | $500 balance or linked checking |
Bank of America’s fees are avoidable if you have direct deposit and can maintain $500 in savings. The Preferred Rewards program makes BofA one of the best big banks for high-balance customers ($20K+), offering fee waivers, rate boosts, and credit card bonuses that online banks can’t match. For customers with lower balances, online banks provide better rates and no fees.