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Investment Apps and Websites

5 Major Types Of Bank Accounts To Choose From

There are different types of bank accounts out there to choose from. Each offers features that match the needs and preferences of certain customers.

different types of bank accounts to choose from

If you haven’t known yet, as a potential bank customer or a bank customer (if you are at the moment), it is important that you are fully aware of the various types of bank accounts. This way, you get to choose the one that fits best based on your needs.

Knowing the different bank account types will also help you maximize the product to its full potential.

For instance, knowing your options will help you find out which bank account has the highest interest rate.

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In an article published by GO Banking Rates, it says that unfortunately, “one-third of Americans do not know what type of bank account usually has the highest interest rate,” which we find is the very reason why you need to know not just what these bank accounts are all about, but also what you can get out of each of them.

So, having said that, we are going to particularly talk about the following types of bank accounts, and the important things you need to know about each type:

  • Savings accounts
  • Checking accounts
  • Money market accounts
  • Certificates of deposit (CDs)
  • Retirement accounts or Individual retirement arrangement (IRA)

AT GLANCE

Before we look into each of the accounts mentioned above, here’s a quick glance about each of them for your reference:

Type of Account Why Choose It
Savings accounts You do not need to access the money frequently. You can leave it securely, at the same time, you get to earn nominal interest from it.
Checking accounts It’s ideal for people who want unlimited access to their money. It’s also good for those who do not mind not earning interest.
Money market accounts This one’s ideal for people who want a blend between savings and checking accounts. This allows limited access to your funds in a month.
Certificates of deposit (CDs) This type of bank account is best for those who want a secure way to invest their money for a particular period of time.
Retirement accounts This one’s a tax-deductible or tax-deferred way to invest money for your retirement in the future.

If you want to know the different types of bank accounts to choose from, here’s an informative video resource from Joyful Investor. Click the play button to watch the whole thing:

So, now that you already have an idea about each of the five major types of bank accounts available in banks today, let’s proceed to get to know more about each bank account type.

SAVINGS ACCOUNTS

Savings accounts are popular with those who want to earn a certain amount of interest from their money in the bank. More so, most consumers use this particular type of bank account to save money up for future use.

What we like about savings accounts is the fact that your money is secured, (as mentioned earlier) you do not need to access it regularly, and of course, it earns. Your money grows over time.

Normally, savings accounts are the first official bank account that people get for themselves — which is not surprising because ultimately, apart from keeping our money safe in the bank, we wanted to grow our money as well (no matter how small or big the APY is).

Opening a savings account is not only ideal for adults but for children as well. Usually, the bank allows kids to open a savings account with a parent. Doing so helps the child establish a pattern of saving — and also it’s a good way to teach children the value of money.

Just the same teens can also open accounts to stash cash from their first job or household chores, and eventually, manage money while in school or in college.

Opening a savings account also marks the start of your relationship with a bank just like when joining a credit union wherein your “share” establishes your membership in the organization.

As mentioned earlier, having a savings account is an excellent way to park cash for financial goals or for emergency purposes. It’s one way to keep money separated from the funds you use on your day-to-day expenses.

HOW TO OPEN A SAVINGS ACCOUNT

Generally, opening a savings account should take less than an hour. Once the accounts are opened, it will serve you for many years to come.

While you can go visit a branch of the bank of your choice, you can also open an account online using either your mobile device or your laptop.

To formally open an account, the bank will require you to fill up certain bank forms, and you will need to provide personal information like your name, address, contact number, as well as your Social Security number and identification cards will also be requested to confirm your identity.

Furthermore, the account holder must be 18 years old and above, otherwise, a parent or guardian needs to open an account with you.

TIPS WHEN OPENING A SAVINGS ACCOUNT

When opening a savings account, make sure to do the following first:

  • Compare banks based on fees, interest rates, minimum balance requirements, minimum opening deposit requirements, and more.
  • Check the requirements set by the bank when opening a savings account.
  • Choose the bank that meets your personal needs as a consumer. Opt for an account that is easy to use, and that you will get to put money into easily.
  • Gather all the information and documents you need to open a savings account.
  • Go to the bank open an account, or you may opt to open an account online if the bank you are eyeing for permits it.
  • Fund the account with an initial deposit if the bank requires it (though even if now, we highly recommend you put money in there as soon as you open one).

WHAT TO LIKE: Savings account is ideal for kids, teens, and/or adults who are looking for a place to keep their money, at the same time, earn interest over time. It’s ideal for those who want to stay away from getting tempted to using their money.

WHAT NOT TO LIKE: Generally speaking, savings accounts yield a lower interest rate as compared to CDs and money markets. Also, unlike checking accounts, they do not normally come with a debit card that can be used to make purchases. Furthermore, banks have limited consumers to no more than six withdrawals a month for this particular bank account type.

CHECKING ACCOUNTS

Among all the types of bank accounts in our list, checking accounts is the only type of account that does not provide your money a place to grow.

What do we mean by that? Here —

Checking accounts are designed to use for everyday spending. It comes with a linked debit card that you can use for making purchases, for ATM withdrawals, as well as for check-writing abilities.

Moreover, checking accounts let you deposit cash and/or checks, and it also allows you to pay bills. In recent years, more and more banks offer online bill-pay services. Thanks to technological advancement and the internet.

Unlike savings accounts, checking accounts normally do not earn interest. Although there are banks that offer interest-bearing checking accounts wherein you can get extra interest on top of what you get from your savings account.

Having a checking account is ideal for keeping cash for short-term use. It is also ideal to help manage your monthly cash flow.

HOW TO OPEN A CHECKING ACCOUNT

Just like when opening a savings account, you can either go to the branch of the bank you are eyeing for, or you can opt to open an account online.

You will also need to provide identifying information such as:

  • A government-issued ID with your picture
  • The second form of ID like a birth certificate
  • An identification number, which normally is your Social Security number or passport number

An initial deposit is also usually required. The amount usually goes between $25 and $100. Unlike savings accounts, most banks do not open checking accounts for minors, which means you need to be 18 years old and above to be able to open a checking account.

Opening a checking account does not take long, too. It usually lasts for just a couple of minutes when opening online, or less than an hour when opening in person.

TIPS WHEN OPENING A CHECKING ACCOUNT

When opening a checking account, make sure to do the following first:

  • Compare banks based on fees, interest rates (if available), minimum balance requirements, minimum opening deposit requirements, and others.
  • Check the requirements set by the bank for checking accounts.
  • Choose the bank that meets your personal needs and preferences.
  • Gather all the information and documents you need to open a checking account.
  • Go to the bank open an account in person, or you may opt to open an account online if available.
  • Fund the account with an initial deposit as required.

Furthermore, also keep in mind the following:

  • Make sure to balance your checking account regularly — ideally every month or every banking statement. This helps you manage your cash inflows and outflows, and avoid fees and errors, and allows you to spot fraudulent acts (if there’s any).
  • Set up a direct deposit of your wages into your checking account.

WHAT TO LIKE: It’s ideal for anyone who needs a place to deposit cash or paycheck, as well as make payments. It’s also a good option for those who keep a relatively small balance, and those who enjoy using a debit card for purchases.

WHAT NOT TO LIKE: It does not offer interest rate, and are usually subject to a lot of fees and restrictions like maintenance fees as well as minimum balance requirements, which can get quite pricey.

MONEY MARKET ACCOUNTS

As stated earlier, money market accounts are a combination of features provided by both savings and checking accounts. It’s like enjoying the best of both worlds.

Anyway, unlike checking accounts, money market accounts offer limited check-writing privileges. It collects interest at higher rates as compared to savings and interest-bearing checking accounts.

With these features, it makes money market accounts useful for both short-term and long-term needs.

To put it simply, money market accounts are ideal for those who tend to carry big balances in their checking accounts, at the same time, enjoy the ability to earn more interest and write checks.

HOW TO OPEN A MONEY MARKET ACCOUNT

The process varies depending on where you open your money market account, but here are some of the common processes:

  • You will need to submit an application wherein you will need to provide personal information like your name, date of birth, taxpayer identification number/Social Security number, mother’s maiden name, address, employment status, and income.
  • You will be asked to decide whether you want to add a joint owner or not, add a beneficiary or not, receive checks to use with your account, and how much you want to deposit or transfer into your money market account.
  • You will be asked to complete any verification requirements like submitting or uploading copies of your identification or income-related documents. This is to confirm the validity of the information you provided during the application.
  • You will have to fund your money market account based on the minimum funding requirement of the bank.

TIPS WHEN OPENING A MONEY MARKET ACCOUNT

Before you even sign an application for a money market account, you may also consider the checking the following first:

  • The account’s annual percentage yield of APY, which refers to the interest you will earn on your savings.
  • The minimum balance requirement, and the fees that come with it in the event of failure to meet the required balance.
  • Your withdrawal options — if the funds can be accessed through ATM, debit card, or check.
  • Account fees, which include not meeting the minimum balance requirement, withdrawing money at affiliated ATMs, check writing, and excessive withdrawals. It may also include fees for bank checks, stop payments and wire transfers.

WHAT TO LIKE: Money market accounts are ideal for those who want to hold high balances in their account, at the same time want to enjoy higher interest rates.

WHAT NOT TO LIKE: Generally, money market accounts tend to have higher minimum balance requirements as compared to other types of bank accounts. Also, interest rates tend to be low sometimes. Needless to say, you need to watch out for fees. Withdrawals are also permitted six times a month only for savings accounts.

CERTIFICATES OF DEPOSIT (CDs)

Certificates of Deposit (CDs) are comparable to savings accounts except that CDs hold your money for a fixed term, which usually lasts from three months up to five or more years depending on the financial institution.

Unlike the other types of bank accounts, CDs let you earn more interest-wise. However, you will need to commit to keeping your money for the full term or you will get penalized for early withdrawal of funds.

CDs are ideal for people who want to save for financial goals with a particular end date. For instance, if you are aiming to buy a property in a year, then a CD would be ideal so you get to keep your money and let it grow until the time you already need it.

Definitely, CDs are not ideal for emergency funding.

HOW TO START USING CDs

To start using CDs, all you need to do is to get in touch with your bank or credit union. Generally, banks explain your options and even allow you to make CD investments online.

If talking to a banker in person is not feasible, you may also consider calling the bank’s customer service.

When talking to a bank representative, make sure to explain how much you’d like to invest, and also, ask about penalties and other alternative CD products they offer. Who knows, they might have a better CD option for you. The bank may also offer higher rates, more flexibility, and/or other beneficial features.

When staring a CD, make sure to only stick with those insured through the Federal Deposit Insurance Corporation or the National Credit Union Administration for safety purposes.

TIPS WHEN USING CDs

When considering opening CDs, keep in mind the following tips:

  • Consider setting up a CD ladder especially if you are concerned about locking up all your money. A CD ladder makes a portion of your savings available periodically.
  • Look for banks that offer flexible CD terms. Ideally, a bank that gives you the option to withdraw money early sans charging a fee.

WHAT TO LIKE: Lets the money that you do not need to spend right away grow. It gives you the option to either keep the money on CD accounts for a short-term or long-term period.

WHAT NOT TO LIKE: Withdrawing your money early comes with a penalty, which may cost a lot.

RETIREMENT ACCOUNTS

Last but not the least type of bank account are the retirement accounts or popularly known as the Individual Retirement Arrangements (IRAs).

Obviously, this particular account is intended for people saving up for their retirement.

One day we are all going to retire, and we’ll need money to spend on our needs (wants) by then. So, the best time to prepare for retirement is not later than now.

Just to be clear, although IRAs are the most common ones, there are also other retirement accounts out there, which include 401(k) accounts and other retirement accounts for small businesses.

Most of these accounts offer tax advantages. For instance, both IRAs and 401(k) plans keep you from paying income tax on the growth of your contributions each year. However, you will have to pay taxes at certain points depending on the type of account you have.

While traditional IRA and 401(k) contributions reduce your taxes now, once you withdraw, later on, you will have to pay taxes. Meanwhile, contributions to a Roth IRA do not reduce your taxes at the moment, but you will not have to worry about paying taxes on withdrawals later on.

You see, it’s just about picking the right choice for you.

The different retirement accounts we mentioned are the best types for saving for retirement as they allow you to invest your money in the stock market creating the potential to earn greater returns.

HOW TO OPEN A RETIREMENT ACCOUNT

Opening a retirement account vary depending on the financial institution where you will open one, and of course, the type of account.

Generally speaking, however, opening an account is pretty easy. All you need to do is head on to the financial institution’s website, choose the type of retirement account you want to open, and then fill in some personal details, which include your Social Security number, name, date of birth, contact information, as well as your employment information.

In addition, make sure to keep your money handy because you will need to fund the account once you open one.

TIPS WHEN OPENING A RETIREMENT ACCOUNT

When opening a retirement account, make sure to:

  • Speak to a financial advisor and get help with regards to planning how much to save for your retirement account, and also the type of account and investments that are ideal for you.
  • Check if your company is offering 401(k). If yes, consider contributing enough to get the match before you start putting money into your retirement account.

WHAT TO LIKE: This particular account is ideal for those who want to save money for their future. More so, retirement accounts might result in larger account balances over time.

WHAT NOT TO LIKE: For whatever tax benefit you get comes to a string attached. That is why it’s best to consult with experts first before opening one.

FINAL THOUGHTS ON TYPES OF BANK ACCOUNTS

You see, there are a lot of bank account choices – and choosing one will definitely depend on your financial goals.

To be able to determine the right bank account type for you, the best way to do it is to consult with a bank representative or if you have a financial advisor, then you may check with him or her as well.

So, have you found the best type of bank account for you yet?

Remember that while there are many types of bank accounts out there to choose from, it all boils down to your needs and preferences as a consumer. That’s definitely a big deciding factor.

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Investment Apps and Websites

Bank Of America Review: What You Need To Know Before Opening An Account

Finding a perfect bank partner is not easy. That is why we are giving you this Bank of America review not just to know more about this popular financial institution, but for you to find out if it’s indeed the right one for you or not.

Bank of America Review

It’s already given — Bank of America is one of the country’s most sought after financial institutions. Not surprising at all as the size of the bank in itself is hard to underestimate.

Guess what? According to the Federal Deposit Insurance Corporation (FDIC), Bank of America holds about $1 out of every $10 deposit in the United States.

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Do you see that? If you are looking for a credible and strong banking institution, definitely, Bank of America is one of the best choices.

But there’s more to know about this famous financial institution, and that is what we are going to talk about today.

In particular, we are going to tackle the following:

  • Who is Bank of America?
  • Who is Bank of America best for?
  • What does Bank of America offer?
  • What are the fees that Bank of America charges?
  • How to do banking with Bank of America?
  • How is Bank of America’s customer service?
  • What are the highs and lows of Bank of America?

WHO IS BANK OF AMERICA?

According to Statista, the history of Bank of America can be traced back to 1904. Yes, that’s how long Bank of America has been around. Formerly known as Bank of Italy, what made it stand out then from other American banks was that it “offered financial services to immigrants arriving in the United States and not only wealthiest American citizens.”

The bank was only named Bank of America in 1998 after it was acquisitioned by Nations bank, which is the largest bank acquisition in history during that time.

After the acquisition, through the subsequent aggressive campaign, it has transformed Bank of America from being a regional player to a national giant — which is what it is today.

From its inception until today, Bank of America continues to grow. Currently, it boasts over 4,200 branches all over the United States, which makes it convenient for customers.

Furthermore, the bank is considered one of the “most valuable banking brands globally and one of the leading banks in terms of assets or market capitalization” according to Statista report.

In 2018, Bank of America is ranked fourth among the largest employers in the banking sector. The bank employs more than 136 thousand people.

Speaking of assets, Bank of America’s total asset as of 2018 was estimated at 2.35 trillion U.S. dollars. During the same year, the bank reported a net income of $28.15 billion, which was more than 80% of the bank revenue in the country at that time.

Although the bank is all over the place, it’s headquarter is situated in Charlotte, North Carolina.

Before moving on, sharing with you this informative review on Bank of America by Toply. This would definitely help as you decipher whether the bank is right for you or not.

WHO IS BANK OF AMERICA BEST FOR?

The very reason why we are making this Bank of America review is to help individuals discern if the bank is the right one for them.

If you are someone who is looking for a bank that is conveniently located wherever you are within the country, then Bank of America is perfect for you. With so many branches across the country, you will surely find one anywhere.

Furthermore, Bank of America is also suitable for those who:

  • Want to do banking with a well-known, large financial institution
  • Do not mind navigating a multifaceted system of rules
  • Want a bank that has a wide variety of financial products to choose from
  • Are not that concerned about earning a competitive rate on your savings account
  • Are aware of the many fees and how to get out of them

If you see yourself in any of the above-mentioned, then Bank of America may be your perfect match.

WHAT DOES BANK OF AMERICA OFFER?

Just like in our other bank reviews, in this Bank of America review, we are going to share with you the different products and services that Bank of America offers. This way you get to have an idea not just about what they have, but also, to gauge any of these products and services fits your needs and preferences when it comes to banks.

Since Bank of America is a large bank, it is already given that they offer a wide range of products and services. With Bank of America, you can basically find anything you need to manage your money.

Here are the major products that Bank of America offer:

  • Checking accounts
  • Savings accounts
  • Certificates of deposit
  • Money market and CD IRAs
  • Credit cards

When it comes to services, Bank of America offers online, mobile, and in-person banking, as well as customer service.

Now, let’s proceed to look through each of the major products of the bank.

CHECKING ACCOUNTS

Bank of America offers three different checking accounts to choose from. These are:

  • Advantage SafeBalance Checking Account
  • Advantage Plus Checking Account
  • Advantage Relationship Checking Account

Advantage SafeBalance Checking Account

At first sight, this looks like a good checking account. It charges neither overdraft fees nor non-sufficient funds (NSF) fees. In addition to that, if you meet certain requirements, monthly fees are waived.

Sounds really good, right?

But as the saying goes, nothing is perfect. The problem comes in when you start looking into what under this checking account.

Now, to be able to qualify for the monthly fee waiver, you need to enroll in the Preferred Rewards program of the bank, which requires a three-month combined average balance of at least — guess how much? At least $20,000 across all your Bank of America and/or Merrill investment accounts.

Failure to meet such requirements means you will have to pay the $4.95 monthly maintenance fee for this particular account.

This checking account, just like most checking accounts out there pays zero interest. It does not come with checks as well. You can move money in and out still but only by using direct deposit, in-person deposit, and withdrawal, as well as through ATM, your debit card, and bank-to-bank transfers.

We know what you’re thinking. It’s kind of odd not having checks for a “checking” account.

Advantage Plus Checking Account

Unlike the SafeBalance, Bank of America’s Advantage Plus Checking Account is most likely what a lot of people will be interested in.

With this account, a minimum of $100 is required to open one. The Advantage Plus Checking Account also comes with the option to purchase paper checks.

Another thing to like about this account is that it is easier to meet the monthly requirements in order to have the $12 monthly fee waived. All you need to do is to:

  • Keep an average of at least $1,500 daily balance
  • Have an eligible direct deposit of at least $250
  • Enroll in the Preferred Rewards program (with a minimum of $20,000 barrier to entry)

Just like any other checking accounts, it does not pay any interest as well. In addition, you can potentially be charged for an overdraft as well as NSF fees with this account if you overdraw it.

An overdraft fee costs $35 for every overdraft that is more than $1. However, the bank provides you an option to get into overdraft protection from your Bank of America savings account, but you will still be charged $12 for every transfer to cover the overdraft.

Advantage Relationship Checking Account

The Advantage Relationship Checking Account is ideal for people who tend to keep large amounts of money in their accounts. If you keep at least $10,000 into your linked Bank of America accounts every statement cycle, the $25 monthly fee will be automatically waived.

Furthermore, a waiver is also available if you sign up for the bank’s Preferred Rewards program.

Unlike the other two checking account options, the Advantage Relationship Checking Account pays you a bit of interest. A bit because it’s only 0.01%.

In addition, with Advantage Relationship Checking Account, you can also get to enjoy a few perks, which include free wire transfers, free checks, free overdraft protection transfers, as well as waived monthly fees on certain other bank accounts if you link them to this.

SAVINGS ACCOUNTS

Just like its checking accounts, Bank of America also offers three different savings accounts, namely:

  • Advantage Savings Account
  • Minor Savings Account
  • Custodial UTMA Savings Account

Let’s discuss each of them —

Advantage Savings Account

Unlike in other banks, Bank of America offers just one saving account for adults. Unfortunately, there’s not much to like about this particular account.

For one, the Advantage Savings Account only offers about 0.03% annual percentage yield (APY), and the rate varies by location. If you come to think of it, it’s too low that it’s negligible.

Two, sadly, the account comes with an $8 monthly fee. To be honest, we find it too much given the fact that to offset the monthly fee, you will need to keep several hundred thousand dollars in your account to earn interest.

Although the monthly fee can be waived provided you have an average of at least $500 daily balance in your account.

Minor Savings Account

As the account name suggests, Bank of America’s Minor Savings Account is intended for customers who are 18 years old and below.

The account requires a minimum deposit of $25 to open one and does not charge any monthly fees.

While it charges $1 if your child does go over six withdrawals in a statement cycle, the said fee can be waived as long as the account maintains a minimum balance of $300 at all times.

When it comes to the interest rate, it’s basically the same as the Advantage Savings, which means it does not earn so much as well.

Automatically, once the account holder turns 18 years old, the account will be switched over to the full Advantage Savings account — including all the fees that the account charges.

Custodial UTMA Savings Account

The Custodial UTMA Savings Account is similar to Minor Savings. What makes the difference is that instead of opening it jointly with your kid, you (parent or guardian) remain in full control over the account until your child reaches 18 years of age.

Only then will the account be completely theirs, and they will be allowed to do anything and everything they want with the money they saved.

Unlike Minor Savings though, the Custodial UTMA Savings Account requires a higher deposit to open. It requires $100 to open an account, and it also comes with an $8 monthly fee if you do not keep at least $500 in the account at all times.

CERTIFICATES OF DEPOSIT

Bank of America offers two options for regular, non-IRA CDs. These are Featured CDs and Standard Term CDs.

Standard Term CDs is ideal for those with a limited amount of money. With this option, you can start with as little as $1,000.

For Standard Term CDs, Bank of America offers a broad range of term lengths which start from 28 days up to 10 years!

Sadly, though, these CDs so not pay much interest, too — at least as of May 2020.

Now, if you have a bit more cash, specifically $10,000 or higher, then Featured CDs are ideal for you.

The thing about Featured CDs is that they offer better rates — at least as of May 2020. However, they are still a far cry from the best CD rates available from competing banks and credit unions.

Also, unlike other CDs, Featured CDs of Bank of America does not come in as many term lengths. They only have 7, 10, 13, 25, and 37 months.

MONEY MARKET AND CD IRAs

Monet Market IRA

There are many banks and credit unions that offer a money market account, which when compared to checking and savings accounts, are considered a hybrid.

Bank of America offers just one money market account, which they call Money Market IRA. With this account, you can save for your retirement within an FDIC-insured account.

You can start saving for as low as $100. This account can be opened within a traditional IRAor a Roth IRA.

Unlike when saving to an IRA CD, saving through a Money Market IRA allows you to withdraw money whenever you need it. However, for savers below 59 1/2, withdrawals may not be a good idea as the IRS will heavily penalize you for early IRA withdrawals.

To put it simply, withdrawals only makes sense if you are on your retirement age already.

IRA Certificate of Deposit

Bank of America offers you Standard Term IRA CDs and Featured IRA CDs when it comes to IRA CDs. While both are essentially the same thing, what makes the difference is that Featured IRA CD requires a slightly higher minimum deposit as compared to Standard Term IRA CD. It’s $2,000 versus $1,000.

But apart from the two, Bank of America offers one more option under IRA CDs. It’s the Variable IDA CD, which comes with an interest rate that changes over the CD’s term. The term ranges between 18 and 23 months. Also, this particular IRA CD requires a much smaller deposit, which amounts to $100. It’s also available as a traditional or Roth IRA.

CREDIT CARDS

As expected, Bank of America also offers a variety of credit card options. They offer 23 different cards to be exact. More so, the bank partners with many third-party companies to offer branded cards with corresponding perks.

Here’s what Bank of America offers:

Cash-Back Credit Cards

  • Bank of America Cash Rewards
  • Susan G. Komen Cash Rewards Visa Credit Card from Bank of America
  • MLB Credit Cards
  • World Wildlife Fund Credit Card
  • U.S. Pride Credit Card

Travel Rewards Credit Cards

  • Bank of America Travel Rewards
  • Bank of America Premium Rewards
  • Alaska Airlines Visa Credit Card
  • Norwegian Cruise Line World Mastercard
  • Spirit Airlines World Mastercard
  • Allegiant World Mastercard
  • Amtrak Guest Rewards World Mastercard
  • Air France KLM World Elite Mastercard
  • Sonesta World Mastercard
  • Royal Caribbean Visa Signature Credit Card
  • Virgin Atlantic World Elite Mastercard
  • Asiana Visa Signature Credit Card
  • Celebrity Cruises Visa Signature Credit Card

Balance Transfer Credit Cards

  • BankAmericard

Secured Credit Cards

  • BankAmericard Secured Credit Card

Student Credit Cards

  • Bank of America Cash Rewards for Students
  • BankAmericard Travel Rewards for Students
  • BankAmericard for Students

OTHER FINANCIAL PRODUCTS

Apart from the major products we discussed, Bank of America also offers the following:

  • Auto loans
  • Auto loan refinance
  • Business banking services
  • Financial advisors
  • Home equity lines of credit (HELOCs)
  • Investments through Merrill Edge and Merrill Lynch
  • Mortgages
  • Refinance mortgages
  • Self-directed portfolios
  • Managed portfolios
  • Private banking

WHAT ARE THE FEES THAT BANK OF AMERICA CHARGES?

Of course, our Bank of America review will not be complete without us looking into the fees the bank charges.

As mentioned earlier while discussing each product of the bank, Bank of America charges a certain monthly fee. The amount varies depending on the type of account you have.

Meanwhile, when it comes to overdraft fees, they charge $35 as often as four times per day. So yeah, it’s quite expensive especially if you have a hard time keeping enough money in your account or accounts.

For negative balance, the bank does not charge anything for it, which is good news.

By the way, you can opt for overdraft protection, but it will cost you $12 per day that a transfer happens from a linked Bank of America savings or secondary checking account.

HOW TO DO BANKING WITH BANK OF AMERICA?

To apply for a bank account with Bank of America, you can either go online or visit a local branch near you.

In particular, it is recommended that you head to a branch if you have any of the following:

  • Limited credit history
  • Depositing more than $100,000

To open an account, you will need to provide personal information as required by federal law.

HOW IS BANK OF AMERICA’S CUSTOMER SERVICE?

Bank of America ranks below many other big banks when it comes to banking satisfaction.

Based on the 2019 U.S. Retail Banking Satisfaction Study from J.D. Power, there are a few more banks that ranked even lower than Bank of America across different regions and states when it comes to customer service.

Bank of America offers basically offers most of what you’d expect from a bank as big as it is — mobile app, online banking, and of course, FDIC insurance.

The downside though is that it may be a little tricky getting ahold of someone from the bank as it does not offer 24/7 call-in support. However, it does offer chat support real best.

WHAT ARE THE HIGHS AND LOWS OF BANK OR AMERICA?

Our Bank of America review will not be complete without us summarizing the bank’s highs and lows – basically what we like and what we do not like about it.

Here it goes —

HIGHS: WHAT WE LIKE

  • Bank of America is easily accessible across the country with about 4,200 branches and more than 16,000 ATMs.
  • It provides an award-winning mobile banking app, and have really invested in digital technology.
  • It provides a wide range of financial products and services to choose from.
  • It offers useful perks such as a round-up savings feature and a cash-back program.

LOWS: WHAT WE DO NOT LIKE

  • Both savings and CDs APY is low as compared to other banks.
  • It comes with high monthly fees, which are avoidable but customers need to meet certain requirements.
  • It has poor customer service ratings.

FINAL THOUGHTS ON BANK OF AMERICA REVIEW

Bank of America is no-doubt a well-trusted and credible bank. With years in the banking industry, they surely know what they are doing.

Unfortunately though, as compared to other banks it is not as competitive when it comes to APY – most of its products.

So, do you think Bank of America is the right one for you?

To end, based on what we have tacked in this Bank of America review, choosing Bank of America over other banks in the country depends on what you exactly need. It’s a person-to-person basis. What works for one, after all, may not always mean it’ll work for all.