Bank of America Advantage Banking

Bank of America Advantage Banking is a tale of two experiences. If you have over $20,000 in combined assets (bank + Merrill investment accounts), it is arguably the best banking product in the U.S. thanks to the Preferred Rewards program, which boosts your credit card rewards by up to 75%. However, for the average customer with a low balance, it is a fairly standard account with fees that are harder to waive than some competitors. It is excellent for relationship banking, but mediocre for basic checking.

At a Glance

• Monthly Fee: $4.95, $12, or $25 (Depends on the setting chosen; Waivable)
• Minimum Opening Deposit: $25 (for SafeBalance and Plus); $100 (for Relationship)
• APY (Interest): None (SafeBalance/Plus); Minimal (Relationship)
• Overdraft Fees: $10 (Reduced from $35) or $0 (SafeBalance setting)
• Key Feature: Preferred Rewards (Massive perks for balances of $20k+)
• ATM Access: ~15,000 ATMs; Fees apply for non-BoA ATMs (waived for higher Preferred Rewards tiers)
• Foreign Transaction Fee: 3% (Debit card)

Overview

Bank of America simplified its lineup to one product, Advantage Banking, with three distinct settings. You can toggle between these settings within the app.

1. Advantage SafeBalance ($4.95/mo):
   • Best for: Students or those worried about overdrafts.
   • Features: Checkless (no paper checks). Transactions are declined if you don't have sufficient funds, so there are no $0 overdraft fees.
   • Waiver: Students under 25 or members of Preferred Rewards.
2. Advantage Plus ($12/mo):
   • Best for: The average user who wants checks and a standard experience.
   • Waiver: Direct deposit of $250+ OR minimum daily balance of $1,500.
3. Advantage Relationship ($25/mo):
   • Best for: Higher balance customers.
   • Features: Earns interest (low), fee waived on cashier's checks/incoming wires.
   • Waiver: Combined balance of $10,000+ in eligible linked accounts.

The Power of Preferred Rewards

This is why people stick with Bank of America. If you have a combined 3-month average balance across Bank of America and Merrill Edge (investing), you unlock tiers:

• Gold ($20k+): 25% Credit Card Bonus.
• Platinum ($50k+): 50% Credit Card Bonus + 12 free non-BoA ATM transactions/year.
• Platinum Honors ($100k+): 75% Credit Card Bonus + Unlimited non-BoA ATM withdrawals.

Example: At the Platinum Honors level, the Unlimited Cash Rewards credit card earns 2.62% cash back on everything (1.5% base x 1.75 multiplier). That is unmatched by any other ecosystem.

Borrower Experience

• Erica: BoA's AI assistant, Erica, is actually useful. She can search transactions ("Show me spend at Target"), lock cards, and provide spending insights.
• Security: Features like the "Zelle Safety" warnings and customizable debit card alerts are top-tier.

Who It’s Best For

• The "Trifecta" Optimizer: If you are willing to move $100k of your IRA/Brokerage to Merrill Edge, the Platinum Honors benefits make BoA the most rewarding bank in the country.
• Students: The SafeBalance account is free for students under 25 and helps prevent overdrafts.
• Coast-to-Coast Travelers: With branches from NYC to LA, it’s a reliable hub for people who often move or travel domestically.

Who Should Skip It

• Low Balance / Gig Workers: If you can't guarantee a $250 direct deposit every month and have less than $1,500, you will be charged a $12 fee. Capital One 360 or Chime are better free options.
• High-Yield Seekers: Never use this account for savings. The interest rates are near zero. Use this for checking and move savings to Ally or Marcus.

Bottom Line

Bank of America Advantage Banking is a solid, reliable choice for the average consumer, but it becomes an exceptional choice for the affluent. If you can qualify for Preferred Rewards by linking a Merrill investment account, no other bank gives you as much value back. If you are just looking for a free place to park $500, you can find cheaper options elsewhere.