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Bank of America Review 2025
A complete, unbiased guide to Bank of America's checking, savings, credit cards, mortgages, and investing products.
What is Bank of America?
Bank of America Corporation (NYSE: BAC) is a publicly traded American multinational bank and financial services company headquartered in Charlotte, North Carolina. Originally founded in 1904 as the Bank of Italy in San Francisco by A.P. Giannini, the institution adopted the Bank of America name following its 1998 merger with NationsBank. It is the second-largest bank in the United States by assets, with approximately $3.4 trillion in total assets as of 2025. Bank of America serves roughly 70 million consumer and small business clients through approximately 3,600 financial centers and 15,000 ATMs across more than 100 U.S. markets. All consumer deposit accounts are FDIC-insured up to $250,000 per depositor, per ownership category. Bank of America is best suited for consumers who value physical branch access, a broad product ecosystem, and the Preferred Rewards loyalty program over high interest rates on savings.
| Full Legal Name | Bank of America Corporation |
| Founded | 1904 (as Bank of Italy, San Francisco, CA) |
| Headquarters | Charlotte, North Carolina |
| Stock Ticker | BAC (NYSE) |
| FDIC Member | Yes — deposits insured up to $250,000 per depositor |
| Total Assets (2025) | Approximately $3.4 trillion |
| Employees | Approximately 213,000 |
| Financial Centers | Approximately 3,600 across 100+ U.S. markets |
| ATMs | Approximately 15,000 nationwide |
| Digital Banking Users | Approximately 59 million verified users |
| AI Virtual Assistant | Erica — launched 2018; 3.2B+ total interactions |
| Investment Arm | Merrill — wealth management and self-directed investing |
| Savings APY (Standard) | 0.01% APY (as of March 2025) |
| Savings APY (Preferred Rewards Max) | 0.04% APY — Platinum Honors tier |
| Products Offered | Checking, Savings, CDs, Credit Cards, Mortgages, Home Equity, Auto Loans, Investing |
| Available In | All 50 U.S. states (branch coverage varies by market) |
| Mobile App Rating | 4.8 / 5 iOS · 4.5 / 5 Android (March 2025) |
Advantage Banking — Checking Accounts
Bank of America offers four consumer checking options under the Advantage Banking umbrella. Advantage Plus Banking is the standard account with check writing, Zelle integration, and overdraft programs. SafeBalance Banking declines transactions when funds are insufficient rather than charging an overdraft fee — a useful option for customers who want to avoid fee risk entirely.
Advantage Savings
Bank of America's primary consumer savings account earns 0.01% APY at the standard tier — well below the national average and far below the 4%+ rates available at online high-yield savings accounts. The Keep the Change feature rounds up debit card purchases to the nearest dollar and transfers the difference into savings automatically.
Certificates of Deposit — Featured, Fixed Term, and Flexible
Bank of America offers three CD types. Featured CDs carry the most competitive promotional rates. Fixed Term CDs range from 28 days to 10 years. Flexible CDs allow one penalty-free withdrawal before maturity. Featured CD rates can reach up to 4.80% APY, making them a meaningfully better option than the standard savings account for funds that can be set aside for a defined period.
Bank of America Credit Cards
Bank of America offers cash back, travel rewards, and student credit cards. The Customized Cash Rewards card lets cardholders choose their 3% cash back category from a list of options, plus 2% at grocery stores and wholesale clubs, and 1% on everything else. Preferred Rewards members receive a 25–75% bonus multiplier on all credit card rewards — making Bank of America cards especially valuable for existing banking customers.
Home Loans — Purchase and Refinance
Bank of America offers fixed-rate and adjustable-rate mortgages, FHA loans, VA loans, and jumbo loans with a fully digital application process. Its America's Home Grant program offers up to $7,500 in lender credits for qualifying first-time buyers in select markets. Preferred Rewards members may receive a reduction on their mortgage origination fee of up to $600.
Merrill Edge — Self-Directed and Guided Investing
Bank of America's investment services operate under the Merrill brand. Merrill Edge is the self-directed platform offering commission-free stock and ETF trades with access to research tools and market data. Merrill Guided Investing provides automated portfolio management. Preferred Rewards members receive reduced advisory fees and up to 100 commission-free trades per month on Merrill Edge.
The following table compares Bank of America against its primary Big Four competitors across key consumer banking attributes. All data reflects publicly available information as of March 2025.
| Feature | Bank of America | Chase | Wells Fargo | Online Banks (avg.) |
|---|---|---|---|---|
| Savings APY | 0.01%–0.04% | 0.01% | 0.01% | 4.00%–5.00%+ |
| Branch Count (U.S.) | ~3,600 | ~4,700 | ~4,500 | 0 (online only) |
| ATM Network | ~15,000 | ~15,000 | ~11,000 | Varies / reimbursed |
| Checking Monthly Fee | $12 (waivable) | $12 (waivable) | $10 (waivable) | Usually $0 |
| Loyalty Program | Preferred Rewards (strong) | Chase Sapphire (strong) | Rewards (moderate) | Varies |
| Mobile App (iOS) | 4.8 / 5 | 4.8 / 5 | 4.8 / 5 | Typically 4.7+ |
| Investing Integration | Merrill (strong) | J.P. Morgan (strong) | WellsTrade (moderate) | Usually separate |
| FDIC Insured | Yes | Yes | Yes | Usually Yes |
Is Bank of America FDIC insured?
Yes. Bank of America is a member of the Federal Deposit Insurance Corporation (FDIC). All consumer deposit accounts — including checking, savings, and CDs — are insured up to $250,000 per depositor, per ownership category. Joint accounts are insured up to $500,000.
What are the monthly fees for Bank of America checking accounts?
The Advantage Plus Banking account carries a $12 monthly maintenance fee. This fee is waived by receiving at least $250 in qualifying direct deposits per month, maintaining a minimum daily balance of $1,500, or being enrolled in the Preferred Rewards program. The SafeBalance Banking account has a $4.95 monthly fee with more limited waiver options.
What interest rate does Bank of America pay on savings accounts?
As of March 2025, Bank of America's Advantage Savings account earns 0.01% APY at the standard tier. Preferred Rewards members can earn up to 0.04% APY at the Platinum Honors tier. For comparison, leading high-yield savings accounts at online banks currently offer rates of 4.00% to 5.00% APY — significantly higher than Bank of America's offerings.
Does Bank of America have physical branches?
Yes. Bank of America operates approximately 3,600 financial centers and 15,000 ATMs across more than 100 U.S. markets, making it one of the most physically accessible banks in the country. Its combined branch and ATM network reaches more than 75% of the U.S. population.
What is the Bank of America Preferred Rewards program?
Preferred Rewards is Bank of America's tiered loyalty program that delivers benefits based on combined balances across Bank of America deposit accounts and Merrill investment accounts. The Gold tier requires $20,000 in combined balances, Platinum $50,000, Platinum Honors $100,000, and Diamond $1,000,000. Benefits include higher savings APYs, a 25–75% bonus on credit card rewards, reduced Merrill investing fees, and discounts on mortgage origination fees. It is widely regarded as one of the stronger bank loyalty programs for customers with significant balances.
Is Bank of America good for first-time home buyers?
Bank of America can be a strong option for first-time buyers in eligible markets due to its America's Home Grant program (up to $7,500 in lender credits) and Down Payment Grant program (up to $10,000 in select areas). These programs have income and property eligibility requirements that vary by market. Preferred Rewards members also receive origination fee discounts. Always compare rates from multiple lenders before committing to any mortgage.
Does Bank of America offer investing services?
Yes. Bank of America offers self-directed investing through Merrill Edge with commission-free stock and ETF trades, and advisor-managed investing through Merrill Guided Investing at 0.45% annually (0.30% for Preferred Rewards members). Both platforms offer Traditional, Roth, and Rollover IRA accounts.
How does Bank of America compare to Chase or Wells Fargo?
Bank of America, Chase, and Wells Fargo are all Big Four U.S. banks with similar fee structures and low savings rates. Bank of America's Preferred Rewards program is generally considered the strongest loyalty offering among the three for customers who maintain significant combined balances. Chase holds a slight advantage in travel credit card products. All three have strong mobile apps and comparable branch networks. None of the three compete with online banks on savings rates.
What is Bank of America Erica?
Erica is Bank of America's AI-powered virtual financial assistant, launched in 2018. As of 2025, Erica has surpassed 3.2 billion total client interactions and handles more than 2 million interactions per day. Erica helps customers check balances, search transactions, receive spending insights, pay bills, and get financial guidance — all within the Bank of America mobile app. It is one of the first widely adopted AI banking assistants in the U.S.
Is Bank of America safe?
Yes. Bank of America is designated a systemically important financial institution (SIFI) by U.S. regulators, is FDIC-insured, publicly traded on the NYSE, and supervised by the Federal Reserve. With approximately $3.4 trillion in total assets as of 2025, it is the second-largest bank in the United States by assets.
✓ Best For
- Consumers who want extensive branch and ATM access for in-person banking
- Customers with $20,000+ in combined balances who qualify for Preferred Rewards
- First-time home buyers in grant-eligible markets
- Consumers who want banking and investing in one ecosystem via Merrill
- Those who want a no-overdraft-fee account via SafeBalance
- Digital banking users who want an AI assistant and polished mobile experience
✗ Look Elsewhere If
- Maximizing savings interest is a priority — online banks pay far more
- You want zero monthly fees without maintaining a minimum balance
- You're an active trader who needs advanced brokerage tools
- You frequently use out-of-network ATMs and want fee reimbursement
- You live outside Bank of America's branch footprint and prefer in-person banking
The JumpSteps Verdict
Bank of America earns its place as a top-tier institution for consumers who value scale, stability, and ecosystem breadth. Its Preferred Rewards program is one of the most generous loyalty programs in traditional banking — customers who can maintain $20,000 or more in combined balances will find meaningful value across credit cards, investing, and fee waivers.
Where Bank of America falls short is on savings rates — a structural disadvantage it shares with all major brick-and-mortar banks. Consumers whose primary goal is growing savings through interest will find dramatically better options at online banks. Bank of America is best understood as a full-service financial hub, not a yield maximizer.
For consumers who want the security of a nationally recognized institution, prefer in-person banking, and are likely to accumulate qualifying balances over time, Bank of America is a sound, long-term banking home.
Disclosure: JumpSteps maintains a financial relationship with certain brands presented on this website. When you apply for and acquire a partner solution, JumpSteps may receive a commission. This relationship does not influence our editorial assessments, ratings, or factual reporting. All product details, rates, and fees in this review are sourced from publicly available information and are accurate as of March 2025. Rates and terms are subject to change — always verify current details directly with Bank of America before opening an account.
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