Does Bank of America have money market accounts? Cash is very crucial nowadays. You might be looking for a place to keep your money safe, earn a reasonable rate, and not get penalized for withdrawing your money early. One option to consider is a money market account, which blends features of savings and checking accounts.
If you prefer banking in person, mobile banking, and online banking options, a solid choice could be Bank of America. They have plenty of ATMs and branches and offer a wide range of banking products and services. This article will explore the details about Bank of America providing money market accounts.
Does Bank Of America Have Money Market Accounts?
If you’re looking to open a money market account, Bank of America isn’t offering them to new customers. However, opening a Bank of America Advantage Relationship checking account can still obtain something similar.
It’s an interest checking account that lets you write checks and comes with other benefits like fee waivers and the ability to set up overdraft protection. To open a money market account, check out other banks like Vio Bank, Ally Bank, or Zynlo Bank. They might have what you’re looking for.
Overview Of A Money Market Account
A money market account, also known as MMA, is a bank account that merges features from both savings and checking accounts. Similar to a savings account, MMAs earn interest on the money you have in the account. Sometimes, the interest rate goes up as your balance rises. Furthermore, similar to checking accounts, MMAs can come with debit cards and checkbooks for easy access to your funds.
Unlike checking accounts, money market accounts provide less liquidity. There is usually a limit on the number of transactions you may do in each statement cycle. However, they offer more access to your money compared to savings accounts. Money market accounts often have different tiers, with higher balances earning higher Annual Percentage Yields (APYs). You might also need to deposit a minimum amount to open the account or keep a certain balance to avoid paying maintenance charges. So, before you open a money market account, comparing fees, APYs, and other features is vital to find the best account for your financial needs.
What Are The Advantages and Disadvantages of Money Market Accounts?
Specific money market accounts offer features not available in regular savings accounts. Let’s check out some of money market accounts’ main pros and cons.
Advantages Of Money Market Accounts
Money market accounts provide a middle ground between checking and savings accounts. It gives you both the interest benefits of a savings account and the flexibility of a checking account, like writing checks and using a debit card. Let’s look at some of the main advantages.
Higher Interest Rates: Similar to savings accounts, money market accounts usually give you interest on the money you keep in your account. One significant benefit of a money market account is that it often offers higher interest rates than other deposit accounts.
Flexibility: Even though there might be a cap on how many withdrawals you can make monthly, your money is still easily accessible. Numerous money market accounts give you an ATM or debit card and let you write checks, so you can use your money whenever you want. It allows you to transfer funds and withdraw a specific number of times for each statement period.
Safety: Money in a money market account supported by the NCUA at credit unions or FDIC at banks is insured.
Disadvantages Of Money Market Accounts
Account Opening Restrictions: Opening a money market account (MMA) can be expensive, and you might be required to have a specific amount of money in your account to start one. Some banks ask for a minimum deposit to open an MMA, which could be as low as a few dollars or as high as thousands.
Interest Rates Fluctuate: Interest rates on money market accounts are not fixed, which means that they can fluctuate over time.
Minimum Balance Requirement: When you open an account, the bank might ask you to keep a certain amount. Some credit unions or banks also make you pay a monthly maintenance fee for having an account. However, customers can avoid this fee for certain accounts if they fulfill a minimum balance requirement.
Transaction Limitations: Federal Regulation D previously limited the number of withdrawals and transactions you could make from a money market account to six per month. These limits were lifted during the coronavirus pandemic. However, credit unions and individual banks can still set transaction limits and charge fees if you go over them. A checking account might be a better choice if you need to access your cash without any restrictions.
Bank Of America Savings Accounts: Know The Details
The Bank of America Advantage Savings is their primary savings option. You’ll need at least $100 to open this account. There is a $8 maintenance fee per month with this account. However, you can avoid the fee if you fulfill one of the conditions below.
- Age is below 18, and they should be the primary account holder.
- Maintain a minimum daily balance of $500 or more.
- Qualify as a student under 25.
- Become a client of Bank of America Preferred Rewards.
- Connect your savings account with a BofA Advantage Relationship Banking account.
If you open a new Bank of America Advantage Savings account, you won’t have to pay the fee for the first 6 months. But, if you make more than six withdrawals or transfers in a month, there is a $10 charge for each extra one.
Bank of America doesn’t offer very competitive rates for savings accounts, especially when you compare them to the best ones on the market. Nowadays, some savings accounts offer rates above 4.50% APY because interest rates are high. Even the national average rate is over 10 times higher than what Bank of America offers.
Right now, all Advantage Savings accounts get 0.01% APY on whatever money you have. If you are a member of Bank of America Preferred Rewards, you could get up to 0.04% APY, based on your rewards level. If you are on the hunt for the best rates of savings accounts, Bank of America may not be your best choice. But if you value other benefits, like having a bank you can visit in person and access a wide range of services and products, then Bank of America might still be worth considering.
Bank of America offers two types of savings accounts for kids: the Bank of America Custodial UTMA Savings Account and the Bank of America Minor Savings Account. Kids can open an Advantage Savings account jointly with a guardian or parent. As long as the account owner is under eighteen, there are no overdraft fees, monthly charges, or minimum balance requirements.
Kids can take out money whenever they need it. Furthermore, guardians can set up automatic transfers from their other accounts to build up their child’s savings. The Custodial UTMA Savings account is different. The guardian or parent manages the child’s account until the child turns 18. Kids can only use the money after that; all transactions need the parent’s approval.
In addition, this account needs at least $100 to start and has an $8 maintenance fee per month. However, you can avoid the fee by keeping at least $500 in the account daily.
Details Of Bank Of America CDs Accounts
Bank of America offers two types of certificates of deposits, known as CDs. The Bank of America Featured CD accounts need at least $1,000 to start, and you can choose from five terms lasting between 7 and 37 months. The interest rates for Featured CDs vary from 0.05% to 4.75%, based on the term and balance.
The Bank of America Fixed Term CDs give you even more flexibility. You can pick terms between 28 days and 10 years; again, you only need $1,000 to get started. All standard CD terms get between 0.03% and 4.00% APY, depending on the term and balance. If you’re thinking about setting up a CD ladder, Bank of America’s standard CDs with their different term options could be a good choice. But remember that most of their CD rates are low, except for the featured CD rates.
Both types of CDs automatically renew when they reach maturity. Customers can also withdraw their money during the grace period after maturity. If you withdraw your funds before the CD matures, Standard and Featured Term CDs might have early withdrawal penalties. These penalties could be as much as 365 days’ interest on the amount you take out. To open a CD with a deposit of over $250,000, you must go to a Bank of America financial center to set up your account.
What Are The Bank Of America Checking Accounts?
Bank of America also offers checking accounts alongside their savings options. The Bank of America has three different kinds of checking accounts. They are:
- Advantage Plus
- Advantage SafeBalance
- Advantage Relationship
All three accounts will cost you a maintenance fee per month unless you are a client of Bank of America Preferred Rewards. Advantage Plus and Advantage SafeBalance are the standard checking account choices. Advantage Relationship is a checking account that earns interest.
Final Thoughts
Does Bank of America have money market accounts? No, Bank of America doesn’t have money market accounts. However, you can check its savings accounts, CDs, and checking accounts. These accounts are great for your banking needs. Also, Bank of America really shines in relationship banking, especially for Preferred Rewards members who get extra benefits. With more than 4,300 retail locations, it’s easy to find a branch nearby. In addition, their ATM network covers over 17,000 locations.
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