Bank of America Business Advantage Savings Account 2024 Review
As a small business owner, you likely have future plans that require using a significant amount of cash. Rather than leaving that cash sitting in a checking account that doesn’t earn interest, you can open a business savings account.
Not all business savings accounts are created equal, though. Some charge several fees and pay interest rates close to zero. Others pay generous interest rates and don’t charge many fees at all.
Here’s what you need to know about the Bank of America Business Advantage Savings account to see if it’s a good fit for your small business banking needs.
The Bank of America Business Advantage Savings account functionally works as a savings account. Unfortunately, the interest rate the account offers is so low you wouldn’t want to start a banking relationship with Bank of America to get this account.
Instead, current Bank of America checking account customers who want to keep their business banking at the same bank may be a good fit for this account. Additionally, companies looking to keep money at a large and stable bank may be willing to overlook the interest rates offered.
Bank of America Business Advantage Savings Account Pros & Cons
$10 Monthly Maintenance Fee
The Bank of America Business Advantage Savings Account charges a $10 monthly maintenance fee unless you meet one of the three following requirements:
- Maintain a $2,500 minimum daily balance
- Include a Business Advantage Savings account as part of a Business Advantage Relationship Banking solution
- Become a member of Preferred Rewards for business (up to four savings accounts per enrolled business)
25 Free Monthly Deposits
Your account offers 25 free deposits each month. Each additional deposit item results in a $0.40 fee per item. This fee does not apply to mobile check deposits, remote deposit online, or Bank of America ATM deposits.
$5,000 in Free Monthly Cash Deposits
You can deposit up to $5,000 of cash each statement cycle for free at an ATM or financial center. Each additional $100 cash deposited through these methods incurs a $0.30 fee.
While this savings account pays interest, the interest rate is essentially non-existent. You can boost the interest rate by enrolling in Bank of America’s Preferred Rewards for Business, but the rate increase isn’t worth mentioning. Additionally, you must have a Bank of America business checking account and maintain a balance of at least $20,000 for the lowest rewards tier.
Other Account Fees to Consider
Bank accounts typically have a long list of fees that may impact account holders. Savings accounts usually have fewer fees. Here are some of the relevant fees you should be aware of.
Other Service Fees - Bank of America Business Advantage Savings
|No fee for the first 25 items per statement cycle, then $0.45 per item
|No fee for the first $5,000 per cycle, then $0.30 per $100 deposited
|Out-of-network ATM withdrawal
|Rush ATM card replacement
|Domestic incoming wire transfer
|Domestic outgoing wire transfer
|International incoming wire transfer
|International outgoing wire transfer
The Bank of America Business Advantage Savings account offers a few features your business may find useful.
The account offers mobile banking, including the option to remotely deposit checks without impacting your number of free monthly deposits. Bank of America is an FDIC member, which means the money in your account is covered up to FDIC limits.
Your account also offers a suite of tools through Bank of America’s Cash Flow Monitor. This tool can help you get cash flow projections or view balances by category. You can also monitor key transactions quickly.
How to Open
You can open a Bank of America Business Advantage Savings account in several ways. You may be able to open an account online, schedule a phone or in-person appointment, or can call Bank of America.
Bank of America supports the following business types:
- Sole proprietorship
- General partnership
- Limited partnership
- Professional corporation
- Limited liability company
- Unincorporated association
- Professional association
Each business type requires slightly different information to open an account. In general, you should expect to be able to provide the following when applying:
- Business’s name and address
- Business’s tax identification number (may be Social Security Number)
- Date of formation of business
- Country and state business was formed and the primary business operation location
- Personal information for each person on the application including 25% or greater owners and the business’s controlling managers including:
- Social Security Number
- Date of birth
- Residential address
- A copy of driver’s license or other identifying document
- Business license
- Operating, partnership, or other agreement
- Articles of incorporation, organization, formation, association, or other similar document
How to Choose a Business Savings Account
Choosing a business savings account depends on your business’s priorities. Here are a few factors your company may want to consider.
Businesses looking to put their savings to work should look for an account with a high interest rate. This allows your savings to grow while you wait to use it for whatever purpose you’re saving for.
FDIC or NCUA insurance coverage
FDIC or NCUA insurance can cover your deposits up to the limits if your bank should fail. This is more important than in the past after several recent bank failures.
If your deposits exceed FDIC or NCUA limits, you should strongly consider a bank’s financial position to avoid banks that may not be able to withstand a rough economic period.
Monthly maintenance fees
Monthly maintenance fees can eat away at your savings account balance. Look for accounts that do not charge monthly maintenance fees or offer ways to waive them.
Minimum balance requirements
A bank may waive a maintenance fee if you maintain a minimum balance in the account. Ensure you can maintain the required balance if you do not want to pay the fee.
The balance amount may be calculated by using different methods. Understand the method being used to avoid any surprise fees.
Transaction limits and excess transaction fees
Savings accounts often limit the number of withdrawals you can make. They may also limit the amount of free deposits you can make by charging a fee for additional deposits.
Cash deposit limits and excess cash deposit fees
Your bank may limit the amount of cash you can deposit for free each period. Each additional $100 cash deposit beyond the limit may incur a small fee.
Physical bank locations and hours
If you plan to visit a bank branch for customer service problems or other reasons, bank locations can be very important. Additionally, you want to consider the hours a bank is open and if those hours work with your daily schedule.
You may want to keep all of your banking with one institution. This may require you to look at other banking products, such as checking accounts or loans, rather than just the features of a savings account.
Online Banks vs. Traditional Banks for Business Savings Accounts
Traditional banks almost always offer a business savings account, but do those accounts typically stack up to an online business savings account? Most times, online business savings accounts come out ahead.
Since you’re setting aside money to save, it makes sense to want to earn as much interest as possible. Usually, online business savings accounts offer much higher interest rates than traditional banks.
This is possible because online banks don’t have to pay for physical branch locations. They pass along some of those cost savings in the form of higher interest rates. Online banks normally offer fewer fees at lower costs, too.