Bank of America offers free checking, but it comes with conditions
Bank of America has a free checking account called eChecking, but the word "free" depends on how you use it. There is no monthly fee if you meet one of these conditions: you keep a $500 minimum balance, you set up direct deposit, or you maintain a linked savings account with at least $500 in it. If you do none of those things, the account costs $12 per month.
The other free option is Advantage Banking, which has no balance requirement and no monthly fee, but it comes with limits: you get only four free withdrawals per month from any source (ATM, teller, transfer out). After four, each withdrawal costs $3. This account is designed for people who rarely move money out.
Bank of America also offers Preferred Rewards checking, which waives the monthly fee if you maintain a Preferred Rewards membership status (which itself requires either $20,000 in combined deposits and investments, or a mortgage with the bank). This is free checking only if you already may have access to for their rewards program.
Key Takeaways
- eChecking is free if you keep $500 on deposit, set up direct deposit, or link a savings account with $500 in it; otherwise it costs $12 monthly.
- Advantage Banking has no monthly fee and no balance requirement, but limits you to four free withdrawals per month before charging $3 per withdrawal.
- Both accounts include a debit card, online banking, and access to Bank of America's ATM network at no extra cost.
- The cheapest option for most people is eChecking with direct deposit, since many employers offer it at no cost to you.
What eChecking includes and what it costs
eChecking gives you a debit card, checks, online bill pay, mobile banking, and access to over 16,000 Bank of America ATMs nationwide. You can transfer money between your own accounts, set up automatic payments, and receive mobile check deposit. There are no per-transaction fees for deposits, transfers in, or standard withdrawals.
The $12 monthly fee applies only if you fall below all three waiver conditions: you have less than $500 in the account, you have no direct deposit set up, and you have no linked savings account with $500. If even one of those is true, the fee does not charge. Many people meet the direct deposit condition alone, which makes the account genuinely free.
Bank of America does charge for certain actions: overdraft fees ($35 per overdraft, up to three per day), out-of-network ATM fees ($2.50 per withdrawal), wire transfer fees ($15 domestic, $45 international), and stop payment requests ($30). These are not part of the monthly fee—they are separate charges if you use those services.
How Advantage Banking works and who it suits
Advantage Banking has no monthly maintenance fee and no minimum balance. You get a debit card, online banking, mobile check deposit, and bill pay. The catch is the withdrawal limit: you can make four free withdrawals or transfers out per month from any source combined—ATM, teller, phone, or online transfer. The fifth withdrawal in a month costs $3, the sixth costs $3, and so on.
This account makes sense only if you rarely move money out. If you get paid by direct deposit and leave the money there, or if you use it as a savings account and withdraw only once a month, the four-withdrawal limit does not affect you. If you withdraw twice a week, you will hit the limit and pay $3 per extra withdrawal, which adds up to $36 per month or more.
Advantage Banking also includes the same overdraft fees ($35), out-of-network ATM fees ($2.50), and other service charges as eChecking. The withdrawal limit is the only structural difference.
Direct deposit as the easiest path to free checking
If your employer or a government agency (Social Security, unemployment, tax refund) deposits money into your account electronically, that counts as direct deposit and waives the eChecking monthly fee. You do not need a large balance, and you do not need to maintain a separate savings account. One direct deposit per month is enough.
Setting up direct deposit usually takes five minutes. You give your employer or the paying agency your Bank of America account number and routing number (both visible on your checks or in the mobile app), and they handle the rest. The deposit typically lands on the same day or the next business day, depending on the payer's schedule.
If you do not have direct deposit now but could set it up, this is the simplest way to avoid the $12 monthly fee. If you cannot set up direct deposit—for example, if you are self-employed or paid in cash—the $500 balance waiver or the linked savings account waiver are your other options.
Comparing eChecking to Advantage Banking
| Feature | eChecking | Advantage Banking |
|---|---|---|
| Monthly fee (if no waiver) | $12 | $0 |
| Minimum balance to waive fee | $500 | Not applicable |
| Direct deposit waives fee | Yes | Not applicable |
| Free withdrawals per month | Unlimited | 4 |
| Cost per withdrawal over limit | None | $3 |
| Debit card included | Yes | Yes |
| Online bill pay | Yes | Yes |
eChecking is the better choice if you move money regularly or want unlimited withdrawals. Advantage Banking is better only if you rarely withdraw and want to avoid maintaining a balance or setting up direct deposit. For most people, eChecking with direct deposit costs nothing and gives you full access to your money.
Other Bank of America checking options
Bank of America also offers Preferred Rewards Checking, which waives the monthly fee if you are a Preferred Rewards member. Preferred Rewards membership requires either $20,000 in combined deposits and investments, or an active mortgage with Bank of America. If you already meet that threshold for other reasons, this account is free. If you do not, the membership requirement makes it more expensive than eChecking with direct deposit.
There is also Student Checking, which is free for students under 24 with a valid student ID. It works like eChecking but with no monthly fee and no balance requirement during the student period. Once you turn 24 or graduate, it converts to a standard account with the usual fees.
None of these alternatives offer features that eChecking or Advantage Banking do not have. The choice comes down to which fee structure fits your habits: unlimited withdrawals with a balance or direct deposit requirement, or limited withdrawals with no requirements.
Frequently Asked Questions
Can I switch from eChecking to Advantage Banking if I do not have direct deposit?
Yes. If you cannot maintain a $500 balance or set up direct deposit, Advantage Banking avoids the $12 monthly fee entirely. The trade-off is the four-withdrawal limit. If you withdraw money fewer than five times per month, Advantage Banking costs nothing. If you withdraw more often, you will pay $3 per extra withdrawal.
Does the $500 balance have to stay in checking, or can I move it around?
The $500 minimum applies to your checking account balance specifically. If you drop below $500 in checking, the fee charges even if you have money in savings. However, if you link a savings account with $500 in it, that linked savings balance counts toward the waiver—you do not need $500 in both accounts, just $500 total in the linked pair.
What happens if I overdraft my account?
Bank of America charges $35 per overdraft, up to three times per day. If you overdraft by $1 and then by $50 on the same day, that is two separate $35 charges. The overdraft fee is separate from the monthly account fee. Some overdrafts can be reversed if you contact the bank quickly, but there is no may provide.
Do I need to keep the account open if I set up direct deposit?
Yes. The direct deposit waiver only works while the account is active and direct deposit is actually being deposited. If you close the account or stop receiving direct deposits, the monthly fee will charge on any remaining balance or new activity. If you reopen the account later, you start fresh with the fee structure.
Is there a way to get Bank of America checking with no fees and no conditions?
Advantage Banking has no monthly fee and no balance requirement, but it limits you to four free withdrawals per month. If you withdraw more than four times, you pay $3 per extra withdrawal. If you want unlimited withdrawals with no fees, you need either direct deposit, a $500 balance, or a linked $500 savings account for eChecking.