Bank of America is a retail and commercial bank where you can hold deposits, borrow money, and move funds
Bank of America (BofA) is one of the largest banks in the United States. It takes deposits into checking and savings accounts, makes loans to individuals and businesses, processes payments, and manages investment accounts. When you open an account there, your money is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type. The bank operates physical branches in most states, an online banking platform, and a mobile app.
The bank makes money by charging fees on accounts and services, earning interest on loans, and investing customer deposits. It does not create money or set interest rates—the Federal Reserve does that. Bank of America is a publicly traded company, meaning anyone can buy shares of it on the stock market.
Key Takeaways
- Bank of America holds deposits in checking and savings accounts that are insured by the FDIC up to $250,000 per account type.
- The bank processes payments through debit cards, wire transfers, ACH transfers, and bill pay, and each method has different timelines and fees.
- You can borrow through personal loans, credit cards, home loans, and auto loans, with interest rates that vary based on your credit score and the loan type.
- Bank of America charges monthly maintenance fees on some accounts, overdraft fees when you spend more than your balance, and fees for certain transactions like wire transfers.
- If you have a dispute with a transaction or believe fraud occurred, you can report it to the bank and file a claim within specific timeframes depending on the payment method.
How deposits and account types work at Bank of America
When you open a checking account at Bank of America, you get a debit card and can write checks. The bank does not pay interest on most checking accounts. A savings account earns a small amount of interest, though the rate changes based on what the Federal Reserve does. Money Market accounts pay slightly higher interest but may require a larger opening deposit. Certificates of Deposit (CDs) lock your money away for a set time—three months, one year, five years—in exchange for a may provide interest rate.
All deposits are protected by FDIC insurance up to $250,000 per account type per person per bank. If Bank of America failed, the FDIC would return your money. This protection does not cover investment accounts or money held in a safe deposit box.
Bank of America charges a monthly maintenance fee on most checking and savings accounts unless you meet certain conditions—such as maintaining a minimum balance, setting up direct deposit, or having a linked investment account. Some accounts waive the fee entirely. You can view current fee schedules on the bank's website or ask at a branch.
Payment methods and how money moves through Bank of America
Bank of America lets you move money in several ways. A debit card withdrawal is instant at an ATM or point of sale. A wire transfer (also called a bank transfer) moves money to another bank account and typically arrives the same business day if sent before the bank's cutoff time, usually 2 p.m. Eastern. Wire transfers cost $15 to $30 depending on whether the money stays within the U.S. or goes abroad.
An ACH transfer (Automated Clearing House) is slower but free or low-cost. It takes one to three business days and is commonly used for payroll deposits, bill payments, and peer transfers. Bill pay through your Bank of America account lets you schedule payments to companies; the bank sends a check or ACH transfer on your behalf, usually arriving within five business days.
A Zelle transfer through Bank of America moves money between enrolled users instantly or within minutes. It is free and works between most major U.S. banks. Mobile check deposit lets you photograph a check and deposit it through the app; the bank typically makes funds available within one to two business days.
Borrowing through Bank of America credit products
Bank of America offers several ways to borrow. A credit card lets you charge purchases and pay them back over time; if you do not pay the full balance, you owe interest at a rate that depends on your credit score and the card type. The bank reports your payment history to credit bureaus, which affects your credit score.
A personal loan is a fixed amount you borrow and repay in equal monthly installments over a set period, usually two to seven years. The interest rate depends on your credit score and income. A home loan (mortgage) lets you borrow against the value of a house; the bank holds a lien on the property until you pay it off. An auto loan works similarly for vehicles.
All loans come with a Truth in Lending disclosure that shows the interest rate, total amount you will pay, and monthly payment before you sign. Bank of America must provide this by law. If you miss a payment, the bank reports it to credit bureaus and may charge a late fee. If you miss multiple payments, the bank can foreclose on a home or repossess a car.
Fees and charges you may encounter
Bank of America charges an overdraft fee (typically $35) when you spend more money than you have in your account. Some accounts offer overdraft protection, which links your checking account to a savings account or line of credit; if you overdraw, the bank transfers money automatically instead of charging a fee. You can opt out of overdraft protection, in which case transactions may be declined instead.
A wire transfer fee ranges from $15 to $30 depending on whether it is domestic or international. A returned deposit fee applies if a check you deposit bounces. ATM fees do not apply at Bank of America ATMs, but using another bank's ATM may cost $2 to $3 (the other bank charges this, not Bank of America). A monthly maintenance fee applies to most accounts unless you meet waiver conditions.
Some accounts charge a fee for paper statements, though electronic statements are free. Closing an account within a certain period (often 90 days) may trigger a closure fee. You can review your account agreement or call the bank to understand which fees apply to your specific account.
What to do if a transaction goes wrong or you suspect fraud
If you see a transaction you did not make, report it to Bank of America immediately. For debit card fraud, you have up to 60 days from when your statement is sent to report unauthorized charges. If you report within two business days, your liability is capped at $50; after two business days, you may owe up to $500. The bank investigates and typically refunds the money while the investigation is ongoing.
For credit card fraud, your liability is capped at $50 by federal law, and many cards waive this entirely. Report fraud to the card issuer as soon as you notice it. For ACH or wire transfer fraud, you have a shorter window—typically 60 days for ACH and one business day for wire transfers. Once a wire leaves your bank, it is nearly impossible to recover, so report it immediately if you believe you were scammed.
If a check you deposited bounces, the bank will debit your account for the amount. You can dispute a transaction through your online account or by calling the bank. Bank of America will ask you to provide evidence—such as a receipt, email confirmation, or statement from the merchant—to support your claim. The investigation typically takes 10 business days, though complex cases may take longer.
How to contact Bank of America and access your account
You can reach Bank of America by phone at 1-800-432-1000 for customer service, or visit a local branch. The bank's website is bankofamerica.com, and the mobile app is available on iOS and Android. You can log in to your account online to view balances, transfer money, pay bills, and download statements.
If you have a dispute or complaint that the bank does not resolve to your satisfaction, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints about banks and publishes the results publicly.
Frequently Asked Questions
Is my money safe at Bank of America if the bank fails?
Yes, up to $250,000 per account type per person. The FDIC insures deposits, so if Bank of America failed, the FDIC would return your money. Investment accounts and safe deposit box contents are not covered by FDIC insurance.
How long does it take for money to arrive when I transfer it to another bank?
An ACH transfer takes one to three business days. A wire transfer typically arrives the same business day if sent before 2 p.m. Eastern. A check sent through bill pay usually arrives within five business days. Zelle transfers between enrolled users are instant or within minutes.
What happens if I miss a credit card payment to Bank of America?
The bank charges a late fee (typically $25 to $35) and reports the missed payment to credit bureaus, which lowers your credit score. If you miss multiple payments, the bank may increase your interest rate or close the account. You can call the bank to discuss hardship options if you are struggling to pay.
Can I get my money back if I wire it to the wrong person?
Wires are nearly impossible to reverse once sent. Contact Bank of America immediately and provide the recipient's bank details. The bank can attempt to recall the wire, but success depends on whether the recipient's bank cooperates. This is why wire fraud is common—once the money leaves, recovery is unlikely.
How do I dispute a charge on my Bank of America debit card?
Report it to the bank within 60 days of your statement date. You can dispute it online through your account, by phone, or at a branch. Provide any evidence you have—receipts, emails, or merchant contact information. The bank investigates and typically refunds the money while the investigation is pending.