As a banking and financial services giant in the United States, Bank of America is known for its wide range of services, including checking and savings accounts, credit cards, loans, investments, and small business banking. The bank is headquartered in Charlotte, North Carolina, and has a rich history dating back to the early 20th century. In this comprehensive guide, I will explore the various services and benefits offered by Bank of America, as well as compare it to other banks in the market.
Also read: Pros and Cons of Online-Only Bank Accounts.
History and background of Bank of America
Bank of America was founded in San Francisco in 1904 as the Bank of Italy by Amadeo Giannini. Giannini was a pioneer in extending credit to working-class people and small businesses, and he believed that everyone should have access to banking services. The bank grew rapidly, and by 1918, it had become the largest bank in California.
In the 1920s, the bank expanded beyond California and acquired a number of other banks, including the Bank of America in Los Angeles. In 1930, the bank changed its name to Bank of America, and in the following decades, it continued to grow through acquisitions and mergers. Today, BofA is one of the largest banks in the world, with over 66 million customers and more than $2.8 trillion in assets.
Types of accounts offered by Bank of America
BofA offers a wide range of accounts to meet the needs of different customers. These include:
Checking accounts
Bank of America offers four types of checking accounts: Advantage Plus, Advantage Relationship, Advantage SafeBalance, and Advantage with Tiered Interest. The Advantage Plus account has a monthly maintenance fee of $12, which can be waived if you meet certain criteria, such as maintaining a minimum daily balance. The other three accounts have higher fees but come with additional benefits, such as higher interest rates and waived fees for certain transactions.
Savings accounts
Bank of America offers three types of savings accounts: Rewards Savings, Custodial Savings, and Minor Savings. The Rewards Savings account has a monthly maintenance fee of $8, which can be waived if you meet certain criteria, such as maintaining a minimum daily balance. The other two accounts are designed for children and young adults and have no monthly fees.
Certificates of deposit (CDs)
It offers CDs with terms ranging from 28 days to 10 years. The interest rate on a CD is fixed for the term of the CD, and you can choose to receive the interest payments monthly, quarterly, or at maturity.
Individual retirement accounts (IRAs)
Bank of America offers traditional and Roth IRAs, as well as rollover and SEP IRAs for self-employed individuals. These accounts offer tax advantages and can be used to save for retirement.
Benefits of banking with Bank of America
Bank of America offers a number of benefits to its customers, including:
Convenience
It has over 4,300 branches and 16,000 ATMs across the United States, making it easy for customers to access their accounts and conduct transactions.
Rewards programs
It offers several rewards programs for its credit cards and checking and savings accounts. These programs allow customers to earn cash back, points, or other rewards for using their accounts.
Online and mobile banking
Bank of America’s online and mobile banking services allow customers to check their account balances, transfer funds, pay bills, and deposit checks from their smartphones or computers.
Security
Bank of America takes security seriously and offers several features to protect its customers’ accounts, including two-factor authentication, fraud alerts, and purchase protection for its credit cards.
Online and mobile banking services provided by BofA
Bank of America’s online and mobile banking services are among the most advanced in the industry. Customers can access their accounts from their smartphones, tablets, or computers, and can perform a wide range of transactions, including:
Account management
Customers can check their account balances, view transaction history, and transfer funds between accounts.
Bill pay
Customers can pay their bills online, set up automatic payments, and receive email or text alerts when bills are due.
Mobile check deposit
Customers can use their smartphones to deposit checks, eliminating the need to visit a branch or ATM.
Zelle
Bank of America’s Zelle service allows customers to send and receive money from other people using only their email address or mobile phone number.
Credit card options offered by Bank of America
BofA offers a wide range of credit cards to meet the needs of different customers. These include:
Cash back cards
BofA offers several cash back cards, including the Cash Rewards card, which offers 3% cash back on gas purchases, 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases.
Travel cards
Bank of America offers several travel cards, including the Travel Rewards card, which offers 1.5 points per dollar spent on all purchases, and the Premium Rewards card, which offers 2 points per dollar spent on travel and dining and 1.5 points per dollar spent on all other purchases.
Business cards
BofA offers several business credit cards, including the Business Advantage Cash Rewards card, which offers 3% cash back on select categories and 1% cash back on all other purchases.
Read also: Convenient Banking: How to Easily Find a Bank of America ATM Near Me.
Mortgage and loan services provided by Bank of America
Bank of America offers a wide range of mortgage and loan services to help customers finance their homes, cars, and other major purchases. These include:
Mortgages
BofA offers fixed-rate and adjustable-rate mortgages, as well as jumbo loans for homes that exceed the conforming loan limit.
Home equity loans and lines of credit
Bank of America offers home equity loans and lines of credit, which allow customers to borrow against the equity in their homes.
Auto loans
Bank of America offers auto loans for new and used vehicles, as well as refinancing options for existing auto loans.
Personal loans
BofA offers personal loans for a variety of purposes, including debt consolidation, home improvements, and major purchases.
Investment services offered by BofA
Bank of America offers a wide range of investment services to help customers plan for their financial futures. These include:
Merrill Edge
It’s BofA’s online investing platform, which offers access to research and insights, as well as a variety of investment options, including stocks, bonds, ETFs, and mutual funds.
Wealth Management
Merrill Lynch Wealth Management is Bank of America’s full-service investment advisory service, which offers personalized investment advice and portfolio management.
Bank of America Private Bank
Bank of America Private Bank offers wealth management services for high-net-worth individuals and families, including investment management, trust and estate planning, and philanthropic services.
Small business banking services provided by Bank of America
Bank of America offers a wide range of banking and financial services for small businesses, including:
Business checking and savings accounts
BofA offers several business checking and savings accounts, including the Business Advantage Checking account, which offers cash management tools and online and mobile banking services.
Credit cards and loans
Bank of America offers several credit cards and loans for small businesses, including the Business Advantage Cash Rewards Mastercard, which offers cash back on select purchases, and the Business Advantage Term Loan, which provides financing for major purchases or investments.
Merchant services
BofA offers merchant services, including credit card processing and online payment solutions, to help small businesses accept payments from customers.
Customer support and resources available at Bank of America
Bank of America offers a variety of customer support and resources to help customers manage their accounts and make informed financial decisions. These include:
Online and mobile banking support
Bank of America’s online and mobile banking support team is available 24/7 to help customers with any issues or questions they may have.
Financial education resources
BofA offers a variety of financial education resources, including articles, videos, and webinars, to help customers improve their financial literacy.
Fraud protection
Bank of America offers several features to protect its customers from fraud, including two-factor authentication, fraud alerts, and purchase protection for its credit cards.
Comparison with other banks in the market
BofA is one of the largest banks in the United States, but it faces competition from other big banks, such as Wells Fargo, JPMorgan Chase, and Citibank, as well as from smaller regional and community banks. When comparing Bank of America to other banks in the market, some factors to consider include:
Branch and ATM network
BofA has one of the largest branch and ATM networks in the United States, but other banks may have more extensive networks in certain regions or markets.
Fees and account requirements
Bank of America’s fees and account requirements may be higher than those of some smaller banks, but it offers a wider range of services and benefits.
Customer service and support
BofA has a reputation for good customer service and support, but other banks may offer more personalized service or be more responsive to individual needs.
Conclusion
Bank of America offers a comprehensive range of banking and financial services to meet the needs of different customers, from individuals and families to small businesses and high-net-worth individuals. Its online and mobile banking services are among the most advanced in the industry, and it offers several rewards programs and benefits to its customers. While it faces competition from other big banks and smaller regional and community banks, Bank of America’s extensive branch and ATM network, combined with its reputation for good customer service and support, make it a strong choice for many customers.
