Bank of America Problems and Solutions
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links.
Bank of America may be one of the biggest banks, but many customers find a lot of issues with their banking services. What are they? Keep reading.
 |
Like any major financial institution, Bank of America hasn't been spared from the wrath of countless irate customers over the years.
From excessive fees to fraudulent activities, a closer look at these problems may give you valuable insights and potential solutions.
Excessive Fees
Fees are a pain when you're working with a tight budget. Customers may encounter some fees and charges when banking with Bank of America like with most banks.
However, Bank of America has a history of "double-dipping" on returned transactions. This means some customers were charged an overdraft fee every time the same check or withdrawal could not be cleared because their account didn't have enough money.[1]
The Consumer Financial Protection Bureau (CFPB) formally took action against the bank in July 2023. It required BofA to refund all repeat non-sufficient fund fees collected since September 2018 (totaling approx. $80.4 million).
But in the first half of 2022, Bank of America did take steps to eliminate non-sufficient funds fees and reduced its overdraft fee from $35 to $10.[2]
Potential solutions:
Bank of America has an info sheet [3] listing all applicable fees and charges on their products and services. Make sure you're aware of these before you make a transaction. Here are some of them:
| Checking monthly fee | starts at $4.95 |
| Statement copy | $5 |
| Overdraft item | $10 |
| Rush replacement card | $15 |
| Out-of-network ATM use | $2.50 in the US, $5 outside of the US (excludes any ATM operator fees) |
Bank of America also discloses how you can waive some by meeting certain criteria like minimum daily balances or making qualifying direct deposits. But here are some general tips to minimize or avoid fees and charges.
- Avoid using non-BofA ATMs.
- Sign up for e-statements.
- Sign up for overdraft protection if eligible.
- Avoid rush card replacements unless it is urgent.
- BMO Smart Advantage Checking:
$250 Cash Bonus - Discover Bank:
Online Checking Account - Earn Cash Back - Axos Bank:
Rewards Checking - Up to 3.30% APY - Quontic:
High Interest Checking - Up to 1.10% APY - Consumers Credit Union:
Free Rewards Checking - KeyBank:
Key Smart Checking® - $200 Bonus - OnPath Federal Credit Union:
High Yield Checking - Up to 7% APY - Upgrade:
Rewards Checking Plus - Up to 2% Cash Back - Fifth Third Momentum® Checking:
$200 Bonus - CIT Bank:
eChecking
Low savings APY
Bank of America is not known to offer the highest rates on their deposit products. In fact, most of their rates are even lower than the national average.[4]
If you are looking to grow your savings, Bank of America might not give you the best APY.
Potential solutions:
With rates that leave much to be desired, you are probably better off with online banks and credit unions that often offer higher rates.
But if you prefer to keep banking with Bank of America, you might want to consider their CDs. Some CD terms offer better yields. But you need to be OK with a lock-in period.
Bank of America: Featured CD
| Term | APY |
|---|---|
| 7 Month | 4.75% |
| 10 Month | 0.05% |
| 13 Month | 4.30% |
| 25 Month | 3.20% |
| 37 Month | 0.05% |
Rates are for Pasadena, California, and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of April 25, 2024.
Bank of America: Fixed CD
| Term | APY |
|---|---|
| 28 - 89 Days | 0.03% |
| 90 - 179 Days | 4.00% |
| 6 - 120 Months | 0.03% |
Rates are for Pasadena, California, and may vary per location.
- Western Alliance Bank:
High-Yield Savings Premier - 5.36% APY - CIT Bank Platinum Savings:
5.05% APY - UFB Secure Savings:
Earn up to 5.25% APY - Discover Bank:
Online Savings Account - Earn 4.25% APY - CloudBank 24/7:
High Yield Savings Account - 5.24% APY - Customers Bank:
High-Yield Savings Account - 5.11% APY - Nelnet Bank:
High-Yield Savings Account - 5.22% APY - RBMAX:
High-Yield Savings Account - 5.15% APY - Mission Valley Bank:
High Yield Savings Account - 5.12% APY - Quontic:
High Yield Savings - 4.50% APY
- CIT Bank No Penalty CD:
3.50% APY - Quontic:
CD Rates - Up to 5.05% APY - Discover Bank:
1 Year CD - 4.70% APY - Western Alliance Bank:
5-Month High-Yield CD - 5.30% APY - Consumers Credit Union:
13-Month Super Jumbo CD - 5.25% APY - Ponce Bank:
4-Month No Penalty CD - 5.15% APY - SkyOne Federal Credit Union:
5-Month High-Yield CD - 5.00% APY - American First Credit Union:
12-Month High-Yield CD - 4.90% APY - Idabel National Bank:
9-Month High-Yield CD - 4.80% APY - Blue Federal Credit Union:
15-Month High-Yield CD - 4.70% APY
False Advertising
Bank of America also has a history of deceptive or misleading promotional practices involving the marketing of its credit cards.
The CFPB ordered the bank to fork over $100 million to all affected customers in July 2023 (which includes redress for double-dipping on fees and withholding credit card rewards).[5]
Also between 2010 and 2012, BofA telemarketers misled customers about their credit card protection plan offers. [6]
Potential solutions:
Before you sign up for any promos or a new account, make sure you confirm that you are indeed eligible for it and that you are on the right platform.
But if you don't get the perks of an account you were promised, the least you can do is communicate with the bank. If you don't get any resolution to your concern within a reasonable time, consider filing a complaint with the CFPB.
Fraudulent Transactions
Federal regulators have reports of unauthorized transactions using customer information at Bank of America. Specifically, they found instances of credit card accounts opened for clients without their permission.[7]
The CFPB says this was done by some employees to reach goals for a sales incentive program that started way back 2012. The good news is that Bank of America has paused this program as of July 2023 to avoid further misuse of customer information and has been reimbursing affected customers since then.[8]
Potential solutions:
Take proactive steps to safeguard your account. Make it a habit to check your accounts regularly. The sooner you spot any fraudulent activity, the more likely it gets stopped in its tracks.
Be vigilant against fraud outside of Bank of America too. For example, avoid accessing your online banking using free public Wi-Fi or unsecured networks.
Federal regulators fined Bank of America $225 million in July 2022 for wrongfully freezing accounts of many Californian customers due to a faulty fraud detection program. [9] This barred them from accessing their benefits during the COVID emergency, when they needed money the most.
Inconsistent Customer Service
Even a bank as big as Bank of America has room for improvement in its customer service. Complaints sent to the CFPB and other online reviews often mention slow response time from BofA customer support.[10]
A large bank will have a large number of customers so you might experience long wait times when trying to reach a representative over the phone. Moreso, an issue may not always be resolved immediately which can make customers feel unvalued and frustrated.
Potential solutions:
The BofA mobile app has Erica — an AI-powered virtual assistant who can address the most common questions. It can also help connect you via live chat with a specialist.
But take the time to read your deposit account agreement and Bank of America's FAQs. This can reduce your need to contact customer service.
You may also opt to visit a branch instead to discuss your concerns in person. But make sure you have proper documentation if you need to file a formal complaint.
Bottom Line
Banking with Bank of America can be convenient because of their presence nationwide. But there's always room for improvement to keep customers and regulators happy.
Bank of America Advantage Banking - $200 Bonus Offer
- The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 5/31/2024.
- To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
- Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- Bank of America, N.A. Member FDIC.
Bank of America Business Advantage Checking Account - $200 Bonus Offer
- Open a new eligible business checking account by June 30, 2024
- Make Qualifying Deposits* of $5,000 or more in new money within 30 days of opening the new eligible business checking account
- Maintain an average balance of $5,000 for the next 60 days (day 31-90) during the maintenance period**
**The maintenance period begins thirty-one (31) days after account opening and ends ninety (90) calendar days after account opening.
Member FDIC
While the bank has already made progress in addressing some of its problems, it can't hurt to stay in the know as a customer. A bank's deed and misdeed could be the dealbreaker for you to decide whether to continue working with them or otherwise.
- U.S. Bank Smartly® Checking and Standard Savings:
Up to $700 Bonus - BMO Smart Advantage Checking:
$250 Cash Bonus - Chase Total Checking®:
$300 Bonus - Discover® Cashback Checking – Up to $30/Month Cashback
- Axos Bank:
Rewards Checking - Up to 3.30% APY - Quontic:
High Interest Checking - Up to 1.10% APY - Fifth Third Bank:
Personal Checking Account - $200 Bonus - KeyBank:
Key Select Checking® - $200 Bonus - Upgrade:
OneCard with Rewards Checking - $200 Bonus - OnPath Federal Credit Union:
High Yield Checking - Up to 7% APY
References
- ^ Consumer Financial Protection Bureau. Practices of Bank of America, N.A. related to assessing multiple non-sufficient funds fees, Retrieved 08/04/2023
- ^ Bank of America. Bank of America Announces Sweeping Changes to Overdraft Services, Retrieved 8/9/2023
- ^ Bank of America. Personal Schedule of Fees, Retrieved 8/9/2023
- ^ FDIC. National Rates and Rate Caps, Retrieved 8/9/2023
- ^ Consumer Financial Protection Bureau. CFPB Takes Action Against Bank of America for Illegally Charging Junk Fees., Retrieved 08/04/2023
- ^ Consumer Financial Protection Bureau. CFPB Orders Bank of America to Pay $727 Million., Retrieved 08/04/2023
- ^ Consumer Financial Protection Bureau. Enforcement Actions: Bank of America, N.A., Retrieved 08/04/2023
- ^ Consumer Financial Protection Bureau. What's ahead for Bank of America and its customers , Retrieved 08/04/2023
- ^ Consumer Financial Protection Bureau.Federal Regulators Fine Bank of America $225 Million, Retrieved 08/09/2023
- ^ Consumer Financial Protection Bureau. Consumer Complaint Database, Retrieved 08/04/2023
Bank of America Advantage Banking - $200 Bonus Offer
- The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
- The offer is for new checking customers only.
- Offer expires 5/31/2024.
- To qualify, open a Bank of America Advantage Banking account through the promotional page and set up and receive qualifying direct deposits totaling $2,000 or more into that new account within 90 days of opening.
- Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- Bank of America, N.A. Member FDIC.
Chase Total Checking® - $300 Bonus
- New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
- Access to more than 15,000 Chase ATMs and more than 4,700 branches
- Chase Mobile® app - Manage your accounts, deposit checks, transfer money and more -- all from your device.
- JPMorgan Chase Bank, N.A. Member FDIC
- Open your account online now
- Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
- Chase Overdraft Assist℠ - no overdraft fees if you're overdrawn by $50 or less at the end of the business day or if you're overdrawn by more than $50 and bring your account balance to overdrawn by $50 or less at the end of the next business day*
U.S. Bank Smartly® Checking and Standard Savings - Up to $700 Bonus
Earn up to $500 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:
- Enroll in online banking or the U.S. Bank Mobile App
- Make two or more direct deposit(s) totaling $3,000 to $4,999.99 to earn $100, $5,000 to $9,999.99 to earn $300 or $10,000 or more to earn $500
Earn up to $200 with a new Standard Savings account.
- Make new money deposit(s) totaling $15,000 or more by July 17, 2024
- Maintain that balance until October 31, 2024
Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.
BMO Smart Advantage Checking - $250 Cash Bonus
Open a new BMO Smart Advantage Checking account and get a $250 cash bonus when you have a cumulative total of $4,000 in qualifying direct deposits within 90 days of account opening. Offer is limited to one per customer and is not available for existing BMO personal checking customers (including signers on joint accounts) or those who have closed a BMO personal checking account within the past 12 months. Conditions apply.
Online Savings Account - Earn 4.25% APY
- No fees
- No minimum opening deposit
- No minimum balance required
Write to Penny Besana at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
| ||||||
|
|
|
Compare:
