Bank of America Problems and Solutions
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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.
- Discover Bank:
Online Checking Account - Earn Cash Back - Quontic:
High Interest Checking - Up to 1.10% APY - Consumers Credit Union:
Free Rewards Checking - Upgrade:
Rewards Checking Plus - Up to 2% Cash Back - CIT Bank:
eChecking - KeyBank:
Key Smart Checking® - $300 Bonus - Fifth Third Momentum® Checking:
$300 Bonus
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 | 4.05% |
10 Month | 3.70% |
13 Month | 3.00% |
25 Month | 2.00% |
37 Month | 0.11% |
Rates are for Pasadena, California (ZIP Code 91107), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 7-Month CD - 4.05% APY
Rates are for Northeast Texas (ZIP code 75015), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 7-Month CD - 4.05% APY
Rates are for Southeast Florida (ZIP code 33134), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 10-Month CD - 3.70% APY
Rates are for Southeast Florida (ZIP code 33134), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 10-Month CD - 3.70% APY
Rates are for Northeast Texas (ZIP code 75015), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 13-Month CD - 3.00% APY
Rates are for Northeast Texas (ZIP code 75015), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 13-Month CD - 3.00% APY
Rates are for Southeast Florida (ZIP code 33134), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 25-Month CD - 2.00% APY
Rates are for Southeast Florida (ZIP code 33134), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 25-Month CD - 2.00% APY
Rates are for Northeast Texas (ZIP code 75015), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
Bank of America: 37-Month CD - 0.11% APY
Rates are for Northeast Texas (ZIP code 75015), and may vary per location. Rates are for opening deposits of less than $10,000. Annual Percentage Yield (APY) is accurate as of November 19, 2024.
- Western Alliance Bank:
High-Yield Savings Premier - 4.46% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.55% APY - Greenwood Credit Union:
High-Yield Savings Account - 4.46% APY - Dayspring Bank:
High-Yield Savings Account - 4.45% APY - DR Bank:
High-Yield Savings Account - 4.42% APY - InRoads Credit Union:
High-Yield Savings Account - 4.42% APY - Mission Valley Bank:
High Yield Savings Account - 4.38% APY - Paprika Capital Bank:
High-Yield Savings Account - 4.36% APY - The State Exchange Bank:
High Yield Savings Account - 4.35% APY
- Western Alliance Bank:
High-Yield CD Rates - Up to 4.05% APY - SkyOne Federal Credit Union:
12-Month No-Penalty CD - 3.95% APY - CIT Bank Term CDs:
Up to 3.50% APY - American First Credit Union:
12-Month High-Yield CD - 4.00% APY - Technology Credit Union:
5-Month No Penalty CD - 4.00% APY - Blue Federal Credit Union:
9-Month No Penalty CD - 4.00% APY - Freedom Bank:
12-Month No-Penalty CD - 3.75% APY - Quontic:
CD Rates - Up to 4.25% APY - Discover Bank:
1 Year CD - 4.10% APY - Consumers Credit Union:
9-Month Super Jumbo CD - 4.75% 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 - $300 Bonus Offer
- The $300 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 01/31/2025.
- To qualify, open a new eligible 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 eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
- Bank of America, N.A. Member FDIC.
Bank of America® Business Advantage Banking Checking Account - $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 eligible business checking customers only.
- Offer expires 12/31/2024.
- To qualify, deposit $5,000 or more in New Money* directly into a new eligible Bank of America Business Advantage Banking account within thirty (30) days of account opening.
- Maintain an average balance of $5,000 in that new Business Advantage Banking account during the Maintenance Period**.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *New Money is new funds deposited into your business checking account that are not transfers from other Bank of America deposit accounts or
Merrill investment accounts.
- ** The Maintenance Period begins thirty-one (31) calendar days after account opening and ends ninety (90) calendar days after account opening.
- Bank of America, N.A. 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.
- HSBC Premier:
Earn Up to $2,500 - Chase Total Checking®:
$300 Bonus - Discover® Cashback Checking:
Up to $30/Month Cashback - Quontic:
High Interest Checking - Up to 1.10% APY - Upgrade:
OneCard with Rewards Checking - $200 Bonus - Consumers Credit Union:
Free Rewards Checking - Earn Up to 5% APY - BMO Smart Advantage Checking Account and BMO Smart Money Checking Account:
Earn $300 Cash Bonus* - U.S. Bank Smartly® Checking:
Up to $450 Bonus - Fifth Third Bank:
Personal Checking Account - $300 Bonus - KeyBank:
Key Smart Checking® - $300 Bonus
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 - $300 Bonus Offer
- The $300 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 01/31/2025.
- To qualify, open a new eligible 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 eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
- Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
- Additional terms and conditions apply. See offer page for more details.
- *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
- 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
- With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs.
- 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*
Discover® Online Savings - $200 Cash Bonus
To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs on Discover.com/Bank. See advertiser website for full details.
CIT Bank Platinum Savings - 4.55% APY
- 4.55% APY with a balance of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
Free Business Checking - Earn $300 Bonus
To earn the $300 bonus, customers must apply for a Bluevine Business Checking account anytime between now and 12/31/2024 using the referral code CD300.
After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding:
- Deposit at least $5,000 from eligible merchant services to your Bluevine account OR
- Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers OR
- Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
Banking services provided by Coastal Community Bank, Member FDIC
Write to Penny Besana at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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