Dedicated to Deposits: Deals, Data, and Discussion

Bank of America's Special Rate Money Market Savings Account

POSTED ON BY

Bank of America
Update 11/21/09: The MMA special is still available according to a BofA CSR. However, I no longer see any link to it at BofA's Savings and CD Accounts page, but this promotions page still lists it, and this can be used to open the account online.

Bank of America is offering 1.50% APY for balances from $10,000 to $250,000 in its Special Rate Money Market Savings account. The promotion is listed at the top of BofA's Savings and CD Accounts page with a full promo page here. It's only available online.

The rate is guaranteed through 4/01/2010, and at that time, the account will convert into BofA's new Growth Money Market Savings account. Also required for this rate is an existing or new BofA personal checking account. Minimum balance to open this money market savings account is $10,000. The rate for balances that fall below $10,000 is 0.90% as of 11/12/09. This is similar to the BofA promotion that I reported on in August.

BofA does describe the new Growth Money Market Savings Account on its website. Countrywide's SavingsLink was converted into this account last September which was a major disappointment. The standard rates are low: 0.75% APY for balances up to $100K and 0.85% for over $100K. A bonus rate bump of 0.25% doesn't help much.

As you might expect with BofA, there are monthly fees. These can be avoided with a minimum balance of $5,000, or if you link the account to an Advantage with Tiered Interest Checking.

The account allows up to a total of 3 checks or purchases made with your debit card each monthly cycle. You can also use this account with the Keep the Change program.

Why Report on 1.50%?

An APY of 1.50% is nothing to get excited about, but unfortunately, in today's environment, it's fairly competitive. It's higher than the savings account rates offered by ING Direct, HSBC Direct and iGObanking. Even though there are many things to dislike about BofA, it's nationwide and many people bank there. If you choose to bank at BofA, why not make the most of it.

Hard Credit Pull

There are some things to note regarding BofA. First, many have reported that BofA does a hard credit inquiry on your first checking account. A reader noted in a previous BofA post that he received two pulls when he did this promo in early 2008. A hard credit inquiry can ding your credit score a little for a few months.

Old and New Fees

BofA charges for things that you might expect are free. For example, if you make an outgoing ACH transfer, there's a $3 charge (see BofA page - updated 11/13/09). BofA notified customers earlier this year of account changes which include new fees. Here's their information page on this.

Other Bank of America Deals

There's also a Bank of America money market account that has a long history of competitive rates. It's intended for NEA members. In August BofA was offering a 2% rate until 2010 on this account, but that's now over. There's still a 60-day intro bonus rate, and the standard rates are still competitive (see post).

Bank of America bonuses can be viewed in my Bank of America deals page. There is still a $100 checking account bonus available for new checking account customers (see post), and there is still a $35 bill pay bonus for existing customers who have not made a bill payment with Bank of America Online Banking within the last 6 months (see post).

Other Competitive Savings and Money Market Accounts

I just reported on 1.50% 3-month savings promotion at TD Bank. There are still quite a few savings accounts offering over 1.50%, but most of these are online banks. Please refer to the following:

  Tags: money market accounts, Bank of America

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Comments
12 Comments.
Comment #1 by Anonymous posted on
Anonymous
Regarding the fee for outgoing ACH transfers, does anyone know whether this applies only to transfers initiated with Bank of America or does it also apply to those initiated by the institution to which the funds will be transferred?

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
The charge only applies to transfers initiated within BofA. If you pull funds using another bank's ACH service, there should be no charge.

1
Comment #3 by Anonymous posted on
Anonymous
WaMu/Chase and Wachovia also charge $3.00 for initiating an outgoing transfer.

1
Comment #4 by calwatch (anonymous) posted on
calwatch
For those who want to participate in the free stock trades program at BoA, this is a decent deal. 30 free trades a month with $25,000 in bank holdings.

1
Comment #5 by Anonymous posted on
Anonymous
I've searched their "fees" page high and low and don't see where it says there's a charge for ACH.

1
Comment #6 by Banking Guy (anonymous) posted on
Banking Guy
About the listing of the transfer fees, BofA changed their website, and they didn't make it easy to find. After a long search, I was able to find it. I updated the link above.

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Comment #7 by Anonymous posted on
Anonymous
I posted the intial question of 12:15 PM, November 12. Today I called B of A and asked the same question. The CSR told me there is a $3 fee for outgoing ACH transfers even if the transfer is initiated by another bank. As usual, don't know whether the answer I received was correct.

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Comment #8 by Anonymous posted on
Anonymous
The "fees" for BofA outbound transfers is very very hard to find written out in plain language anywhere on the website. You'll notice it when you initiate the transfer. Also, they place a limit to the amount (1000.00 or less), and require you to sign up for "safe-pass" for amounts higher than 1K.
With higher dollar amount transfers, they may have to be "approved" by the bank. Isn't that convenient!
Of course, If you don't have a cell phone to receive the "code" ( text charges may apply), you need to BUY the card for 20 bucks. It's the classic "nickel & diming" that BofA is so award winning at.

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Comment #9 by Anonymous posted on
Anonymous
bank of America sucks. I was a Countrywide Bank customer. I opened a e-link account with countrywide with no min balance etc. But after BAC bought them, they began charging me $10 per month

Closing an account in BAC is also troublesome. You need to call a 800 number many times and waiting forever and get transfered to other departments many times in between. Finally they might tell you to go to a local bank to take out your money then call the 800 number again.

Finally you call the 800 number again, then they will ask you why you want to close your account and repeat the same ***** again and again..wasting you time...Stay away from them...beware!!!

BAC is a robber!

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Comment #10 by Anonymous posted on
Anonymous
I am also a former Countrywide customer now in the clutches of BofA. Just try closing your account - very difficult and frustrating. First a letter as instructed on their website...zero response. Then a call (no record of having received the letter but we can take care of it for you right now over the phone!)...still not closed. Then I get a letter asking for a notarized request that the account be closed (nothing about that on their website). Can't wait to see what's next from them. I know what's next for me...a call to my state banking regulator!

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Comment #11 by Anonymous posted on
Anonymous
You can't access the page to open the account online annymore

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Comment #12 by Anonymous posted on
Anonymous
This account no longer seems to be available, or at least not at the web pages linked here. When I go to the web page linked here, the button labelled "Open an Account" just takes you to an error page.

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