Bank of America Review
Bank of America is the second biggest bank in the country, operating in all 50 states, and is one of the largest banks in the world. If you’re thinking of opening an account with Bank of America, it’s a good idea to consider the pros and cons of banking with this financial giant. Bank of America is everywhere, offers many free, convenient account services and provides a one-stop-shopping experience. But at publication, it’s also mired in financial problems, under fire for its fees and at the center of a political firestorm.
Bank of America Pros
Accessibility. Bank of America is everywhere. If you open an account, you can be pretty sure that there will be a branch close by, since Bank of America is in every state in the union. Its ATMs are legion, reducing the likelihood that you’ll have to pay ATM fees.
Ease of Use. Bank of America offers branch banking, free online banking, and mobile and text banking.
Security. Bank of America offers many free security features for its customers, such as “Site Key,” a security measure for your online banking account. When you log into your online banking account, you’re presented with an image and caption that you chose beforehand. Any site without them is not the real BOA site. BofA’s “SafePass” is a 6-digit, one-time passcode you can use when authorizing
transfers. It’s sent as a text message to your mobile phone, or generated from a card. “ShopSafe” allows you to create a temporary credit card number every time you make an online purchase. This number links directly to your real credit card account number, but never reveals it.
Automatic savings. “Keep the Change” is a convenient savings program that rounds your every debit card purchase up to the nearest dollar and deposits the rounded amount into your linked Bank of America savings account.
A variety of checking accounts. Bank of America offers four major personal checking accounts: eBanking for online bankers, a basic, Essentials account, an Enhanced account, and a Premium account. All of these accounts offer free online banking, mobile and text banking and free bill pay. The eBanking and Essentials accounts offer one free checking account only; the Enhanced account offers two free checking accounts; and the Premium account offers four free tiered interest-checking accounts. Debit cards are available for all accounts, though the site notes that fees may apply.
Investment options. Bank of America acquired Merrill Lynch in 2008 and many branches now include a Merrill Lynch representative for the convenience of customers. Merrill Lynch offers investment products such as stocks and bonds.
These are some of Bank of America’s advantages. Here are some of its drawbacks.
Bank of America Cons
Account fees. Bank of America created an uproar last year when it proposed a $5 monthly fee on its debit card users if they didn’t have a mortgage, a Merrill Lynch brokerage account or $20,000 in total balances. The public backlash was so severe that it had to drop the idea. Nevertheless, most of its four major checking accounts – from the no-frills online account to the premium account -- require account holders to do something to avoid monthly fees. The basic Essentials account, one step up from the online-only option, doesn’t even offer the possibility of avoiding fees – holders must pay a $9 monthly fee.
Slow Service. Bank of America’s size can sometimes be a drawback. Many customers complain that if they have to go inside the bank and talk to someone – especially a banker or broker – they have to wait too long. Others complain of long teller lines, especially during high-traffic hours.
Lagging performance. Bank of America, like many other big American banks, is under financial pressure. Forbes.com reported the findings from a recent study by financial data provider SNL Financial. The study measured 100 American banks in areas such as profitability, asset quality and capital adequacy. Based on this data, Forbes ranked the relative financial health of the banks, with the healthiest at 1 and the least healthy at 100. Bank of America came in at 91.
Lack of responsiveness. Bank of America mortgage customers, especially those with problems, have complained that it’s very difficult to resolve mortgage issues through the bank, and especially hard to get a timely response.
Controversy. Groups like “Occupy Wall Street” have bitter complaints against Bank of America, and they aren’t shy about advertising them. Protesters have staged demonstrations at Bank of America locations, angry over the bank’s role in the sub-prime mortgage disaster, the fact that the bank received millions in taxpayer bailout money, its CEO bonuses, and its handling of home foreclosures. Your decision to sign up as a customer may be informed, at least in part, by your opinion of these events.
Bank of America Review Summary
Bank of America has both the advantages and drawbacks inherent to its role as one of the world’s largest banks. If plenty of locations, one-stop convenience and online security are high on your list of priorities, Bank of America may be a good choice for you. If, on the other hand, you want financial strength, fast customer service or free checking, you may want to look elsewhere.
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