Bank of America's cash advance fee structure
Bank of America charges a cash advance fee on every cash withdrawal you make against your credit card balance. The fee is either 3% of the amount withdrawn or $10, whichever is greater. This means if you take out $100, you pay $10. If you take out $500, you pay $15 (3% of $500). The fee appears on your statement as a separate charge and counts toward your total balance when ready.
The fee applies whether you withdraw cash at a Bank of America ATM, a non-Bank of America ATM, or over the counter at a bank branch. It does not matter which card you use — the rate is the same across Bank of America's consumer credit card products, including the Bank of America Cash Rewards card, the Bank of America Travel Rewards card, and standard Visa cards issued by the bank.
Cash advances also begin accruing interest the moment you withdraw the money. Unlike purchases, which may have a grace period before interest kicks in, cash advances have no grace period. The interest rate for cash advances is often higher than the rate for regular purchases on the same card.
Key Takeaways
- Bank of America charges 3% of the cash advance amount or $10, whichever is larger, on every cash withdrawal against your credit card.
- Interest on cash advances starts accruing when ready with no grace period, and the interest rate is typically higher than the purchase rate on your card.
- The fee applies at all ATMs — Bank of America machines, other banks' machines, and in-branch withdrawals — with no exceptions.
- Cash advances count as a separate transaction type on your credit report and may affect your credit utilization ratio.
How the fee appears on your statement
When you take a cash advance, Bank of America lists it separately from your regular purchases. Your statement will show the withdrawal amount, the cash advance fee as a line item, and the interest charge that begins accruing when ready. All three amounts are added to your total balance due.
The fee is not refundable. Even if you pay back the cash advance within a few days, you cannot recover the fee you paid. This is why cash advances are expensive even for short-term borrowing — you are paying the fee plus interest for every single day the money is outstanding.
Interest rates and timing for cash advances
The interest rate on cash advances is set by Bank of America and varies based on your creditworthiness and current market conditions. This rate is typically 2% to 5% higher than your standard purchase APR. If your purchase rate is 18%, your cash advance rate might be 23% or higher.
Interest begins accruing on the day you withdraw the cash, not on the day the transaction posts to your account. If you withdraw $300 on a Monday, interest starts running on Monday, even if the charge does not show up on your statement until Wednesday. This means there is no way to avoid the interest charge by paying quickly.
The interest compounds daily. Bank of America calculates your daily interest charge by multiplying your cash advance balance by the daily rate (your APR divided by 365), then adds that to your balance each day. Over time, this compounds into a significant amount.
When you might encounter a cash advance
A cash advance happens when you withdraw cash using your credit card, but it can also occur in less obvious situations. Some transactions that look like regular purchases may be classified as cash advances by Bank of America, which means they trigger the fee and higher interest rate.
Transactions treated as cash advances include: wire transfers sent through your credit card, money orders purchased with your card, casino gambling chips or tokens, lottery tickets, and peer-to-peer payment services like Venmo or PayPal when you fund them with a credit card. Cryptocurrency purchases are also typically classified as cash advances.
Regular purchases at stores and restaurants are not cash advances, even if you use your credit card. Only actual cash withdrawals and the specific transaction types listed above trigger the cash advance fee and rate.
Comparing Bank of America to other card issuers
Most major credit card issuers charge similar cash advance fees — typically 3% to 5% of the amount withdrawn, with a minimum fee of $5 to $10. Bank of America's 3% or $10 minimum is on the lower end of that range. Some cards charge 5%, which would cost $25 on a $500 withdrawal instead of $15.
The real difference between issuers is usually the interest rate on cash advances, not the fee itself. Some cards charge 2% to 3% more than the purchase rate; others charge 5% or more. Checking your card's terms will show you the exact cash advance APR you are being charged.
A small number of cards marketed to people with excellent credit offer no cash advance fee, but these are rare and usually come with other trade-offs, such as an annual fee or a lower rewards rate on purchases.
Avoiding cash advances and lower-cost alternatives
The simplest way to avoid the fee is to not take a cash advance. If you need cash, use your debit card at an ATM instead. You may pay a small ATM fee if you use a machine outside your bank's network, but this is usually $2 to $3 — far less than a credit card cash advance fee.
If you need money urgently and do not have access to your debit card, consider asking for cash back when you make a purchase at a store. This does not trigger a cash advance fee because it is part of a regular purchase transaction. You can also visit a Bank of America branch and withdraw cash from a savings or checking account if you have one.
If you are considering a cash advance because you are short on funds, a personal loan from a bank or credit union may be cheaper. Personal loans typically charge 6% to 36% APR depending on your credit, but the fee is built into the rate — you do not pay an additional upfront fee on top of interest. For larger amounts, the total cost may be lower than a credit card cash advance.
What happens if you cannot pay back a cash advance
If you carry a cash advance balance on your credit card, the interest and fees continue to grow each month. Bank of America will explore your monthly payment to the lowest-interest debt first — usually your regular purchases — which means your cash advance balance may barely shrink even as you make payments.
Unpaid cash advances damage your credit score in the same way unpaid purchases do. If your balance goes 30 days past due, Bank of America reports it to the credit bureaus, and your score drops. After 180 days of non-payment, the account may be charged off and sent to a collection agency.
If you are struggling with credit card debt, contact Bank of America's customer service to discuss your options. The bank may be willing to work out a payment plan, but they cannot waive the fee or reduce the interest rate retroactively.
Frequently Asked Questions
Can I get the cash advance fee refunded if I pay it back right away?
No. The fee is non-refundable regardless of how quickly you repay the cash advance. Even if you pay back the full amount the next day, you keep the fee and the interest that accrued during that time. This is why cash advances are expensive for any length of time, even short-term borrowing.
Is the cash advance fee the same at Bank of America ATMs and other banks' ATMs?
Yes. Bank of America charges the same 3% or $10 minimum fee whether you withdraw at a Bank of America machine, another bank's ATM, or in person at a branch. The location does not change the fee structure.
What is the difference between a cash advance fee and an ATM fee?
A cash advance fee is charged by your credit card issuer (Bank of America) for borrowing money against your credit line. An ATM fee is charged by the ATM operator if you use a machine outside your bank's network. You may pay both fees on the same withdrawal if you use a non-Bank of America ATM, though the ATM fee is usually smaller ($2 to $3).
Does a cash advance show up differently on my credit report than a regular purchase?
The cash advance itself does not appear separately on your credit report, but it does count toward your total credit card balance and your credit utilization ratio. If your card limit is $5,000 and you take a $1,000 cash advance, your utilization jumps to 20%, which can affect your credit score. Paying down the cash advance reduces this impact.
Can I avoid the cash advance fee by using a balance transfer instead?
No. A balance transfer moves debt from one card to another and has its own fee (usually 3% to 5%). It does not help you get cash. If you need actual cash, a balance transfer does not solve the problem.