Balance Assist: How Bank of America Is Tackling Short-Term Borrowing with a $5 Flat Fee

Bank of America just rolled out Balance Assist, a fresh approach to handling unexpected cash shortfalls. The offering lets customers borrow up to $500 in $100 increments with a fixed $5 fee—regardless of how much they actually take. Repayment happens over 90 days in three equal monthly payments.

Why this matters: For anyone who’s ever been trapped by predatory short-term lending or sky-high interest rates, this is a notable shift. The simplicity is the key here—no hidden fees, no sliding scale based on loan size. You borrow $100 or $500, you pay $5. That’s it.

The Bigger Picture: Building Financial Resilience

Balance Assist isn’t sitting alone. It’s part of a broader suite of tools Bank of America has assembled to help clients build stronger financial foundations. Here’s what else they’re offering:

Keep the Change® remains a quiet success story. Since launching in 2005, this program has guided over 6 million users to save more than $15 billion by automatically rounding up debit card purchases and funneling the spare change into savings accounts. It’s less flashy than Balance Assist, but the numbers speak volumes.

Advantage SafeBalance Banking® serves over 2 million clients with zero overdraft fees and waived maintenance for eligible students and Preferred Rewards members. No fancy features—just straightforward protection against overspending.

Secured Card helps people rebuild credit with a $300 deposit, offering a pathway to improve credit scores and eventually recover the security deposit through responsible usage.

Numbers That Tell the Story

The scale of Bank of America’s commitment becomes clear when you look at their Community Homeownership initiative. Launched in early 2019 with a $5 billion commitment, it’s already helped nearly 13,000 low- and moderate-income buyers access affordable mortgages through reduced down payments and closing cost assistance.

Their digital education platform, Better Money Habits®, has been accessed over 120 million times since 2013, suggesting that financial literacy demand is far from disappearing.

Rollout Timeline

Balance Assist starts in select states by January 2021, with remaining states following early next year. There’s one eligibility requirement: customers need at least one year of Bank of America checking account history.

The product ecosystem here reflects a strategic shift—less about maximizing fees, more about retention and financial wellness. Whether that translates into customer loyalty or just smart positioning remains to be seen, but the move signals how traditional banking is adapting to compete with fintech alternatives and changing consumer expectations around transparency and affordability.