The North Carolina-based bank had promised the bonuses assuming strong performance over the year and a rise in the share price.
As well as a significant increase in earnings, the bank's share price also rose by 16 per cent across the year.
According to Associated Press, all eligible full-time or part-time employees of Bank of America paid less than $100,000 during 2006 will get a share in the bonuses, with the exact amount depending on individual circumstances.
The bonus payments are expected to set the bank back around $237 million.
Bank of America also announced yesterday that its board had authorized the repurchase of up to 200 million shares of common stock, allowing the bank's management to spend up to $14 billion over the next 12 to 18 months.