Bank of America does not offer a traditional high yield savings account
Bank of America's standard savings account earns interest, but the rate is not competitive with what you will find at online banks or credit unions. As of now, Bank of America's regular savings account pays a rate that varies by account type and balance, but it is typically well below 1% annual percentage yield (APY). If earning the highest possible interest on savings is your main goal, you will find better rates elsewhere.
Bank of America does offer a few savings products that pay slightly more than their basic savings account, but none of them match what banks focused entirely on online savings can offer. The bank's strategy is to keep customers within their broader ecosystem rather than compete on interest rates alone.
Key Takeaways
- Bank of America's standard savings account pays less than 1% APY and is not designed to compete with high yield savings accounts.
- Bank of America offers a Money Market account that may pay a higher rate than regular savings, though rates still lag behind online banks.
- If you keep a large balance or maintain other Bank of America accounts, you may earn slightly better rates through their tiered structure.
- Online banks and credit unions typically offer savings rates that are 10 to 20 times higher than Bank of America's rates.
What Bank of America's Money Market Account offers
Bank of America's Money Market account is their closest product to a high yield savings account. It combines features of a savings account with limited check-writing ability, and it pays a tiered interest rate based on your balance. The higher your balance, the higher your APY — but the top tier still does not match rates you will find at online banks.
The Money Market account requires a minimum opening deposit (the amount varies) and has monthly maintenance fees unless you meet certain balance thresholds or set up direct deposit. You also get a limited number of withdrawals per month before fees explore. For most people, the fee structure and low rates make this account less attractive than a dedicated high yield savings account at another bank.
How Bank of America's rates compare to other banks
Bank of America's savings rates are significantly lower than what online banks offer. An online bank might pay 4% to 5% APY on a savings account, while Bank of America typically pays less than 0.5% APY. Over a year, the difference on a $10,000 balance would be hundreds of dollars in lost interest.
Credit unions sometimes offer competitive rates as well, especially if you are a member. If you have a Bank of America checking account and want to keep your money in one place, the convenience may be worth the lower rate. But if you are specifically looking to earn interest on savings, moving money to an online bank or credit union is the more practical choice.
Why Bank of America does not compete on savings rates
Bank of America is a full-service bank with physical branches, customer service centers, and a wide range of products. They make money from loans, investments, and fees rather than from paying competitive rates on deposits. Online banks, by contrast, have no branches and lower overhead costs, so they can afford to pay higher rates to attract deposits.
Bank of America's strategy is to keep customers loyal through convenience and bundled services. If you have a mortgage, credit card, or investment account with them, they count on you staying for the full relationship rather than moving your savings elsewhere for a higher rate.
What to do if you want higher savings rates
If earning interest is important to you, open a high yield savings account at an online bank while keeping your Bank of America checking account for everyday use. You can transfer money between banks in one to two business days, so the process is straightforward. Many people maintain accounts at multiple banks for different purposes — a checking account at a traditional bank for convenience and a savings account at an online bank for better rates.
Before opening a new account anywhere, check the current rates and any fees. Rates change frequently, and what is highest today may not be highest next month. Also confirm that the bank is insured by the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 per account type per bank.
Bank of America savings products at a glance
| Product | Typical APY Range | Minimum Balance | Monthly Fee |
|---|---|---|---|
| Regular Savings Account | Less than 0.5% | $0 | $0 (with direct deposit or $500+ balance) |
| Money Market Account | Less than 0.5% | Varies by tier | $0 (with may have access to balance) |
Rates and fees change over time, so check Bank of America's website or visit a branch for current information. The rates shown here are typical ranges, not guarantees.
Frequently Asked Questions
Can I earn more interest by keeping a large balance at Bank of America?
Bank of America's Money Market account pays slightly higher rates at higher balance tiers, but even the top tier pays less than 1% APY. An online bank paying 4% or 5% will earn you significantly more, regardless of balance size. The tiered structure rewards loyalty, not savings growth.
Is my money safe in a Bank of America savings account?
Yes. Bank of America is FDIC-insured, which means deposits up to $250,000 per account type are protected if the bank fails. This protection applies to savings accounts, checking accounts, and Money Market accounts separately, so you can hold up to $250,000 in each type.
Should I close my Bank of America savings account and move to an online bank?
That depends on your priorities. If you value convenience and want everything in one place, keeping a small savings balance at Bank of America is fine. If you want to earn meaningful interest, moving savings to an online bank makes financial sense. Many people do both — they keep a checking account at Bank of America and a savings account at an online bank.
What happens if I withdraw money from my Bank of America Money Market account?
Federal rules limit certain savings account withdrawals to six per month. If you exceed that limit, Bank of America may charge a fee or convert your account to a checking account. Check your account agreement for the exact fee amount, as it varies.
Do I need to have a Bank of America checking account to open a savings account?
No. You can open a Bank of America savings account on its own. However, having a checking account with them may waive certain fees or give you access to slightly better rates on the Money Market account.