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 other banks offer. As of early 2024, Bank of America's regular savings account rate is substantially lower than rates you can find at online banks or credit unions. If you are looking for the highest possible return on your savings, Bank of America is not where that money should sit.

Bank of America does offer a product called the Money Market Account, which pays a higher rate than their basic savings account. However, even this account typically pays less than what you would earn in a high yield savings account at an online bank. The difference matters: on $10,000, the gap between a 0.01% rate and a 4.5% rate is roughly $450 per year.

The reason Bank of America's rates stay low is structural. They operate thousands of physical branches, employ thousands of staff, and maintain expensive infrastructure. Those costs get passed to customers through lower deposit rates. Online banks have no branches and lower overhead, so they can pay you more of what you deposit.

Key Takeaways

  • Bank of America's savings account and Money Market Account both pay rates well below what online banks offer for high yield savings.
  • You can earn $400 to $500 more per year on $10,000 by moving money to an online high yield savings account instead.
  • Bank of America's main advantage is branch access and the ability to manage money in person, not interest rate.
  • If you want the highest rate, you will need to open an account at a different bank and transfer money there.

What Bank of America's Money Market Account actually pays

Bank of America's Money Market Account is their closest product to a high yield savings account. It requires a higher opening deposit than their regular savings account — typically $2,500 — and it pays a tiered rate based on your balance. The more money you keep in the account, the higher your rate.

Even at the highest tier, the rate is still lower than what online banks pay on their standard high yield savings accounts. An online bank might pay 4.5% on any balance, while Bank of America might pay 0.05% on balances under $25,000 and 0.10% on balances above that. The exact rates change, but the gap remains consistent: Bank of America pays less.

The Money Market Account does come with a debit card and check-writing privileges, which a regular savings account does not. If you need to access your money quickly and want those features, the Money Market Account is more flexible than a basic savings account. But if your only goal is to earn the most interest, this account will not get you there.

Why you might keep money at Bank of America anyway

Lower interest rates do not mean Bank of America is the wrong choice for everyone. If you have a checking account with Bank of America and you need to move money between accounts frequently, keeping savings there is convenient. You can transfer money when ready between your checking and savings without waiting for an external transfer to clear.

Bank of America also offers overdraft protection, which links your savings account to your checking account and automatically transfers money if you overdraw. This feature costs nothing and can prevent overdraft fees. If you use this protection regularly, the convenience might outweigh the lower interest rate.

Some people prioritize having a single bank they can visit in person. Bank of America has branches in most states, and you can deposit checks, withdraw cash, or speak to someone face-to-face. Online banks have no branches, so if you need in-person service, you would have to use a different bank for that anyway.

How to compare Bank of America to other high yield savings accounts

The easiest comparison is to look at the current rate each bank is paying. Visit Bank of America's website and find the rate for their Money Market Account. Then visit the websites of online banks like Marcus, Ally, American Express Bank, or Discover Bank and note their high yield savings rates. The difference will be clear.

When you compare, also look at the minimum deposit required to open the account and whether there are monthly fees. Some high yield savings accounts have no minimum deposit and no monthly maintenance fee. Bank of America's Money Market Account requires $2,500 to open and may charge a monthly fee if your balance drops below a certain level — check their current terms.

Consider how often you need to move money in and out of the account. If you are saving for a specific goal and you will not touch the money for months, the rate difference is what matters most. If you move money frequently, the convenience of having the account at your main bank might be worth a lower rate.

Moving money from Bank of America to a high yield account

If you decide to move your savings to a bank with a higher rate, the process is straightforward. Open a high yield savings account at another bank online — this usually takes 10 to 15 minutes. You will need your Social Security number, address, and employment information.

Once the account is open, you can transfer money from Bank of America using an external transfer. Log into your Bank of America account, go to the transfer section, and select the option to transfer to another bank. You will need the routing number and account number of your new high yield savings account. The transfer typically takes one to three business days.

You do not have to close your Bank of America account. Many people keep a small amount there for checking and branch access while moving the bulk of their savings elsewhere. This way you keep the convenience of Bank of America for everyday banking but earn a real return on your savings.

What happens to your money during the transfer

Your money is safe during the transfer. Bank of America will debit your account and send the funds to the other bank's routing number. The receiving bank will credit your account once the transfer clears. You will not lose access to the money — it straightforward moves from one bank to another.

The transfer takes time because banks process transfers in batches, usually once per day. If you initiate a transfer on a Tuesday afternoon, it might not leave Bank of America until Wednesday and might not arrive at the new bank until Thursday or Friday. Plan ahead if you need the money on a specific date.

If you are worried about having no access to your money during the transfer, you can transfer a small amount first to test the process. Move $100 or $500, confirm it arrives safely, and then move the rest. This takes an extra few days but gives you confidence in the process.

Frequently Asked Questions

Does Bank of America have any savings account that earns a competitive rate?

No. Bank of America's Money Market Account is their highest-paying savings product, but it still pays significantly less than online banks. If earning the highest interest rate is your goal, you will need to open an account elsewhere.

Can I keep my Bank of America checking account and move only my savings?

Yes. You can open a high yield savings account at another bank and transfer your savings there while keeping your Bank of America checking account open. Many people do this to maintain branch access and bill-pay features at Bank of America while earning a better rate on savings.

What if I need my money quickly — will a high yield savings account let me access it?

Yes. High yield savings accounts are still savings accounts, not certificates of deposit. You can withdraw your money anytime without penalty. The transfer back to your checking account takes one to three business days, just like any bank transfer.

Is my money safe if I move it to an online bank?

Yes. Online banks are insured by the FDIC just like Bank of America. Your deposits are protected up to $250,000 per account type per bank. As long as you stay under that limit, your money is equally safe at an online bank or at Bank of America.

Will moving my money hurt my credit score?

No. Opening a savings account and transferring money between banks does not affect your credit score. Credit scores are based on borrowing and repayment history, not on where you keep your savings.