Bank of America does not offer a high yield savings account

Bank of America's regular savings account earns interest, but the rate is much lower than what you can find at other banks. As of now, Bank of America savings accounts earn less than 0.01% annual percentage yield (APY) on most balances. A high yield savings account typically earns between 4% and 5% APY, depending on the bank and current market conditions.

The difference matters. On $10,000 in a Bank of America savings account, you might earn a few dollars per year. In a high yield account elsewhere, you could earn $400 to $500 per year on the same money. Bank of America's strength is in branch access and checking account features, not in savings rates.

Key Takeaways

  • Bank of America savings accounts earn less than 0.01% APY, which is far below the 4% to 5% APY offered by online banks and credit unions.
  • If you keep most of your money in a Bank of America savings account expecting growth, you are losing money to inflation.
  • Many online banks offer high yield savings accounts with no monthly fees and no minimum balance requirements.
  • You can keep a small emergency fund at Bank of America for convenience while moving larger savings to a high yield account elsewhere.

Why Bank of America's savings rates are so low

Bank of America can afford to pay low rates because it has thousands of physical branches and a large customer base. People choose Bank of America partly for convenience—they can walk into a branch, talk to a person, and deposit checks by hand. That convenience costs money to provide, and the bank passes some of that cost to savers by offering lower interest rates.

Online banks have no branches, no tellers, and lower overhead costs. They pass those savings to customers in the form of higher interest rates on savings accounts. If you do not need to visit a physical location, an online bank's high yield account will grow your money much faster.

What Bank of America savings accounts do offer

Bank of America has several savings products, but none are designed to compete on interest rate. The Regular Savings Account is the basic option—it has no monthly fee if you keep a $300 minimum balance, and you can withdraw money whenever you need it. The Money Market Account pays slightly more interest than a regular savings account, but still far below high yield rates, and it requires a higher minimum balance ($2,500 in most cases).

Both accounts come with Bank of America's customer service and the ability to manage your money through their app or at a branch. If you have a Bank of America checking account, linking a savings account takes minutes. But if your goal is to earn meaningful interest on savings, neither product will get you there.

High yield savings accounts outside Bank of America

Online banks and some credit unions offer high yield savings accounts that earn 4% to 5% APY. These accounts have no monthly fees, no minimum balance requirements, and no catch. Your money is insured by the Federal Deposit Insurance Corporation (FDIC) the same way Bank of America deposits are, up to $250,000 per account.

Common banks offering high yield savings include online-only institutions and some traditional banks' online divisions. Credit unions sometimes offer high yield savings to members, though rates and terms vary by credit union. You can move money between your Bank of America checking account and a high yield savings account at another bank in one to three business days, so keeping your main checking account at Bank of America while saving elsewhere is a practical option.

How to decide where to keep your savings

If you have less than $1,000 in savings and you use Bank of America for checking, keeping that money in a Bank of America savings account is reasonable for convenience. You are not losing much money on interest because the total is small.

If you have $5,000 or more that you are not planning to spend soon, moving it to a high yield account at another bank makes financial sense. The difference in interest earned will be real—hundreds of dollars per year on larger balances. You can still use Bank of America for everyday checking and bill payments; a high yield account is straightforward where your savings sit and grow.

If you need to access your money frequently or prefer having everything in one place, that is a valid reason to stay with Bank of America, even if the interest rate is low. Banking is about what works for your life, not just the highest number on a rate sheet.

Moving money to a high yield account

Opening a high yield savings account at another bank takes 10 to 20 minutes online. You will need your Social Security number, a government ID, and your current address. Most banks let you link your Bank of America checking account when ready, which means you can transfer money between the two accounts without visiting a branch or calling anyone.

The first transfer usually takes one to three business days. After that, you can move money back and forth whenever you want. There is no penalty for keeping accounts at multiple banks, and many people do this on purpose—they use one bank for checking and another for savings.

Frequently Asked Questions

Can I get a higher interest rate if I keep a larger balance at Bank of America?

No. Bank of America does not offer tiered interest rates based on balance size. All savings accounts earn the same low rate regardless of how much money you have. Some banks do offer higher rates for larger balances, but Bank of America is not one of them.

Is my money safer at Bank of America than at an online bank?

No. Both are insured by the FDIC up to $250,000. Your money is equally protected whether it sits at Bank of America, an online bank, or a credit union. The FDIC insurance is what matters, not the bank's size or number of branches.

What if I need to withdraw money from a high yield savings account quickly?

You can withdraw money from a high yield account online or by phone, and it usually reaches your checking account in one to three business days. If you need cash when ready, you would transfer to your Bank of America checking account first, then withdraw from an ATM. Most high yield accounts do not have ATM cards, but transfers are fast enough for most situations.

Do I have to close my Bank of America savings account to open one elsewhere?

No. You can keep both accounts open at the same time. Many people maintain a small savings account at their main bank for convenience while keeping larger savings in a high yield account elsewhere. There is no rule against having accounts at multiple banks.

Will opening a high yield account hurt my credit score?

No. Opening a savings account does not affect your credit score. Banks check your banking history (ChexSystems), not your credit report, and a savings account inquiry does not lower your score. Your credit only changes when you borrow money or miss payments.