Bank of America does not offer a dedicated high yield savings account
Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, their regular savings accounts pay rates in the range of 0.01% to 0.04% annual percentage yield (APY), depending on your account type and balance. That means $10,000 sitting in a Bank of America savings account earns roughly $1 to $4 per year in interest.
If you want a high yield savings account — typically defined as one paying 4% APY or higher — you will need to open an account at a different bank. Bank of America does not have a product in this category, and they have not announced plans to add one.
This matters because the difference between 0.01% and 4.5% is substantial over time. On that same $10,000, a high yield account would earn $450 per year instead of $1. Over five years, that gap grows to thousands of dollars.
Key Takeaways
- Bank of America's savings accounts pay between 0.01% and 0.04% APY, which is far below the rates offered by online banks and credit unions.
- High yield savings accounts typically pay 4% APY or higher and are available from online banks like Marcus, Ally, and American Express Personal Savings.
- You can keep your checking account at Bank of America while opening a high yield savings account elsewhere for better interest earnings.
- The rate difference means $10,000 earns roughly $1 per year at Bank of America versus $450 per year at a 4.5% APY account.
Why Bank of America's rates stay low
Bank of America maintains low savings rates because they operate a large branch network with physical locations, ATMs, and customer service staff. Those costs get passed along as lower interest rates on deposits. They prioritize lending and investment products over savings account rates as a way to attract and retain customers.
The bank also benefits from customer inertia — many people keep savings accounts open straightforward because they already have a checking account there, even if the rate is poor. This means Bank of America does not need to compete on interest rates to keep deposits flowing in.
Where to find high yield savings if you leave Bank of America
Online banks consistently offer the highest rates because they have no physical branches and lower overhead costs. Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings typically offer rates between 4% and 5% APY. These rates change frequently as the Federal Reserve adjusts interest rates, so you should check current rates directly before opening an account.
Credit unions sometimes offer competitive rates as well, though availability depends on your location and membership. Some credit unions offer savings rates above 4% APY, but you usually need to meet membership requirements or maintain a minimum balance.
The process is straightforward: you open an account online, link it to your Bank of America checking account, and transfer money between them. Most transfers take one to two business days. You keep your Bank of America checking account if you want — there is no requirement to move everything.
What Bank of America does offer for interest-bearing accounts
Bank of America has money market accounts that pay slightly higher rates than savings accounts, but still far below high yield options. Their money market accounts typically pay 0.01% to 0.05% APY depending on your balance tier. These accounts also come with check-writing privileges and a debit card, which savings accounts do not have.
Bank of America also offers certificates of deposit (CDs), which lock your money away for a set term — usually three months to five years — in exchange for a may provide rate. CD rates at Bank of America are currently higher than their savings rates but still lag behind what online banks offer. A one-year CD at Bank of America might pay 4% to 4.5% APY, while online banks often offer similar or better rates on the same term.
The math: what the rate difference actually costs you
Consider a concrete example. You have $25,000 in savings and want to know where to keep it for one year.
| Account Type | APY | Annual Interest Earned |
|---|---|---|
| Bank of America Savings | 0.01% | $2.50 |
| Bank of America Money Market | 0.05% | $12.50 |
| Online High Yield Savings | 4.5% | $1,125 |
| Online Bank One-Year CD | 4.75% | $1,187.50 |
The difference between Bank of America's savings account and a high yield savings account is $1,122.50 in one year on that $25,000. Over five years, assuming rates stay the same, that gap grows to over $5,600. This is why the choice of where to keep your savings matters.
How to move money from Bank of America to a high yield account
You do not need to close your Bank of America account to open a high yield savings account elsewhere. Most people keep their checking account at Bank of America for bill pay and direct deposit, then move savings to a higher-rate account.
The transfer process works in two directions. You can link your new high yield account to your Bank of America checking account and initiate a transfer from the new bank's website — this usually takes one to two business days. Alternatively, you can transfer from Bank of America's website by adding the new account as an external transfer destination.
Some online banks offer a one-time bonus when you open a new account and deposit a minimum amount — typically $500 to $25,000 depending on the bank. These bonuses are separate from the interest rate and can add another $100 to $500 to your earnings in the first few months. Check the current offers before you open an account, as they change frequently.
Frequently Asked Questions
Can I keep my Bank of America checking account and move only my savings?
Yes. You can keep your checking account at Bank of America for direct deposit and bill pay while opening a high yield savings account at another bank. Link the two accounts and transfer money between them as needed. Many people do this specifically to earn better interest on savings while keeping the convenience of their existing checking setup.
What happens to my FDIC insurance if I move to an online bank?
Online banks are FDIC-insured just like Bank of America. Your deposits are protected up to $250,000 per depositor per bank. If you open accounts at multiple banks, each bank's $250,000 limit applies separately. This protection is the same whether you bank online or at a branch.
Do high yield savings rates ever go down?
Yes. High yield savings rates move with the Federal Reserve's interest rate decisions. When the Fed raises rates, banks increase their savings rates. When the Fed cuts rates, banks lower theirs. Your rate can change, though most banks give you notice before a decrease takes effect. This is why it makes sense to compare rates periodically.
Is it safe to bank with an online-only bank?
Online banks are regulated by the same federal agencies as traditional banks and are FDIC-insured. The main difference is convenience — you cannot walk into a branch, but you can handle most transactions online or by phone. For a savings account that you are not accessing frequently, an online bank works well.
What if Bank of America raises their savings rates in the future?
Bank of America could raise rates, but historically they have not kept pace with online banks. Even if they increase rates slightly, online banks typically remain ahead. You can always move your money back to Bank of America later if their rates become competitive, though the transfer process takes a few days.