Bank of America savings accounts do earn interest, but the rate is typically very low

Bank of America offers interest on most of its savings accounts, but the annual percentage yield (APY) is usually less than 0.01% — meaning a $10,000 balance earns roughly $1 per year. The actual rate depends on which account you hold and changes based on what the Federal Reserve does with its benchmark interest rate. Bank of America adjusts its rates periodically, so the rate you see today may not be the rate you earn next month.

The bank publishes current rates on its website, but you have to look them up by account type — there is no single "Bank of America savings rate." Different accounts earn different amounts. Some accounts earn nothing at all.

Key Takeaways

  • Bank of America savings accounts earn interest, but rates are typically below 0.01% APY, which means very little money accumulates over time.
  • The rate you earn depends on which specific account you hold — regular savings, money market, or high-yield savings — and Bank of America does not currently offer a high-yield savings product.
  • Bank of America changes its rates when the Federal Reserve moves its benchmark rate, so your APY can drop without notice.
  • You can find your account's current rate by logging into your account online or calling customer service, since rates vary and change frequently.

What Bank of America savings accounts actually pay right now

Bank of America's regular savings account (called "Savings") currently earns interest at a rate that rounds to 0.01% APY or lower, depending on your balance and account type. The bank also offers a Money Market account, which typically earns slightly more than regular savings but still under 0.05% APY. Neither product is competitive with savings accounts at online banks, which often pay 4% to 5% APY on the same type of account.

The exact rate you earn depends on your account balance tier. Bank of America uses tiered interest, meaning larger balances earn slightly higher rates than smaller ones. A balance of $2,500 earns less than a balance of $25,000, though the difference is usually fractions of a percent. The bank publishes these tiers on its website, but you need to look them up by account name — the rates are not listed on the main savings page.

Bank of America does not offer a high-yield savings account. If you want a savings account that earns 4% or more, you will need to use a different bank.

How interest accrues and when you see it in your account

Bank of America calculates interest daily based on your account balance, but deposits the interest monthly. This means if you have $10,000 in your savings account earning 0.01% APY, the bank calculates roughly $0.27 per month (one-twelfth of $1 per year) and adds it to your account on a set date each month. The exact date varies by account type and is listed in your account agreement.

Interest stops accruing the moment you withdraw money. If you withdraw $5,000 mid-month, the bank recalculates your interest for the rest of that month based on the lower balance. This is why savings accounts are meant for money you do not touch — frequent withdrawals reduce the interest you earn, though at Bank of America's current rates, the difference is negligible.

Why Bank of America's rates are so low compared to other banks

Bank of America is a large retail bank with physical branches in most U.S. states. It pays for those branches, the staff, the ATM network, and the customer service centers. Those costs get passed to customers partly through low interest rates on savings. Online banks have no branches and lower overhead, so they can afford to pay much higher rates on the same type of account.

The second reason is that Bank of America does not need to compete aggressively for savings deposits. Most customers keep their savings at the same bank where they have their checking account, even if the rate is poor. Online banks have to offer high rates to attract customers who have no other reason to switch.

If you keep a large balance at Bank of America for convenience or because you use other products there, the low savings rate is a trade-off you are making. If you are choosing a bank primarily to earn interest on savings, Bank of America is not the right choice.

When Bank of America changes its savings rates

Bank of America adjusts its savings rates when the Federal Reserve changes its benchmark interest rate, called the federal funds rate. When the Fed raises rates, Bank of America typically raises its savings rates within a few days or weeks. When the Fed cuts rates, Bank of America cuts its savings rates just as quickly. The bank does not announce rate changes in advance — you find out by checking your account or calling customer service.

The Federal Reserve does not set Bank of America's rate directly. The Fed sets a target range for the federal funds rate (the rate banks charge each other for overnight loans), and all banks use that as a reference point when deciding what to pay depositors. Banks that want to attract more deposits raise their rates faster. Banks that do not need deposits raise them slowly or not at all. Bank of America typically lags behind online banks when rates are rising.

How to check your current interest rate at Bank of America

Log into your Bank of America account online and navigate to your savings account details. The current APY should appear on the account summary page. If it does not, click on the account name to open the full account view, where the rate is usually listed under "Account Details" or "Interest Information."

You can also call Bank of America customer service at 1-800-432-1000 and ask for your current savings rate. Have your account number ready. The rate you are told is the rate for your specific account type and balance tier, so it may differ from the rate another customer receives.

Bank of America also publishes a general rate sheet on its website, but it shows only the base rates for each account type. Your actual rate depends on your balance and account tier, so the published rate may be higher or lower than what you earn.

Alternatives if you want higher interest on savings

Online banks like Marcus, Ally, and American Express Bank offer savings accounts earning 4% to 5% APY with no minimum balance and no monthly fees. You can open an account in minutes and transfer money from your Bank of America checking account. The trade-off is that you have no physical branch and no in-person customer service, though most online banks offer phone and chat support.

High-yield money market accounts at online banks work the same way as Bank of America's money market account but pay significantly more interest. Some also offer check-writing privileges, which makes them useful for money you might need to access quickly.

If you want to keep your money at Bank of America for convenience, you can also move a portion of your savings to a certificate of deposit (CD). Bank of America CDs lock your money away for a set period (3 months to 5 years) but pay higher interest than savings accounts. The rate is fixed for the entire term, so you know exactly what you will earn. The downside is that you cannot withdraw the money early without paying a penalty.

Frequently Asked Questions

Does Bank of America charge a fee to earn interest on savings?

No. Bank of America does not charge a fee to hold a savings account or to earn interest. However, some savings accounts have monthly maintenance fees if you do not meet a minimum balance requirement. Check your account agreement to see if your account has a minimum balance.

Can I move my savings to a different Bank of America account to earn more interest?

No. All Bank of America savings products earn roughly the same low rates. Moving from a regular savings account to a money market account might earn you a fraction of a percent more, but the difference is minimal. If you want significantly higher interest, you need to move your money to a different bank.

What happens to my interest if I withdraw money before the month ends?

Bank of America recalculates your interest based on your lower balance for the remainder of that month. If you withdraw $5,000 on the 15th of a 30-day month, you earn interest on the remaining balance for only the last 15 days. At Bank of America's current rates, this difference is usually less than a dollar.

Is the interest I earn on Bank of America savings taxable?

Yes. Any interest you earn is considered income and must be reported on your federal tax return. Bank of America sends you a Form 1099-INT each January showing the total interest you earned in the previous year. Even if the amount is small, you are required to report it.

Will Bank of America's savings rate go up if the Federal Reserve raises rates?

Probably, but not when ready and not by the same amount. When the Fed raises rates, Bank of America typically raises its savings rates within days or weeks, but online banks often raise theirs faster. Bank of America's increases are usually smaller than the Fed's increase, so you earn less of the benefit.