Bank of America does not offer a dedicated high yield savings account

Bank of America's savings accounts pay interest rates that are substantially lower than what you can find at online banks and credit unions. As of now, Bank of America offers a regular savings account and a money market account, but neither is designed to compete on interest rate. If earning the highest possible interest on your savings is your main goal, you will find better rates elsewhere.

The reason matters: Bank of America is a large branch-based bank with physical locations in most states. Maintaining those branches costs money, so the bank passes lower interest rates to savers. Online banks and some credit unions have no branches, so they can offer higher rates. You are essentially choosing between convenience (a branch near you) and yield (a higher interest rate).

Key Takeaways

  • Bank of America's savings accounts pay significantly less interest than online banks and credit unions offer for high yield savings.
  • Bank of America offers a regular savings account and a money market account, but rates on both are typically below 0.5% annually.
  • If you keep most of your money elsewhere and use Bank of America mainly for checking and bill pay, a low-rate savings account may be acceptable.
  • High yield savings accounts at online banks typically pay rates between 4% and 5% annually, though rates change frequently.

What Bank of America's savings accounts actually offer

Bank of America's regular savings account requires a $100 minimum deposit to open. The account has no monthly fee if you maintain that minimum balance. Interest accrues daily and is paid monthly, but the rate is typically well below 0.5% per year — meaning on $10,000, you would earn less than $50 annually.

Bank of America also offers a money market account, which usually requires a higher opening balance (often $2,500 or more) and may offer a slightly higher interest rate in exchange. The rate still lags far behind what online banks pay. Both accounts allow you to withdraw money without penalty, though federal rules limit certain types of transfers.

How Bank of America's rates compare to other banks

Online banks and credit unions currently offer high yield savings accounts with rates roughly 8 to 10 times higher than Bank of America. On $10,000, that difference means earning $50 to $100 per year at Bank of America versus $400 to $500 per year at an online bank. Over five years, the gap becomes substantial.

The trade-off is access. Bank of America has branches in most states where you can deposit cash, speak to a person, or resolve problems face-to-face. Online banks have no branches — you deposit by mail or mobile app, and customer service is phone or chat only. Credit unions may have branches, but only in certain regions. Your choice depends on whether you value that in-person access enough to accept a lower interest rate.

When a Bank of America savings account makes sense

If you already have a Bank of America checking account and use it for regular bills and paychecks, keeping a small savings account there for emergencies can be convenient. You can transfer money when ready between your checking and savings online, and you can withdraw cash at any Bank of America ATM without a fee.

This setup works best if you are not trying to maximize interest earnings — for example, if you keep only $1,000 to $3,000 in savings for true emergencies and keep larger amounts elsewhere. The difference in interest on a small balance is minimal, and the convenience of having everything in one place may outweigh it.

How to find a high yield savings account if you want one

If you decide you want a higher interest rate, you have two main routes. Online banks like Marcus, Ally, and American Express Personal Savings offer high yield savings accounts with no branches and rates that change based on Federal Reserve decisions. Credit unions in your area may also offer high yield savings, especially if you are a member or work in a field that qualifies you for membership.

Before opening an account elsewhere, check whether you need branch access for deposits. If you receive cash as income or regularly deposit checks in person, an online bank may be inconvenient. If you are paid by direct deposit and rarely need to deposit cash, an online bank works well. Some people keep both — a small account at Bank of America for convenience and a larger high yield account at an online bank for interest earnings.

What to know about interest rates and account features

Interest rates on all savings accounts change frequently, usually following decisions by the Federal Reserve. A rate that is high today may drop in six months. Before opening any account, check the current rate on the bank's website — do not rely on rates quoted in articles or ads, which may be outdated.

Also check for fees beyond the monthly maintenance fee. Some accounts charge fees for excessive withdrawals, overdrafts, or falling below a minimum balance. Bank of America's savings account has no withdrawal limit, but federal rules once capped certain types of transfers — those rules have changed, so verify the current policy if frequent transfers matter to you.

Frequently Asked Questions

Can I move money from my Bank of America checking account to a high yield savings account at another bank?

Yes. You can transfer money online using the other bank's transfer tool, or you can withdraw cash and deposit it. Online transfers usually take one to three business days. If you set up the other bank as an external account in your Bank of America app, you can initiate transfers directly without leaving the app.

Will opening a savings account at another bank affect my Bank of America checking account?

No. Your checking and savings accounts are separate products. You can keep your checking at Bank of America and open a savings account anywhere else. The two accounts do not have to be at the same bank.

What is the difference between a savings account and a money market account?

A money market account usually requires a higher minimum balance and may offer a slightly higher interest rate. It may also come with a debit card or checkbook, making it more like a checking account. For most people saving for emergencies, a regular savings account is simpler.

Do I need to keep a certain amount in my Bank of America savings account to avoid fees?

Bank of America requires a $100 minimum balance to avoid a monthly maintenance fee on its regular savings account. If your balance drops below $100, you will be charged a fee each month until you bring it back up.

How often do high yield savings rates change?

Rates can change at any time, but they typically move when the Federal Reserve changes its benchmark interest rate. This happens several times per year. Banks usually announce rate changes on their websites, and some send email notifications to account holders.