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 you will find at online banks or credit unions. As of now, Bank of America's regular savings account pays a rate that varies by account type and balance, but it typically sits well below 1% annual percentage yield (APY). If earning meaningful interest on savings is your goal, you will need to look elsewhere or understand what Bank of America actually offers.
Bank of America does offer a Money Market Deposit Account, which is their closest product to a high yield savings account. This account has tiered interest rates — meaning the rate increases as your balance grows. The highest tier typically requires a $25,000 minimum balance to access the better rate. Even then, the APY is usually lower than what online banks pay on their standard high yield savings accounts.
The reason Bank of America's rates stay low is structural: they are a large brick-and-mortar bank with physical branches, employees, and overhead costs. Online banks have lower costs and pass some of that savings to customers through higher rates. If you keep money at Bank of America for convenience or because you use their checking account, the rate difference matters — but it is a real cost to you.
Key Takeaways
- Bank of America's standard savings account earns less than 1% APY, which is significantly lower than online high yield savings accounts that often pay 4% to 5% APY.
- The Money Market Deposit Account is Bank of America's highest-paying savings product, but it requires a $25,000 minimum balance and still pays less than most online alternatives.
- You can check your current rate by logging into your Bank of America account or calling their customer service, since rates change and vary by location.
- Moving money to a high yield savings account at an online bank costs nothing and takes a few days, so the rate difference adds up quickly on larger balances.
How Bank of America's Money Market account works
The Money Market Deposit Account has a tiered structure: your rate depends on how much you keep in the account. Bank of America typically offers four or five tiers, with the highest rate unlocked at $25,000 or more. This means a customer with $10,000 earns a lower rate than a customer with $50,000, even though both are in the same account type.
The account also comes with check-writing privileges and a debit card, unlike some savings accounts. You can withdraw money in person at a branch, by phone, or online. However, federal rules allow only six withdrawals or transfers per month before fees explore — this is a standard rule across most savings and money market accounts, not unique to Bank of America.
The minimum balance requirement to open the account is typically $2,500, but you need $25,000 to earn the top tier rate. If your balance drops below the minimum, Bank of America may charge a monthly fee. You should confirm the current fee structure and rate tiers by checking your account or calling 1-800-432-1000.
Comparing Bank of America to online high yield savings accounts
Online banks like Marcus, Ally, and American Express Personal Savings typically pay 4% to 5% APY on their high yield savings accounts, with no minimum balance requirement. Bank of America's Money Market account usually pays between 0.5% and 1.5% APY, depending on your balance tier. On a $25,000 balance, that difference means you earn roughly $1,000 to $1,250 per year at an online bank versus $125 to $375 at Bank of America.
The trade-off is access. Bank of America has 4,000+ branches where you can deposit cash or speak to someone in person. Online banks have no physical locations — you deposit by mobile check deposit or transfer from another account. If you regularly deposit cash or need in-person service, that convenience has value. If you mostly transfer money electronically, the rate difference outweighs the convenience loss.
Some customers keep a small balance in Bank of America savings for emergency cash access and move larger amounts to an online high yield account. This hybrid approach lets you use Bank of America's branch network while earning better rates on the bulk of your savings.
What happens to your interest if you move banks
Interest accrues daily but is usually credited monthly. If you move your money mid-month, you will receive interest for the days the money sat in the Bank of America account. Once you transfer the balance to another bank, Bank of America stops paying interest on that amount — the new bank begins paying interest based on their rate and your new balance.
Transferring money between banks is free and typically takes one to three business days. You can initiate the transfer online through Bank of America's website by linking your new account, or you can provide your new bank's routing and account number to Bank of America directly. There is no penalty for closing a savings account, though Bank of America may require you to maintain a minimum balance in your checking account if you have one.
When Bank of America savings might make sense for you
Bank of America savings accounts work best if you need frequent cash deposits, value in-person service, or already have a checking account there and want to keep everything in one place. The rate penalty is real, but it may be worth it if you deposit cash regularly — online banks charge fees for cash deposits or do not accept them at all.
If you have a large balance and may have access to for Bank of America's Preferred Rewards program (which requires a higher checking account balance or investment account), you may earn a slightly higher rate on savings. This is worth checking if you already bank with them.
For most people saving money they do not need to touch, an online high yield savings account will earn you significantly more interest with no real downside. The decision comes down to whether the convenience of Bank of America's branches is worth the cost of a lower rate.
How to check your current Bank of America savings rate
Log into your Bank of America online account or mobile app and navigate to your savings account details. The current APY will be listed there. You can also call 1-800-432-1000 and ask a representative for your account's current rate and the rate tiers for the Money Market account.
Bank of America publishes rate changes on their website, though the rates are not always straightforward to find. Search for "Bank of America savings rates" on their site or ask in a branch. Rates change based on Federal Reserve decisions, so checking every few months makes sense if you are deciding whether to move your money.
Frequently Asked Questions
Can I earn more interest by keeping a higher balance at Bank of America?
Yes, the Money Market Deposit Account pays higher rates at higher balance tiers. A $50,000 balance earns more than a $25,000 balance. However, even the highest tier at Bank of America typically pays less than a standard high yield account at an online bank, so the rate difference remains significant.
What is the difference between Bank of America's savings account and Money Market account?
The Money Market account has tiered rates that increase with your balance and comes with check-writing and a debit card. The regular savings account has a flat rate for all balances and no check-writing. The Money Market account requires a higher minimum balance but pays more interest if you meet it.
Will I lose interest if I transfer my money to another bank?
No. Interest accrues daily and is credited monthly. You will receive interest for the days your money was in the Bank of America account. Once transferred, the new bank begins paying interest based on their rate. There is no penalty for moving your money.
Do I need to keep a checking account at Bank of America to have a savings account?
No, you can open a savings account without a checking account. However, if you have both, Bank of America may offer slightly better rates through their Preferred Rewards program if your checking account meets their balance requirements.
How often does Bank of America change its savings rates?
Bank of America changes rates based on Federal Reserve decisions and market conditions. There is no fixed schedule, but rates typically move several times per year. Check your account or call their customer service line to see if your rate has changed.