Bank of America does not offer a high yield savings account
Bank of America's standard savings account earns interest, but the rate is substantially lower than what you would find at online banks or credit unions. As of now, Bank of America's regular savings account pays around 0.01% annual percentage yield (APY), which means $10,000 would earn roughly $1 per year. A high yield savings account at an online bank typically pays between 4% and 5% APY on the same $10,000, earning $400 to $500 annually.
Bank of America does offer a Money Market account, which pays a higher rate than their standard savings account, but it still lags behind what independent online banks offer. The Money Market account requires a higher minimum balance to open and to avoid monthly fees, and the rate structure varies based on how much you deposit.
If you already bank with Bank of America and want to keep your money there, the Money Market account is the better choice between their two savings products. If your primary goal is to earn meaningful interest on savings, you would need to move your money to a different institution.
Key Takeaways
- Bank of America's standard savings account pays around 0.01% APY, which is far below what online banks offer for high yield savings.
- Bank of America's Money Market account pays a higher rate than standard savings but still does not compete with online high yield accounts.
- The Money Market account requires a higher opening balance and has tiered rates based on your deposit amount.
- Moving your savings to an online bank is the only way to earn high yield rates while keeping your money with Bank of America.
How Bank of America's Money Market account works
The Money Market account is Bank of America's closest product to a high yield savings account, though the name and structure are different. You can write checks from this account and make debit card withdrawals, which you cannot do with a standard savings account. The account has tiered interest rates: the more money you deposit, the higher the rate you earn on that portion of your balance.
Bank of America charges a $12 monthly maintenance fee on the Money Market account unless you meet one of several conditions: maintain a $2,500 minimum balance, set up a direct deposit of at least $250 per month, or link it to a may have access to Bank of America checking account with certain requirements. The tiered rate structure means your first $10,000 might earn one rate, your next $25,000 a slightly higher rate, and balances above that earn the highest tier rate. You would need to check the current rate sheet to see the exact percentages, as these change regularly.
Why Bank of America's rates are lower than online banks
Bank of America operates thousands of physical branches and employs tens of thousands of people. Those costs are built into their business model. Online banks have no branches, no tellers, and no physical infrastructure, which means they can pass savings on to customers through higher interest rates. This is not a temporary difference—it is structural to how each type of bank operates.
Bank of America also makes money by lending out deposits at higher rates than they pay you. With a 0.01% savings rate, the spread between what they pay you and what they charge borrowers is enormous. Online banks operate on thinner margins and compete primarily on interest rates, so they offer rates closer to what the Federal Reserve's benchmark rate allows.
What you would earn with Bank of America versus online banks
| Account Type | APY (approximate) | Annual earnings on $10,000 |
|---|---|---|
| Bank of America Standard Savings | 0.01% | $1 |
| Bank of America Money Market | 0.04% to 0.10% (varies by tier) | $4 to $10 |
| Online Bank High Yield Savings | 4.00% to 5.00% | $400 to $500 |
These figures are approximate and change as the Federal Reserve adjusts its benchmark rate. The gap between Bank of America and online banks has remained consistent for years, even as rates have moved up and down. If you have $50,000 in savings, the difference between 0.01% and 4.5% is roughly $2,250 per year in lost earnings.
How to move money from Bank of America to a high yield account
You do not have to close your Bank of America account to open a high yield savings account elsewhere. Many people keep a checking account at Bank of America for everyday use and move savings to an online bank. You can transfer money between institutions using an external transfer, which typically takes three to five business days.
To set up an external transfer, you will need your Bank of America account number and routing number (which you can find on a check or in your online banking portal). The receiving bank will ask for this information and initiate the transfer on their end. Bank of America does not charge a fee for outgoing transfers. Once the money arrives at the online bank, it begins earning the higher rate when ready.
Some people set up recurring transfers to move money from their Bank of America checking account to a high yield savings account at another bank each month. This way, they earn checking account convenience at Bank of America while their savings grow faster elsewhere.
When Bank of America's savings products might make sense
If you have a very small amount of savings—under $1,000—the difference in earnings is minimal in dollar terms, though the percentage difference is still large. You might choose to keep money at Bank of America straightforward for convenience if you use their checking account and want everything in one place.
If you need to access your money frequently and want to avoid transferring between institutions, Bank of America's Money Market account offers check-writing and debit card access, which a high yield savings account at an online bank typically does not. This flexibility comes at the cost of lower interest rates.
Bank of America also offers relationship benefits if you maintain multiple accounts or a high balance. Some customers receive fee waivers or slightly better rates on other products (like CDs or money market funds) if they meet certain balance thresholds. These benefits might offset some of the lost interest earnings, though the math usually still favors moving savings to an online bank.
Frequently Asked Questions
Can I earn more interest at Bank of America by opening a CD instead of a savings account?
Bank of America's certificates of deposit (CDs) pay higher rates than their savings accounts, but the rates are still lower than high yield savings accounts at online banks. A CD also locks your money away for a set period—typically three months to five years—whereas a high yield savings account lets you withdraw anytime without penalty. If you want both higher rates and flexibility, a high yield savings account at an online bank is the better choice.
Does Bank of America offer any promotional rates on savings accounts?
Bank of America occasionally runs promotions on new accounts, but these are typically one-time bonuses rather than higher ongoing rates. A $200 bonus on a new Money Market account, for example, is paid once and does not change the APY you earn going forward. Online banks often offer similar bonuses but with much higher base rates, so the total earnings are still higher.
What happens to my interest rate if the Federal Reserve raises or lowers rates?
Bank of America adjusts its savings rates when the Federal Reserve changes its benchmark rate, but the timing and amount of adjustment vary. Online banks typically adjust faster and more fully. If rates rise, you will see your Bank of America rate increase, but it will likely lag behind what online banks offer. If rates fall, your Bank of America rate will drop as well.
Is my money safer at Bank of America than at an online bank?
Both Bank of America and online banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type per institution. Your money is equally protected at either one. The safety difference is not about the bank's size or physical presence—it is about FDIC coverage limits. As long as you stay under $250,000 in savings at any single bank, your deposits are fully protected.
Can I have both a Bank of America savings account and a high yield savings account at another bank?
Yes. Many people maintain a checking account at Bank of America for everyday transactions and a high yield savings account at an online bank for money they are saving. You can transfer money between them as needed. This approach gives you the convenience of a local bank for checking while earning higher interest on savings.