Bank of America does not offer a traditional high-yield savings account

Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, Bank of America does not have a product specifically branded or marketed as a high-yield savings account (HYSA). Their regular savings accounts typically earn rates that are a fraction of what online banks and credit unions offer — often less than 0.01% annual percentage yield (APY), though this can change.

If you keep money at Bank of America primarily for checking and bill pay, a regular savings account there may be convenient. But if your goal is to earn meaningful interest on money you are saving, you would earn significantly more at another institution. The difference between Bank of America's rate and a high-yield rate elsewhere can add up quickly, especially on larger balances.

Key Takeaways

  • Bank of America's savings accounts earn very low interest rates and are not competitive with high-yield savings accounts at online banks or credit unions.
  • You can open a savings account at Bank of America if you already have a checking account there, but the interest earned will be minimal.
  • If earning interest on savings is important to you, opening a separate high-yield savings account at another bank while keeping your checking at Bank of America is a common strategy.
  • Bank of America does offer money market accounts, which sometimes have slightly higher rates than savings accounts, though still typically below market rates.

What Bank of America savings accounts actually earn

Bank of America offers several savings products: a basic savings account, a money market account, and accounts with tiered interest rates based on your balance. None of these are designed to compete on interest rate. The rates vary slightly depending on your account type and balance, but they remain far below what you would earn in a high-yield savings account elsewhere.

The bank's money market account sometimes offers a marginally higher rate than the basic savings account, but the difference is usually small — often just a few basis points (hundredths of a percent). You would need to compare the current rates directly on Bank of America's website to see the exact numbers, since rates change regularly.

Why Bank of America's rates are lower

Bank of America is a large, full-service bank with thousands of physical branches and ATMs. That infrastructure costs money. The bank makes its profit partly from the difference between what it pays you on deposits and what it charges borrowers for loans. Because Bank of America has high operating costs, it does not need to offer high savings rates to attract deposits — customers come for the convenience and the checking account.

Online banks and credit unions, by contrast, have lower overhead. They do not maintain branch networks, so they can afford to pass more of their profits to savers through higher interest rates. This is why a high-yield savings account at an online bank typically earns 4% to 5% APY, while Bank of America might earn you 0.01% on the same balance.

How to earn more interest while keeping Bank of America

You do not have to close your Bank of America checking account to earn a better rate on savings. Many people keep their checking account at Bank of America for convenience — direct deposit, bill pay, local branches — and open a separate high-yield savings account at an online bank or credit union for money they are saving.

This strategy works because high-yield savings accounts are designed to be accessible but separate. You can transfer money between your Bank of America checking and a high-yield savings account at another bank in one to three business days. Some people use this setup specifically: they keep their spending money and monthly bills at Bank of America, and move extra money to a high-yield account where it earns real interest.

The main trade-off is that you will manage two accounts instead of one. But the interest difference usually makes it worthwhile. On a $10,000 balance, for example, the difference between 0.01% at Bank of America and 4.5% at a high-yield account is roughly $450 per year.

Bank of America's money market account as an alternative

Bank of America does offer a money market account, which is a hybrid between a checking and savings account. It typically comes with a debit card and check-writing ability, but also earns interest. The rate is usually higher than the basic savings account, though still low compared to high-yield options elsewhere.

Money market accounts at Bank of America may have monthly fees if you do not maintain a minimum balance, and they may limit the number of withdrawals you can make per month. These restrictions exist because the bank is trying to encourage you to keep money there rather than move it. If you are looking for a single account that combines checking features with better interest, this is Bank of America's closest option — but it still will not compete with a dedicated high-yield savings account at another institution.

What to look for in a high-yield savings account instead

If you decide to open a high-yield savings account elsewhere, focus on a few things: the current APY (which changes over time), whether there are monthly fees, and whether the bank is insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance protects your money up to $250,000 per account, per bank, so you know your deposits are safe even if the bank fails.

Most online banks and many credit unions offer high-yield savings accounts with no monthly fees, no minimum balance requirements, and FDIC insurance. The APY will be the main difference between them. You can compare current rates on financial websites that track savings rates, though you should always verify the rate on the bank's own website before opening an account.

Frequently Asked Questions

Can I transfer money from Bank of America to a high-yield savings account easily?

Yes. You can link your Bank of America checking account to a high-yield savings account at another bank and transfer money between them online. Transfers typically take one to three business days. Some banks also let you set up automatic transfers, so you can move a set amount each month without thinking about it.

Will I lose FDIC insurance if I move my savings to another bank?

No. As long as the other bank is FDIC-insured, your deposits are protected up to $250,000. You actually have separate FDIC coverage at each bank, so you could have $250,000 at Bank of America and $250,000 at another bank, and both would be fully protected.

What if I want to keep everything at one bank?

Bank of America's money market account is your best option for earning slightly more interest while staying within one institution. However, the rate will still be much lower than a high-yield account elsewhere. If earning interest matters to you, the trade-off of managing two banks is usually worth it.

Do I need to close my Bank of America account to open a high-yield savings account elsewhere?

No. You can keep your Bank of America checking account open and add a high-yield savings account at another bank. Many people do this specifically to earn better interest on savings while keeping their main banking relationship unchanged.