Bank of America's savings account rates are lower than most online banks, but they offer something different

Bank of America does not offer a high-yield savings account in the way most people mean it. Their standard savings account currently earns around 0.01% annual percentage yield (APY) on balances under $100,000. For comparison, online banks and credit unions regularly offer 4% to 5% APY on savings accounts with no minimum balance.

What Bank of America does offer is a tiered structure: if you maintain a very large balance—typically $100,000 or more—you may earn a slightly higher rate, but even then it will not match what you find elsewhere. The bank's advantage is not the rate; it is the branch network, the debit card tied to your checking account, and the ability to deposit cash in person.

If your priority is earning interest on savings, Bank of America is not the right choice. If your priority is keeping money accessible while you use their checking account and branch services, the low rate is the trade-off you make.

Key Takeaways

  • Bank of America savings accounts earn roughly 0.01% APY, which is significantly lower than online banks offering 4% to 5% APY.
  • The bank does not have a separate high-yield product; all savings accounts use the same tiered rate structure based on balance size.
  • Bank of America's value proposition is branch access and integration with checking accounts, not interest earnings.
  • Moving savings to an online bank or credit union while keeping your Bank of America checking account is a common strategy to earn higher rates.

How Bank of America's savings account rates work

Bank of America uses a tiered system where your APY depends on your account balance. The tiers vary slightly by region and account type, but the pattern is consistent: the more money you keep in the account, the slightly higher your rate. Even at the highest tier, the rate remains well below 1%.

You can check your current rate by logging into your online account or calling 1-800-432-1000. The rate you see is the rate you earn; Bank of America does not advertise promotional rates on savings accounts the way some competitors do.

Interest compounds daily and is deposited monthly. If you have $10,000 in a Bank of America savings account earning 0.01% APY, you would earn approximately $1 per year before any fees reduce that amount.

Why Bank of America rates are so low compared to alternatives

Bank of America is a traditional brick-and-mortar bank with thousands of branches, hundreds of ATMs, and staff in physical locations. Those branches cost money to operate. Online banks like Marcus, Ally, and American Express Personal Savings have no branches and no tellers, so they pass the savings to customers through higher rates.

Credit unions, which are member-owned rather than shareholder-owned, often offer competitive rates on savings accounts as well. If you belong to a credit union or are may be able to access to join one through your employer or community, their savings rates typically exceed Bank of America's.

The gap between Bank of America and online banks has widened significantly since 2022, when interest rates began rising. Online banks moved quickly to raise savings rates; traditional banks raised them more slowly and to lower levels.

What you get instead of high interest rates

Bank of America's savings account comes with features that online-only banks cannot offer. You can deposit cash at any of their branches or ATMs without a fee. You can withdraw cash in person. You can speak to a banker face-to-face if you need help. Your savings account is linked to your checking account, making transfers when ready and free.

If you travel frequently or live in an area with limited online banking infrastructure, branch access has real value. If you prefer to handle banking in person, that preference has a cost—and that cost is the interest rate you do not earn.

Bank of America also offers FDIC insurance up to $250,000 per account category, the same as any other bank. Your money is equally safe whether you earn 0.01% or 5%.

How to earn more interest while keeping your Bank of America checking account

You do not have to choose between Bank of America and higher interest rates. Many people keep their checking account at Bank of America for the branch network and debit card, then open a savings account elsewhere for the interest.

Moving money between banks takes one to three business days, but you can set up automatic transfers from your Bank of America checking account to a high-yield savings account at an online bank. This way, money you do not need when ready earns 4% to 5% instead of 0.01%, and you still have your Bank of America debit card and branches available.

To set this up, you will need your Bank of America routing number (026009593 for most regions) and your checking account number. The online bank will guide you through linking the accounts. Once linked, you can transfer money online in minutes, though the money will not arrive until the next business day.

Bank of America savings account fees and minimums

Bank of America does not charge a monthly maintenance fee on savings accounts, and there is no minimum balance requirement to open one. You can open an account with $1 and keep it open indefinitely.

However, if you fall below a certain balance—typically $300—you may lose certain features or be moved to a basic savings product. Check your account terms or call the bank to confirm what applies to your specific account type.

Withdrawals are unlimited. Federal regulations once capped savings account withdrawals at six per month, but that rule was suspended in 2020 and has not been reinstated. You can withdraw as much as you want whenever you want.

Frequently Asked Questions

Can I earn more interest if I keep a larger balance in my Bank of America savings account?

Yes, but only slightly. Bank of America's tiered rates mean a $500,000 balance earns more than a $1,000 balance, but even the highest tier remains below 0.5% APY. An online bank at 4.5% APY will always earn you far more, regardless of balance size.

Does Bank of America offer any promotional rates on savings accounts?

Bank of America does not currently offer promotional rates on savings accounts. They occasionally offer cash bonuses for opening new checking accounts, but not for savings. Online banks frequently run promotions offering higher rates for a limited time.

What happens to my interest if I withdraw money from my savings account?

Interest is calculated daily on your balance and deposited monthly. If you withdraw money mid-month, you earn interest only on the balance you held. There is no penalty for withdrawals.

Is my money safe in a Bank of America savings account?

Yes. Bank of America is FDIC-insured up to $250,000 per account category. Your savings account is protected the same way it would be at any other bank, regardless of the interest rate.

Can I move my savings to another bank and keep my Bank of America checking account?

Yes. You can open a savings account at an online bank or credit union while keeping your Bank of America checking account active. Link them for straightforward transfers, and move your savings to earn higher interest while keeping your debit card and branch access.