Bank of America does not offer a high yield savings account

Bank of America's standard savings accounts earn interest rates that are significantly lower than what you can find at online banks or credit unions. As of now, Bank of America's regular savings account pays less than 0.01% annual percentage yield (APY), meaning your money grows very slowly. If you keep $10,000 in that account for a year, you would earn just a few dollars in interest.

High yield savings accounts, by contrast, are offered by online banks and some credit unions and currently pay between 4% and 5% APY or higher. The same $10,000 would earn $400 to $500 per year at those rates. The difference comes down to how banks operate: Bank of America has physical branches and pays for that infrastructure, while online-only banks have lower costs and pass some of those savings to customers through higher interest rates.

If you currently bank with Bank of America and want to earn more on your savings, you would need to open an account at a different institution. You can keep your Bank of America checking account for everyday use and move savings to a higher-paying account elsewhere.

Key Takeaways

  • Bank of America's savings accounts pay less than 0.01% APY, which means your savings grow very slowly compared to other options.
  • High yield savings accounts at online banks and credit unions currently pay 4% to 5% APY or more, earning significantly more interest on the same amount of money.
  • You do not have to close your Bank of America account to move savings elsewhere — you can use both institutions at the same time.
  • Bank of America's lower rates reflect the cost of maintaining physical branches, while online banks can offer higher rates because they have fewer expenses.

What Bank of America savings accounts actually offer

Bank of America has two main savings products: a regular savings account and a money market account. Both earn minimal interest. The regular savings account has no minimum balance requirement to open it, though Bank of America does charge a monthly maintenance fee unless you meet certain conditions — such as keeping a minimum balance or having direct deposits.

The money market account requires a higher opening balance (typically $2,500) and also charges a monthly fee unless you maintain that balance or set up direct deposits. In exchange, it offers a slightly higher interest rate than the regular savings account, but still far below what you would earn elsewhere. Neither account has withdrawal limits or restrictions that would prevent you from moving your money.

How high yield savings accounts work at other banks

A high yield savings account is a regular savings account — you can deposit money, withdraw it, and earn interest — but the interest rate is much higher. These accounts are offered primarily by online banks because they do not have the expense of physical branches. That lower overhead means they can pay you more.

High yield savings accounts typically have no monthly fees, no minimum balance requirements, and no withdrawal limits. You access your money through a website, mobile app, or by transferring it to another bank account. The tradeoff is that you cannot walk into a branch and speak to someone in person, though most offer phone and email support.

Interest rates at these accounts change over time based on what the Federal Reserve does with interest rates. When the Fed raises rates, high yield savings rates tend to go up. When the Fed lowers rates, these accounts pay less. Currently, rates are higher than they have been in years, but that may change.

When a high yield savings account makes sense for you

A high yield savings account is useful if you have money you are not spending right now but might need within the next few years. Examples include an emergency fund, money saved for a down payment on a home, or funds set aside for a car purchase. The money stays accessible — you can withdraw it whenever you need it — but it earns real interest while you wait.

High yield savings accounts are not the right choice for money you plan to spend this week or this month. The interest earned on short-term savings is small. They are also not a replacement for investments like stocks or bonds if you are saving for retirement or a goal more than five years away, because those accounts can earn more over longer time periods.

If you use Bank of America primarily for checking and bill payments but want to earn more on savings, opening a high yield account at another bank is straightforward. You can transfer money between accounts at different banks using a wire transfer or by linking the accounts and initiating an ACH transfer, which usually takes one to three business days.

Other Bank of America accounts that might interest you

Bank of America offers a checking account called the Interest Checking account, which earns a small amount of interest if you meet certain requirements — usually maintaining a high balance or having regular direct deposits. The interest rate is still very low, but it is higher than a standard checking account.

Bank of America also offers certificates of deposit (CDs), which are accounts where you agree to leave money untouched for a set period — typically three months to five years — in exchange for a may provide interest rate. CD rates at Bank of America are higher than their savings accounts but still lower than high yield savings accounts at online banks. CDs are useful if you know you will not need the money for a specific period and want a may provide return, but they lock your money away, so you cannot access it without a penalty.

How to move money from Bank of America to a high yield account

If you decide to open a high yield savings account elsewhere, moving money is straightforward. First, open the new account at the bank or credit union of your choice. You will need to provide your name, address, Social Security number, and information about your Bank of America account.

Once the new account is open, you can transfer money in two ways. The fastest is to link your Bank of America account to the new account and initiate a transfer through the new bank's website or app. This usually takes one to three business days. The second way is to ask Bank of America to send a wire transfer, which costs a small fee (usually $15 to $30) but can be faster.

You do not have to move all your money at once. Many people keep a small amount in their Bank of America savings account for emergencies and move the rest to a high yield account. You can also keep your Bank of America checking account open for everyday banking and bill payments while using the high yield account for savings.

Why Bank of America keeps rates low

Bank of America is a large national bank with thousands of physical branches. Those branches cost money to operate — they require staff, rent, utilities, and technology. Bank of America also invests heavily in customer service, fraud prevention, and regulatory compliance. These costs are built into their business model, which means they cannot afford to pay as much interest on savings accounts.

Online banks have a different model. They have no physical locations, smaller staff, and lower overhead. They use that cost advantage to attract customers by offering higher interest rates. Neither model is wrong — they serve different purposes. Bank of America is useful if you want in-person service and a full range of banking products. Online banks are useful if you prioritize earning more interest on savings and do not need a physical branch.

Frequently Asked Questions

Can I earn more interest by keeping a larger balance at Bank of America?

No. Bank of America's interest rates on savings accounts do not increase based on your balance size. Whether you have $1,000 or $100,000 in a Bank of America savings account, you earn the same low rate. High yield accounts at other banks also do not increase rates for larger balances, but they start from a much higher base rate.

What if I need to access my money quickly?

High yield savings accounts are designed for quick access. You can withdraw money through a website or app, and transfers to another bank account usually arrive within one to three business days. If you need cash when ready, you can visit a Bank of America branch and withdraw from your account there, but that requires having a Bank of America account open.

Is my money safe in a high yield account at an online bank?

Yes, as long as the bank is FDIC-insured. FDIC insurance protects your money up to $250,000 per account if the bank fails. Most online banks that offer high yield savings are FDIC-insured. You can check by looking for the FDIC logo on their website or by searching the FDIC's bank finder tool.

Do I have to close my Bank of America account to open a high yield account?

No. You can keep your Bank of America checking and savings accounts open while opening a high yield account elsewhere. Many people do this — they use Bank of America for everyday banking and a high yield account for savings. There is no penalty for having accounts at multiple banks.

What happens to my interest if rates go down?

High yield savings account rates are variable, meaning they can change at any time. If the Federal Reserve lowers interest rates, your high yield account will pay less. However, even if rates drop, high yield accounts typically remain higher than Bank of America's rates. Your money is never locked into a rate unless you open a CD.