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 other banks call "high yield." As of early 2024, Bank of America's regular savings account pays around 0.01% APY on balances under $100,000. A high yield savings account at another bank typically pays between 4% and 5% APY on the same money — meaning you would earn 400 to 500 times more interest in the same account.
Bank of America does offer a product called the Money Market Account, which pays a higher rate than the basic savings account. The rate varies based on your balance tier and account type, but even the highest tier typically pays less than 1% APY. This is still far below what you would earn in a high yield savings account elsewhere.
If you hold a Bank of America Preferred Rewards membership (which requires a minimum balance or direct deposit), you get a small boost to savings account rates. A Preferred Rewards Gold member might earn 0.04% APY instead of 0.01%, for example. This is still not a high yield rate by any standard definition.
Key Takeaways
- Bank of America's standard savings account pays around 0.01% APY, which is significantly lower than high yield savings accounts at other banks.
- The Money Market Account at Bank of America pays a higher rate than savings, but typically under 1% APY, still well below high yield offerings elsewhere.
- Preferred Rewards membership adds a small rate boost, but does not bring Bank of America's accounts into high yield territory.
- If earning the most interest on savings is your goal, you would earn substantially more money at an online bank or credit union offering high yield rates.
Why Bank of America's rates lag behind other banks
Bank of America is a large national bank with thousands of physical branches. Maintaining that branch network costs money — rent, staff, technology, security. Those costs get passed along to customers partly through lower interest rates on deposits. Online banks and some credit unions have no branches, so they can offer higher rates because they have lower overhead.
Bank of America also makes money by lending out customer deposits. When deposit rates are low, the bank keeps a larger spread between what it pays you and what it charges borrowers. This is a standard business model, but it means Bank of America has less incentive to raise savings rates to match competitors.
The Federal Reserve's interest rate decisions affect all banks, but they affect the competitive pressure differently. When rates are high, online banks raise their savings rates quickly to attract deposits. Bank of America raises rates more slowly because it already has a large customer base that does not shop around as often.
What you would earn at Bank of America versus a high yield account
| Account Type | Typical APY | Interest on $10,000 per year |
|---|---|---|
| Bank of America Savings | 0.01% | $1.00 |
| Bank of America Money Market | 0.50% to 0.75% | $50 to $75 |
| High Yield Savings (online bank) | 4.00% to 5.00% | $400 to $500 |
These numbers show why the difference matters. On $10,000, you would earn roughly $1 per year at Bank of America's savings account, compared to $400 to $500 at a high yield account. Over five years, that gap grows to $2,000 to $2,500 in lost earnings.
The gap widens with larger balances. On $50,000, Bank of America savings earns $5 per year. The same $50,000 in a high yield account earns $2,000 to $2,500 per year. This is why people with significant savings often move money out of Bank of America for the interest-earning portion of their emergency fund.
When Bank of America savings still makes sense
Bank of America savings accounts are useful if you need frequent access to your money and want the convenience of a nearby branch. Some people value being able to walk into a physical location to deposit cash or speak with someone in person. If you already have a checking account at Bank of America and want a linked savings account for simplicity, the low rate might be a reasonable trade-off for convenience.
Bank of America also offers overdraft protection and other features that link checking and savings accounts together. If you use these features regularly, moving your savings elsewhere means managing accounts at two different institutions. For some people, that complexity is not worth the extra interest.
If you are saving for a short-term goal and plan to spend the money within a few months, the difference in interest is negligible anyway. A few dollars in interest over three months is not worth the hassle of opening a new account and transferring money.
How to move money to a high yield account without closing your Bank of America account
You do not have to choose between Bank of America and a high yield account. Many people keep a checking account at Bank of America for everyday spending and bill payments, then move their savings to a high yield account at an online bank or credit union.
The process is straightforward: open a high yield savings account at another bank, then transfer money from your Bank of America account to the new account using an ACH transfer. This takes one to three business days. Your Bank of America account stays open and active, so you keep the checking account and any other services you use there.
Some people keep a small emergency fund at Bank of America (for quick access via ATM or branch) and move the bulk of their savings to a high yield account. This gives you the convenience of Bank of America plus the interest earnings of a high yield account.
What to look for in a high yield savings account
If you decide to move savings out of Bank of America, focus on three things: the APY rate, FDIC insurance, and how straightforward it is to move money in and out. The rate matters most, but it changes frequently — what is 5% today might be 4.5% next month as the Federal Reserve adjusts rates.
FDIC insurance protects your money up to $250,000 per account at each bank. Make sure any bank you choose is FDIC-insured. You can check this on the FDIC website by searching for the bank's name.
Ease of transfer matters because you might want to move money back to Bank of America or to another bank later. Look for banks that offer free ACH transfers and do not charge fees for moving money out. Most online banks offer this, but it is worth confirming before you open the account.
Frequently Asked Questions
Can I earn high yield rates on a Bank of America savings account?
No. Bank of America's savings account pays around 0.01% APY, and the Money Market Account pays less than 1% APY. Neither qualifies as high yield. If earning the highest interest rate is your goal, you would need to move your savings to another bank.
Will Bank of America ever offer high yield savings?
Bank of America has not announced plans to offer a high yield savings product. The bank's business model relies on physical branches and a large existing customer base, which makes it less likely to compete aggressively on interest rates. Smaller online banks and credit unions are better positioned to offer high yield rates.
What happens to my Bank of America account if I move savings elsewhere?
Your Bank of America account stays open and active. Moving money to another bank does not close your account or affect your checking account, debit card, or other services. You can keep Bank of America for checking and everyday banking while using a high yield account for savings.
Is it safe to open a savings account at an online bank?
Yes, as long as the bank is FDIC-insured. FDIC insurance protects your deposits up to $250,000 per account, whether the bank has physical branches or not. Check the FDIC website to confirm a bank is insured before you open an account.
How long does it take to transfer money from Bank of America to another bank?
ACH transfers typically take one to three business days. Some banks offer faster transfers for an additional fee, but most free transfers fall within this window. Weekends and holidays can extend the timeline slightly.