Bank of America does not offer a dedicated high yield savings account

Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, their regular savings accounts pay around 0.01% annual percentage yield (APY), which means $10,000 sitting in the account for a year earns roughly $1 in interest. This is far lower than accounts at online banks and credit unions, which commonly offer 4% to 5% APY on savings.

Bank of America does offer a Money Market Account, which is their closest product to a high yield option, but it still pays significantly less than true high yield savings accounts. The Money Market Account typically earns tiered rates — meaning the rate increases as your balance grows — but even the highest tier remains below 1% APY in most cases. If you maintain a very large balance (generally $100,000 or more), you may see slightly better rates, but these still lag far behind online alternatives.

The reason Bank of America's rates stay low is straightforward: they are a large brick-and-mortar bank with physical branches, staff, and overhead costs. Online banks have lower operating expenses and pass some of those savings to customers through higher interest rates. Bank of America prioritizes branch access and customer service over competitive rates.

Key Takeaways

  • Bank of America's standard savings accounts pay around 0.01% APY, which is substantially lower than high yield accounts at online banks.
  • The Money Market Account is Bank of America's highest-rate savings product, but it typically stays below 1% APY even at the highest tier.
  • Online banks and credit unions commonly offer 4% to 5% APY on savings accounts with no minimum balance requirements.
  • If you want high yield savings, you will need to open an account at a different institution — Bank of America does not have a competitive product in this category.

What Bank of America's Money Market Account actually offers

The Money Market Account combines features of a checking and savings account. You get a debit card and check-writing ability, but the account is designed to hold money rather than be your primary transaction account. The tiered rate structure means your interest rate depends on your balance level — a common practice at traditional banks.

The account requires a minimum opening deposit (typically $2,500) and has a monthly maintenance fee unless you meet certain conditions. You can waive the fee by maintaining a minimum daily balance, setting up direct deposit, or keeping a linked Bank of America checking account open. These conditions matter because the fee can be $12 per month, which erodes any interest you earn on smaller balances.

Bank of America also limits the number of withdrawals you can make from a Money Market Account per month — typically six transfers or withdrawals before fees explore. This restriction is less common now than it once was, but it remains in place at Bank of America. If you need frequent access to your savings, this limitation is worth knowing about.

How Bank of America's rates compare to other options

The gap between Bank of America and online banks is substantial. An online bank offering 4.5% APY on a $10,000 balance would earn you $450 per year. The same $10,000 in a Bank of America savings account earns $1. Over five years, that difference compounds to roughly $2,250 in lost interest.

Credit unions often offer competitive rates as well, sometimes matching or exceeding online banks. If you are a member of a credit union, checking their savings rates should be your first step before opening anything at Bank of America. Credit unions are member-owned, which means they often return profits to members through better rates and lower fees.

Even Bank of America's own checking accounts sometimes come with small interest rates — their Interest Checking account can earn up to 0.01% to 0.05% APY depending on your balance and account activity. This is still negligible, but it shows that Bank of America's rates across all products are straightforward not competitive with the market.

Why you might still use Bank of America for savings

Despite the low rates, some people keep savings at Bank of America because they already have a checking account there and value the convenience of one institution. If you use Bank of America's checking account for daily transactions and only keep a small emergency fund in savings, the rate difference may not matter much to you in dollar terms.

Bank of America's branch network is also a real advantage if you need in-person banking. They have thousands of branches and ATMs across the United States. If you travel frequently or live in an area where Bank of America has strong presence, this accessibility might outweigh the rate disadvantage for some of your money.

The FDIC insurance protection is identical at Bank of America and online banks — your deposits are insured up to $250,000 per account type. Safety is not a reason to choose Bank of America over an online bank; both are equally protected.

The practical path if you want high yield savings

If you decide you want a high yield savings account, you do not need to close your Bank of America checking account. Many people maintain both: a checking account at Bank of America for daily spending and bill payments, and a high yield savings account at an online bank for money they want to grow. This approach gives you the convenience of Bank of America's branches while capturing the interest rate advantage elsewhere.

Opening an online savings account takes about 10 minutes. You will need your Social Security number, a government ID, and a way to fund the account (usually a transfer from your Bank of America checking account). The money typically moves within one to three business days. Once the account is open, you can set up automatic transfers from Bank of America to move money into savings on a regular schedule.

If you are concerned about having money in multiple places, remember that online banks are FDIC-insured just like Bank of America. Your money is equally safe, and you can move it back to Bank of America anytime if your circumstances change.

Frequently Asked Questions

Does Bank of America have any account that earns more than 0.01%?

The Money Market Account earns tiered rates that can reach close to 1% APY on very large balances, but this is still far below what online banks offer. For most balance levels, you will earn less than 0.5% APY. If you want rates above 1%, you need to look outside Bank of America.

Can I transfer money from Bank of America to an online savings account?

Yes. You can link your Bank of America checking account to an online bank and transfer money electronically. The transfer usually takes one to three business days. You can set up recurring transfers to move money automatically, which makes it straightforward to build savings without thinking about it.

What if I want to keep my money at Bank of America but earn more interest?

Bank of America does not have a product that will solve this problem. Their Money Market Account is their highest-rate option, and it still pays less than 1% in most cases. If earning meaningful interest is important to you, you will need to move your savings to a different bank.

Is my money safer at Bank of America than at an online bank?

No. Both Bank of America and online banks are FDIC-insured up to $250,000 per account type. Your deposits are equally protected at either institution. The main difference is the interest rate you earn, not the safety of your money.

Can I use Bank of America's Money Market Account as my main savings account?

Technically yes, but it is not ideal. The withdrawal limits (typically six per month before fees) and the monthly maintenance fee make it less practical than a dedicated high yield savings account at an online bank. If you need frequent access to your savings, an online bank's savings account is a better fit.