Bank of America does not offer a dedicated high-yield savings account
Bank of America's standard savings account earns 0.01% annual percentage yield (APY) on balances of any size. This is far below what other banks pay—online banks and some credit unions currently offer 4% to 5.35% APY on high-yield savings accounts. If you keep money at Bank of America specifically for savings, you are earning almost nothing on it.
Bank of America does offer a Money Market Account, which pays slightly more than the standard savings account but still lags behind the market. 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 well below what you would earn in a high-yield savings account elsewhere.
The reason Bank of America does not compete on savings rates is structural: they make money from lending, not from paying depositors. They can afford to pay low rates because they have a large branch network and brand recognition that keeps customers regardless of the rate. If earning interest on savings matters to you, you will need to look outside Bank of America.
Key Takeaways
- Bank of America's standard savings account pays 0.01% APY, which means $10,000 earns about $1 per year in interest.
- The Money Market Account pays more than the standard savings account but typically under 1% APY, still far below market rates for high-yield accounts.
- Online banks and some credit unions currently pay 4% to 5.35% APY on savings accounts with no monthly fees or balance minimums.
- If you keep a Bank of America checking account for daily banking, moving savings to a high-yield account at another institution costs nothing and takes about five minutes to set up.
How Bank of America's Money Market Account works
The Money Market Account is Bank of America's closest product to a high-yield savings account, but the name is misleading. It is a savings account with tiered interest rates—the more you keep in it, the slightly higher the rate. As of early 2024, the rates range from 0.01% APY on balances under $2,500 to around 0.04% to 0.05% APY on balances over $100,000. These rates change without notice and vary by region.
The account comes with a debit card and allows six withdrawals per month before fees kick in. After six withdrawals, Bank of America charges $10 per withdrawal. This withdrawal limit is unusual—most high-yield savings accounts allow unlimited transfers to external accounts, though they may limit in-person withdrawals. If you need to move money frequently, this fee structure works against you.
There is no monthly maintenance fee on the Money Market Account, and you can open one with $25. However, the low interest rate and withdrawal limits make it a poor choice for actual savings. It is better suited to someone who wants a single account at Bank of America for both checking and savings and does not mind the low return.
What you earn in a Bank of America savings account versus elsewhere
| Account Type | APY (approximate) | Monthly Fee | Minimum Balance |
|---|---|---|---|
| Bank of America Standard Savings | 0.01% | $0 | $0 |
| Bank of America Money Market | 0.01% to 0.05% | $0 (plus $10 per withdrawal over 6) | $25 |
| High-yield savings (online banks) | 4.00% to 5.35% | $0 | $0 to $25 |
The difference compounds quickly. On $10,000, Bank of America pays you roughly $1 per year. A high-yield account at 4.5% pays $450 per year on the same balance. Over five years, that is $2,250 in interest you would not earn at Bank of America.
The gap widens with larger balances. On $50,000, Bank of America pays about $2.50 per year. A high-yield account pays $2,250. The only reason to keep savings at Bank of America is convenience—having everything in one place—and that convenience costs you real money.
Why Bank of America's rates are so low
Bank of America is a retail bank with thousands of branches, ATMs, and employees. Those physical locations and the brand recognition that comes with them are expensive to maintain. The bank funds those costs partly through the spread between what they pay depositors and what they charge borrowers. They can afford to pay low savings rates because customers stay for the convenience, not the interest.
Online banks have no branches and minimal overhead. They pass those savings to customers through higher interest rates. They make money on the same lending spread, but they do not have to support a physical network, so they can pay more on deposits and still be profitable.
Bank of America also benefits from customer inertia. Many people keep savings at the same bank where they have checking because switching feels like work. The bank knows this and prices accordingly. If you are one of those people, you are essentially paying for the convenience of not moving your money.
How to move savings to a high-yield account while keeping Bank of America checking
You do not have to close your Bank of America checking account to earn a better rate on savings. Open a high-yield savings account at an online bank—common options include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Wealthfront Cash Account. The process takes about five minutes online and requires your Social Security number, address, and a government ID.
Once the account is open, link it to your Bank of America checking account. Most online banks let you add external accounts through their website. You provide your Bank of America routing number and account number, and the bank verifies the connection by depositing two small amounts (usually under $1 each) into your checking account. You confirm those amounts in the online bank's app, and the link is live.
Then transfer money from Bank of America checking to the high-yield account. The transfer takes one to three business days. You can set up recurring transfers if you want to move money automatically each month. Your Bank of America checking account remains unchanged—you still have the debit card, the branch access, and the ATM network. You just earn interest on the money you are not spending.
When Bank of America savings might make sense
Bank of America savings accounts are rarely the right choice for actual savings, but there are narrow situations where they might fit. If you need to withdraw cash from a branch regularly and do not want to manage multiple banks, the Money Market Account is simpler than opening an account elsewhere. If you are saving for something very short-term—a few weeks or months—the interest rate difference is small enough that convenience might outweigh it.
If you have a Bank of America Preferred Rewards account (which requires a certain balance or income), you get a small boost to savings rates. A Preferred Rewards customer might earn 0.05% to 0.10% APY instead of 0.01%, which is still far below market but slightly better. Check your account details to see if you may have access to.
For most people, though, the math is straightforward: move the money. The five minutes it takes to open an account elsewhere and link it to Bank of America will earn you hundreds of dollars over a few years. That is worth the small effort.
Frequently Asked Questions
Can I transfer money between my Bank of America checking and a high-yield savings account at another bank?
Yes. Once you link the accounts, transfers are free and take one to three business days. You can set up recurring transfers to move money automatically each month. There is no limit on how many times you can transfer between them.
Will moving money to another bank affect my Bank of America credit score or account?
No. Moving savings to another bank does not affect your credit or your Bank of America checking account. The banks do not report this to credit bureaus, and Bank of America will not close or penalize your account for having money elsewhere.
What if I need the money quickly—how fast can I get it back from a high-yield account?
Transfers from a high-yield savings account back to your Bank of America checking account take one to three business days. If you need cash when ready, you can withdraw from a Bank of America ATM or branch. Most high-yield accounts do not have ATM networks, so you would need to transfer first.
Are high-yield savings accounts at online banks safe?
Yes, if the bank is FDIC-insured. Check the bank's website for the FDIC insurance statement—it will say deposits are insured up to $250,000 per account. This is the same protection Bank of America offers. Your money is equally safe at an online bank and an in-person bank.
Do I have to close my Bank of America savings account to open a high-yield account elsewhere?
No. You can keep your Bank of America savings account open and unused, or close it whenever you want. Opening an account at another bank does not require you to do anything with your Bank of America account.