Yes, Bank of America offers several savings account types
Bank of America has three main savings account products: the Regular Savings Account, the Money Market Savings Account, and the Premium Savings Account. Each one works differently in terms of interest rates, minimum balances, and monthly fees. The account you choose depends on how much money you plan to keep in savings and how often you need to move it.
All three accounts let you earn interest on your balance, though the rate changes based on what the Federal Reserve does with interest rates. You can open any of them online, by phone, or in a branch. If you already have a Bank of America checking account, opening a savings account takes about 10 minutes.
Key Takeaways
- Bank of America offers Regular, Money Market, and Premium savings accounts, each with different minimum balance requirements and fee structures.
- Interest rates on all savings accounts change monthly and are lower than what you might find at online-only banks.
- Monthly maintenance fees range from $0 to $25 depending on the account type and whether you meet the minimum balance requirement.
- You can avoid most fees by keeping a minimum balance or by setting up direct deposit of your paycheck.
Regular Savings Account: The basic option
The Regular Savings Account has no minimum opening deposit and no monthly maintenance fee. This makes it the easiest account to open if you have very little money to start with. You earn interest on whatever balance you keep, though the rate is typically lower than the other two account types.
There are no restrictions on how many times you can withdraw money each month, and you can link it to your checking account for straightforward transfers. If you're just starting to build savings or want a place to park money temporarily, this account works for that purpose.
Money Market Savings Account: Higher interest, higher minimum
The Money Market Savings Account requires a minimum opening deposit of $2,500 and a minimum balance of $2,500 to avoid a $25 monthly maintenance fee. In exchange, the interest rate is higher than the Regular Savings Account. The tradeoff is that you need to keep more money in the account to avoid paying the fee.
This account also comes with a debit card and check-writing privileges, which the Regular Savings Account does not. If you have several thousand dollars you want to keep in savings and want to earn a bit more interest, this account can make sense. However, the interest rate is still modest compared to what online banks offer.
Premium Savings Account: For larger balances
The Premium Savings Account requires a $10,000 minimum opening deposit and a $10,000 minimum balance to avoid a $25 monthly maintenance fee. The interest rate is the highest of the three options. This account is designed for people who have substantial savings and want to keep it at Bank of America.
Like the Money Market account, it includes a debit card and check-writing privileges. The higher minimum balance requirement means the fee structure only makes sense if you genuinely have that much money to set aside. If your balance drops below $10,000, you'll pay the monthly fee until you bring it back up.
How to avoid monthly fees on any account
Bank of America waives the monthly maintenance fee on Money Market and Premium accounts if you maintain the required minimum balance. For the Regular Savings Account, there is no monthly fee regardless of your balance. You can also waive fees on the other two accounts by setting up a direct deposit of at least $250 per month from your employer or a government benefit.
Another way to avoid fees is to link your savings account to a Bank of America checking account where you maintain a may have access to balance. The exact requirements vary, so ask a representative in your branch or call the customer service number on the back of your card to confirm what counts toward the fee waiver in your situation.
Interest rates and how they change
Bank of America publishes its savings account interest rates on its website, and they change monthly. The rates are typically lower than what online-only banks offer because Bank of America maintains physical branches and pays for that infrastructure. As of the time this article was written, the Regular Savings Account rate was well below 0.5%, though this changes frequently.
The Federal Reserve controls the overall direction of interest rates in the economy. When the Fed raises its benchmark rate, Bank of America usually raises its savings rates within a few weeks. When the Fed cuts rates, Bank of America cuts its rates as well. You can check the current rates on Bank of America's website or call 1-800-432-1000 to hear the most recent numbers.
Comparing Bank of America savings to other options
Online banks and credit unions often offer higher interest rates on savings accounts than Bank of America does, sometimes two to three times higher. The tradeoff is that you can't walk into a branch to deposit cash or speak to someone in person. If you want the convenience of a physical location and don't mind earning less interest, Bank of America works. If you want to maximize the interest you earn, an online bank may be a better fit.
Some people keep a small savings account at Bank of America for emergency cash access and a separate high-yield savings account at an online bank for longer-term savings. This approach gives you the best of both: the convenience of a branch when you need it, and better interest rates on the bulk of your savings.
Frequently Asked Questions
Can I open a Bank of America savings account without a checking account?
Yes. You can open a savings account on its own. However, if you already have a checking account with Bank of America, linking them makes transfers between accounts easier and can help you meet fee-waiver requirements.
What happens if my balance drops below the minimum?
On the Money Market and Premium accounts, you'll be charged the monthly maintenance fee ($25) until your balance returns to the required minimum. The fee is deducted from your account each month. On the Regular Savings Account, there is no minimum, so this is not a concern.
How long does it take to open a savings account?
Online or by phone, it typically takes 10 to 15 minutes if you have your Social Security number and a valid ID ready. In a branch, it can be done in person the same day. You can start using the account within one business day.
Can I withdraw money whenever I want?
Yes. Bank of America savings accounts have no withdrawal limits or restrictions. You can move money to your checking account or withdraw it in cash at any time without penalty.
Do I need to keep a certain amount to earn interest?
No. Even the Regular Savings Account with a $0 balance earns interest on whatever you deposit, though the amount will be very small. Interest is calculated daily and deposited monthly.