What Bank of America offers in high-yield savings

Bank of America does not currently offer a dedicated high-yield savings account. Instead, the bank offers a Money Market Account and a standard Savings Account, both of which pay interest rates that are typically lower than what you would find at online banks or credit unions.

As of early 2024, Bank of America's Money Market Account pays around 0.01% APY on balances under $10,000, with slightly higher rates on larger balances—but these rates remain well below what other institutions offer. The standard Savings Account pays even less. These rates change without notice, so you should check Bank of America's website or call 1-800-432-1000 to confirm current rates before opening an account.

If you are looking for the highest possible interest on savings, Bank of America is not the best choice. Online banks and some credit unions regularly offer rates between 4% and 5% APY on savings accounts, which means your money grows significantly faster elsewhere.

Key Takeaways

  • Bank of America's Money Market Account and Savings Account pay rates well below what online banks and credit unions offer, typically under 0.05% APY.
  • Interest rates at Bank of America change frequently and without advance notice, so you should verify the current rate before opening an account.
  • If earning the highest interest is your goal, you will earn substantially more at an online bank or credit union.
  • Bank of America's savings products may make sense if you value in-branch access or already have other accounts there, but not for interest income.

How Bank of America's Money Market Account works

The Money Market Account requires a minimum opening deposit (typically $2,500, though this varies by state and account type) and charges a monthly maintenance fee if your balance falls below a certain threshold. The fee is usually waived if you maintain the minimum balance or set up direct deposit.

The account comes with a debit card and check-writing privileges, which makes it more flexible than a traditional savings account. However, federal rules limit you to six withdrawals or transfers per month—if you exceed that, you may face a fee or the account may be closed.

How Bank of America's Savings Account works

The standard Savings Account has a lower minimum opening deposit than the Money Market Account (often $100) and may have lower or no monthly fees depending on your account type and balance. Like the Money Market Account, it is subject to the six-withdrawal limit per month.

This account does not come with a debit card or check-writing ability. It is designed as a place to hold money separately from your checking account, though the interest earned is minimal. Many people use it straightforward to keep savings physically separate from spending money, rather than for the interest income.

Why Bank of America rates are lower than competitors

Bank of America is a large brick-and-mortar bank with hundreds of physical branches, ATMs, and staff. The cost of maintaining that physical infrastructure is passed along to customers in the form of lower interest rates. Online banks have no branches, no tellers, and no physical overhead, so they can afford to pay much higher rates on savings.

You are essentially paying for convenience and access when you bank with Bank of America. If you rarely visit a branch and can manage your money online, you are paying for something you do not use.

When Bank of America savings might still make sense

If you already have a checking account with Bank of America and use their branches regularly, opening a savings account there keeps everything in one place. You can transfer money between accounts when ready through their app or website, and you have the option to walk into a branch if you need to deposit cash or speak with someone in person.

Bank of America also offers relationship benefits—if you maintain certain balances across multiple accounts, you may may have access to for fee waivers or other perks. If you are already meeting those thresholds for other reasons, a savings account there costs you nothing extra.

However, if your primary goal is to earn interest on savings, these convenience factors do not outweigh the significant difference in rates. A 4.5% APY account at an online bank will earn you roughly 450 times more interest than a 0.01% account at Bank of America.

How to compare Bank of America to other options

Before opening any savings account, compare the annual percentage yield (APY), the minimum balance required, and any monthly fees. Write down the APY and the minimum balance for Bank of America's Money Market Account, then check the same information for at least two online banks and one credit union in your area.

Multiply your savings balance by each APY to see how much interest you would earn in a year. For example, $10,000 at 0.01% earns $1 per year. The same $10,000 at 4.5% earns $450 per year. That difference compounds over time, especially if you add to the account regularly.

Also check whether the online bank or credit union is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Both provide the same protection as Bank of America—your deposits are safe up to $250,000 per account owner, per institution.

Frequently Asked Questions

Does Bank of America have any savings account that pays competitive interest?

No. Bank of America's highest-paying savings product is the Money Market Account, which currently pays rates well below 0.1% APY. This is not competitive with online banks or credit unions, which regularly offer rates between 4% and 5%.

Can I move money from my Bank of America checking account to a savings account when ready?

Yes. If you open a Bank of America savings account, you can transfer money between your checking and savings accounts through their mobile app or website in real time. There is no waiting period.

What happens if I withdraw money from my Bank of America savings account more than six times a month?

Federal rules limit savings accounts to six withdrawals or transfers per month. If you exceed this limit, Bank of America may charge a fee (typically $10) or close the account. Transfers you initiate through their app or website count toward this limit.

Is my money safe in a Bank of America savings account?

Yes. Bank of America is FDIC-insured, which means your deposits are protected up to $250,000 per account owner, per account type. This protection is the same at online banks and credit unions that carry FDIC or NCUA insurance.

Should I move my savings from Bank of America to an online bank?

If earning interest is your goal, moving to an online bank will earn you significantly more. However, if you value in-branch access or already have other accounts at Bank of America, the convenience may be worth the lower rate to you. The choice depends on your priorities.