Bank of America does not offer a high yield savings account

Bank of America's standard savings account earns interest, but the rate is significantly lower than what you will find at online banks or credit unions. As of now, Bank of America's regular savings account pays less than 0.01% annual percentage yield (APY) on most balances. By contrast, online banks often offer rates between 4% and 5% APY on savings accounts.

The difference matters. On $10,000 saved for a year, a 0.01% rate earns about $1 in interest. The same $10,000 at a 4.5% rate earns about $450. That gap widens the longer you save and the larger your balance grows.

Bank of America does offer a Money Market Account, which is a different product that sometimes pays slightly higher rates than their savings account, but it still typically falls well below what high yield savings accounts offer elsewhere. You may also see promotional rates advertised for limited periods, but these are temporary and revert to standard rates after the promotion ends.

Key Takeaways

  • Bank of America's savings account currently pays less than 0.01% APY, which is substantially lower than high yield savings accounts offered by online banks.
  • Online banks and credit unions typically offer savings rates between 4% and 5% APY, meaning your money grows much faster elsewhere.
  • Bank of America's Money Market Account pays slightly more than their savings account but still does not compete with high yield options at other institutions.
  • If you keep money at Bank of America primarily for checking and bill pay, a savings account there may be convenient, but it is not the best choice if earning interest is your goal.

Why Bank of America's rates are lower

Large national banks like Bank of America keep savings rates low because they do not need to compete aggressively for deposits. They have millions of customers who use them for checking accounts, mortgages, credit cards, and other products. A customer who already has a checking account there may open a savings account for convenience, even if the rate is poor.

Online banks, by contrast, have no physical branches and lower operating costs. They compete almost entirely on interest rates, so they pass more of their earnings to depositors. Credit unions are member-owned and often prioritize paying competitive rates to their members.

Bank of America's size also means they lend money to large businesses and governments at lower rates than smaller institutions do. They do not need to pay depositors more to fund those loans.

What Bank of America savings accounts actually offer

Bank of America has two main savings products: the Regular Savings Account and the Money Market Account. Both require a minimum opening deposit (typically $100 for savings, higher for Money Market), and both charge a monthly maintenance fee unless you meet certain conditions, such as maintaining a minimum balance or having direct deposit set up.

The Regular Savings Account is the most basic option. It comes with a debit card, online access, and the ability to make withdrawals at any Bank of America branch or ATM. The interest rate is fixed but very low.

The Money Market Account includes a checkbook and debit card, which makes it more like a hybrid between savings and checking. The rate is slightly higher than the savings account, but still far below what you would earn at an online bank. It also has higher minimum balance requirements and higher monthly fees if you do not meet them.

When a Bank of America savings account might still make sense

If you already have a Bank of America checking account and use their branches regularly, keeping a small savings account there for emergency access might be reasonable. You could withdraw cash when ready at a branch without waiting for a transfer, which matters if you need money the same day.

If you have a very small amount to save—under $1,000—the difference in interest earned is minimal in dollar terms, so convenience might outweigh the rate disadvantage. A few dollars per year is not worth switching banks if you are happy with Bank of America's checking service.

Some people also use Bank of America savings accounts as a "holding tank" while they decide where to move larger amounts. This is fine as long as you understand you are not earning meaningful interest there.

How to find a high yield savings account if you want better rates

Online banks are the most common source of high yield savings accounts. Banks like Marcus, Ally, American Express Personal Savings, and others advertise rates openly on their websites. You can compare rates across multiple banks in minutes. Most require no minimum balance and charge no monthly fees.

Credit unions also offer competitive savings rates. You can search for credit unions in your area through the CO-OP Network or Allpoint, which tells you whether you can access your account at branches near you. Some credit unions require membership based on where you work or live, while others are open to anyone.

When comparing accounts, look at the APY (annual percentage yield), not just the interest rate. APY includes the effect of compounding and shows you the true annual return. Also check whether the rate is promotional (temporary) or standard (permanent). Read the fee schedule to confirm there are no monthly maintenance charges.

Moving money from Bank of America to a high yield account

Transferring money out of Bank of America is straightforward. You can set up an external transfer through Bank of America's website or mobile app by linking your new account. The transfer typically takes one to three business days. You can also withdraw cash at a branch and deposit it into the new account, though this is slower and less find.

You do not have to close your Bank of America account to move your savings elsewhere. Many people keep a checking account at Bank of America for convenience while moving savings to a high yield account at another institution. This gives you the best of both: straightforward access to checking and bill pay, plus better interest on savings.

Frequently Asked Questions

Does Bank of America have any savings account that earns good interest?

No. Bank of America's Money Market Account pays slightly more than their savings account, but both rates are well below what online banks and credit unions offer. If earning interest is important to you, you will need to move your money elsewhere.

What if I want to keep my money at Bank of America for safety?

Bank of America is insured by the FDIC up to $250,000 per account type, just like online banks. Your money is equally safe at an online bank. The FDIC insurance protects your deposits regardless of the bank's size or whether it has physical branches.

Can I move my savings to a high yield account and still use Bank of America for checking?

Yes. You can keep your checking account at Bank of America and move your savings to any online bank or credit union. Many people do this to get the convenience of Bank of America's checking service while earning better interest on savings elsewhere.

Will I lose access to my money if I move it to an online bank?

No. Online banks let you transfer money back to your Bank of America checking account whenever you need it, usually within one to three business days. You can also withdraw cash at ATMs if the online bank is part of a network like Allpoint or MoneyPass.

What happens to my Bank of America savings account if I stop using it?

Bank of America will continue charging monthly maintenance fees if your balance falls below the minimum or you do not meet other fee-waiver conditions. Eventually, if the account sits inactive and fees drain the balance to zero, the bank may close it. It is better to close the account yourself if you are not using it.