Bank of America does not offer a 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 account pays around 0.01% annual percentage yield (APY), and their Money Market account pays slightly higher rates depending on your balance, but still significantly less than accounts marketed as high yield.
High yield savings accounts typically pay between 4% and 5% APY at online banks and credit unions. Bank of America's rates are roughly 100 to 500 times lower. The difference matters: on $10,000, you would earn about $1 per year at Bank of America versus $400 to $500 per year at a high yield account.
Bank of America does offer other products that pay higher rates — certificates of deposit (CDs) and individual retirement accounts (IRAs) — but these are not savings accounts and come with different rules about when you can withdraw your money.
Key Takeaways
- Bank of America's savings accounts pay around 0.01% APY, which is far below the 4% to 5% available at online banks and credit unions.
- The gap between Bank of America's rate and high yield rates means you lose hundreds of dollars per year on a $10,000 balance.
- Bank of America's CDs and IRAs pay higher rates than their savings accounts, but you cannot withdraw the money without penalty until maturity or retirement age.
- If you keep money at Bank of America primarily for checking account features or branch access, the low savings rate is a separate decision from whether to bank there.
What Bank of America's savings accounts actually pay
Bank of America offers two main savings products: the regular savings account and the Money Market account. The regular savings account has no minimum balance requirement and no monthly fee, but the interest rate is fixed at a very low level regardless of how much you deposit.
The Money Market account requires a higher opening balance and pays a tiered rate — meaning the APY increases slightly as your balance grows. Even at the highest tier, the rate remains well below what online banks offer. Bank of America does not publish these rates on their main website; you have to call or visit a branch to learn the current rate for your specific balance level.
Both accounts are FDIC insured up to $250,000, which means your money is protected if the bank fails. That protection is the same at any FDIC-insured bank, so it does not explain the rate difference.
Why Bank of America's rates are so much lower
Bank of America is a full-service bank with physical branches, ATMs, and customer service staff. Those services cost money. Online banks and credit unions that offer high yield savings have lower overhead — no branches, fewer employees, lower real estate costs — so they can pass those savings to customers through higher interest rates.
Bank of America also makes money by lending out deposits at higher rates than they pay you. The wider the gap between what they pay you and what they charge borrowers, the more profit they make. Online banks operate on thinner margins and compete primarily on interest rate, so they keep that gap smaller.
If you value having a physical branch, a local ATM, and the ability to speak to someone in person, you are paying for that convenience through lower interest rates. That is a real trade-off, not a hidden fee — but it is worth understanding what you are giving up in earnings.
Bank of America's CDs and IRAs pay more, but with strings attached
Bank of America offers certificates of deposit (CDs) with terms ranging from three months to five years. The longer the term, the higher the rate — but you cannot withdraw the money before maturity without paying an early withdrawal penalty. The penalty is typically a certain number of months of interest, so on a short-term CD you might lose most or all of your earnings if you need the money early.
Bank of America also offers traditional and Roth IRAs, which pay rates higher than savings accounts. However, IRAs are retirement accounts with strict withdrawal rules. You cannot touch the money before age 59½ without paying taxes and a 10% penalty, with narrow exceptions for things like first-time home purchase or medical hardship.
If you have money you know you will not need for a specific period — say, one year or five years — a CD can make sense. If you have retirement savings, an IRA makes sense. But neither is a substitute for a high yield savings account if you need the money to stay accessible.
How to compare Bank of America to high yield alternatives
If you are considering moving money to a high yield savings account, the main trade-off is convenience versus earnings. High yield accounts are almost always at online banks or credit unions with no physical branches. You deposit money by transferring it from another account — there is no teller, no in-person deposit, no local ATM.
Most online banks let you transfer money in and out within one to three business days. Some offer debit cards or ATM networks so you can withdraw cash without going to a branch. Credit unions often have shared branching networks, meaning you can visit a different credit union's branch to make deposits or withdrawals.
The decision often comes down to this: if you keep most of your money at Bank of America for checking, bill pay, and everyday banking, moving your savings to a high yield account at a different institution is straightforward. You keep your checking account where it is and move only the savings portion. If you rarely use Bank of America's branches or ATMs, the convenience argument for staying there weakens.
What happens to your money if you stay at Bank of America
If you keep $10,000 in a Bank of America savings account earning 0.01% for one year, you earn about $1 in interest. If you move that same $10,000 to a high yield account earning 4.5%, you earn about $450. Over five years, the difference is roughly $2,000 in lost earnings.
That money does not disappear — it stays in your account. But you do not earn it, and inflation erodes the purchasing power of what you have. If inflation runs at 3% per year and your savings earn 0.01%, you are losing about 3% of your money's value each year in real terms.
For money you plan to keep in savings for more than a few months, the rate difference is substantial enough to matter. For money you need to access within weeks, the difference is smaller but still real.
Frequently Asked Questions
Does Bank of America have any savings account that earns more than 0.01%?
The Money Market account pays a higher rate than the regular savings account, but still well below high yield rates. The exact rate depends on your balance and changes over time. You would need to contact Bank of America directly to learn the current rate for your balance level.
Can I keep my checking account at Bank of America and move savings elsewhere?
Yes. Many people keep a checking account at one bank and a savings account at another. You can transfer money between them whenever you need to. This is a common way to get the convenience of a local bank for checking while earning higher rates on savings.
What if I need to withdraw money from a high yield account quickly?
Most online banks process transfers within one to three business days. If you need cash when ready, you would need to use an ATM or debit card, which most high yield accounts provide. Some credit unions offer same-day access through shared branching networks.
Is my money safer at Bank of America than at an online bank?
Both are equally safe up to $250,000 because both are FDIC insured. The FDIC insurance is the same regardless of which bank holds your money. Online banks are required to carry the same insurance as traditional banks.
What is the difference between a high yield savings account and a CD?
A high yield savings account lets you withdraw money anytime without penalty. A CD locks your money away for a set term — if you withdraw early, you pay a penalty. High yield accounts are for money you might need; CDs are for money you know you will not touch for a specific period.