Bank of America does not offer a dedicated high yield savings account
Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, Bank of America offers savings accounts with rates around 0.01% APY on most balances, which means $10,000 in savings earns roughly $1 per year. Banks that specialize in online savings—like Marcus, Ally, or American Express Personal Savings—currently offer rates between 4% and 5% APY on the same $10,000, earning $400 to $500 annually.
Bank of America does maintain a Money Market Account that pays slightly higher rates than their standard savings, but even this account typically trails high yield options by a significant margin. The rate varies based on your balance tier, but even their highest tier rarely reaches what online banks routinely offer.
If you bank with Bank of America primarily for checking or other services, moving your savings to a high yield account elsewhere does not require closing your Bank of America relationship. You can keep your checking account there and transfer money to a high yield savings account at a different institution when you want to save.
Key Takeaways
- Bank of America's savings accounts earn around 0.01% APY, while online banks offer 4% to 5% APY on the same deposits.
- Bank of America's Money Market Account pays more than standard savings but still lags behind dedicated high yield options.
- You can maintain your Bank of America checking account while opening a high yield savings account at another bank.
- The difference in earnings between Bank of America savings and a high yield account grows significantly with larger balances and longer time horizons.
- Transfers between Bank of America and an external high yield account typically take one to three business days.
Why Bank of America's rates stay low
Bank of America operates thousands of physical branches and employs tens of thousands of people. Those costs—rent, staff, technology infrastructure—get passed along to customers through lower interest rates on deposits. Online banks have no branches, minimal staff, and lower overhead, so they can return more of their earnings to depositors as interest.
Bank of America also makes money by lending out customer deposits at higher rates. The wider the gap between what they pay you and what they charge borrowers, the more profit they keep. Online banks operate on thinner margins and compete primarily on rate, so they narrow that gap.
How to move money to a high yield account without closing Bank of America
Open a high yield savings account at an online bank. You will need your Social Security number, a government ID, and proof of address (a recent utility bill or bank statement works). Most online banks let you open an account in 10 to 15 minutes on their website.
Link your Bank of America account to the new savings account. Log into your Bank of America online banking, go to the transfer or external account section, and add the new bank's routing number and your account number there. Bank of America will send two small test deposits (usually under $1 each) to verify the account is yours. Once you confirm those amounts in the new bank's system, the link is active.
Transfer money from Bank of America to your high yield account. Transfers initiated from Bank of America typically arrive within one to three business days. You can set up recurring transfers if you want to move money automatically each month, or transfer lump sums as needed.
Comparing Bank of America's Money Market Account to high yield savings
| Feature | Bank of America Money Market | Online High Yield Savings |
|---|---|---|
| Current APY | 0.01% to 0.04% (varies by balance) | 4% to 5% |
| Minimum balance | $2,500 to open; higher tiers require more | $0 to $25,000 depending on bank |
| Monthly fees | $12 (waived if you maintain minimum balance) | $0 (no monthly fees) |
| FDIC insurance | Up to $250,000 | Up to $250,000 |
| Debit card access | Yes, limited transactions | No debit card; transfers only |
Bank of America's Money Market Account includes a debit card and check-writing privileges, which standard high yield savings accounts do not offer. If you need to access your savings frequently without transferring money back to checking, that convenience has a cost: you earn far less interest. For money you plan to leave untouched for months or years, the interest difference overwhelms any convenience factor.
What happens to your Bank of America relationship if you move savings elsewhere
Moving your savings to another bank does not affect your Bank of America checking account, credit cards, loans, or any other products you use. Your checking account remains active and functional. You can still use Bank of America's ATM network, mobile app, and branches.
Bank of America may eventually notice that your savings account balance is zero or very low. Some banks offer perks or waive fees based on total relationship balances, so this could affect those benefits. Read your account agreement or call Bank of America to understand what perks you currently have and whether moving savings changes them.
The math: what your money actually earns
On a $25,000 balance held for one year:
- Bank of America savings at 0.01% APY: $2.50 earned
- High yield savings at 4.5% APY: $1,125 earned
- Difference: $1,122.50 per year
On a $100,000 balance held for one year:
- Bank of America savings at 0.01% APY: $10 earned
- High yield savings at 4.5% APY: $4,500 earned
- Difference: $4,490 per year
These numbers assume rates remain constant, which they do not. Interest rates change based on Federal Reserve policy and bank competition. Even if high yield rates drop to 3% in the future, Bank of America's rates would likely remain near zero, so the gap would persist.
Frequently Asked Questions
Can I keep my Bank of America checking account open if I move my savings to another bank?
Yes. Moving savings to another bank does not close or affect your checking account. You can maintain your Bank of America checking for daily use and keep a high yield savings account elsewhere for money you want to save.
How long does it take to transfer money from Bank of America to a high yield account?
Transfers initiated from Bank of America typically arrive within one to three business days. Weekends and holidays extend the timeline. Once the link between accounts is set up, you can transfer money anytime without reapplying or providing information again.
Will opening a high yield account at another bank hurt my credit score?
No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft pull to check for fraud, but this does not appear on your credit report or lower your score.
What if Bank of America's rates go up to match high yield accounts?
Bank of America's rates have remained near zero for years even as high yield rates climbed to 4% and 5%. If rates do rise significantly, you can always move money back. For now, the gap is large enough that waiting for Bank of America to match is not a sound strategy.
Is my money safe in a high yield account at an online bank?
Yes, as long as the bank is FDIC insured. Check the bank's website for their FDIC certificate number. FDIC insurance covers up to $250,000 per account holder per bank, so your deposits are protected the same way they are at Bank of America.