Bank of America savings accounts do earn interest, but the rate is typically very low
Yes, Bank of America pays interest on most savings accounts. The amount you earn depends on which account you open and the current rate environment. As of now, Bank of America's savings rates are substantially lower than rates offered by online banks and credit unions — often less than 0.01% annual percentage yield (APY) on standard savings accounts, though this varies based on your account type and balance.
The bank adjusts its rates periodically, so the exact rate you receive today may differ from what you see next month. You can find the current rate for your specific account by logging into your online banking portal, calling 1-800-432-1000, or visiting a local branch. The interest compounds daily and posts to your account monthly.
Key Takeaways
- Bank of America savings accounts earn interest, but rates are typically below 0.01% APY on standard accounts, which is lower than many competitors.
- Interest compounds daily and deposits into your account once each month, so you earn interest on your interest.
- Your actual rate depends on your account type — some premium accounts or accounts with higher balances may earn slightly more.
- You can check your current rate and interest earned by logging into your account online or calling customer service.
What account types earn interest at Bank of America
Bank of America offers several savings products, and each has its own interest rate. The Basic Savings Account is the most common and typically earns the lowest rate. The Advantage Savings Account requires a higher minimum balance but may offer a slightly better rate. The Money Market Account usually pays more interest than savings accounts, though it also has higher balance requirements and limits on withdrawals.
If you maintain a very large balance — generally $100,000 or more — you may be may be able to access for a Premium Money Market Account with a higher rate. However, even these accounts typically pay less than what you would find at an online bank or credit union. The difference between account types is usually small, often just a few basis points (hundredths of a percent).
How interest rates compare to other banks
Bank of America's savings rates are significantly lower than rates available elsewhere. Online banks and credit unions frequently offer rates between 4% and 5% APY on savings accounts, while Bank of America typically offers less than 0.01%. This difference matters: on a $10,000 balance, you might earn less than $1 per year at Bank of America but $400 to $500 per year at a high-yield online bank.
The gap exists because Bank of America operates physical branches nationwide, which costs more to maintain than an online-only operation. The bank passes some of those costs to customers through lower interest rates. If earning interest on your savings is a priority, you may want to compare rates across multiple banks before deciding where to keep your money.
When interest posts to your account
Bank of America compounds interest daily, meaning it calculates interest on your balance plus any interest you have already earned. However, the interest does not appear in your account every day — it posts once per month, usually around the first business day of the month. You can see the amount posted in your transaction history and account statements.
The exact posting date may vary slightly depending on weekends and holidays. If you close your account before the interest posts, you will not receive that month's interest. Interest is calculated based on your average daily balance during the month, so deposits and withdrawals throughout the month affect how much you earn.
Minimum balance requirements and fees
Bank of America's Basic Savings Account has no minimum balance requirement to open, though some accounts do. The Advantage Savings Account typically requires a $500 minimum balance to avoid a monthly maintenance fee. Money Market Accounts usually require $2,500 or more to avoid fees.
If your balance falls below the minimum, Bank of America charges a monthly maintenance fee — usually $5 to $12 depending on the account type. This fee can quickly erase any interest you earn, especially on smaller balances. Before opening an account, confirm the current minimum balance and fee structure, as these can change.
How to check your interest rate and earnings
You can view your current interest rate and how much interest you have earned in several ways. Log into your Bank of America online account and look for the account details or account information section — the rate and year-to-date interest earned are usually listed there. You can also call 1-800-432-1000 and speak with a representative who can tell you your exact rate.
Your monthly account statement also shows the interest posted that month. If you notice your rate has dropped significantly, it may be because the Federal Reserve has lowered interest rates, which affects all banks. Bank of America typically adjusts its rates within a few weeks of any Federal Reserve change.
Whether a Bank of America savings account makes sense for you
A Bank of America savings account makes sense if you value the convenience of having your savings and checking in one place, especially if you use a Bank of America checking account already. The ability to walk into a branch and deposit cash or speak with someone in person appeals to many people. However, if your main goal is to earn interest on your savings, you will earn substantially more at an online bank or credit union.
Many people use Bank of America for checking and bill pay, then keep a high-yield savings account at another bank for money they want to grow. This approach lets you earn a meaningful return on savings while keeping your primary banking relationship intact. The choice depends on whether convenience or interest earnings matters more to you.
Frequently Asked Questions
Is the interest I earn on a Bank of America savings account taxable?
Yes. Any interest you earn is considered income and must be reported on your federal tax return. Bank of America will send you a Form 1099-INT if you earn $10 or more in interest during the year. The interest is taxed at your ordinary income tax rate, which is typically higher than the capital gains rate.
Can I move my money to a higher-rate account without closing my Bank of America account?
Yes. You can open a savings account at another bank and transfer money there while keeping your Bank of America checking account open. Many people do this to earn higher interest while maintaining their primary banking relationship. Transfers between banks typically take one to three business days.
What happens to my interest if I withdraw money before the end of the month?
You still receive the interest that accrued during the time your money was in the account. Interest is calculated on your average daily balance for the month, so if you deposit $5,000 on the 15th and withdraw it on the 20th, you earn interest only on those five days. The full month's interest posts on the first of the next month.
Does Bank of America offer any savings accounts with higher rates?
Bank of America does not currently offer a high-yield savings account that competes with online banks. All of its savings products earn similarly low rates. If you want a higher rate while staying with Bank of America, a Money Market Account is your best option, though the difference is usually minimal.