Bank of America does not offer a dedicated high-yield savings account

Bank of America's standard savings products—the Regular Savings Account and the Money Market Account—carry interest rates well below what you would find at online banks or credit unions. As of early 2024, BofA's savings rates sit around 0.01% to 0.04% APY depending on your account type and balance, while online savings accounts commonly offer 4% to 5% APY on the same money.

If you keep money at Bank of America primarily for checking and bill pay, a savings account there serves a purpose: it sits in the same login, moves money when ready between accounts, and you can walk into a branch if you need cash. But if your goal is to earn meaningful interest on money you are not spending soon, BofA's savings accounts will cost you thousands of dollars in foregone interest over a year.

Bank of America does offer a tiered Money Market Account that pays slightly more interest if you maintain higher balances—but even the highest tier rarely exceeds 0.05% APY. The gap between that and a 4.5% online savings account means $450 per year in lost interest on every $10,000 you hold.

Key Takeaways

  • Bank of America's savings accounts pay around 0.01% to 0.04% APY, far below the 4% to 5% available at online banks.
  • The Money Market Account pays slightly more if you keep a large balance, but still under 0.05% APY in most cases.
  • A BofA savings account makes sense if you need frequent access, branch visits, or integration with your checking account—not for interest earnings.
  • Moving money to a high-yield savings account elsewhere costs nothing and takes one to three business days, while keeping it at BofA costs you in foregone interest.

How Bank of America's savings rates compare to other banks

The difference between BofA and online savings accounts is not small. On $25,000 held for one year, Bank of America would pay you roughly $2.50 to $10 in interest. An online bank paying 4.5% APY would pay $1,125 on the same amount. That is a real gap, and it widens the longer you hold the money.

Credit unions often sit between the two: they typically pay 0.5% to 2% APY on savings, depending on the union and your membership status. Some credit unions offer higher rates on smaller balances (up to $500 or $1,000) and lower rates above that threshold. If you belong to a credit union, checking their current rates takes five minutes and often beats Bank of America by a factor of ten.

Online banks—Ally, Marcus, Wealthfront, Vanguard, and others—compete directly on savings rates because they have no branch network to maintain. They pass the savings to depositors. These accounts are FDIC-insured the same way a Bank of America account is, so your money is equally safe. The only trade-off is that you cannot walk into a physical location, but most people move money between accounts online anyway.

What Bank of America offers instead of high-yield savings

Bank of America's answer to high-yield savings is the Money Market Account, which combines a savings account with limited check-writing. You can write three checks per month and make unlimited transfers, but the interest rate structure is tiered by balance. The highest tier might require $25,000 or more to earn the best rate—and that best rate is still under 0.05% APY in most cases.

BofA also offers CDs (Certificates of Deposit) with fixed terms of three months to five years. CD rates are higher than savings rates—currently around 4% to 4.5% APY depending on the term—but your money is locked in. If you withdraw early, you pay a penalty that can erase months of interest. CDs make sense if you know you will not need the money for a specific period, but they are not a substitute for a savings account where you need access.

For customers with very large balances ($100,000 or more), Bank of America offers Preferred Rewards, a tiered program that gives you slightly higher rates, fee waivers, and cash back on credit cards. But even with Preferred Rewards, the savings account rate bump is minimal—perhaps 0.05% to 0.10% more than the standard rate. It is not a high-yield product.

Why Bank of America keeps savings rates low

Bank of America does not need to compete on savings rates because most customers do not shop around. They keep their savings account at BofA because they already have a checking account there, and moving money feels like friction. That stickiness lets the bank pay less interest and keep the difference as profit.

The bank also makes money by lending out deposits at higher rates. If BofA pays you 0.02% on savings and lends that money out as a mortgage at 6.5%, the spread is their revenue. Paying higher rates would shrink that spread, so they pay the minimum they think customers will tolerate.

Online banks operate on thinner margins and have lower overhead, so they can afford to pass more of the lending spread to savers. They compete entirely on rate, because they have no branch network or brand loyalty to fall back on. If you move your money, they lose it completely.

Moving money from Bank of America to a high-yield account

If you decide to move savings elsewhere, the process takes minutes and costs nothing. You open an account at an online bank or credit union, provide your BofA account number and routing number, and initiate a transfer from the new bank's website. The money typically arrives in one to three business days.

You do not have to close your BofA savings account. Many people keep a small balance there for convenience—to pay a bill quickly or withdraw cash at an ATM—while keeping the bulk of their savings at a higher-rate institution. This hybrid approach gives you the branch access and integration you might want without sacrificing interest earnings on the money you are actually saving.

If you do close the account, BofA will not charge you. There is no early closure fee or penalty. The only thing to watch for is making sure you have moved any automatic deposits or bill payments that were tied to that account.

When a Bank of America savings account still makes sense

A BofA savings account is reasonable if you need the money within weeks or months and value the convenience of having it in the same login as your checking account. The interest you lose is small on short timescales—$5 or $10 on $10,000 for three months—and the ease of moving money between accounts might be worth it to you.

It also makes sense if you are below the minimum balance for a high-yield account elsewhere. Some online banks require $1,000 or $2,500 to open, while BofA lets you open a savings account with $100. If you are building an emergency fund from scratch, a BofA savings account is a fine temporary home while you save up to move the money.

And if you have a large balance and may have access to for Preferred Rewards, the combination of slightly higher rates, fee waivers, and credit card cash back might offset some of the interest gap. But you would need to do the math on your specific situation—the savings account rate alone will not compete with online banks.

Frequently Asked Questions

Can I earn more interest by keeping a large balance at Bank of America?

The Money Market Account pays slightly more on higher balances, but the difference is minimal—perhaps 0.02% to 0.04% more than the regular savings account. Even at the highest tier, you would earn under 0.05% APY. An online bank paying 4.5% would earn roughly 100 times more interest on the same balance.

Are online savings accounts as safe as Bank of America?

Yes. Online savings accounts at FDIC-insured banks are protected up to $250,000 per account, the same as Bank of America. Your money is equally safe whether it sits at BofA or at Ally, Marcus, or any other FDIC member. The only difference is the interest rate you earn.

What is the difference between a savings account and a Money Market Account at Bank of America?

The Money Market Account lets you write up to three checks per month and has a tiered interest rate based on your balance. A regular savings account has no check-writing but simpler terms. Both pay very low interest rates at BofA. Neither is a high-yield product.

If I move my savings to another bank, will it affect my Bank of America checking account?

No. Your checking and savings accounts are separate. You can close the savings account, move the money elsewhere, and keep your checking account open without any impact. Many people do this—they keep checking at BofA for convenience and move savings to a higher-rate bank.

How long does it take to move money from Bank of America to an online savings account?

One to three business days. You initiate the transfer from the new bank's website using your BofA account and routing number. The money moves automatically; you do not need to call anyone or visit a branch. There is no fee on either end.