Bank of America does not offer a high yield savings account

Bank of America's standard savings account, called the Regular Savings Account, pays interest rates that are typically much lower than what you would find at online banks or credit unions. As of now, Bank of America's savings rates are well below 1% annually, while high yield savings accounts elsewhere often pay 4% to 5% or higher.

The reason for this gap is straightforward: Bank of America operates physical branches across the country, which costs money to maintain. Online-only banks have lower overhead and can pass those savings to customers through higher interest rates. If earning more interest on your savings is your main goal, you would likely earn significantly more money elsewhere.

Bank of America does offer other account types with different features and benefits, but none of them are designed to compete on interest rates. The choice between staying with Bank of America and moving to a high yield account depends on what matters most to you — convenience, branch access, or earning more on your money.

Key Takeaways

  • Bank of America's Regular Savings Account pays less than 1% interest, while high yield savings accounts at other banks often pay 4% to 5% annually.
  • Bank of America's higher-tier accounts like Preferred Rewards offer perks such as fee waivers and bonus interest, but the base rates remain low.
  • Online banks and credit unions offer high yield savings accounts because they have lower operating costs than banks with physical branches.
  • Moving money to a high yield account elsewhere could earn you hundreds of dollars more per year on the same balance.

What Bank of America savings accounts actually offer

Bank of America has two main savings products: the Regular Savings Account and accounts tied to their Preferred Rewards program. The Regular Savings Account is their basic option — it requires a small opening deposit, has no monthly maintenance fee if you keep a minimum balance, and comes with a debit card and online access.

The Preferred Rewards program is different. It is not a separate account type, but rather a tier system based on how much money you keep in Bank of America accounts overall. If you have a checking account plus savings with them, or if you have investments through their Merrill Edge service, you move up through tiers: Silver, Gold, and Platinum. Each tier gives you a small bonus on your savings interest rate — but even with the highest tier bonus, the total rate remains below what you would earn at a high yield account.

Bank of America also offers Money Market Accounts, which work similarly to savings accounts but may have slightly different features like check-writing ability. These also pay low interest rates and are not high yield products.

How much more you could earn elsewhere

The difference in earnings adds up quickly. If you had $10,000 in a Bank of America savings account earning less than 0.5% annually, you would make roughly $50 per year. The same $10,000 in a high yield savings account earning 4.5% would earn you about $450 per year — nine times more money for doing nothing differently.

Over five years, that gap becomes $2,000 versus $250. The longer your money sits in a low-interest account, the more opportunity you lose. This is why many people keep only what they need for when ready expenses at their main bank and move savings elsewhere.

The trade-off is convenience. Bank of America has branches and ATMs everywhere, customer service by phone, and the familiarity of a large institution. A high yield account at an online bank means no physical location to visit, but also no monthly fees and significantly more interest paid to you.

When Bank of America savings might still make sense

Bank of America savings accounts are worth keeping if you need frequent access to your money in person, use their ATM network regularly, or value having all your accounts in one place. Some people find it easier to manage their finances when everything is at the same bank, even if it costs them in interest earnings.

If you have a large balance and may have access to for Preferred Rewards Platinum status, the bonus interest helps somewhat — but it still will not match a high yield account. Platinum members get an extra 0.50% added to their savings rate, which would bring a base rate of 0.45% up to 0.95%. That is still far below the 4% to 5% available elsewhere.

Bank of America also makes sense as a checking account home if you use their branches and ATMs heavily, and you can keep a small emergency fund there while putting your larger savings in a high yield account at a different institution. Many people do exactly this — they maintain their checking relationship with Bank of America but move savings to earn more.

How to compare Bank of America to high yield options

When you are deciding whether to move your savings, look at three things: the interest rate, any monthly fees, and the minimum balance required. Bank of America's Regular Savings Account has no monthly fee if you keep a small minimum balance (usually $100 to $300), but the rate is the real cost.

High yield savings accounts at online banks like Marcus, Ally, or American Express Personal Savings typically have no monthly fees, no minimum balance requirements, and rates that change with the market but stay much higher than Bank of America. Credit unions also often offer high yield savings to their members, sometimes with even better rates if you meet certain conditions like direct deposit.

The Federal Deposit Insurance Corporation (FDIC) protects your money up to $250,000 at any bank, whether it is Bank of America or an online bank. Your money is equally safe in either place. The only real difference is how much interest you earn.

Moving your savings without closing your Bank of America account

You do not have to choose between Bank of America and a high yield account — you can have both. Many people keep their checking account and a small savings buffer at Bank of America for convenience, then open a high yield savings account elsewhere for their larger savings goals.

To move money, you straightforward open a new account at another bank (online or in person), then transfer funds from your Bank of America account to the new one. Most banks can do this electronically using your account and routing numbers, and the transfer usually takes one to three business days. You can leave your Bank of America account open and active, or let it sit dormant if you prefer.

There is no penalty for moving your savings, and you can move it back anytime if you change your mind. The only thing to watch is whether your new bank has any opening deposit requirements or minimum balance rules — but most high yield accounts have neither.

Frequently Asked Questions

Does Bank of America offer any account that pays competitive interest?

No. Bank of America's highest-paying account option is their Preferred Rewards Platinum tier, which adds a bonus to savings rates but still results in less than 1% annual interest. For competitive rates, you would need to open an account at an online bank or credit union.

Can I keep my Bank of America checking account and move only my savings?

Yes. You can open a high yield savings account at another bank while keeping your Bank of America checking account active. Many people do this to maintain branch access and ATM convenience while earning more interest on their savings.

Is my money safe in a high yield account at an online bank?

Yes. Online banks are FDIC-insured just like Bank of America, which means your deposits up to $250,000 are protected by the federal government. Safety is the same whether the bank has physical branches or not.

How often do high yield savings rates change?

High yield rates change based on what the Federal Reserve does with interest rates. When the Fed raises rates, banks typically raise their savings rates within days or weeks. When the Fed lowers rates, savings rates fall too. You should check your rate periodically, but you are not locked in — you can move your money anytime.

What is the minimum balance to open a Bank of America savings account?

Bank of America typically requires $100 to $300 to open a Regular Savings Account, though this can vary. Most high yield accounts have no minimum balance requirement at all, which makes them easier to open if you are starting with a small amount.