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, 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 — typically ranging from 0.01% to 0.04% APY. Neither product is designed to compete with high-yield savings accounts offered by online banks and credit unions.

If you bank with BofA primarily for checking or other services, moving savings to a higher-rate account at a different institution is straightforward. You keep your BofA checking account and straightforward open a savings account elsewhere, then transfer money between them when you need to. The two accounts can sit at different banks without any problem.

Key Takeaways

  • Bank of America's savings accounts pay 0.01% to 0.04% APY, which is significantly lower than high-yield savings accounts at online banks.
  • High-yield savings accounts at other institutions currently pay between 4% and 5% APY, meaning your money grows much faster elsewhere.
  • You do not need to close your Bank of America accounts to open a high-yield savings account at another bank.
  • The difference in earnings is substantial: on $10,000, BofA pays roughly $1 per year while a high-yield account pays $400 to $500 per year.

Why Bank of America's rates lag behind the market

Large national banks like Bank of America keep savings rates low because they do not need to compete aggressively for deposits. They have millions of customers who maintain accounts for convenience, direct deposit, or branch access. High-yield savings accounts exist primarily at online banks and credit unions, which have lower overhead costs and must attract deposits through rate competition since they cannot rely on physical branch networks.

Bank of America does offer higher rates on certain products — their CDs (certificates of deposit) and money market accounts pay more than savings accounts — but these still typically fall short of what online banks offer. A BofA CD might pay 4% to 5% APY depending on the term, which is competitive, but that money is locked away for a set period. A high-yield savings account gives you the same rate with full access to your funds.

What high-yield savings accounts actually pay right now

Online banks and credit unions currently offer savings accounts paying between 4% and 5% APY. These rates fluctuate based on Federal Reserve policy, but they have remained substantially higher than Bank of America's offerings for several years. The difference compounds quickly: on $10,000, you earn roughly $1 per year at BofA versus $400 to $500 per year at a high-yield account.

These accounts come with the same FDIC insurance protection as Bank of America accounts — your deposits are covered up to $250,000 per account holder per bank. They also function identically to a regular savings account: you can deposit money, withdraw it whenever you want, and set up automatic transfers. The main trade-off is that you lose the convenience of managing everything in one place.

How to move money between Bank of America and a high-yield account

Opening a high-yield savings account at another bank takes about 10 minutes online. You will need your Social Security number, a government ID, and proof of address (a recent utility bill or bank statement works). Once the account is open, you can transfer money from your BofA account to the new account using either bank's transfer tools.

Bank of America allows outgoing transfers through their website or mobile app. You provide the receiving bank's routing number and your new account number, then initiate the transfer. The money typically arrives within one to three business days. You can also set up recurring transfers if you want to move a fixed amount each month into savings.

Bank of America's Money Market account as an alternative

Bank of America's Money Market account pays slightly more than their savings account, but the rates are still low. The APY ranges from 0.01% to 0.04% depending on your balance tier — you need to maintain higher balances to reach the top rate. This account also comes with a debit card and check-writing privileges, which a savings account does not offer, but the interest earnings do not justify choosing it over a high-yield savings account elsewhere.

The Money Market account makes sense only if you need the debit card and check features and are willing to accept minimal interest in exchange for keeping everything at one bank. For pure savings growth, the rate difference between BofA and online banks is too large to ignore.

When to keep savings at Bank of America anyway

If you have a large balance and value the convenience of one-bank management, the difference in earnings might feel worth it to you. Some people also prefer having a physical branch nearby for deposits or account issues. Bank of America has thousands of branches nationwide, which online banks cannot match. That convenience has a cost — in this case, the cost is lower interest earnings.

Another reason to keep savings at BofA is if you maintain a high-balance checking account that qualifies for their Preferred Rewards program. This program offers perks like higher credit card rewards and fee waivers, and the savings account interest rate does not change based on your Preferred Rewards tier. The real value of Preferred Rewards comes from the checking account benefits, not the savings rate.

Frequently Asked Questions

Can I have a savings account at Bank of America and a high-yield account elsewhere at the same time?

Yes. You can keep your BofA accounts and open a high-yield savings account at another bank. The two institutions do not interfere with each other. Many people do this — they maintain a BofA checking account for direct deposit and bill pay, then keep savings in a high-yield account elsewhere.

What happens to my money if I move it to another bank?

Your money is protected the same way. High-yield savings accounts at FDIC-insured banks are covered up to $250,000 per account holder, just like Bank of America accounts. Credit unions offer similar protection through the NCUA. Your deposits are safe regardless of which institution holds them.

How long does it take to transfer money from Bank of America to another bank?

Most transfers take one to three business days. Bank of America processes the transfer when ready on your end, but the receiving bank controls how quickly the funds appear in your account. Weekends and holidays can add time. You can check the status in your BofA app or online banking portal.

Will moving my savings hurt my credit score?

No. Opening a savings account at another bank does not affect your credit score. Credit scores are based on credit activity — loans, credit cards, and payment history. Savings accounts do not appear on your credit report, so moving money between banks has no impact on your score.

What if I need to deposit cash into a high-yield savings account?

Most online banks do not accept cash deposits directly. If you need to deposit cash, you can deposit it into your Bank of America account, then transfer the money electronically to your high-yield account. Some credit unions that offer high-yield savings accept cash deposits at their branches if you have a membership.