Bank of America does not offer a traditional high yield savings account

Bank of America's standard savings account earns interest, but the rate is much lower than what you can find at online banks or credit unions. As of now, Bank of America does not have a product specifically branded as a "high yield savings account." If you keep money in a regular Bank of America savings account, you earn a small percentage of interest — but that rate changes and is typically less than one percent per year.

The reason matters: banks that operate only online (no physical branches) can offer higher interest rates because they have lower costs to run. Bank of America has thousands of branches and ATMs across the country, which costs money. That cost gets passed along as lower interest rates on savings.

If earning more interest on your savings is important to you, you have other choices. Some people keep a checking account at Bank of America for convenience but move savings money elsewhere to earn more.

Key Takeaways

  • Bank of America's savings accounts earn interest at rates well below what online banks offer, and the bank does not have a high yield product.
  • Online-only banks can pay higher interest rates because they do not operate physical branches.
  • You can use Bank of America for checking and everyday banking while keeping savings at a different bank that pays more interest.
  • Interest rates change frequently, so comparing current rates across banks takes just a few minutes online.
  • The difference between a 0.01% rate and a 4% rate adds up significantly if you have several thousand dollars saved.

What Bank of America savings accounts actually offer

Bank of America has several savings products, but none carry the "high yield" label. The main option is the Regular Savings Account, which requires a small opening deposit and charges a monthly fee unless you meet certain conditions (like keeping a minimum balance or having direct deposit set up).

The bank also offers a Money Market Account, which is a hybrid between a checking and savings account. It typically pays slightly more interest than a regular savings account, but still far less than online alternatives. Like the savings account, it has a monthly fee unless you maintain a minimum balance.

Both products are FDIC insured, which means your money is protected up to $250,000 if the bank fails. That protection is real and valuable — but it does not change the fact that the interest rate is low.

How Bank of America's rates compare to other banks

The gap between Bank of America and online banks is substantial. Bank of America's savings rate has historically been below 0.05% per year, while online banks regularly offer rates between 4% and 5% per year. On $10,000 saved for one year, that difference means earning roughly $40 at Bank of America versus $400 to $500 at an online bank.

Credit unions sometimes offer competitive rates as well, especially if you are a member. Credit unions are member-owned rather than shareholder-owned, and some return earnings to members through higher interest rates.

The rates change frequently — sometimes weekly — so any specific number in this article will shift. The pattern, though, stays consistent: Bank of America's rates lag behind online banks and many credit unions.

Why someone might keep money at Bank of America anyway

Lower interest is not the only thing that matters. Bank of America has 4,000+ branches and 16,000+ ATMs in the United States. If you need to deposit cash, withdraw money, or talk to someone in person, that network is valuable. Some people prioritize convenience and access over earning the highest possible interest.

Bank of America also offers bundled products — for example, a checking account with overdraft protection, a savings account, and a credit card all in one place. Managing everything at one bank can be simpler, even if the interest rate is lower.

There is also a psychological factor: some people find it easier to save money when it is in a separate account at a different bank, where they cannot easily move it to checking. If Bank of America's savings account helps you save more, the lower interest rate might be worth it.

How to find a high yield savings account if you want one

Online banks that offer high yield savings accounts include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions also sometimes offer competitive rates — you can search for credit unions in your area through CO-OP or Allpoint networks.

Opening an account at an online bank takes about 10 minutes. You will need your Social Security number, a government ID, and a way to fund the account (usually by transferring money from your Bank of America checking account). The money typically arrives within one to three business days.

You do not have to choose one or the other. Many people keep a Bank of America checking account for daily spending and bill payments, then move extra money to a high yield savings account at an online bank once a month.

What to watch if you move savings to another bank

When you open a savings account at a new bank, make sure it is FDIC insured. This protects your money up to $250,000 if the bank fails. Most online banks are FDIC insured, but it is worth checking their website or asking before you transfer money.

Also check whether the account has monthly fees. Many high yield savings accounts have no monthly fee at all, which is one reason they can pay higher interest — they are not spending money on branch operations.

Finally, look at how you will move money between banks. Most online banks let you link your Bank of America account and transfer money electronically. Some transfers take one to three business days, so plan ahead if you need the money quickly.

Frequently Asked Questions

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

No. Bank of America's interest rate is the same whether you have $100 or $100,000 in the account. Some banks offer tiered rates (higher rates for larger balances), but Bank of America does not. The rate is set by the bank and applies to all customers equally.

What if I need to withdraw money frequently — does that affect the interest?

Bank of America does not limit how many withdrawals you can make from a savings account. The interest is calculated daily and paid monthly, regardless of how often you move money in or out. However, some banks do limit withdrawals, so check the rules if you open an account elsewhere.

Is my money safer at Bank of America than at an online bank?

Both are equally safe if both are FDIC insured. FDIC insurance protects your deposits up to $250,000 per account type per bank, whether the bank has branches or operates only online. The size or age of the bank does not affect FDIC protection.

Can I move my existing Bank of America savings to a high yield account without closing my Bank of America checking?

Yes. You can keep your checking account open and straightforward transfer the savings balance to another bank. You do not have to close anything at Bank of America unless you want to. Many people maintain accounts at multiple banks.

Do I have to pay taxes on the interest I earn?

Yes. Interest earned on savings is taxable income. The bank will send you a 1099-INT form at the end of the year showing how much interest you earned. This is true whether you earn $1 in interest or $500 — you report it on your tax return.