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 between 0.01% and 0.04% APY. These rates have not kept pace with inflation or with what online banks and credit unions offer.

If you hold a Bank of America checking account with direct deposit and maintain a minimum balance, you may may have access to for their Preferred Rewards program, which adds a small boost to savings rates. Even with this boost, the resulting rate remains far below what high yield savings accounts at other institutions provide — often 4% to 5% APY at online banks.

Bank of America's business model relies on keeping deposit rates low while charging higher rates on loans and credit products. They invest heavily in physical branches and customer service, which costs money that gets passed along through lower savings rates rather than higher ones.

Key Takeaways

  • Bank of America's savings accounts earn 0.01% to 0.04% APY, which is substantially lower than high yield savings accounts at online banks.
  • The Preferred Rewards program adds a small rate boost if you have a may have access to checking account and maintain a minimum balance, but the final rate still lags behind competitors.
  • High yield savings accounts at online banks and credit unions typically pay 4% to 5% APY and have no monthly fees.
  • If you want to keep all your accounts at Bank of America for convenience, you will earn less interest than you would by moving savings to a separate high yield account.

What Bank of America's savings accounts actually pay

Bank of America offers three deposit products that function as savings vehicles: the regular savings account, the Money Market account, and the Interest Checking account. The regular savings account is the most basic — it has no monthly fee if you maintain a $100 minimum balance, but the interest rate is negligible.

The Money Market account requires a higher opening balance (typically $2,500) and pays a tiered rate based on how much you keep in the account. The more you deposit, the slightly higher your rate, but even at the highest tier, the rate remains under 0.05% APY in most cases. The Interest Checking account is designed for business customers and has different rate structures.

None of these products are marketed as high yield accounts because they are not. Bank of America does not use that term for any of its savings products, and the rates do not match what the industry considers high yield.

How the Preferred Rewards program affects your rate

If you have a Bank of America checking account with direct deposit set up, you may be enrolled in Preferred Rewards automatically or can request enrollment. The program has three tiers: Silver (requires $20,000 in combined balances), Gold (requires $50,000), and Platinum (requires $100,000).

Each tier adds a percentage point boost to your savings account APY. Silver adds 0.25%, Gold adds 0.50%, and Platinum adds 0.75%. On a 0.01% base rate, a 0.75% boost brings you to 0.76% APY — still far below what you would earn in a high yield account elsewhere.

The boost applies only to savings and Money Market accounts linked to your may have access to checking account. You must maintain the minimum balance continuously; if you drop below it, the boost disappears. The boost also applies to credit card rewards rates and loan rates, so the program has value beyond savings, but for pure savings interest, the impact is modest.

Why other banks pay more for savings

Online banks and some credit unions offer high yield savings accounts because they have lower operating costs. They do not maintain physical branches, do not employ tellers, and do not pay for real estate in expensive locations. These savings get passed to customers through higher deposit rates.

Bank of America operates thousands of branches across the United States and invests heavily in in-person customer service. That infrastructure costs money. The bank funds it partly through fees (overdraft fees, monthly maintenance fees, ATM fees) and partly by keeping deposit rates low and loan rates high. It is a different business model than online banks use.

If you value the ability to walk into a physical branch, deposit cash, and speak to someone in person, Bank of America provides that. But you pay for it in the form of lower interest on savings. This is a genuine trade-off, not a hidden cost.

Moving money to a high yield account while keeping Bank of America

You do not have to close your Bank of America accounts to earn higher interest elsewhere. Many people keep a checking account at Bank of America for convenience and branch access, then move savings to a high yield account at an online bank or credit union.

Transferring money between banks takes one to three business days using an ACH transfer (Automated Clearing House). You can set this up online through either bank's website. Bank of America does not charge a fee for outgoing transfers, and most online banks do not charge for incoming transfers either.

Some people use a high yield savings account as their primary savings vehicle and keep only a small emergency fund at Bank of America. Others move money to the high yield account monthly and use Bank of America mainly for checking and bill pay. The structure depends on your habits and how often you need to access the money.

Credit unions as an alternative to Bank of America

Credit unions often offer high yield savings rates comparable to online banks, sometimes with the added benefit of local branches. If you are a member of a credit union, check their savings rates — many pay 4% to 5% APY on savings accounts with no monthly fees.

Credit union membership usually requires you to live or work in a specific area, belong to a certain employer, or meet other criteria. Some credit unions have opened membership to broader populations, and some allow you to join through a parent organization. If you already have credit union membership, their savings rates are worth comparing to Bank of America.

Credit unions are not-for-profit institutions, so they return earnings to members through higher rates and lower fees rather than to shareholders. This structure often results in better rates on savings and lower rates on loans than you would find at a traditional bank.

Frequently Asked Questions

Can I get a higher rate at Bank of America if I open a new account?

No. Bank of America does not offer promotional rates or sign-up bonuses for new savings accounts. The rates are the same whether you are a new customer or have been with the bank for decades. Some online banks offer promotional rates for new accounts, but Bank of America does not.

Does Bank of America have any savings account with no monthly fee?

Yes. The regular savings account has no monthly fee if you maintain a $100 minimum balance. The Money Market account has no monthly fee if you maintain a $2,500 minimum balance. Both are fee-free as long as you meet the balance requirement, but the interest rates remain very low.

What happens to my Preferred Rewards boost if I drop below the minimum balance?

The boost disappears when ready. Your savings rate drops back to the base rate (0.01% or whatever Bank of America is currently paying). If you bring your balance back above the minimum, the boost returns, but there is no grace period. You need to maintain the balance continuously.

Is it safe to move my savings to an online bank?

Online banks that are FDIC-insured offer the same deposit protection as Bank of America. Your money is insured up to $250,000 per account type per bank. Check that the online bank displays FDIC insurance information on its website. The transfer itself is safe — ACH transfers are a standard banking method used millions of times daily.

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

Yes. You can keep your checking account at Bank of America and open a savings account at an online bank or credit union. Many people do this. You can transfer money between the accounts as needed, and the two banks do not need to be connected in any way.