Bank of America savings account interest rates change with the Federal Reserve, not with your balance

Bank of America's savings account interest rate is set by the bank and moves up or down based on what the Federal Reserve does with its benchmark rate. As of early 2024, Bank of America's standard savings account earns between 0.01% and 0.04% annual percentage yield (APY), depending on your account type and balance. This is lower than what online banks and credit unions offer — often 4% to 5% APY on the same type of account.

The rate you see today will not be the rate you see in six months. When the Federal Reserve raises or lowers its target rate, banks typically adjust their savings rates within days or weeks. Bank of America does not announce rate changes in advance, so you need to check your account or call to know what you are actually earning.

Your balance does not determine your rate at Bank of America. A savings account with $100 and one with $100,000 earn the same APY. The only thing that changes your rate is the account type you hold — a regular savings account, a money market account, or a CD (certificate of deposit) each have different rates.

Key Takeaways

  • Bank of America's savings account APY is currently between 0.01% and 0.04%, which is significantly lower than online banks and credit unions offer.
  • Interest rates move when the Federal Reserve changes its benchmark rate, and Bank of America usually follows within days or weeks.
  • Your account balance does not affect your rate — only the account type you choose determines what you earn.
  • You can check your current rate by logging into your account online, calling 1-800-432-1000, or visiting a branch.
  • If you want to earn more interest, a money market account or CD from Bank of America, or a savings account at an online bank, may pay significantly more.

The three account types Bank of America offers and what each pays

Regular Savings Account is the most basic option. It currently earns 0.01% APY on balances under $100,000 and 0.04% APY on balances of $100,000 or more. You can withdraw money anytime without penalty. There is no minimum balance requirement to open one, though some branches may ask for $25 to $100 to start.

Money Market Account pays a higher rate than regular savings — currently around 0.04% to 0.08% APY depending on your balance tier. The catch is that you get a limited number of withdrawals per month (usually six), and if you exceed that, you pay a fee or the account converts to a regular savings account. You also need a higher opening balance, typically $2,500.

Certificates of Deposit (CDs) lock your money away for a set time — three months, six months, one year, or longer — and pay a fixed rate for that entire period. Bank of America's CD rates are currently between 4% and 5% APY depending on the term length. The longer you lock your money away, the higher the rate. If you withdraw before the term ends, you pay an early withdrawal penalty that can eat into your earnings.

How to find Bank of America's current rates

The easiest way is to log into your Bank of America account online or through the mobile app. Go to your savings account details, and the current APY will be listed there. This is always the most up-to-date number.

You can also call Bank of America at 1-800-432-1000 and ask a representative for the current savings rate. Have your account number ready. If you do not have an account yet, you can ask about rates before opening one.

Visit a Bank of America branch in person. Staff can tell you the current rates for all account types and help you open a new account if you want to switch. Rates do not vary by branch, so any location will give you the same information.

Bank of America publishes rates on its website under the Savings Accounts section, though the page may not update when ready when rates change. The rates shown there are accurate but may lag behind what your account statement shows by a day or two.

Why Bank of America's rates are lower than other banks

Bank of America is a large national bank with thousands of branches and a massive customer base. It makes money partly from the difference between what it pays you on savings and what it charges borrowers on loans. Because Bank of America has so many customers and so much money on deposit, it does not need to offer high rates to attract more deposits.

Online banks like Ally, Marcus, and Discover have no physical branches, lower overhead costs, and fewer employees. They pass those savings to customers by offering rates that are 50 to 100 times higher than Bank of America's. If you keep your money at Bank of America primarily for convenience — using the ATM network, visiting branches, or having a checking account there — you are paying for that convenience in lower interest earnings.

Credit unions often pay higher rates than Bank of America because they are member-owned and return profits to members rather than shareholders. If you belong to a credit union or can join one, their savings rates are typically 1% to 2% APY, still much higher than Bank of America.

How interest compounds and what you actually earn

Bank of America compounds interest daily, which means the bank calculates what you owe you once per day based on your balance that day. The interest is credited to your account monthly. Compounding daily is better than compounding monthly or yearly, but the difference is tiny when the rate itself is so low.

Here is what the math looks like. If you keep $10,000 in a Bank of America savings account earning 0.04% APY for one year, you earn $4. That same $10,000 in an online bank account earning 4.5% APY earns $450. The difference is $446 per year on a single account.

The longer you leave money untouched, the more compounding helps, but only if the rate is meaningful. At 0.04%, compounding barely moves the needle. At 4.5%, it matters.

When a Bank of America savings account makes sense despite low rates

If you use Bank of America for checking and need a place to park money temporarily — for a few weeks or months — a savings account there is convenient. You can transfer money between accounts when ready online, and you avoid fees for falling below a minimum balance.

If you have a large balance and may have access to for Bank of America's Preferred Rewards program through a premium checking account, you may earn a slightly higher rate. Preferred Rewards tiers offer rate boosts of 0.10% to 0.35% APY depending on your tier, which would bring a regular savings account to 0.11% to 0.39% APY. This is still low compared to online banks, but it is better than the base rate.

If you need may provide access to your money without any withdrawal limits, a savings account is safer than a CD. You trade higher interest for flexibility.

Moving money to a higher-paying account

If you decide Bank of America's rate is too low, you can move your savings to another bank without closing your Bank of America account. Open a savings account at an online bank or credit union, then transfer your money from Bank of America using an external transfer. Most banks process external transfers within one to three business days.

You do not have to move all your money at once. You can keep a small amount at Bank of America for convenience and move the bulk to a higher-paying account elsewhere. Some people keep $1,000 to $5,000 at their main bank for straightforward access and put the rest where it earns more.

If you have a CD at Bank of America that is about to mature, you can let it mature and then move the money to a CD elsewhere if rates are better. Do not withdraw early — the penalty will cost you more than the rate difference.

Frequently Asked Questions

Does Bank of America charge a fee to hold a savings account?

Bank of America does not charge a monthly maintenance fee on savings accounts. There is no minimum balance requirement to avoid fees. You can hold a savings account with $1 in it and pay nothing. The only fees you might encounter are for excessive withdrawals on a money market account or early withdrawal penalties on a CD.

Will my interest rate go up if I deposit more money?

No. Your rate stays the same no matter how much money you deposit. The only thing that changes your rate is if Bank of America changes its rates across the board, which happens when the Federal Reserve moves, or if you switch to a different account type like a CD or money market account.

How often does Bank of America change its savings rates?

Bank of America changes rates whenever the Federal Reserve adjusts its benchmark rate, which happens several times per year. The bank usually moves within days of a Federal Reserve announcement. Between Federal Reserve decisions, rates stay the same. You can check the Federal Reserve's website to see when the next rate decision is scheduled.

Can I earn more interest by keeping my money in checking instead of savings?

No. Bank of America checking accounts earn little to no interest — typically 0.01% APY or less. Savings accounts, money market accounts, and CDs all pay more. If you want to earn interest, move money out of checking into a savings product.

What happens to my interest if I withdraw money mid-month?

Interest is calculated on your daily balance and credited monthly. If you withdraw money on the 15th, you earn interest on the full balance for the first 14 days and the lower balance for the remaining days. You do not lose interest you already earned, but you earn less going forward because your balance is lower.