Bank of America savings accounts pay between 0.01% and 4.50% annual percentage yield, depending on which account you open and current market conditions
The interest rate on a Bank of America savings account is not fixed. It changes based on what the Federal Reserve does with its benchmark interest rate, and it varies by account type. A regular savings account currently earns around 0.01% APY, while a Money Market account can earn up to 4.50% APY if you maintain a high balance. The difference between these two accounts is substantial: on $10,000, you would earn roughly $1 per year in a regular savings account versus $450 per year in a Money Market account.
Bank of America publishes its current rates on its website, but the page updates when rates change—sometimes weekly. The rate you see today may not be the rate you lock in tomorrow. Unlike a certificate of deposit (CD), which guarantees a fixed rate for a set term, savings account rates move with the market. If the Federal Reserve raises rates, Bank of America typically raises its savings rates within days. If the Fed cuts rates, Bank of America cuts theirs as well.
Key Takeaways
- Bank of America savings rates range from 0.01% APY on basic savings to 4.50% APY on Money Market accounts, depending on your balance tier.
- Interest rates change frequently and are not may provide—they move when the Federal Reserve adjusts its benchmark rate.
- Higher balances unlock higher rates on tiered accounts like Money Market, so the interest you earn depends on how much you keep in the account.
- You can check your current rate by logging into your Bank of America account or calling customer service, since rates vary by account and change regularly.
How Bank of America calculates interest on your balance
Bank of America compounds interest daily and deposits it monthly. This means the bank calculates what you owe based on your balance each day, then adds all those daily amounts together at the end of the month and deposits the total into your account. The formula is straightforward: your balance multiplied by the annual percentage yield, divided by 365 days, multiplied by the number of days in the month.
The balance that earns interest is your daily balance—what you actually have in the account on any given day, not an average. If you deposit $5,000 on the 15th of the month, only that $5,000 earns interest from the 15th onward. Money you withdraw stops earning interest the moment it leaves the account. Interest posts on the first business day of the following month, so interest earned in January appears in your account in early February.
The difference between account types and their rates
Bank of America offers three main savings products, each with its own rate structure. A regular Savings Account earns the lowest rate—currently 0.01% APY regardless of balance. This account has no monthly fee if you maintain a $300 minimum balance, and you can withdraw money without penalty.
A Money Market Account earns a higher rate that increases with your balance. The tiers typically start at 4.50% APY for balances of $100,000 or more, 4.25% for $50,000 to $99,999, 4.00% for $25,000 to $49,999, and lower rates for smaller balances. This account requires a higher minimum balance to open (usually $2,500) and limits you to six withdrawals per month before fees explore. A Certificate of Deposit (CD) locks your money for a set term—3 months, 6 months, 1 year, or longer—and pays a fixed rate that does not change, even if the Fed cuts rates.
If you have a Bank of America checking account with direct deposit, you may may have access to for a slightly higher savings rate on some accounts. The bank occasionally offers promotional rates for new customers, though these are temporary and revert to standard rates after the promotional period ends.
Why Bank of America rates are lower than some competitors
Bank of America is a full-service bank with physical branches, customer service centers, and a large staff. Those costs are built into the rates they offer. Online-only banks like Marcus, Ally, and American Express have no branches and lower overhead, so they can offer higher rates on savings accounts—sometimes 4.75% to 5.35% APY with no balance requirements.
Bank of America's advantage is convenience and integration. If you already bank there, moving money between accounts is when ready, and you can visit a branch to deposit cash or speak with someone in person. The trade-off is that you earn less interest. Whether that trade-off makes sense depends on how much you value convenience versus maximizing interest income.
How to find your current rate and track changes
Log into your Bank of America online account and navigate to the account details page for your savings or Money Market account. The current APY appears there, along with the interest you have earned year-to-date. You can also call Bank of America at 1-800-432-1000 and ask a representative for your account's current rate.
Bank of America publishes all current rates on its website under "Rates and Fees." This page updates when rates change, but it does not show historical rates or tell you when the last change occurred. If you want to track whether Bank of America is keeping pace with the Federal Reserve, check the Fed's website for the current federal funds rate, then compare it to Bank of America's published rates. When the Fed moves, Bank of America usually follows within a few days.
What happens to your interest if you withdraw money early
Withdrawing money from a savings account or Money Market account does not trigger a penalty or forfeit interest you have already earned. The interest that posted in previous months stays in your account. You only lose interest on the money you withdraw—that balance stops earning interest the day it leaves.
Certificates of Deposit work differently. If you withdraw before the maturity date, you pay an early withdrawal penalty, which is typically a certain number of months of interest. For example, a 1-year CD might have a penalty of three months of interest. The penalty is deducted from your principal, so you may end up with less than you deposited if you withdraw very early.
Comparing Bank of America to other banks' savings rates
| Bank | Account Type | Current APY Range | Minimum Balance |
|---|---|---|---|
| Bank of America | Savings Account | 0.01% | $300 |
| Bank of America | Money Market Account | 4.00% – 4.50% | $2,500 |
| Marcus (Goldman Sachs) | High-Yield Savings | 4.75% – 5.35% | $0 |
| Ally Bank | Savings Account | 4.20% – 4.99% | $0 |
| American Express | Personal Savings | 4.40% | $0 |
Online banks consistently offer higher rates than Bank of America because they have lower operating costs. However, they do not offer the same services—no physical branches, no cash deposits, no in-person customer service. If you keep a large balance and value the convenience of a branch, Bank of America's Money Market account is competitive. If you want the highest possible rate and do not need a branch, an online bank will earn you significantly more interest.
Frequently Asked Questions
Does Bank of America charge a fee on savings accounts?
A regular Savings Account has no monthly maintenance fee if you keep a $300 minimum balance. A Money Market Account has no fee if you maintain the required minimum balance and do not exceed six withdrawals per month. If you fall below the minimum or exceed the withdrawal limit, fees explore. Check your account terms for the exact fee amounts, as they vary by account type.
Can I move money between my Bank of America savings and checking without losing interest?
Yes. Transfers between your own Bank of America accounts do not trigger penalties or affect interest. Interest continues to accrue on the balance that remains in savings. Only the money you withdraw to an external account or spend stops earning interest.
What if Bank of America lowers its rates after I open an account?
You have no protection against rate cuts on savings accounts. The rate you earn is not locked in—it changes whenever Bank of America changes it. If you want a may provide rate, open a Certificate of Deposit instead, which locks your rate for the full term.
How often does Bank of America change its savings rates?
Bank of America typically changes rates within days of a Federal Reserve decision, but it can also change rates independently between Fed meetings. There is no set schedule. The best way to track changes is to check the Bank of America rates page monthly or set a reminder to review your account quarterly.
Is the interest I earn on a Bank of America savings account taxable?
Yes. Interest earned on savings accounts is taxable income. Bank of America will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this on your tax return. The amount you owe in taxes depends on your tax bracket and total income.