Bank of America savings accounts earn between 0.01% and 0.04% annual percentage yield, depending on the account type and balance

Bank of America offers three main savings products: the Regular Savings Account, the Money Market Savings Account, and the Premium Savings Account. The Regular Savings Account typically earns 0.01% APY. The Money Market account earns up to 0.04% APY if you maintain a higher balance. The Premium Savings Account, available only to customers with certain wealth management relationships, may offer different rates. These rates change without notice and vary based on Federal Reserve decisions.

The actual interest you earn depends on your account balance and how long money sits in the account. A $10,000 balance in a Regular Savings Account earning 0.01% APY generates roughly $1 per year in interest. The same balance in a Money Market account at 0.04% APY generates about $4 per year. These are not competitive rates compared to online banks or credit unions, which currently offer rates between 4% and 5% APY on savings accounts.

Bank of America does not publish a single rate sheet. You can see the current rate for your specific account by logging into your online banking portal, calling 1-800-432-1000, or visiting a local branch. Rates are posted on the Bank of America website under "Rates and Fees," though these are often national averages and your actual rate may differ based on your state and account type.

Key Takeaways

  • Bank of America savings accounts earn between 0.01% and 0.04% APY, which is significantly lower than rates offered by online banks and credit unions.
  • Your actual interest rate depends on which savings product you hold and your account balance tier.
  • You can find your current rate by logging into your online account, calling customer service, or visiting a branch.
  • Interest is calculated daily and posted monthly, so you earn a small amount each month based on your balance.
  • If you are looking to maximize interest earnings, moving funds to a high-yield savings account elsewhere may generate 50 to 100 times more interest on the same balance.

How Bank of America calculates and pays interest

Bank of America calculates interest daily based on your ending balance each day. The bank divides your APY by 365 days, multiplies that daily rate by your balance, and adds the interest to your account. Interest posts to your account once per month, usually around the first business day of the month.

If your balance changes during the month, the interest calculation reflects those changes. A $10,000 balance for 15 days and a $5,000 balance for 15 days at 0.01% APY generates roughly $0.20 in monthly interest. The longer your money sits in the account, the more interest accrues, but the amounts remain small at Bank of America's current rates.

Comparing Bank of America rates to other banks

Bank of America's savings rates are among the lowest in the banking industry. Online banks such as Marcus, Ally, and Discover currently offer savings accounts earning 4% to 5% APY with no monthly fees and no minimum balance requirements. Credit unions often offer similar or higher rates to members. A $10,000 balance earning 4.5% APY at an online bank generates roughly $450 per year, compared to $1 per year at Bank of America's Regular Savings Account.

The trade-off is convenience and branch access. Bank of America has over 4,000 branches nationwide and 16,000 ATMs. If you need in-person banking, the lower rate may be a cost you accept. If you primarily bank online and rarely visit a branch, moving savings to a higher-rate institution costs nothing and takes about 15 minutes to set up.

Money market accounts at Bank of America earn slightly more than regular savings but still lag behind online alternatives. Bank of America's Money Market account at 0.04% APY generates $4 per year on $10,000, while a money market account at an online bank earning 4.5% APY generates $450 per year on the same balance.

Minimum balance requirements and account fees

Bank of America's Regular Savings Account has no minimum balance requirement to open or maintain the account. However, the bank charges a $5 monthly maintenance fee unless you meet one of these conditions: maintain a $300 minimum daily balance, have a direct deposit of $250 or more per month, or link the account to a Bank of America checking account with a may have access to direct deposit.

The Money Market Savings Account requires a $2,500 minimum balance to open and charges a $10 monthly fee if the balance falls below $2,500. The fee is waived if you maintain the minimum or have a may have access to direct deposit. The Premium Savings Account has higher minimum requirements and is available only to customers with significant assets or wealth management relationships.

These fees can erase the small amount of interest you earn. On a $5,000 balance in a Regular Savings Account earning 0.01% APY, you generate roughly $0.42 in annual interest but pay $60 in annual maintenance fees if you do not meet the waiver conditions. The account costs you money rather than earning it.

When Bank of America rates change

Bank of America adjusts savings rates in response to changes in the Federal Funds Rate, which the Federal Reserve sets. When the Fed raises rates, banks typically raise savings rates weeks or months later. When the Fed cuts rates, banks often cut savings rates when ready. Bank of America does not announce rate changes in advance; they take effect on the date the bank specifies.

You will not receive a notice before a rate cut, though you may see a notification in your online banking portal after the change occurs. To track whether your rate has changed, check your account statements or log into your online account monthly. If you want to know the current rate before opening an account, call 1-800-432-1000 or visit a branch.

Moving money to a higher-rate account

If you decide to move savings to a bank offering higher rates, the process takes about 15 minutes. You will need the routing number and account number of your new bank. Log into your Bank of America online account, go to "Transfer Funds," select "External Transfer," and enter the new account details. Bank of America can send money out, or the new bank can pull it in using the same information.

Transfers typically complete within one to three business days. You can keep your Bank of America account open for checking or other purposes while moving savings elsewhere. There is no penalty for closing a savings account or transferring the balance out. If you have a promotional rate or bonus offer from another bank, confirm the terms before transferring—some bonuses require a minimum balance or a waiting period.

Frequently Asked Questions

Does Bank of America offer any high-yield savings accounts?

No. Bank of America does not offer a high-yield savings account. The Money Market Savings Account is the highest-rate product available to most customers, earning up to 0.04% APY. If you want rates above 4% APY, you will need to open an account at an online bank, credit union, or other financial institution.

Can I earn more interest by keeping a larger balance?

Not significantly. Bank of America does not offer tiered rates where larger balances earn higher percentages. The Money Market account has a higher rate than the Regular Savings Account, but the difference is only 0.03 percentage points. Moving $100,000 from a Regular Savings Account to a Money Market account increases your annual interest from roughly $10 to $40.

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

Interest is calculated daily based on your balance each day. If you withdraw $5,000 on the 15th of the month, you earn interest only on the remaining balance for the rest of the month. The interest posts on the first business day of the following month and reflects all the daily balances you held.

Is the interest I earn taxable?

Yes. Bank of America reports interest earnings of $10 or more per year on Form 1099-INT. You must report this interest as income on your tax return. At Bank of America's current rates, most accounts generate less than $10 per year, so no form is issued, but the interest is still technically taxable income.

Can I lock in a rate so it does not go down?

No. Savings account rates are variable and can change at any time. Bank of America does not offer fixed-rate savings accounts. If you want a may provide rate, you would need to open a Certificate of Deposit (CD), which locks in a rate for a set term, typically three months to five years.