Bank of America savings accounts have no monthly maintenance fee, but you need a minimum opening deposit and earn interest only if you meet balance requirements

Bank of America offers two main savings products: the Regular Savings Account and the Money Market Savings Account. Neither charges a monthly fee to hold the account. However, both require you to deposit money to open them, and both have balance thresholds that determine whether you earn interest on your money.

The Regular Savings Account requires a $25 minimum opening deposit. The Money Market Savings Account requires $2,500. If your balance falls below these amounts after opening, you do not lose the account — you straightforward stop earning interest until the balance rises again.

Interest rates on both accounts change regularly based on what the Federal Reserve does with its benchmark rate. Bank of America's rates are typically lower than online-only banks offer, because you can walk into a physical branch and speak to someone. That convenience costs you in yield.

Key Takeaways

  • Bank of America charges no monthly maintenance fee on either savings account, but you must deposit at least $25 to open a Regular Savings Account or $2,500 to open a Money Market Savings Account.
  • You only earn interest if your balance stays at or above the minimum threshold; falling below it pauses interest accrual until you deposit more.
  • Interest rates fluctuate with Federal Reserve policy and are published on Bank of America's website, where you can see the current rate before opening.
  • Bank of America savings accounts are FDIC-insured up to $250,000, meaning your money is protected if the bank fails.

How the Regular Savings Account works

The Regular Savings Account is the simpler option. You deposit at least $25 to open it, and Bank of America pays you interest on whatever balance you hold. The interest rate is the same whether you have $25 or $100,000 in the account.

Interest compounds daily and is deposited into your account monthly. That means the interest you earn in January gets added to your balance in February, and you then earn interest on that interest in the months that follow. The longer your money sits in the account, the more this compounding effect grows — though at Bank of America's current rates, the growth is modest compared to online banks.

You can withdraw money from this account whenever you want, with no penalty. Federal law limits you to six withdrawals per month (including transfers out), but Bank of America does not charge extra fees if you exceed that limit — the Federal Reserve straightforward requires banks to enforce the limit or convert the account to a checking account.

How the Money Market Savings Account works

The Money Market Savings Account requires $2,500 to open and works similarly to the Regular Savings Account, except the interest rate is typically higher. The higher rate rewards you for keeping a larger balance in the account.

Like the Regular Savings Account, interest compounds daily and deposits monthly. You can withdraw money whenever you want, subject to the same six-withdrawal-per-month federal limit.

The Money Market account makes sense if you have $2,500 or more sitting in savings and want a slightly better rate than the Regular Savings Account offers. If you have less than that, the Regular Savings Account is your only option at Bank of America.

What happens if your balance drops below the minimum

If your Regular Savings Account balance falls below $25, you do not lose the account and you are not charged a fee. You straightforward stop earning interest. The moment your balance rises back to $25 or above, interest accrual resumes.

The same applies to the Money Market Savings Account: if your balance drops below $2,500, interest stops. Once you deposit enough to reach $2,500 again, you start earning interest on the full balance.

This structure means you can use these accounts as temporary holding places for money without penalty, even if the balance dips below the threshold. You just will not earn interest during that time.

How Bank of America rates compare to other banks

Bank of America's savings rates are typically lower than what online banks like Marcus, Ally, or American Express offer. As of early 2024, online savings accounts often pay two to three times what Bank of America pays, because those banks have no physical branches and lower operating costs.

The trade-off is access. Bank of America has branches in most U.S. states, and you can deposit cash in person, speak to a banker about your account, or handle problems face-to-face. Online banks offer no branches and no phone support — only email and chat.

If you already bank with Bank of America and keep most of your money in checking, a savings account there is convenient. If you are opening a savings account specifically to earn interest and have no other reason to use Bank of America, an online bank will pay you significantly more.

FDIC insurance and account safety

Both Bank of America savings accounts are protected by FDIC insurance, which means if Bank of America fails, the federal government guarantees your deposits up to $250,000 per account type per person. A Regular Savings Account and a Money Market Savings Account are separate account types, so you get $250,000 protection on each.

This protection applies regardless of what happens to Bank of America's business. Your money is safe even if the bank runs into financial trouble.

How to open a Bank of America savings account

You can open either account online, in a branch, or by phone. Online is fastest — you provide your Social Security number, address, and initial deposit information, and the account opens when ready. In-branch, you bring an ID and the minimum deposit amount (cash or check), and a banker sets it up while you wait. By phone, you call Bank of America's customer service line and provide the same information as online.

You will need a valid government ID, your Social Security number, and proof of address (a recent utility bill or bank statement). If you already have a Bank of America checking account, opening a savings account takes about five minutes.

Frequently Asked Questions

Can I earn interest on less than $25?

No. The Regular Savings Account requires a $25 minimum to earn interest. If your balance is below $25, the account stays open but earns no interest. Once you deposit enough to reach $25, interest accrual resumes.

What is the current interest rate?

Interest rates change frequently and vary based on Federal Reserve policy. Visit Bank of America's website or call 1-800-432-1000 to see the current rate on both account types. Rates are published publicly and change the same day the Federal Reserve adjusts its benchmark rate.

Can I have multiple savings accounts at Bank of America?

Yes. You can open as many savings accounts as you want. Each account is separately insured up to $250,000 by the FDIC, so if you have $500,000 in savings, you could split it between two accounts and be fully protected.

Is there a penalty for closing the account early?

No. Bank of America does not charge a fee to close a savings account at any time. You can withdraw all your money and close the account the day after you open it with no penalty.

Can I link my savings account to my checking account for transfers?

Yes. If you have a Bank of America checking account, you can link it to your savings account and transfer money between them online, by phone, or in a branch. Transfers are free and typically process the same day.