Bank of America savings account interest rates change frequently and depend on the account type

Bank of America does not publish a single interest rate for all savings accounts. The rate you earn depends on which savings product you hold, how much money you have in it, and the current rate environment. As of now, Bank of America's standard savings account pays less than 0.01% annual percentage yield (APY) on most balances, while their money market accounts and CDs pay higher rates that shift with Federal Reserve decisions.

The rates Bank of America offers are among the lowest in the banking industry. Online-only banks and credit unions often pay 4% to 5% APY on savings, while Bank of America's standard savings account earns roughly one-tenth of that. The gap exists because Bank of America operates thousands of physical branches, which costs money, and they do not need to compete aggressively on savings rates to attract deposits.

Interest rates are not locked in. Bank of America changes them without notice, usually in response to Federal Reserve rate changes. If you want to know the exact current rate on your specific account, you need to check your account online, call 1-800-432-1000, or visit a branch. The rate posted on their website may differ from what you actually earn, depending on your account balance tier.

Key Takeaways

  • Bank of America's standard savings account currently earns less than 0.01% APY, which means $10,000 in savings generates less than $1 per year in interest.
  • Money market accounts and certificates of deposit (CDs) at Bank of America pay higher rates, but still lag behind online banks and credit unions by several percentage points.
  • The rate you earn may depend on your account balance, your relationship with the bank, and whether you hold other products like checking accounts or investments.
  • Bank of America can change interest rates at any time without advance notice, so rates you see today may be different next month.

How Bank of America structures savings account tiers

Bank of America offers three main savings products: the regular savings account, the money market account, and CDs. Each has a different rate structure and different rules about how much you can withdraw.

The regular savings account is the most basic option. It has no minimum balance requirement and no monthly fee if you maintain a $300 minimum. The interest rate is the same regardless of how much you deposit — whether you have $100 or $100,000, you earn the same APY. This is where the sub-0.01% rate applies.

The money market account typically pays a higher rate than the savings account, but the rate varies based on your balance. Bank of America structures these in tiers: larger balances earn slightly higher rates. However, money market accounts come with a limit on how many withdrawals you can make per month (usually six), and some have higher minimum balance requirements.

Certificates of deposit (CDs) lock your money away for a set period — typically three months to five years — in exchange for a may provide rate. The longer you commit, the higher the rate. Bank of America's CD rates are fixed at the time you open the account and do not change, even if the bank raises rates later.

Why Bank of America rates are lower than competitors

Bank of America is a full-service bank with physical locations in all 50 states. Operating branches, employing tellers, and maintaining buildings costs money. Online-only banks like Ally, Marcus, and Discover have no branches, so they pass those savings to customers through higher interest rates.

Bank of America also does not need to compete on savings rates because most customers use them for checking, credit cards, mortgages, and investments. The bank makes money on those products and can afford to pay less on savings. Customers often keep savings at Bank of America straightforward because they already have a checking account there, even if they could earn more elsewhere.

The Federal Reserve's interest rate decisions affect all banks, but they affect low-rate banks less visibly. When the Fed raised rates from 2022 to 2023, online banks quickly raised their savings rates to 4% and 5%. Bank of America raised theirs from near-zero to still near-zero. The difference compounds over time: $10,000 earning 0.01% for one year generates $1 in interest, while the same amount at 4.5% generates $450.

How to find Bank of America's current rates

Bank of America publishes rates on their website, but the rates shown are not always the rates you will earn. The site displays a range or a base rate, and your actual rate depends on factors the website does not explain clearly.

The most reliable way to see your rate is to log into your online account and look at your account details. The rate shown there is what you are actually earning. You can also call Bank of America's customer service line at 1-800-432-1000 and ask for the current rate on a specific account type, or visit a local branch.

If you are considering opening a new account, ask the banker in the branch for the rate in writing before you fund it. Rates can vary by location and by the specific product you choose, and you want confirmation of what you will actually earn.

What happens to your interest if rates change

Bank of America can lower your savings account interest rate at any time. They do not need your permission, and they do not have to give you advance notice, though they typically do notify customers of major changes.

If you hold a CD, your rate is locked in for the term you chose. If the rate drops after you open the CD, you keep your original rate. If rates rise and you want a higher rate, you have to wait until the CD matures and open a new one at the new rate. Early withdrawal from a CD usually costs you a penalty equal to a few months of interest.

For savings and money market accounts, the rate can change without warning. In practice, Bank of America usually adjusts rates when the Federal Reserve makes a move, but they are not required to match the Fed's changes dollar-for-dollar. They often lag behind.

Comparing Bank of America to other banks

If you are trying to decide whether to keep your savings at Bank of America or move it elsewhere, the math is straightforward. A $10,000 balance earning 0.01% APY at Bank of America generates $1 per year. The same balance at an online bank earning 4.5% APY generates $450 per year — a difference of $449.

The trade-off is convenience. Bank of America has physical branches where you can deposit cash or speak to someone in person. Online banks do not. If you rarely need to visit a branch, the interest difference is worth moving your money. If you regularly deposit cash or need in-person service, you may decide the convenience is worth the lower rate.

Credit unions often offer rates between Bank of America and online banks, and they may offer in-person service depending on their size. If you are a member of a credit union, check their savings rates before deciding.

Frequently Asked Questions

How often does Bank of America change savings account interest rates?

Bank of America typically adjusts rates when the Federal Reserve changes its benchmark rate, which happens several times per year. However, they may also change rates independently. There is no fixed schedule, and they can change rates without advance notice, though they usually notify customers of significant changes.

Do I earn more interest if I have a larger balance?

On the regular savings account, no — the rate is the same regardless of balance. On money market accounts, yes — Bank of America pays higher rates on larger balances, usually in tiers starting at $25,000 or $50,000. Check your account details or call customer service to see which tier you fall into.

What is the minimum balance needed to earn interest?

Bank of America's savings account has no minimum balance requirement to earn interest. You earn the stated APY on any balance, even $1. However, you must maintain a $300 minimum balance to avoid a monthly maintenance fee. Money market accounts and CDs may have higher minimums.

Can I move my savings to a higher-rate account at Bank of America?

Yes. You can open a money market account or a CD at Bank of America, which pay higher rates than the regular savings account. However, Bank of America's rates are still lower than most online banks and credit unions, so you may earn more by moving your money elsewhere entirely.

What happens to my interest if I withdraw money before the end of the month?

On savings accounts, you can withdraw money anytime without penalty, and you keep all interest earned up to that point. On money market accounts, you are limited to six withdrawals per month; exceeding that limit may result in fees or account closure. On CDs, early withdrawal triggers a penalty that reduces your interest earnings.