Bank of America savings accounts work best if you already bank there and want simplicity, but the interest rate is low compared to online banks

Bank of America's savings account—called the Regular Savings Account—pays almost no interest. As of now, the rate sits well below 0.01% annual percentage yield (APY), meaning $10,000 would earn less than $1 per year. Online banks and credit unions routinely offer 4% to 5% APY on the same money. The real question is whether the convenience of having everything in one place outweighs what you give up in interest.

Bank of America makes sense for savings if you use their checking account, need a physical branch nearby, or want to move money between accounts when ready. It makes less sense if you are saving toward a specific goal and want your money to actually grow. The account has no monthly fee, no minimum balance requirement, and no restrictions on how much you can deposit or withdraw—those are genuine advantages. But the interest rate is the core trade-off, and it is a significant one.

Key Takeaways

  • Bank of America's savings account earns less than 0.01% APY, which means your money grows almost not at all compared to online banks offering 4% to 5%.
  • There is no monthly fee, no minimum balance, and no deposit limits, so the account itself is straightforward to use.
  • The account makes sense if you already have a Bank of America checking account and want to keep everything in one place for convenience.
  • If your main goal is to earn interest on savings, an online savings account or credit union account will earn you significantly more money over time.

How the interest rate compares to other banks

The difference between Bank of America's rate and what you can get elsewhere is not small. A $10,000 balance earning 0.01% APY generates about $1 per year. The same $10,000 at a bank paying 4.5% APY generates $450 per year—450 times more. Over five years, that gap becomes $2,250 in lost interest.

Online banks like Marcus, Ally, and American Express offer rates in the 4% to 5% range because they have no physical branches and lower operating costs. Credit unions often match or beat those rates for members. Bank of America keeps rates low because they make money from lending, not from paying you interest on deposits. Your savings account is a place to park money, not a place to grow it.

The rate Bank of America pays does change, but it moves slowly and usually lags behind what the market offers. If interest rates rise, Bank of America will eventually raise their rate too—but weeks or months after competitors do. If rates fall, Bank of America drops theirs quickly.

What you actually get for the low rate

Bank of America's savings account includes access to their branch network—about 4,000 locations in the United States. If you live in an area with branches and you use them, that matters. You can deposit checks, withdraw cash, and talk to someone in person. Most online banks have no branches at all.

The account also integrates when ready with Bank of America checking. You can move money between accounts in seconds, and transfers do not count against any limit. If you are managing multiple accounts or need to move money quickly, that integration is real value.

You also get Bank of America's customer service, which is available by phone, chat, and in branches. The quality is standard for a large bank—not exceptional, but not notably worse than competitors. If something goes wrong with your account, you have multiple ways to reach someone.

Fees and account requirements

The Regular Savings Account has no monthly maintenance fee. You do not need a minimum balance to open it or keep it open. You can deposit as much as you want and withdraw as much as you want without penalty. Those are genuine strengths compared to some savings accounts that charge fees or require $500 or $1,000 minimums.

The only real restriction is the federal limit on savings account withdrawals. You can make six withdrawals or transfers per month before Bank of America charges a fee—typically $10 per excess transaction. In practice, most people do not hit that limit because they are not moving money in and out constantly. But if you plan to use the account as a frequent transaction account, this matters.

When Bank of America savings makes sense

Bank of America savings is the right choice if you already have their checking account and you want one place to manage everything. The convenience of seeing both accounts in the same app, moving money when ready, and visiting a branch if you need to is worth something. If you are not a heavy saver—putting away $100 or $200 a month—the interest rate difference is small enough that convenience might win.

It also makes sense if you live in an area with Bank of America branches and you prefer to handle banking in person. Some people value that option even if they do not use it often. And if you are saving for something short-term—a few months away—the interest rate barely matters because you will not earn much anyway.

Bank of America savings also works if you are using it as a holding account between paychecks or as a buffer for unexpected expenses. You are not trying to maximize interest; you just need a safe place to keep money accessible. In that case, the low rate is not a problem because you are not keeping the money there long.

When you should look elsewhere

If you are saving for a goal that is months or years away—a down payment, an emergency fund, a vacation—an online savings account will earn you significantly more money. The difference compounds over time. A $5,000 emergency fund earning 4.5% instead of 0.01% generates $225 per year instead of $0.50. Over three years, that is $675 you would not have gotten at Bank of America.

You should also look elsewhere if you do not have a Bank of America checking account. Without that integration, the convenience advantage disappears. You would be choosing Bank of America purely for the branch network, and most people do not need that for a savings account.

If you are not already a Bank of America customer and you are opening an account specifically to save money, an online bank or credit union is almost always the better choice. You lose nothing by moving your savings there, and you gain real interest.

How to move money if you switch

If you decide to move your savings to another bank, the process is straightforward. Most banks offer a free transfer service. You provide your new bank with your Bank of America account number and routing number, and they pull the money over—usually within three to five business days. You do not have to close your Bank of America account; you can just leave it empty or move it to checking.

You can also withdraw the money as a check or transfer it yourself through Bank of America's app. There is no penalty for closing a savings account or moving your balance. Bank of America does not charge exit fees.

Frequently Asked Questions

Can I earn more interest by keeping a higher balance at Bank of America?

No. Bank of America does not offer tiered interest rates based on balance size. Whether you have $100 or $100,000, you earn the same rate—currently less than 0.01% APY. The rate is the same for all customers.

Does Bank of America offer any other savings products that pay better?

Bank of America offers money market accounts and certificates of deposit (CDs), which pay slightly higher rates than the regular savings account. A CD might pay 4% to 5% APY, but you have to lock your money away for a set term—usually three months to five years. You cannot withdraw it early without a penalty. For true savings flexibility, the rates are still lower than online banks.

What happens to my interest rate if the Federal Reserve changes rates?

Bank of America will eventually adjust your rate, but usually weeks or months after the Fed moves. When rates rise, they are slow to raise yours. When rates fall, they drop yours quickly. This lag means you lose money during rate increases and do not benefit as much during increases.

Is my money safe at Bank of America?

Yes. Bank of America is a large, federally insured bank. Your deposits are protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type. Your savings account is insured separately from your checking account, so you have $250,000 protection in each.

Can I open a Bank of America savings account without a checking account?

Yes. You do not need a checking account to open a savings account. However, the main advantage of Bank of America savings—integration with checking—disappears if you do not have one. In that case, an online bank would likely serve you better.