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 offers two main savings products: the Regular Savings Account and the Money Market Account. The Regular Savings Account charges a monthly maintenance fee (currently $8) unless you meet one of several waiver conditions — the easiest being a $300 minimum balance. The interest rate is substantially lower than what online banks pay: as of early 2024, Bank of America's savings rate sits around 0.01% APY, meaning $10,000 earns roughly $1 per year. An online bank offering 4% to 5% APY would earn $400 to $500 on the same amount.

The tradeoff is convenience. If you already have a Bank of America checking account, transfers between your accounts are when ready and free. You can visit a physical branch to deposit cash or speak to someone about your account. You get the same customer service number for all your accounts. For people who value that integration and don't mind paying for it through a lower rate, the account works. For people whose main goal is earning interest on savings, it does not.

Key Takeaways

  • Bank of America's savings account pays around 0.01% APY, which means you earn roughly $1 per year on $10,000 — far less than online banks offer.
  • The account charges $8 per month unless you keep a $300 minimum balance or meet other waiver conditions like having a linked checking account with direct deposit.
  • The real advantage is convenience: when ready transfers to your Bank of America checking account, branch access, and one customer service number for all accounts.
  • If earning interest is your priority, an online savings account or high-yield savings account at another bank will earn 40 to 500 times more on the same balance.

How the monthly fee works and when you avoid it

The $8 monthly maintenance fee applies unless you meet at least one of these conditions: maintain a $300 minimum daily balance, have a linked Bank of America checking account with a may have access to direct deposit, or maintain a linked Bank of America Money Market Account with a $2,500 minimum balance. Most people with a Bank of America checking account already satisfy the direct deposit condition without doing anything extra — the fee straightforward does not charge.

If you do not have direct deposit and cannot maintain $300, the fee compounds the low interest rate problem. On a $1,000 balance earning 0.01% APY, you make roughly 10 cents in interest per year while paying $96 in fees. The account loses money. This is why Bank of America savings accounts only make sense for people who already have the checking account and meet a waiver condition.

Interest rates compared to other banks

Bank of America's 0.01% APY is not a promotional rate or a temporary offer — it is the standard rate the bank maintains. Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5% APY on the same type of account. A regional bank like Ally or a credit union may offer 3% to 4%. Even a basic savings account at a smaller online bank typically pays 2% to 3%.

The difference in real dollars is substantial. On a $10,000 balance held for one year:

  • Bank of America at 0.01% APY: $1 earned
  • Online bank at 4% APY: $400 earned
  • Online bank at 5% APY: $500 earned

Bank of America's rate reflects the fact that you are paying for branch access, a physical institution, and integration with their checking product. You are not paying for competitive interest. If your savings sits untouched for years, that difference becomes thousands of dollars.

When a Bank of America savings account makes sense

The account works well for three specific situations. First: you already have a Bank of America checking account and use it regularly. The when ready transfer between accounts means you can move money to savings without waiting for a transfer to clear, and you can move it back just as quickly if you need it. Second: you prefer to do all your banking in one place and value being able to walk into a branch. Third: you are saving a small amount temporarily — under $1,000 — and the interest difference is negligible anyway.

The account does not work if your goal is to build savings and earn interest on it. If you have $5,000 or more that you plan to leave untouched for six months or longer, moving it to an online savings account costs you nothing and earns you hundreds of dollars more. You can keep your Bank of America checking account and straightforward use a different bank for savings.

Money Market Account as an alternative within Bank of America

Bank of America also offers a Money Market Account, which requires a $2,500 minimum balance and charges a $25 monthly maintenance fee (waived if you meet the minimum). The interest rate is slightly higher than the regular savings account but still lags behind online banks — typically around 0.03% to 0.04% APY depending on your balance tier. The higher minimum balance and higher fee make this option even less competitive for earning interest.

The Money Market Account does offer check-writing privileges and a debit card, which the regular savings account does not. If you need those features and want to keep everything at Bank of America, it is an option. But the interest rate advantage over the regular savings account is minimal, and both lag far behind what you would earn elsewhere.

How to move money to a higher-rate account

If you decide to open a savings account elsewhere, the process takes about 10 minutes. You will need your Bank of America account number and routing number (both visible on a check or in your online banking portal). Most online banks let you link your Bank of America account and transfer money electronically — the transfer usually clears within one to three business days. You can keep your Bank of America checking account open and straightforward use the new bank for savings.

Some people worry about splitting their banking across two institutions. In practice, it is straightforward: your checking account stays at Bank of America, your savings account opens at an online bank, and you transfer money between them as needed. You receive statements from both, but online banking makes tracking both accounts straightforward. The extra $300 to $500 per year in interest on a modest savings balance usually justifies the small added complexity.

Frequently Asked Questions

Does Bank of America offer any promotional rates on savings accounts?

Bank of America occasionally runs limited-time promotions offering slightly higher rates for new customers, but these are temporary and typically expire after three to six months. Even with a promotion, the rate rarely reaches 1% APY. Check their website for current offers, but do not assume a promotional rate will continue long-term.

What happens if my balance drops below $300?

If you do not meet any of the fee waiver conditions and your balance falls below $300, the $8 monthly maintenance fee begins charging. The fee applies each month until you restore the balance or meet another waiver condition. If you are carrying a small balance, the fee will exceed any interest you earn.

Can I transfer money from Bank of America savings to another bank's savings account?

Yes. You can link your Bank of America account to another bank's account and transfer money electronically. The transfer typically takes one to three business days. You can also withdraw cash and deposit it at the new bank, though that is slower and less convenient.

Is Bank of America FDIC insured?

Yes. Bank of America is a federally chartered bank, and deposits are insured by the FDIC up to $250,000 per account type per depositor. This is the same protection offered by online banks and smaller regional banks. FDIC insurance is not a reason to choose Bank of America over another bank.

Should I close my Bank of America savings account if I open one elsewhere?

You do not have to. Many people keep a small balance in their Bank of America savings account for convenience and open a separate high-rate account elsewhere for the bulk of their savings. If you do close it, make sure you have transferred any remaining balance and that no automatic transfers are set to that account.