Bank of America savings accounts work best if you keep a high balance or use their other services

Bank of America offers three main savings products: the Regular Savings Account, the Advantage Savings Account, and the Premium Savings Account. The choice between them depends almost entirely on how much money you keep in the account and whether you have a checking account with them. If you maintain a low balance and don't use other Bank of America services, you'll pay monthly fees that eat into any interest you earn. If you do keep a substantial balance or link it to a checking account, the fees disappear and the interest rate becomes competitive with other large banks—though still lower than online-only savings accounts.

The core trade-off is convenience versus yield. Bank of America has physical branches in most U.S. states and territories, which matters if you need to deposit cash or speak to someone in person. Online banks typically pay higher interest rates because they have no branch costs to cover. Bank of America's rates sit in the middle: better than most brick-and-mortar banks, worse than online competitors. Whether that trade-off makes sense depends on how you actually use your money.

Key Takeaways

  • Bank of America charges $8 to $12 monthly maintenance fees on savings accounts unless you maintain a minimum balance (usually $500 to $2,500) or have a may have access to checking account linked to it.
  • Interest rates on Bank of America savings accounts are currently lower than online banks like Marcus, Ally, or American Express Personal Savings, which typically pay 0.5% to 1% more annually.
  • The Regular Savings Account has the lowest balance requirement but also the lowest interest rate and highest fee, making it the worst choice for most people.
  • Bank of America's value proposition is branch access and integration with checking accounts, not interest earnings—if you prioritize rate over convenience, an online bank will serve you better.

How the three accounts differ in fees and minimums

The Regular Savings Account charges $8 per month unless you keep $500 in the account. It pays the lowest interest rate of the three. This account makes sense only if you're opening it temporarily or as a placeholder; the fee structure is punitive for anyone who doesn't maintain the minimum.

The Advantage Savings Account charges $12 per month unless you keep $2,500 in the account or have a Bank of America checking account with direct deposit. It pays a slightly higher rate than the Regular account. This is the middle option and the one most people encounter when they open a savings account at a branch.

The Premium Savings Account charges $25 per month unless you keep $10,000 in the account or have a Bank of America checking account with direct deposit. It pays the highest rate of the three, but the fee is steep enough that you need either the high balance or the linked checking account to make it worthwhile. If you have both, this account becomes genuinely competitive.

All three accounts waive the monthly fee if you have a Bank of America checking account with direct deposit set up. This is the most common way people avoid fees—not by maintaining a high balance, but by using Bank of America for both checking and savings.

Interest rates compared to other banks

Bank of America's current savings rates vary by account type and change periodically, but they typically range from 0.01% to 0.04% annual percentage yield (APY). This means on a $10,000 balance, you'd earn between $1 and $4 per year in interest. The rate is set by Bank of America and does not vary based on your balance size.

Online-only banks currently pay 4.5% to 5.3% APY on savings accounts with no monthly fees and no minimum balance. On the same $10,000, you'd earn $450 to $530 per year. The difference compounds over time: after five years, the gap between Bank of America and an online bank grows to thousands of dollars on a substantial balance.

Large traditional banks like Wells Fargo, Chase, and Citibank pay similarly low rates to Bank of America—usually between 0.01% and 0.05% APY. The reason is structural: they have branch networks and customer service costs that online banks don't. You're paying for access and convenience, not for interest earnings. If you're saving money specifically to earn interest, Bank of America is not the right place for it.

When a Bank of America savings account makes sense

A Bank of America savings account is practical if you already have a checking account with them and use direct deposit. The fee waiver is automatic, and you get the convenience of moving money between accounts when ready without leaving the app or visiting a branch. Many people keep a small emergency fund in the savings account for this reason—not to earn interest, but to have money separated from their checking account and easily accessible.

It also makes sense if you need to deposit cash regularly. Bank of America has roughly 4,000 branches and 16,000 ATMs in the U.S., so you can deposit cash without traveling far. Online banks require you to transfer cash through a third party or mail checks, which takes time. If you receive cash payments and need to deposit them quickly, the branch network has real value.

A Bank of America savings account is less practical if you're trying to build savings and want your money to work for you through interest. In that case, opening a high-yield savings account at an online bank costs nothing and pays dramatically more. You can keep a small amount at Bank of America for convenience and put the bulk of your savings elsewhere.

How to avoid monthly fees

The simplest way to avoid fees is to link your Bank of America savings account to a Bank of America checking account with direct deposit. Once direct deposit is set up, all three savings accounts waive their monthly maintenance fee. You don't need to maintain any minimum balance. This is the path most Bank of America customers take, and it's why the fee structure matters less than it appears.

If you don't have direct deposit, you can avoid fees by maintaining the minimum balance for your account type: $500 for Regular, $2,500 for Advantage, $10,000 for Premium. The balance is checked daily, so you need to stay above the threshold every single day of the month. A single day below the minimum triggers the fee.

You can also avoid fees by maintaining an average daily balance that meets the threshold, depending on your account type and region. Bank of America's fee waiver rules vary slightly by state, so confirm the exact requirement with your branch or online account settings before relying on this method.

Alternatives if Bank of America doesn't fit your needs

If you want higher interest rates and don't need branch access, online savings accounts are the standard choice. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all pay 4.5% APY or higher with no monthly fees and no minimum balance. You fund them by transferring money from another bank, which takes one to three business days. Withdrawals work the same way. There's no cash deposit option, but for most people that's not a barrier.

If you want branch access and don't mind lower interest rates, credit unions often pay slightly higher rates than Bank of America and charge lower fees. You need to be a member, which usually requires living or working in a specific area or belonging to a particular group. Credit unions are smaller than Bank of America, so branch networks are more limited, but members report better customer service and more flexibility on fees.

If you want both high interest rates and branch access, you're choosing between two imperfect options: keep most of your money in an online savings account and a small amount in a Bank of America savings account for convenience, or accept lower interest rates in exchange for the branch network. There's no single product that delivers both at scale.

Frequently Asked Questions

Does Bank of America charge to open a savings account?

No. Opening a savings account at Bank of America is free. You only pay the monthly maintenance fee if you don't meet the balance or direct deposit requirement. Some branches may require an initial deposit to open the account, but that money is yours—it's not a fee.

Can I move money between my Bank of America checking and savings account without a fee?

Yes. Transfers between your own Bank of America checking and savings accounts are free and when ready. You can move money as often as you want through the app, online, or at a branch. Federal rules limit certain types of withdrawals from savings accounts, but transfers between your own accounts don't count toward that limit.

What happens if my balance drops below the minimum for one day?

If you don't meet the minimum balance requirement for even one day during the month, Bank of America charges the full monthly maintenance fee. The balance is checked daily. If you have direct deposit set up, the fee is waived regardless of your balance, so this only matters if you're relying on the minimum balance to avoid fees.

Is Bank of America FDIC insured?

Yes. Bank of America is a member of the Federal Deposit Insurance Corporation (FDIC). Your savings account is insured up to $250,000. If you have multiple accounts at Bank of America, each account type is insured separately, so you could have $250,000 in a savings account and $250,000 in a checking account, both fully insured.

Should I move my savings to an online bank?

If you're keeping money in Bank of America primarily to earn interest, moving it to an online bank will earn you significantly more—roughly $450 to $500 per year on a $10,000 balance instead of $1 to $4. If you need branch access or use Bank of America for checking, keeping a small amount there for convenience while putting most savings elsewhere is a reasonable middle ground.