Bank of America publishes different rates for savings, checking, money market, and CD accounts—and the rates change based on how much you deposit and how often the Federal Reserve moves
Bank of America does not post a single interest rate. Instead, the bank sets separate rates for each account type, and those rates shift when the Federal Reserve changes its benchmark rate. A savings account at Bank of America might earn 0.01% annual percentage yield (APY) on balances under $100,000, while a money market account could earn more, and a CD locked in for a year will have its own rate entirely. The rate you see when you log in depends on your account type, your balance tier, and the current market environment.
Interest rates at Bank of America are not competitive with online banks or credit unions, which is the trade-off for having physical branches and the Bank of America name. If you keep money at Bank of America primarily for convenience or because you already bank there, you should know what rate you are actually receiving rather than assuming it is working for you.
Key Takeaways
- Bank of America savings accounts typically earn less than 0.05% APY, while online savings accounts often pay 4% or higher, so the difference compounds significantly over time.
- Money market accounts at Bank of America pay more than savings accounts but still lag behind online alternatives, and the rate depends on your balance tier.
- CDs (certificates of deposit) at Bank of America lock your money for a set term—usually 3 months to 5 years—and the rate is fixed when you open the account.
- Bank of America's rates move when the Federal Reserve changes its benchmark rate, but the bank does not always pass the full change to customers when ready.
- You can see your current rate by logging into your account online or calling 1-800-432-1000, but the rate posted on the website may not match what you earn if you opened your account years ago.
How Bank of America sets rates by account type
Bank of America offers four main account types, each with its own rate structure. A regular savings account earns the lowest rate—typically under 0.05% APY. A money market account earns more but requires a higher minimum balance, often $2,500 or more. A certificate of deposit (CD) locks your money for a fixed term and pays a rate that does not change, even if the Federal Reserve raises rates after you open it. A checking account may earn interest if it is a rewards checking product, but most Bank of America checking accounts earn nothing.
The rate you receive also depends on your balance tier. Bank of America divides customers into groups based on how much they hold in the bank. A customer with $10,000 in a money market account may earn a different rate than a customer with $250,000. The bank publishes these tiers on its website, but the exact rates are not always straightforward to find—you often have to call or log in to see what you would earn.
Why Bank of America rates are lower than online banks
Bank of America maintains physical branches in all 50 states, and that costs money. The bank pays rent, staff, and utilities for thousands of locations. Online banks have no branches, so they pass the savings to customers in the form of higher interest rates. A savings account at an online bank might earn 4% to 5% APY, while Bank of America earns less than 0.05%—a difference of roughly $400 per year on a $10,000 deposit.
Bank of America also generates revenue from loans, credit cards, and investment products. The bank does not need to pay high interest rates on deposits to attract customers, because many people stay for the convenience of branches or because they already have a mortgage or credit card with the bank. This is a choice, not a flaw—if you value having a physical location to visit, you are paying for that with lower interest rates.
How to find your current rate
Log into your Bank of America account online and navigate to the account details page. The current APY should appear next to your account balance. If you do not see it, call 1-800-432-1000 and ask for the APY on your specific account. The rate posted on the Bank of America website is the rate for new accounts opened today, not necessarily the rate you are earning if you opened your account months or years ago.
Bank of America sometimes grandfathers older rates, meaning customers who opened accounts when rates were higher keep those rates longer than new customers do. If you opened a savings account in 2022, you may still be earning a higher rate than someone who opened one today. This is not advertised, so calling to confirm is the only way to know.
CDs: locking in a rate for a set term
A certificate of deposit is a product where you agree to leave money in the account for a fixed period—3 months, 6 months, 1 year, 3 years, or 5 years are common options. In exchange, Bank of America pays you a rate that does not change, even if the Federal Reserve raises rates after you open the CD. The rate is locked when you open the account.
If you withdraw the money before the term ends, Bank of America charges an early withdrawal penalty. The penalty varies by term length—a 3-month CD might have a penalty of one month's interest, while a 5-year CD might have a penalty of several months' interest. You can see the exact penalty on the CD terms before you open it. CDs are useful if you know you will not need the money for a specific period and you want to lock in a rate, but they are not useful if you might need the cash sooner.
When Bank of America changes rates
Bank of America changes rates when the Federal Reserve moves its benchmark rate, but the timing is not automatic. The Federal Reserve might raise rates on a Wednesday, and Bank of America might not update its rates until the following Monday or later. The bank is not required to pass the full change to customers when ready—it can keep some of the benefit for itself.
If the Federal Reserve raises rates by 0.5%, Bank of America might raise its savings account rate by 0.1% and keep the rest. This is legal and common. The bank publishes a rate change notice on its website, but you have to look for it—Bank of America does not email customers to tell them rates have moved. If you want to know whether your rate has changed, check your account or call the number above.
Alternatives if Bank of America rates do not work for you
If you are keeping money in a Bank of America savings account earning less than 0.05%, moving that money to an online savings account earning 4% or higher will earn you significantly more interest with no additional effort. Online banks like Marcus, Ally, or American Express Personal Savings have no monthly fees, no minimum balance requirements, and FDIC insurance up to $250,000 just like Bank of America.
You do not have to close your Bank of America account to move money elsewhere. You can keep a checking account at Bank of America for bill pay and branch access, and move your savings to an online bank. Many people do this—they use Bank of America for convenience and another bank for interest-bearing savings. Credit unions also offer rates higher than Bank of America, though you have to be a member and may have to live or work in a specific area.
Frequently Asked Questions
What is the current Bank of America savings account interest rate?
Bank of America savings accounts typically earn less than 0.05% APY, but the exact rate depends on your balance tier and when you opened the account. Log into your account online or call 1-800-432-1000 to see your specific rate. The rate posted on the website applies only to new accounts opened today.
Do Bank of America CDs have early withdrawal penalties?
Yes. The penalty amount depends on the CD term—a shorter CD has a smaller penalty, and a longer CD has a larger one. Bank of America shows you the exact penalty before you open the CD. If you withdraw early, the bank deducts the penalty from your interest earnings or principal.
Why does Bank of America pay less interest than online banks?
Bank of America operates thousands of physical branches, which costs money. Online banks have no branches, so they pass the savings to customers as higher interest rates. You are paying for branch access with lower rates—this is a choice, not a mistake.
Does Bank of America raise rates when the Federal Reserve raises rates?
Bank of America usually raises rates when the Federal Reserve does, but not always by the full amount and not always when ready. The bank may wait days or weeks, and it may keep some of the increase for itself. Check your account or call to confirm whether your rate has changed.
Can I move my money to another bank without closing my Bank of America account?
Yes. You can keep your Bank of America checking account for bill pay and branch access, and move your savings to an online bank or credit union that pays higher interest. Many people maintain accounts at multiple banks for different purposes.