Bank of America checking accounts earn little to no interest

Bank of America's standard checking accounts pay 0.01% annual percentage yield (APY) on balances, which means a $10,000 balance earns about $1 per year. Some accounts pay nothing at all. The rate does not change based on how much money you keep in the account — it is the same whether you have $500 or $500,000.

These rates have stayed flat for years. Bank of America does not advertise checking interest as a reason to bank with them, because the amount is too small to matter to most people. If you are keeping money in a checking account specifically to earn interest, you will earn almost nothing no matter which Bank of America checking product you choose.

A few Bank of America accounts have slightly different structures, but the interest component is negligible across all of them. The real differences between their checking products are monthly fees, minimum balance requirements, and what you get in return for meeting those requirements.

Key Takeaways

  • Bank of America checking accounts earn 0.01% APY or nothing, meaning a $10,000 balance generates roughly $1 per year in interest.
  • The interest rate is the same across all Bank of America checking account types — it does not increase with higher balances or account tiers.
  • Monthly maintenance fees range from $0 to $15 depending on the account type, and these fees typically exceed any interest you would earn.
  • If earning interest on checking balances is your goal, online banks and credit unions often pay 4% to 5% APY on checking accounts, which is hundreds of times higher than Bank of America.

How Bank of America checking interest compares to other banks

Most traditional banks, including Chase, Wells Fargo, and Citibank, pay similarly low rates on checking accounts — usually between 0.01% and 0.05% APY. The industry standard for brick-and-mortar banks is to make money on loans and fees, not by paying interest on deposits.

Online banks and credit unions operate differently. Many online checking accounts pay 4% to 5% APY on balances up to $25,000 or $35,000, then a lower rate above that threshold. A $10,000 balance at 4.5% APY earns $450 per year instead of $1. This difference compounds over time, especially if you keep an emergency fund or short-term savings in checking.

The trade-off is access: online banks have no physical branches, and some credit unions require you to live or work in a specific area to join. Bank of America has thousands of branches and ATMs nationwide, which many people value enough to accept the lower interest rate.

What fees cost you versus what interest earns you

Bank of America's checking accounts carry monthly maintenance fees that dwarf any interest you would earn. The standard checking account costs $12 per month ($144 per year) unless you meet one of these conditions: maintain a $1,500 minimum daily balance, set up direct deposit, or link a Bank of America savings or money market account with a $500 minimum balance.

The Advantage Plus checking account costs $15 per month and requires either a $2,000 minimum balance or direct deposit to waive the fee. Even if you meet the waiver condition, you are paying the fee in the form of opportunity cost — that $1,500 or $2,000 could be earning 4% elsewhere.

The math is straightforward: if you pay a $12 monthly fee and earn $0.01 in interest, you are losing $143.88 per year on that account. The fee is the real cost of banking with Bank of America, not the interest rate.

Why Bank of America does not compete on checking interest

Large banks like Bank of America do not raise checking account interest rates because they do not need to attract deposits through interest. They have millions of customers who use checking for convenience, payroll direct deposit, and bill pay — not as an investment vehicle.

Banks make money by lending out customer deposits at higher rates than they pay depositors. When the Federal Reserve raises its benchmark interest rate, banks raise savings account and money market rates to stay competitive, but checking accounts are often left behind. Checking is a transaction account, not a savings account, so banks treat it differently.

Online banks and credit unions compete on interest because they have lower overhead costs (no branch network) and need to attract deposits to fund their lending. Bank of America's branch network is expensive to maintain, so they offset that cost by keeping checking rates low and charging monthly fees.

Where to find Bank of America's current checking rates

Bank of America publishes its current rates on its website under the "Rates & Fees" section for each account type. The rates shown there are the ones you will receive — there are no promotional rates or tiered structures that pay more for larger balances.

You can also call Bank of America at 1-800-432-1000 or visit a local branch to ask about current rates. The answer will always be the same: checking accounts earn 0.01% APY or nothing, depending on the specific product.

If you want to compare Bank of America's rates to other options, the Federal Deposit Insurance Corporation (FDIC) maintains a database of rates across banks at ibanking-services.fdic.gov. You can filter by account type and state to see what other banks in your area are offering.

Whether to move your checking account for interest

If you keep less than $5,000 in checking and use Bank of America primarily for direct deposit and bill pay, the interest difference is so small that switching banks may not be worth the hassle. You would earn $2 to $5 per year at a 4% online bank, which does not justify the time to open a new account and update your direct deposit information.

If you keep $10,000 or more in checking regularly, the math changes. At 4.5% APY, that $10,000 earns $450 per year at an online bank versus $1 at Bank of America. Over five years, that is a $2,245 difference. If you also avoid the $12 monthly fee, you save an additional $720 over five years.

The decision depends on what you use checking for. If you need a local branch for deposits, cashier's checks, or in-person service, Bank of America's convenience may be worth the cost. If you only need checking for direct deposit and online bill pay, an online bank with higher interest and no fees is the more economical choice.

Frequently Asked Questions

Does Bank of America pay interest on savings accounts?

Bank of America savings accounts pay 0.01% APY, the same as checking. Money market accounts pay slightly higher rates — currently around 0.05% to 0.10% APY depending on the balance tier — but these rates are still far below what online banks offer. If you are saving money, a high-yield savings account at an online bank or credit union will earn significantly more.

Will Bank of America raise checking interest rates if the Federal Reserve raises rates?

Bank of America may raise savings and money market rates when the Federal Reserve raises its benchmark rate, but checking accounts typically stay flat. The bank prioritizes raising rates on savings products to compete for deposits, while keeping checking rates low because checking customers are less likely to move their accounts for interest.

Can I earn more interest by linking multiple Bank of America accounts?

No. Linking a checking account to a savings account or money market account does not change the interest rate on either one. The only benefit of linking accounts is that it may waive the monthly checking fee if you maintain a minimum balance in the linked savings account.

What is the difference between Bank of America's checking account types?

Bank of America offers standard checking, Advantage Plus checking, and Advantage Banking (which bundles checking with savings). All three earn the same 0.01% APY on checking balances. The differences are monthly fees ($0 to $15), minimum balance requirements, and what services are included. The interest rate is identical across all types.

Is 0.01% APY better than keeping cash at home?

Yes, but only because of safety and FDIC insurance. Bank of America deposits are insured up to $250,000 per account type, so your money is protected if the bank fails. Cash at home earns 0% and has no insurance. The interest difference is negligible, but the protection is real.