Bank of America savings rates change monthly, and what you earn depends on your account type and balance

Bank of America does not publish a single savings rate. Instead, the bank sets different rates for different account types, and those rates shift based on the Federal Reserve's decisions. As of now, Bank of America's savings accounts earn between 0.01% and 0.04% annual percentage yield (APY), depending on which savings product you hold and how much money you keep in it. The rates are lowest for standard savings accounts and slightly higher for money market accounts.

The reason rates vary so much is that Bank of America ties its savings rates to the federal funds rate, which the Federal Reserve adjusts several times a year. When the Fed raises rates, Bank of America eventually raises its rates too—but usually by a smaller amount. When the Fed cuts rates, Bank of America cuts its rates faster. This lag means you should check the current rate before opening an account, because the number in this article will change.

If you already have a Bank of America savings account, you can find your exact rate by logging into your online account, calling 1-800-432-1000, or visiting a branch. The rate applies to your entire balance, not just new deposits.

Key Takeaways

  • Bank of America savings rates are currently between 0.01% and 0.04% APY and vary by account type, not by how much money you deposit.
  • The bank adjusts rates monthly in response to Federal Reserve decisions, so the rate you see today may be different next month.
  • Standard savings accounts earn the lowest rate; money market accounts earn slightly more.
  • You can find your current rate by logging into your online account, calling customer service, or visiting a branch.
  • Bank of America's savings rates are lower than rates offered by online banks and credit unions, which currently range from 4% to 5% APY.

How Bank of America sets its savings rates

Bank of America does not decide its rates independently. The bank watches the Federal Reserve's benchmark interest rate—called the federal funds rate—and adjusts its own rates in response. When the Fed raises its rate, Bank of America raises savings rates. When the Fed cuts, Bank of America cuts. The timing is not when ready; the bank usually waits a few weeks or months before passing changes to customers.

The gap between what the Fed's rate is and what Bank of America pays is called the spread. Right now, that spread is very wide, meaning Bank of America is keeping most of the interest income for itself rather than passing it to savers. This is normal for large banks with physical branches, because they have higher costs than online-only banks. But it also means Bank of America customers earn significantly less than they would at a credit union or online savings account.

Comparing Bank of America to other banks

Bank of America's 0.01% to 0.04% rate is substantially lower than what other financial institutions currently offer. Online banks like Marcus, Ally, and American Express Personal Savings pay between 4% and 5% APY on savings accounts with no minimum balance and no monthly fees. Credit unions often pay similar rates to online banks, sometimes higher. The difference compounds quickly: on a $10,000 balance, Bank of America would earn you roughly $1 to $4 per year, while an online bank would earn you $400 to $500.

The trade-off is convenience. Bank of America has physical branches in most U.S. states, so you can deposit cash, speak to a person, and access your money when ready. Online banks have no branches and no phone support at most institutions. If you value the ability to walk into a location or need to deposit cash regularly, the lower rate may be worth it to you. If you are primarily moving money electronically and do not need a branch, you are paying a significant cost for a service you do not use.

Types of Bank of America savings accounts and their rates

Bank of America offers three main savings products: a standard savings account, a money market account, and a certificate of deposit (CD). The standard savings account has the lowest rate and no minimum balance requirement. The money market account requires a higher opening balance (usually $2,500 or more) and pays a slightly higher rate in exchange. CDs lock your money away for a set term—three months, six months, one year, or longer—and pay a fixed rate that is higher than savings accounts but still lower than online alternatives.

All three products are FDIC-insured up to $250,000 per account type per person, meaning your money is protected if the bank fails. That insurance is the same at Bank of America as it is at any other bank, so it is not a reason to choose Bank of America over an online bank.

When Bank of America rates are likely to change

Bank of America typically adjusts rates within two to four weeks of a Federal Reserve decision. The Fed meets eight times per year on a published schedule, so you can anticipate rate changes by watching the Fed's calendar. If the Fed raises rates in March, expect Bank of America to raise its rates sometime in April or May. If the Fed cuts rates, Bank of America usually cuts faster—sometimes within days.

You do not need to do anything to receive a rate increase if you already have an account. The new rate applies automatically to your balance. If rates drop, your earnings drop automatically as well. You are not locked into a rate unless you open a CD, which fixes your rate for the entire term.

How to find your current Bank of America savings rate

Log into your Bank of America online account and navigate to your savings account details. The rate will be listed as "Annual Percentage Yield" or "APY." You can also call 1-800-432-1000 and ask a representative for your current rate, or visit a local branch and ask a banker. The rate you see applies to your entire balance, not just new money you deposit.

If you are shopping for a new account, Bank of America publishes current rates on its website under the savings account product pages. Rates shown online are accurate as of the date posted, but they change frequently, so call or check again before opening an account if more than a few days have passed.

Frequently Asked Questions

Does Bank of America pay higher interest if I keep a larger balance?

No. Bank of America pays the same APY on all balances in a savings account, regardless of size. A $500 balance and a $50,000 balance earn the same rate. Some money market accounts have tiered rates that increase at higher balance levels, so check your account terms if you hold more than $25,000.

Can I lock in a rate before the Federal Reserve cuts rates?

Yes, by opening a CD. Bank of America CDs fix your rate for the entire term—three months, six months, one year, or longer. If you open a one-year CD at 4.5% and the Fed cuts rates the next month, you keep earning 4.5% for the full year. The trade-off is that your money is locked away; you cannot withdraw it without paying an early withdrawal penalty.

Why is Bank of America's rate so much lower than online banks?

Online banks have lower overhead costs because they do not operate physical branches or employ tellers. They pass those savings to customers through higher interest rates. Bank of America's branches, ATMs, and customer service staff cost money, so the bank keeps a larger share of the interest it earns. You are paying for convenience with a lower rate.

What happens to my savings account rate if I do not use my account?

Nothing. Your rate does not change based on activity. Bank of America will not close your account for inactivity unless you have not made a deposit or withdrawal for a very long time (usually several years), and the bank will notify you before that happens. Your rate continues to explore to your balance.

Is my money safe in a Bank of America savings account?

Yes. Bank of America is FDIC-insured, meaning deposits up to $250,000 per account type are protected by the federal government if the bank fails. This protection is the same at every FDIC-insured bank, so safety is not a reason to choose Bank of America over another bank.