Bank of America's current savings rates

Bank of America's savings account interest rate depends on which account you open and how much you keep in it. As of now, the bank offers tiered rates that change based on your balance level. The standard savings account starts at 0.01% APY on balances under $25,000, and increases slightly for higher balances—but these rates are significantly lower than what online banks and credit unions offer on the same type of account.

Bank of America also offers a Money Market account with slightly higher rates than the standard savings account, though again the exact rate depends on your balance tier. The bank updates these rates periodically in response to Federal Reserve decisions, so the specific percentage you see today may differ from what appears next month.

To see the exact current rate for the account type you're considering, you'll need to visit the Bank of America website or call 1-800-432-1000, because rates shift and the bank does not publish them in a single public list. The rates shown here reflect the general structure, but the actual percentage changes regularly.

Key Takeaways

  • Bank of America's savings account rates start at 0.01% APY for standard balances and increase only slightly at higher balance tiers, making them lower than most online savings accounts.
  • The Money Market account offers a higher rate than the standard savings account, but still typically lags behind rates from online-only banks.
  • Your actual rate depends on which account type you choose and how much money you maintain in the account.
  • Bank of America changes its rates in response to Federal Reserve policy, so the rate you see today is not locked in permanently.
  • You can find the current rate by visiting bankofamerica.com, calling the bank, or visiting a local branch in person.

How Bank of America's tiered rate structure works

Bank of America uses balance tiers to determine your savings rate. This means the more money you keep in the account, the higher percentage you earn—but the increases are small. For example, a customer with $25,000 might earn a slightly higher rate than someone with $10,000, but the difference is often just a few basis points (hundredths of a percent).

The bank publishes these tier breakpoints on its website, but they vary by account type. The standard savings account has different tiers than the Money Market account. If you're deciding between accounts, comparing the rate at your expected balance level matters more than comparing the top-tier rates.

Why Bank of America's rates are lower than competitors

Bank of America is a large national bank with thousands of branches and ATMs, which costs money to maintain. Online-only banks like Ally, Marcus, and Discover have no physical locations, so they pass those savings to customers in the form of higher interest rates. A customer at an online bank might earn 4% to 5% APY on a savings account, while Bank of America customers earn closer to 0.01% to 0.05%.

This does not mean Bank of America is a bad choice for everyone. If you use the bank's checking account, have a mortgage there, or value in-person service and ATM access, the convenience may outweigh the lower rate. But if your only goal is to earn interest on savings, the rate difference is substantial over time.

How often Bank of America changes savings rates

Bank of America does not announce rate changes on a fixed schedule. Instead, the bank adjusts rates when the Federal Reserve changes its benchmark interest rate, or when the bank decides to shift its strategy to attract or retain deposits. These changes can happen several times per year or not at all for months, depending on economic conditions.

When the Federal Reserve raises rates, Bank of America typically raises its savings rates too—but usually by a smaller amount than online competitors. When the Fed cuts rates, Bank of America cuts its rates as well. The lag between a Fed decision and a Bank of America rate change is usually a few days to a week.

Comparing Bank of America savings to other account types at the bank

Bank of America offers several ways to hold money and earn interest. The standard savings account is the most basic option. The Money Market account typically pays more but may require a higher minimum balance. The bank also offers CDs (certificates of deposit) with fixed rates for set time periods—these rates are usually higher than savings account rates, but your money is locked in.

If you keep money in a Bank of America checking account instead of savings, you earn little to no interest. Checking accounts are designed for spending and bill payments, not for building savings. If you're trying to grow money over time, a savings or Money Market account is the right choice within Bank of America's product line.

What to do if you want a higher rate

If Bank of America's savings rate does not meet your needs, you have other options. Online savings accounts from banks like Ally, Marcus, Discover, and American Express typically offer rates 50 to 100 times higher than Bank of America. Credit unions also often pay higher rates on savings accounts, especially if you become a member.

You do not have to close your Bank of America account to open a savings account elsewhere. Many people keep a checking account at Bank of America for convenience while holding their savings at a higher-paying institution. You can transfer money between banks electronically in one to three business days.

How interest is calculated and paid

Bank of America calculates interest daily based on your account balance, but pays it monthly. This means if you have $10,000 in the account earning 0.01% APY, the bank divides that annual rate by 365 days, multiplies by your balance each day, and adds up the total at the end of the month. The monthly deposit is usually just a few cents at Bank of America's current rates.

Interest is paid directly into your savings account on the first business day of the following month. You do not have to do anything to receive it—it happens automatically. If you withdraw money during the month, the interest calculation adjusts to reflect the lower balance for the days the money was out.

Frequently Asked Questions

Does Bank of America charge a monthly fee on savings accounts?

Bank of America does not charge a monthly maintenance fee on its standard savings account. However, the bank may charge fees for other reasons, such as overdrafts or excessive withdrawals. Check the current fee schedule on the Bank of America website or ask in a branch to confirm what fees explore to your specific account.

Can I move my money to a higher-paying account without closing my Bank of America account?

Yes. You can open a savings account at another bank while keeping your Bank of America checking account open. Transfer money between the accounts using electronic transfer, which typically takes one to three business days. You do not have to close anything at Bank of America unless you choose to.

What happens to my interest rate if I withdraw money from my savings account?

Your interest rate does not change. The rate stays the same, but the amount of interest you earn that month decreases because you have less money in the account. Interest is calculated daily on whatever balance you hold, so withdrawals reduce the interest paid that month.

How do I find Bank of America's current savings rate?

Visit bankofamerica.com and navigate to the savings account page, call 1-800-432-1000, or visit a local Bank of America branch. The website shows current rates by account type and balance tier. Rates change periodically, so checking directly with the bank gives you the most current information.

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

Yes. Bank of America is a member of the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to $250,000 per account holder per bank. Your savings account balance is protected up to that limit, even if the bank fails.