Bank of America's interest rates change based on what product you use and what the Federal Reserve does

Bank of America does not have one interest rate. The bank sets different rates for savings accounts, money market accounts, certificates of deposit (CDs), and loans. Those rates move up and down when the Federal Reserve changes its benchmark rate, usually several times a year. The rate you see advertised online may not be the rate you get—it depends on your account type, your balance, and sometimes your location.

Right now, Bank of America's savings account rates are significantly lower than rates at online banks. A regular savings account at Bank of America typically earns between 0.01% and 0.04% annual percentage yield (APY), depending on your balance. Money market accounts and CDs pay more, but still lag behind what you can find elsewhere. If you keep money in a Bank of America savings account expecting to earn meaningful interest, you will be disappointed.

Key Takeaways

  • Bank of America's savings rates are currently much lower than online banks offer for the same products.
  • The rate you receive depends on your account type, balance tier, and whether you are a Preferred Rewards member.
  • CDs and money market accounts pay more than savings accounts, but rates still vary by term length and deposit amount.
  • Loan rates (mortgages, auto loans, personal loans) depend on your credit score, the loan term, and current market conditions, not just what Bank of America decides.

Savings and money market account rates at Bank of America

Bank of America's regular savings account earns between 0.01% and 0.04% APY. The exact rate depends on your balance and whether you hold other accounts with the bank. A Preferred Rewards member (someone who maintains a higher balance or has a mortgage with the bank) may earn a slightly higher rate, but the difference is usually less than 0.01%.

Money market accounts pay more—typically between 0.04% and 0.10% APY—but you must maintain a higher minimum balance to avoid monthly fees. These rates are still far below what online banks like Marcus, Ally, or Discover offer for the same products. If you are comparing Bank of America to an online bank, the online bank will almost always win on interest earned.

Certificate of deposit (CD) rates

Bank of America offers CDs with terms ranging from three months to five years. Rates increase with longer terms—a three-month CD pays less than a five-year CD. Current CD rates at Bank of America range from roughly 0.05% to 0.50% APY, depending on the term, but these rates change frequently as the Federal Reserve adjusts its benchmark rate.

The catch with CDs is the early withdrawal penalty. If you take your money out before the term ends, Bank of America charges a penalty equal to a certain number of months of interest. For a five-year CD, the penalty might be 150 days of interest, which can be substantial if rates have risen since you opened the account. Read the CD terms carefully before you commit.

Loan rates: mortgages, auto loans, and personal loans

Bank of America's loan rates are not set by the bank alone. Your rate depends on your credit score, the loan amount, the loan term, current market conditions, and the type of loan. A person with a 750 credit score will get a much better mortgage rate than someone with a 650 score. A 15-year mortgage will have a lower rate than a 30-year mortgage.

Mortgage rates at Bank of America typically fall within the range of what other major banks offer, but they are not always the lowest. Auto loan rates vary similarly—the bank publishes a range, but your actual rate depends on your creditworthiness and the vehicle. Personal loans at Bank of America usually carry higher rates than mortgages or auto loans because they are unsecured (the bank has no collateral if you default).

The only way to know what rate you would receive is to request a quote. Bank of America will pull your credit report and give you a specific rate based on your profile. That rate is usually good for a limited time—often 30 to 45 days—so if you are shopping around, get quotes from multiple lenders within a short window.

How Federal Reserve changes affect your Bank of America rate

When the Federal Reserve raises or lowers its benchmark interest rate, Bank of America adjusts its deposit rates (savings, money market, CDs) within days or weeks. The bank wants to stay competitive enough to keep deposits, but not so competitive that it loses profit. Loan rates move more slowly and less predictably because they also depend on the bond market and the bank's own cost of funds.

If you are holding a CD, your rate is locked in for the entire term—Federal Reserve changes do not affect it. If you have a variable-rate loan (some home equity lines of credit, for example), your rate will change when the bank adjusts its prime rate, which it ties to the Federal Reserve's benchmark.

Where to find Bank of America's current rates

Bank of America publishes current rates on its website under the savings, money market, and CD sections. The rates shown are typically the highest rates available—you may receive a lower rate depending on your balance and account type. Call a Bank of America branch or log into your online account to see what rate you would actually receive.

For loan rates, Bank of America offers online rate quotes for mortgages and auto loans. You can see a range without committing to anything. For personal loans, you will need to start an process or call to get a specific quote.

Why Bank of America's deposit rates are lower than online banks

Bank of America has physical branches, customer service staff, and higher operating costs than online-only banks. The bank passes some of those costs to customers by paying lower interest on deposits. You are paying for the convenience of walking into a branch and speaking to a person. If you do not need that convenience, an online bank will pay you more interest on the same deposit.

This is not a complaint about Bank of America—it is how the banking business works. If you value branch access and integrated banking, the lower interest rate is the trade-off. If you want the highest interest rate, move your savings to an online bank and keep your checking account at Bank of America if you want.

Frequently Asked Questions

What is Bank of America's current savings account interest rate?

Bank of America's savings account rate is typically between 0.01% and 0.04% APY. The exact rate depends on your balance and account type. Check the bank's website or call your branch for the current rate on your specific account.

Does Bank of America offer higher rates for larger deposits?

Yes, Bank of America's money market accounts and CDs pay higher rates for larger balances, and Preferred Rewards members receive slightly better rates across all deposit products. The differences are usually small—often less than 0.05% APY—but they add up over time on large balances.

How often do Bank of America's interest rates change?

Deposit rates change whenever the Federal Reserve adjusts its benchmark rate, which happens several times a year. The bank may also adjust rates independently to stay competitive. Loan rates move based on market conditions and the Federal Reserve, but not on a fixed schedule.

Can I negotiate my mortgage or loan rate with Bank of America?

You cannot negotiate the rate itself, but you can shop around and use competing offers to pressure the bank to match or beat them. Some lenders will lower their rate slightly if you bring them a better offer from another bank. Always get quotes from at least two or three lenders before committing.

What happens to my CD rate if the Federal Reserve cuts rates?

Your CD rate stays the same for the entire term, no matter what the Federal Reserve does. That is the point of a CD—your rate is locked in. If rates fall, you benefit. If rates rise, you are stuck with the lower rate unless you withdraw early and pay the penalty.