Way2Save is a basic savings product from Bank of America, not a separate bank

Way2Save is a savings account offered by Bank of America. It is not a fintech app, not a standalone bank, and not a high-yield savings account. It is a traditional savings account with a tiered interest rate structure — meaning the rate you earn depends on your balance — and a monthly fee that Bank of America waives if you meet certain conditions.

Whether it is a good choice depends on what you are comparing it to and what you actually do with your money. If you keep less than $500 in savings, the monthly fee makes it expensive. If you keep more than $25,000, you will earn a higher rate, but that rate is still lower than what you can get elsewhere. If you already bank with Bank of America and rarely move money between accounts, the convenience might outweigh the cost.

The account does not require a minimum opening deposit, and you can open it online in about 10 minutes if you already have a Bank of America checking account. If you do not, you will need to open a checking account first.

Key Takeaways

  • Way2Save charges $12 per month unless you maintain a $500 minimum balance or set up a monthly transfer of at least $25 from another account.
  • The interest rate increases in tiers: 0.01% on balances under $25,000, and 0.05% on balances of $25,000 or more, though these rates change and are currently very low.
  • You can avoid the fee by keeping $500 in the account at all times, which is cheaper than paying $12 monthly but still costs you in opportunity cost if rates elsewhere are higher.
  • High-yield savings accounts from online banks typically pay 4% to 5% annual interest, compared to Way2Save's maximum of 0.05%, making them a better choice if earning interest matters to you.

How the monthly fee works and when you actually pay it

Bank of America charges $12 per month to hold a Way2Save account. The fee posts on the first business day of each month. You avoid it in one of two ways: keep a minimum balance of $500 in the account at the end of each day, or set up an automatic monthly transfer of at least $25 from another Bank of America account into Way2Save.

The $500 minimum is a daily balance requirement, not an average. If you drop to $499 on any single day, you pay the fee that month. The $25 monthly transfer must be automatic — a one-time transfer does not count. If you set up the transfer and then cancel it, the fee resumes the following month.

For someone saving $100 per month, the $25 transfer route is simpler: you set it once and forget it. For someone with an irregular savings pattern, the $500 minimum might be easier to maintain. For someone saving less than $500 total, neither option works, and the account costs $144 per year.

Interest rates and how they compare to other savings accounts

Way2Save uses a tiered rate structure. Balances under $25,000 earn 0.01% annual interest. Balances of $25,000 or more earn 0.05% annual interest. These rates are set by Bank of America and change at their discretion — they are not locked in.

To put this in perspective: if you keep $10,000 in Way2Save at 0.01%, you earn $1 per year. If you keep the same $10,000 in a high-yield savings account earning 4.5%, you earn $450 per year. The difference is $449. Over five years, that is $2,245 in interest you do not earn by staying with Way2Save.

Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5.35%, depending on the bank and the current rate environment. Credit unions sometimes offer slightly higher rates on savings accounts, though they require membership. If your goal is to earn interest on money you are saving, Way2Save is not competitive.

When the fee makes the account more expensive than it looks

The $12 monthly fee is only free if you meet one of the two conditions. If you do not, you pay $144 per year. That fee is deducted from your balance, so it directly reduces the amount you have saved.

If you keep $500 in the account to avoid the fee, you are paying an invisible cost: the opportunity cost of that $500. At a high-yield savings rate of 4.5%, that $500 would earn $22.50 per year. By locking it into Way2Save to avoid the fee, you lose that $22.50. Over five years, that is $112.50 in foregone interest. It is a smaller cost than paying the fee outright, but it is still a cost.

For someone with $5,000 in savings, the math is worse. The $500 minimum still applies, so you are keeping 10% of your balance locked in just to avoid a fee. The remaining $4,500 earns 0.01% interest, which is $0.45 per year. A high-yield account would earn $202.50 on the same $5,000. The difference is $202.05 per year, or $1,010 over five years.

Why someone might choose Way2Save anyway

Way2Save makes sense if you already have a Bank of America checking account and you move money between accounts frequently. Bank of America's mobile app lets you transfer between your checking and Way2Save when ready, with no delay. If you are using the account as a short-term holding place for money you are about to spend, the low interest rate does not matter much — you are not keeping the money there long enough to earn significant interest anyway.

It also makes sense if you have a Bank of America relationship that includes other products. Some customers have negotiated fee waivers or higher interest rates as part of a broader banking package. If you have a mortgage, investment account, or credit card with Bank of America, ask whether they offer any rate improvements or fee waivers on Way2Save.

For someone who struggles with impulse spending, the friction of moving money to a separate bank might actually be a feature. Way2Save is not as separate as a truly external account, but it is separate enough that moving money takes a few taps instead of being automatic. That small barrier can be useful.

How Way2Save compares to other Bank of America savings options

Bank of America offers two main savings products: Way2Save and the Regular Savings Account. The Regular Savings Account has no monthly fee, but it also has no interest rate — it earns 0.00%. It is useful only if you want a savings account with zero fees and you do not care about interest.

Bank of America also offers a Money Market Account, which has a higher minimum balance requirement ($2,500) but pays a slightly higher interest rate (currently 0.05% on all balances). The Money Market Account also charges a monthly fee ($12) unless you maintain the $2,500 minimum or set up a $25 monthly transfer. For most people, the Money Market Account and Way2Save are functionally identical in cost and interest earned.

If you are comparing Bank of America products only, Way2Save is the right choice if you want any interest at all and you can meet the fee waiver conditions. If you are comparing across banks, Way2Save loses to any high-yield savings account.

What to do if you are currently using Way2Save

If you have money in Way2Save and you are paying the $12 monthly fee, the first step is to either set up the $25 monthly transfer or move $500 into the account to avoid future fees. That costs you nothing and stops the bleeding when ready.

If you have more than $500 in the account and you are not earning interest elsewhere, consider moving the balance above $500 to a high-yield savings account. You can keep the $500 in Way2Save to avoid the fee, and move everything else to Marcus, Ally, or another online bank. That way you keep the convenience of Bank of America for small transfers while earning real interest on the bulk of your savings.

If you have less than $500 in the account, close it and move the money to a high-yield savings account. The $12 monthly fee will eat through a small balance quickly, and you will earn more interest elsewhere.

Frequently Asked Questions

Can I earn more interest if I keep a larger balance in Way2Save?

Only slightly. Balances of $25,000 or more earn 0.05% instead of 0.01%, which is a five-fold increase. On a $25,000 balance, that is $12.50 per year instead of $2.50 — a difference of $10. A high-yield savings account would earn you $1,125 per year on the same $25,000, so the difference is still enormous.

What happens if my balance drops below $500 one day?

You pay the $12 monthly fee that month. The fee posts on the first business day of the next month. If you drop below $500 on the 28th of the month, you will still pay the fee for that month. The balance requirement is checked daily, so even a temporary dip triggers the fee.

Can I set up the $25 monthly transfer from a non-Bank of America account?

No. The transfer must come from another Bank of America account you own. If you do not have a second Bank of America account, you must maintain the $500 minimum balance instead.

Is Way2Save FDIC insured?

Yes. Bank of America is an FDIC-insured bank, and Way2Save balances are covered up to $250,000 per depositor. This is the same protection you get with any bank account, and it is not a reason to choose Way2Save over a high-yield savings account — those are also FDIC insured.

Can I withdraw money from Way2Save whenever I want?

Yes. There are no withdrawal limits or penalties. You can move money out to your checking account when ready through the Bank of America app, or withdraw cash at any Bank of America ATM.