Bank of America does not offer a dedicated high yield savings account

Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, Bank of America offers savings accounts with rates that typically fall between 0.01% and 0.04% annual percentage yield (APY), depending on the account type and your balance. These rates are significantly lower than what online banks and credit unions currently offer—often 4% to 5% APY or higher on high yield savings accounts.

If you want a high yield savings account, you will need to open one at a different bank. Bank of America's strength is in branch access and checking account features, not in savings rates. Many people keep a Bank of America checking account for everyday use while holding their savings at an institution that pays more interest.

Key Takeaways

  • Bank of America savings accounts pay between 0.01% and 0.04% APY, which is far below high yield rates offered by online banks.
  • Online banks and credit unions currently offer high yield savings accounts with rates of 4% to 5% APY or higher.
  • You can keep your Bank of America checking account and open a high yield savings account elsewhere without closing your existing accounts.
  • The difference in interest earned compounds over time—a $10,000 balance earns roughly $40 per year at Bank of America versus $400 to $500 per year at a high yield account.

What Bank of America savings accounts actually pay

Bank of America offers three main savings products: the Regular Savings Account, the Money Market Account, and the Premium Savings Account. The Regular Savings Account has the lowest rate and no minimum balance requirement. The Money Market Account requires a higher opening deposit and offers a slightly better rate in exchange. The Premium Savings Account is available only to customers with certain checking account packages and higher balances.

None of these accounts are competitive with high yield savings accounts at online banks. The rates do not change based on market conditions the way they do at institutions that actively compete for deposits. Bank of America's rates remain stable but low because the bank relies on its branch network and brand recognition rather than interest rates to attract customers.

Where to find high yield savings accounts instead

Online banks such as Marcus, Ally, American Express Personal Savings, and Discover Bank currently offer high yield savings accounts with rates between 4% and 5% APY. Credit unions often offer competitive rates as well, especially if you are a member. These institutions can offer higher rates because they have lower overhead costs than traditional banks with physical branches.

Opening a high yield savings account takes about 10 minutes online. You will need your Social Security number, a government-issued ID, and a way to fund the account—usually a transfer from your Bank of America checking account. Most high yield savings accounts have no monthly fees and no minimum balance requirements, though some require a small opening deposit of $25 to $100.

How much more you earn with a high yield account

The difference between Bank of America's rates and high yield rates adds up quickly. On a $10,000 balance, Bank of America pays roughly $1 to $4 per year in interest. A high yield account at 4.5% APY pays $450 per year on the same balance. Over five years, that is a difference of $2,200 in interest earned.

The gap widens with larger balances. A $50,000 savings balance earns $5 to $20 per year at Bank of America but $2,250 per year at a high yield account—a difference of $2,230 annually. Even if you keep only $5,000 in savings, the high yield account earns $225 per year versus roughly $2 at Bank of America.

Why Bank of America keeps rates low

Bank of America does not need to offer high rates to keep deposits. The bank has 4,300 branches and millions of customers who use it for checking, credit cards, mortgages, and investment services. Customers often keep their savings at Bank of America simply because it is convenient to have everything in one place, even if the interest rate is poor.

Online banks compete primarily on interest rates because they have no branches and cannot offer the convenience factor. They pass the savings from lower operating costs directly to customers through higher rates. Bank of America competes on convenience and brand trust, not on how much interest it pays.

How to move money between Bank of America and a high yield account

You can transfer money from your Bank of America checking or savings account to a high yield account at another bank using an external transfer. Most online banks allow you to link your Bank of America account and pull money directly. The transfer usually takes one to three business days.

You can also set up a recurring transfer if you want to move money regularly—for example, $200 per month from Bank of America to your high yield savings account. This way, you keep your checking account at Bank of America for bill pay and everyday spending while your savings grow faster elsewhere. There is no penalty for moving money out of a Bank of America savings account.

Should you close your Bank of America savings account

You do not have to close your Bank of America savings account to open a high yield account elsewhere. Many people keep both: a Bank of America savings account as an emergency backup and a high yield account as their primary savings vehicle. Closing the account is optional and depends on whether you want to simplify your banking or keep the account open for convenience.

If you do decide to close it, Bank of America will not charge a fee. Simply withdraw the remaining balance and contact the bank to close the account, or let it sit dormant if you prefer. There is no advantage to keeping money in a Bank of America savings account if you have access to a high yield account elsewhere.

Frequently Asked Questions

Can I earn more interest by keeping a higher balance at Bank of America?

No. Bank of America's rates do not increase based on your balance size. The Premium Savings Account offers a slightly higher rate than the Regular Savings Account, but it still falls far short of high yield rates. The only way to earn significantly more interest is to move your money to a different bank.

Do high yield savings accounts have withdrawal limits?

Federal regulations previously limited savings account withdrawals to six per month, but that rule was suspended in 2020 and has not been reinstated. Most high yield accounts now allow unlimited withdrawals. Check the specific bank's terms, but withdrawal limits are rarely a problem in practice.

Is my money safe in an online bank's high yield savings account?

Yes. Online banks are federally insured by the FDIC up to $250,000 per depositor, per bank, just like Bank of America. Your deposits are protected even if the bank fails. The FDIC insurance is the same whether you bank online or at a branch.

What happens to my high yield rate if interest rates drop?

High yield savings rates are variable, meaning they can go up or down. If the Federal Reserve lowers interest rates, your bank will eventually lower your rate as well. However, online banks typically lower rates more slowly than traditional banks, so you still come out ahead over time.

Can I use Bank of America's mobile app to manage a high yield account at another bank?

No. You will need to use the other bank's app or website to manage that account. However, you can link the high yield account to your Bank of America checking account and transfer money between them through Bank of America's app without logging into the other bank's system.