Bank of America does not offer a dedicated high yield savings account
Bank of America's standard savings account earns 0.01% APY on most balances, which is far below what other banks pay. If you want a high yield savings account, you will need to open one at a different bank — either online-only banks like Marcus, Ally, or American Express Personal Savings, or at credit unions that offer higher rates to members.
Bank of America does offer a Money Market Account, but it also earns a low rate: typically 0.01% to 0.04% APY depending on your balance tier. The rate does not change based on how much you deposit, and it does not compete with high yield accounts elsewhere.
If you want to keep your money at Bank of America while earning more interest, your only option is to move funds into a Certificate of Deposit (CD), which locks your money away for a set term but pays a higher rate. As of now, Bank of America CDs pay between 4% and 5% APY depending on the term length, but you cannot withdraw the money early without a penalty.
Key Takeaways
- Bank of America's regular savings account pays 0.01% APY, which means $10,000 earns about $1 per year in interest.
- The Money Market Account at Bank of America also pays 0.01% to 0.04% APY and is not a high yield option.
- High yield savings accounts at other banks currently pay 4% to 5% APY, meaning the same $10,000 would earn $400 to $500 per year.
- If you want to stay with Bank of America, a CD is the only way to earn meaningful interest, but your money is locked in for the term.
- Opening a high yield savings account at another bank takes 10 to 15 minutes online and does not require closing your Bank of America account.
How Bank of America's savings rates compare to other banks
The gap between Bank of America and high yield savings accounts is substantial. A high yield savings account at Marcus, Ally, or American Express Personal Savings currently pays between 4.0% and 5.35% APY. Bank of America pays 0.01% APY on a regular savings account and 0.01% to 0.04% on a Money Market Account.
On a $10,000 deposit, here is what the difference means over one year:
| Account Type | Interest Rate | Interest Earned on $10,000 |
|---|---|---|
| Bank of America Savings | 0.01% APY | $1 |
| Bank of America Money Market | 0.01% to 0.04% APY | $1 to $4 |
| High Yield Savings (other banks) | 4.0% to 5.35% APY | $400 to $535 |
| Bank of America CD (1-year) | 4.0% to 5.0% APY | $400 to $500 |
The reason Bank of America keeps rates low is that it is a large national bank with physical branches. It does not need to offer high rates to attract deposits because customers stay for convenience and existing relationships. Online-only banks have no branches, so they pass the savings on to customers through higher interest rates.
When a Bank of America CD makes sense instead
A Certificate of Deposit at Bank of America pays a competitive rate — currently 4.0% to 5.0% APY depending on how long you lock your money away. The trade-off is that you cannot touch the money without paying an early withdrawal penalty, which is usually three to six months of interest.
A CD makes sense if you know you will not need the money for a specific period — say, 6 months, 1 year, or 5 years. You pick the term when you open the account, and the rate is locked in for that entire period. If interest rates drop, you keep earning the higher rate. If rates rise, you are stuck with the lower one.
A high yield savings account is better if you might need the money sooner. High yield accounts have no withdrawal limits and no penalties — you can move money out anytime. The rate can change, but so can the rate on a CD after your term ends.
How to open a high yield savings account outside Bank of America
You do not have to close your Bank of America account to open a high yield savings account elsewhere. You can keep your checking account at Bank of America for everyday spending and bills, and open a savings account at another bank purely for saving money.
To open a high yield savings account online, you will need:
- A valid government ID (driver's license or passport)
- Your Social Security number
- Proof of address (recent utility bill or bank statement)
- An initial deposit, usually $0 to $25 depending on the bank
The process takes 10 to 15 minutes. The bank will verify your identity and run a soft credit check (which does not affect your credit score). You can then transfer money from your Bank of America account to the new savings account using the account and routing numbers the new bank provides.
Popular high yield savings banks include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Each pays between 4.0% and 5.35% APY as of now, though rates change based on Federal Reserve decisions.
What happens if you keep money in Bank of America savings
If you leave money in a Bank of America savings account earning 0.01% APY, you are losing money to inflation. Inflation currently runs around 3% per year, which means your money loses purchasing power even as the account balance stays the same.
A high yield savings account earning 4.5% APY means your money actually grows faster than inflation, so you are building real wealth. Over 10 years, the difference between 0.01% and 4.5% on $10,000 is roughly $4,500 in lost interest.
Bank of America does not penalize you for moving money to another bank, and you can keep both accounts open at the same time. Many people use Bank of America for checking and everyday transactions, then keep a high yield savings account elsewhere for money they are saving.
Bank of America's other savings products
Beyond the standard savings account and Money Market Account, Bank of America offers CDs and Individual Retirement Accounts (IRAs). The CDs pay the rates mentioned above. IRAs are retirement accounts with tax advantages, but they have withdrawal restrictions — you cannot touch the money before age 59½ without a penalty (with some exceptions).
Bank of America also offers sweep accounts, which automatically move money between checking and savings to earn a small amount of interest. These are useful if you want everything in one place, but the interest rate is still very low.
None of these products compete with a high yield savings account at another bank if your goal is to earn interest on money you might need within the next few years.
Frequently Asked Questions
Can I transfer money from Bank of America to a high yield savings account?
Yes. Once you open a high yield savings account at another bank, you can transfer money from your Bank of America checking or savings account using the new bank's routing and account numbers. The transfer usually takes one to three business days. You can set up recurring transfers if you want to move money regularly.
Will opening a high yield savings account hurt my credit score?
No. Banks run a soft credit check when you open a savings account, which does not affect your credit score. A soft check is different from the hard inquiry that happens when you apply for a loan or credit card. You can open as many savings accounts as you want without damaging your credit.
What if Bank of America raises its savings rates?
Bank of America has not raised its savings rates significantly in years, even when the Federal Reserve raised rates. Large national banks tend to keep deposit rates low because they do not need to compete for savings. If you want to benefit from higher rates, you need to move your money to a bank that pays them.
Is my money safe in a high yield savings account at another bank?
Yes, as long as the bank is FDIC-insured. Most online banks and credit unions are FDIC-insured, which means deposits up to $250,000 per account are protected if the bank fails. Check the bank's website for the FDIC insurance logo, or search the FDIC's bank finder tool to confirm.
Can I have both a Bank of America savings account and a high yield savings account?
Yes. You can keep your Bank of America account open and open a high yield savings account elsewhere at the same time. Many people do this — they use Bank of America for checking and everyday transactions, and keep a high yield savings account at another bank for money they are saving long-term.