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 around 0.01% APY on regular savings, which is roughly one-hundredth of what online banks and credit unions pay on high-yield accounts. If you want a savings account that actually grows your money through interest, you will need to look outside Bank of America.

Bank of America does offer a Money Market Account, which pays slightly higher rates than their savings accounts but still lags behind true high-yield options. The Money Market Account requires a higher minimum balance to open and may have tiered interest rates based on your balance level, but even the highest tier rarely matches what online banks offer on their standard high-yield savings accounts.

The reason Bank of America keeps rates low is simple: they operate thousands of physical branches and pay for that infrastructure through lower deposit rates. Online banks with no branches can afford to pay much more because they have lower costs. If you already bank with Bank of America for checking or other services, moving just your savings to a high-yield account elsewhere takes about 15 minutes and does not require closing your Bank of America account.

Key Takeaways

  • Bank of America's regular savings accounts pay around 0.01% APY, which is far below high-yield rates offered by online banks and credit unions.
  • Bank of America's Money Market Account pays more than regular savings but still does not compete with dedicated high-yield savings accounts.
  • You can keep your Bank of America checking account and move only your savings to a high-yield account at another institution.
  • High-yield savings accounts at online banks typically pay 4% to 5% APY, meaning your money grows significantly faster than at Bank of America.

How Bank of America's savings accounts compare to high-yield options

The gap between Bank of America and high-yield savings accounts is substantial. A high-yield savings account at an online bank might pay 4.5% APY, while Bank of America pays 0.01% APY. On $10,000, that difference means you earn roughly $450 per year at a high-yield bank versus $1 per year at Bank of America. Over five years, the difference compounds to thousands of dollars.

Bank of America's Money Market Account sits in the middle but still underperforms. These accounts typically require a minimum balance of $2,500 to open and may pay tiered rates—for example, 0.01% on balances under $25,000 and slightly more on larger balances. Even the highest tier rarely exceeds 0.05% APY, which is still 90 times lower than what online banks offer.

The trade-off is access to physical branches. If you regularly deposit cash or need to speak with someone in person, Bank of America's branch network has value. But if you primarily use online banking and ATMs, that convenience costs you thousands in lost interest over time.

Where to find high-yield savings accounts if you leave Bank of America

Online banks like Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings consistently offer rates between 4% and 5% APY. Credit unions often offer competitive rates as well, sometimes higher than online banks, though you must be a member to open an account. You can research current rates on sites that track savings account offerings, though rates change frequently so check directly with the bank before opening.

Opening a high-yield account takes about 10 minutes online. You will need your Social Security number, a government ID, and a way to fund the account—either by transferring money from your Bank of America account or by depositing a check. Most online banks process transfers within one to three business days.

You do not have to close your Bank of America account to move your savings elsewhere. Many people keep a Bank of America checking account for direct deposit and bill pay while maintaining a high-yield savings account at an online bank for money they want to grow. This setup gives you the convenience of Bank of America's infrastructure plus the interest rates of a high-yield account.

What Bank of America offers instead of high-yield savings

Bank of America's main savings products are the regular Savings Account, the Money Market Account, and certificates of deposit (CDs). CDs lock your money away for a set term—typically three months to five years—in exchange for a may provide rate. Bank of America's CD rates are also low compared to online banks, but they do offer slightly more than savings accounts. If you know you will not need money for a specific period, a CD from an online bank will still pay more than a Bank of America CD.

Bank of America also offers interest-bearing checking accounts through their Preferred Rewards program, which gives higher rates to customers who maintain large balances or have multiple accounts with the bank. Even with Preferred Rewards, the rates remain far below high-yield savings accounts. This program is designed to reward loyalty to Bank of America, not to compete on interest rates.

Why Bank of America's rates stay low

Bank of America operates over 4,000 branches and employs tens of thousands of people. Those branches have rent, utilities, staff, and security costs. The bank passes those expenses onto customers by paying lower interest on deposits and charging higher fees on accounts. Online banks have no branches, no tellers, and minimal overhead, so they can afford to pay depositors much more.

Additionally, Bank of America is a large, established institution with a stable customer base. People often keep money there for convenience or because they have had an account for years. The bank does not need to compete aggressively on interest rates because many customers will stay regardless. Online banks, by contrast, must offer competitive rates to attract new customers.

Moving your savings without closing your Bank of America account

If you decide to open a high-yield savings account elsewhere, you can transfer money from Bank of America without closing your account. Log into your Bank of America online banking, find the transfer or payment section, and add the new bank as an external account. Bank of America will ask for the routing number and account number of your new bank, then initiate an ACH transfer. This typically takes one to three business days.

Alternatively, you can withdraw cash from a Bank of America ATM and deposit it into your new account, though this is slower and less secure. The ACH transfer method is faster and leaves a clear record of where your money went.

Once the transfer is complete, you can leave your Bank of America savings account open with a zero balance or close it if you prefer. Closing an account does not affect your credit score and takes a phone call or a visit to a branch. Keeping it open costs nothing if you maintain a zero balance, so many people simply leave it inactive.

Frequently Asked Questions

Can I earn interest on my Bank of America checking account?

Bank of America's standard checking accounts do not earn interest. Their Preferred Rewards program offers interest-bearing checking for customers who meet certain balance or account requirements, but the rates are still far below high-yield savings accounts. For interest-bearing checking, online banks and credit unions typically offer better rates.

What is the minimum balance to open a Bank of America savings account?

Bank of America's regular Savings Account requires a $100 minimum to open, though some branches may waive this. The Money Market Account requires $2,500. These minimums are lower than many high-yield accounts, but the interest rates do not compensate for the difference.

Will moving my savings to another bank affect my credit score?

No. Opening a savings account at another bank and transferring money does not affect your credit score. Credit scores are based on borrowing and repayment history, not on where you keep your savings. You can move money between banks as often as you want without any impact on your credit.

Do I need to keep money in Bank of America if I have a checking account there?

No. You can have a checking account at Bank of America and a savings account at an online bank. Many people do this to get the convenience of Bank of America's branches for checking while earning high interest on savings elsewhere. The two accounts are completely separate.

What happens to my Bank of America savings account if I do not use it?

Bank of America will not close your account for inactivity as long as you maintain the minimum balance (usually $100 for savings accounts). If your balance drops below the minimum, the bank may charge a monthly fee. You can keep the account open indefinitely with a zero balance at no cost.