Bank of America offers money market accounts, but they come with specific terms and minimum balances
Bank of America does offer money market accounts, though the product is not as prominently marketed as their savings or checking options. These accounts sit between a regular savings account and a certificate of deposit (CD) — they pay interest rates higher than standard savings, but the rate varies based on your balance tier and current market conditions. The catch is the minimum deposit requirement, which typically starts at $2,500, and Bank of America limits the number of withdrawals you can make each month.
The account structure works like this: you deposit money, earn interest that compounds daily, and can write checks or make transfers, though there are restrictions on how often you can do either. The interest rate you receive depends on how much you keep in the account — Bank of America uses tiered rates, meaning higher balances earn higher rates. If your balance drops below the minimum, you may face a monthly maintenance fee.
Key Takeaways
- Bank of America money market accounts require a minimum opening deposit of $2,500 and pay tiered interest rates based on your balance level.
- You can write checks and make transfers from the account, but federal rules limit you to six withdrawals per month, or you face a fee.
- The interest rate changes based on market conditions and your balance tier, so rates are not fixed like they are on a CD.
- If your balance falls below $2,500, Bank of America charges a monthly maintenance fee that reduces your earnings.
How Bank of America money market rates and tiers work
Bank of America structures money market accounts with tiered interest rates — the more you deposit, the higher your rate. The exact rates change frequently and vary by region, so you need to check your local branch or the Bank of America website for current figures. As of recent years, rates have ranged from around 0.01% on balances under $10,000 to higher rates on balances of $100,000 or more, but these numbers shift as the Federal Reserve adjusts its benchmark rate.
The tiered system means you do not earn one flat rate across your entire balance. Instead, different portions of your money earn different rates. For example, your first $10,000 might earn 0.01%, your next $25,000 might earn 0.02%, and balances above that earn a higher rate. This structure rewards larger depositors but can feel confusing when you are trying to calculate what you will actually earn.
Interest compounds daily and is credited monthly, so your earnings grow slightly faster than they would in a standard savings account. However, because rates are variable, not fixed, your monthly interest payment can go down if the Federal Reserve lowers rates or if Bank of America adjusts its own rates downward.
Withdrawal limits and how they affect your account
Federal regulations limit you to six withdrawals or transfers per month from a money market account. This includes checks you write, transfers to other accounts, and debit card withdrawals. If you exceed six in a month, Bank of America charges a fee for each withdrawal over the limit — typically $10 per excess withdrawal, though this can vary.
The six-withdrawal rule exists because money market accounts are technically savings products, not checking accounts. If you need to access your money more frequently, a regular checking account is a better fit. Some people use a money market account as a holding place for money they do not touch often, then transfer it to checking when they need to spend it.
If you repeatedly exceed the withdrawal limit, Bank of America may close the account or convert it to a different product. The bank is not required to warn you before doing this, so staying within the limit is important if you want to keep the account open.
Minimum balance requirements and maintenance fees
Bank of America requires a minimum opening deposit of $2,500 to open a money market account. This is higher than many of their other savings products, so it is not an account for someone starting with a small amount of money. The minimum balance must be maintained at all times — if your balance drops below $2,500 even for a day, you trigger the monthly maintenance fee.
The monthly maintenance fee is typically $12, though this can vary. That fee is deducted from your account balance each month, which means it directly reduces the money you have earning interest. Over a year, a $12 monthly fee adds up to $144, which can wipe out most or all of the interest you earn if your balance is small or rates are low.
Some Bank of America customers avoid the maintenance fee by maintaining a may have access to relationship with the bank — for example, by having a checking account with direct deposit or by keeping a certain total balance across multiple accounts. The specific requirements change, so ask your local branch what waives the fee for your situation.
How a Bank of America money market account compares to other savings options
A money market account at Bank of America pays more interest than a regular savings account but typically less than what you can find at online banks or credit unions. The trade-off is convenience — you can walk into a physical branch, write checks from the account, and speak to someone in person if something goes wrong. Online banks often pay higher rates because they have lower overhead costs, but they do not have branches.
Compared to a CD, a money market account is more flexible. With a CD, you lock your money away for a set term (three months, one year, five years) and cannot touch it without paying an early withdrawal penalty. A money market account lets you access your money anytime, though the six-withdrawal limit means you cannot treat it like a checking account. The downside is that CD rates are usually higher because you are committing to leave the money untouched.
If you want the highest possible interest rate and do not need a physical branch, an online savings account or money market account from a bank like Marcus, Ally, or American Express typically pays more. If you value the ability to visit a branch and want a middle ground between savings and checking, Bank of America's money market account works, but you are paying for that convenience with a lower rate.
How to open a Bank of America money market account
You can open a money market account at Bank of America in person at any branch, online through their website, or by phone. You will need a government-issued ID, your Social Security number, and proof of address. The bank will run a background check through ChexSystems, which is a banking history report — if you have had accounts closed for cause or unpaid overdrafts at other banks, this may show up and could affect whether Bank of America opens the account for you.
When you open the account, you must deposit at least $2,500 to fund it. You can transfer this from another bank account or bring a check or cash to a branch. The account is usually active within one business day, though it can take longer if you are funding it by mail or from an external bank transfer.
After opening, you can manage the account online, through the Bank of America mobile app, by phone, or in person. You can set up automatic transfers, request checks, and monitor your interest earnings through any of these channels.
What happens if your balance drops or you need to close the account
If your balance falls below $2,500, you have a grace period — usually a few days — to bring it back up before the monthly maintenance fee kicks in. Once the fee is charged, it is deducted from your balance, which can push you even further below the minimum. If you know your balance will drop, contact Bank of America and ask about your options; some branches will waive a single fee if you explain the situation.
If you want to close the account, you can do so at any branch, online, or by phone. Bank of America will send you a check for the remaining balance, or you can transfer it to another account. There is no penalty for closing a money market account, but make sure you have moved your money before you close it, because the account will no longer exist once it is closed.
If you have not made any deposits or withdrawals for an extended period, Bank of America may classify the account as dormant and charge additional fees or close it. The exact timeline varies by state, but generally accounts with no activity for two to three years are at risk. If this happens, you can reactivate the account by contacting the bank.
Frequently Asked Questions
Can I write checks from a Bank of America money market account?
Yes, you can write checks, but you are limited to six checks per month along with other withdrawals. If you write more than six checks in a month, you pay a fee for each one over the limit. If you need to write checks frequently, a checking account is a better choice.
What is the current interest rate on Bank of America money market accounts?
Rates change regularly and vary by region and balance tier. You can find current rates on the Bank of America website, by calling your local branch, or by visiting in person. Rates are typically lower than what online banks offer but higher than Bank of America's regular savings account.
Do I have to keep $2,500 in the account at all times?
Yes. If your balance drops below $2,500, you are charged a monthly maintenance fee of around $12. Some customers avoid this fee by maintaining other may have access to relationships with Bank of America, such as a checking account with direct deposit.
Can I transfer money from my Bank of America checking account to my money market account?
Yes, you can transfer money between your Bank of America accounts online, through the app, or at a branch. These transfers count toward your six-withdrawal limit per month, so plan accordingly if you move money frequently.
What happens if I exceed the six-withdrawal limit?
Bank of America charges a fee for each withdrawal over six per month, typically $10 per excess withdrawal. If you repeatedly exceed the limit, the bank may close the account or convert it to a different product without warning.