Bank of America's savings account rates are lower than most online banks, but they offer accounts with modest interest if you need to stay within their ecosystem

Bank of America does not call any of its savings accounts "high-yield." Their standard savings account currently earns interest, but the rate is substantially lower than what online banks and credit unions offer—often 0.01% to 0.04% depending on your balance tier, compared to 4% to 5% at online competitors. If you keep money at Bank of America primarily for checking and bill pay, the savings account works as a holding place. If you are shopping specifically for the highest interest on savings, Bank of America is not the right choice.

Bank of America does offer a Money Market Account, which is their closest product to a high-yield account. Money Market Accounts typically pay slightly more than their standard savings account—but still well below what online banks pay. The rate varies by balance level and changes with Federal Reserve decisions.

Key Takeaways

  • Bank of America's savings and Money Market Account rates are significantly lower than online banks offering 4% to 5% annual percentage yield.
  • Bank of America's rates are tiered by balance: higher balances earn slightly more interest, but even the top tier remains below online alternatives.
  • If you need a savings account primarily for FDIC protection and convenience within your existing Bank of America relationship, their accounts work for that purpose.
  • Moving savings to an online bank or credit union can earn you substantially more interest on the same dollar amount with no additional risk.

How Bank of America's savings account rates are structured

Bank of America uses a tiered rate system: the more money you keep in the account, the higher the interest rate you earn on that portion. For example, balances up to $25,000 might earn 0.01%, while balances above $100,000 earn 0.04%—but these exact thresholds and rates change periodically. You can check your current rate by logging into your account or calling their customer service line.

The Money Market Account follows a similar tiered structure but typically pays slightly more than the standard savings account. However, Money Market Accounts often come with a limit on how many withdrawals you can make per month (usually six), and some require a higher minimum opening balance.

Bank of America adjusts these rates when the Federal Reserve changes its benchmark interest rate. When the Fed raises rates, Bank of America eventually raises theirs—but usually by a smaller amount and with a delay. When the Fed cuts rates, Bank of America cuts theirs quickly.

Why Bank of America rates lag behind online banks

Online banks and credit unions can pay higher interest because they have lower overhead costs: no physical branches, smaller staff, and less real estate expense. They pass those savings to customers through higher rates. Bank of America maintains thousands of branches nationwide, which costs money that ultimately comes from customer deposits and fees.

Bank of America also relies on customer inertia: many people keep savings accounts there simply because they already have checking there, even if the rate is poor. They do not need to compete aggressively on interest rates because many customers will not move their money elsewhere.

What to do if you want higher interest on your savings

If earning more interest matters to you, open a savings account at an online bank or credit union while keeping your Bank of America checking account for everyday use. You can transfer money between accounts at different banks in one to three business days using ACH transfer, or instantly using real-time payment services if both banks support them.

Online banks that currently offer rates around 4% to 5% include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and many credit unions through services like Connexus or Pentagon Federal. Rates change frequently, so compare current rates at the time you are ready to open an account.

You lose nothing by splitting your money this way: both accounts are FDIC-insured up to $250,000, so your money is equally safe. Your Bank of America checking account remains unchanged, and you still have access to their branches and ATMs if you need cash.

Bank of America's other savings products

Bank of America offers Certificates of Deposit (CDs), which lock your money away for a set term—usually three months to five years—in exchange for a may provide interest rate. CD rates are higher than savings accounts but still lag behind online banks. You cannot withdraw the money before the term ends without paying a penalty, so CDs work only if you truly will not need the cash.

They also offer Individual Retirement Accounts (IRAs) and other investment products, but these are separate from savings accounts and serve a different purpose: tax-advantaged retirement savings rather than emergency funds or short-term goals.

When Bank of America's savings account makes sense

Bank of America's savings account is practical if you need FDIC protection, want everything in one place for simplicity, or do not have much money to save and the interest difference is negligible. If you keep $500 in savings, the difference between 0.01% and 4.5% is about $22 per year—not worth the hassle of managing two banks for some people.

It also makes sense if you use Bank of America's Preferred Rewards program, which offers perks like higher interest rates, fee waivers, and cash back on credit cards based on your total balance across all accounts. If you already may have access to for Preferred Rewards through a large checking balance or investment account, the savings account rate bump might be meaningful enough to keep everything together.

How to check your current Bank of America savings rate

Log into your Bank of America online account or mobile app, navigate to your savings account, and look for the interest rate disclosure. You can also call 1-800-432-1000 and ask a representative for your current rate. Bank of America is required to disclose the Annual Percentage Yield (APY) clearly, so you will see the exact rate you are earning.

If you have multiple savings accounts or different balance tiers, each tier will show its own rate. Write down the rate so you can compare it to online banks when you are deciding whether to move money elsewhere.

Frequently Asked Questions

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

Yes, Bank of America's tiered rate system pays more on larger balances. However, even the highest tier at Bank of America typically earns less than 0.1%, while online banks pay 4% to 5% on all balances regardless of size. The difference compounds significantly over time.

What happens to my savings account interest if the Federal Reserve cuts rates?

Bank of America will lower your rate, usually within days or weeks. They cut rates faster than they raise them. If you want to protect yourself from rate cuts, consider a CD, which locks in a fixed rate for the entire term.

Is my money safe in a Bank of America savings account?

Yes, Bank of America is FDIC-insured up to $250,000 per account type. Your savings account is equally safe whether you earn 0.01% or 4.5%—the interest rate does not affect the safety of your deposit.

Can I move my savings to another bank without closing my Bank of America checking account?

Yes, completely. You can open a savings account anywhere else and leave your checking account at Bank of America. Transfer money between them using ACH transfer (one to three business days) or real-time payment if available. Your checking account is unaffected.

Do I have to pay a fee to close a Bank of America savings account?

Bank of America does not charge a fee to close a savings account, but check your account agreement for any minimum balance requirements or inactivity fees. If you have been inactive for a long time, there may be a small monthly fee, though this varies by account type.