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 substantially lower than what online banks and credit unions currently offer—often 4% to 5% APY on high yield savings accounts.

If you want higher interest on savings at Bank of America, your only option is the Bank of America Advantage Savings account, which still does not may have access to as "high yield" by industry standards. The rate varies based on your balance tier and whether you maintain a linked checking account, but it remains far below what competitors offer for the same type of account.

Key Takeaways

  • Bank of America's savings accounts pay between 0.01% and 0.04% APY, which is significantly lower than high yield savings accounts offered by online banks.
  • The Advantage Savings account is Bank of America's highest-paying savings option, but it still does not match rates available elsewhere for the same account type.
  • You can earn higher interest on your savings by moving money to an online bank or credit union while keeping your Bank of America checking account for daily use.
  • Bank of America charges monthly maintenance fees on some savings accounts unless you meet balance or direct deposit requirements, which reduces your effective earnings.

Why Bank of America's rates lag behind competitors

Bank of America is a large brick-and-mortar bank with physical branches in most U.S. states. Maintaining that branch network costs money—rent, staff, utilities—and those costs get passed to customers through lower interest rates on savings. Online banks have no branches, no tellers, and no physical overhead, so they can offer much higher rates on the same type of account.

The difference is real and measurable. A $10,000 balance earning 0.02% APY at Bank of America generates about $2 per year in interest. The same $10,000 at a high yield savings account earning 4.5% APY generates $450 per year. Over five years, that gap grows to $2,240 in lost interest.

Bank of America savings account types and their rates

Bank of America offers three main savings products: the Regular Savings account, the Advantage Savings account, and the Money Market account. The Regular Savings account is the most basic and pays the lowest rate—typically 0.01% APY. The Advantage Savings account pays slightly more but still under 0.05% APY. The Money Market account, which requires a higher opening balance, pays a marginally better rate but still falls far short of high yield standards.

All three accounts charge a $12 monthly maintenance fee unless you meet one of these conditions: maintain a minimum balance (usually $300 to $500 depending on the account), set up direct deposit, or link the account to a Bank of America checking account with direct deposit. Even with the fee waived, the interest earned is minimal.

How to earn higher interest while staying with Bank of America

The most practical approach is to keep your Bank of America checking account for paychecks and bill payments, then move savings to a high yield account elsewhere. You can transfer money between banks in one to three business days using an ACH transfer, or instantly using a service like Zelle if both banks support it. This strategy lets you maintain the convenience of Bank of America's branch network and bill pay while earning real interest on savings.

Online banks that offer high yield savings accounts include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions often offer competitive rates as well, especially if you are a member. Compare current rates before opening an account, because rates change frequently and vary by institution.

Fees that reduce your effective earnings

Bank of America charges a $12 monthly maintenance fee on most savings accounts if you do not meet the balance or direct deposit requirement. Over a year, that is $144 in fees. If you are earning 0.02% APY on a $5,000 balance, you make about $1 in interest annually—then lose $144 to fees. You end up $143 behind.

Even if you waive the fee by maintaining a minimum balance, that money is locked into an account earning almost nothing. Moving that same $5,000 to a high yield account earning 4.5% APY generates $225 per year with no monthly fees. The difference compounds over time.

When it makes sense to keep savings at Bank of America

Bank of America savings accounts make sense only if you value the convenience of having everything in one place and you are not concerned about interest earnings. If you have a small emergency fund under $1,000 that you access frequently, the minimal interest loss may not matter to you compared to the ease of walking into a branch.

If you are already a Bank of America customer with a checking account, opening a linked savings account takes minutes online. But if your goal is to grow savings through interest, you will earn substantially more by moving money to a high yield account at another institution.

How to move money from Bank of America to a high yield account

Open an account at your chosen online bank or credit union. You will need your Social Security number, a government-issued ID, and your Bank of America account number. Most online banks let you open an account in 10 to 15 minutes.

Once your new account is open, log into Bank of America's website or app and initiate an ACH transfer. You will need the routing number and account number of your new bank. The transfer typically takes one to three business days. Some online banks also let you set up a transfer from their side by providing your Bank of America login credentials, though this is less common now for security reasons.

After the transfer completes, you can close your Bank of America savings account online or by calling customer service. There is no penalty for closing a savings account.

Frequently Asked Questions

Can I get a higher rate if I maintain a large balance at Bank of America?

No. Bank of America does not offer tiered rates that increase with balance size on savings accounts. Your rate is the same whether you have $500 or $500,000 in the account. This is another reason online banks are more competitive—many offer the same high rate regardless of balance.

Does Bank of America offer any savings account with a promotional rate?

Bank of America occasionally runs limited-time promotions on new savings accounts, but these are rare and typically offer only a small bonus (like $25 to $100) rather than a higher ongoing rate. Check their website or call a branch to ask about current promotions, but do not expect rates to approach what online banks offer.

What happens to my interest if I transfer money out of Bank of America?

Interest accrues daily and is paid monthly. When you transfer money out, you receive all interest earned up to that point. There is no penalty for withdrawing funds from a savings account at any time.

Is my money safer at Bank of America than at an online bank?

Both Bank of America and online banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per institution. Your money is equally protected at either one. The difference is interest rate, not safety.

Can I keep my Bank of America checking account and move only savings elsewhere?

Yes. You can keep your checking account at Bank of America for paychecks and bills while opening a high yield savings account at another bank. Many people do this to get the best of both—the convenience of Bank of America's branch network and the higher interest elsewhere.