Bank of America does not offer a high yield savings account

Bank of America's standard savings account earns no interest on balances under $100,000. If you hold $100,000 or more, you earn 0.01% APY on the full balance. That rate has not changed in years and is far below what other banks pay on savings accounts.

If you want higher interest on savings, you will need to open an account at a different bank. Online banks and credit unions routinely offer rates between 4% and 5% APY on savings accounts with no minimum balance requirement. The difference between 0.01% and 4.5% on a $10,000 balance is roughly $450 per year.

Bank of America does offer a Money Market Account, but it also pays 0.01% APY and requires a $2,500 minimum balance to open. This is not a high yield product either.

Key Takeaways

  • Bank of America savings accounts earn 0.01% APY regardless of balance size, with no interest paid on accounts under $100,000.
  • Online banks and credit unions offer savings rates of 4% to 5% APY with no minimum balance, earning hundreds of dollars more per year on the same deposit.
  • Bank of America's Money Market Account also earns 0.01% APY and requires $2,500 to open, so it is not a high yield alternative.
  • If you keep money at Bank of America for checking or bill pay, you can hold savings elsewhere and transfer funds between banks in one to two business days.

Why Bank of America's rates are so low

Bank of America is a large retail bank with thousands of physical branches. It pays for buildings, staff, and ATM networks. Those costs are built into the rates it offers. The bank does not need to compete aggressively on savings rates because many customers stay for convenience—checking accounts, credit cards, loans, and branch access all in one place.

Online banks have no branches and far fewer employees. They pass those savings to customers through higher interest rates. A bank like Marcus, Ally, or Discover can afford to pay 4.5% APY because they have almost no overhead.

Credit unions are member-owned nonprofits, so they return profits to account holders rather than shareholders. Many credit unions offer savings rates competitive with online banks.

Where to move your savings if you want higher rates

Online banks are the fastest route. You can open an account in 10 minutes from your phone, and the account is funded within one to two business days. No minimum balance is required at most online banks. You can keep your Bank of America checking account and simply transfer money to savings when you need it.

Popular online banks with high yield savings accounts include Marcus by Goldman Sachs, Ally Bank, Discover Bank, and American Express Personal Savings. Rates change weekly, so check the current rate before you open an account. All of these banks are FDIC-insured, meaning your deposits are protected up to $250,000.

Credit unions are another option if you have a local one or if you work for an employer that offers credit union membership. Some credit unions have no minimum balance and no monthly fees. You can search for credit unions near you through the CO-OP Network or Alliant Credit Union's branch locator.

How to move money between Bank of America and another bank

You do not have to close your Bank of America account to open savings elsewhere. Most people keep checking at Bank of America for bill pay and direct deposit, then move extra money to a high yield savings account at another bank.

To transfer money out of Bank of America, log into your account online or in the app and select "Transfer Money." Choose the external bank and enter its routing number and your account number there. Bank of America will ask you to confirm the transfer with a small deposit to that account (usually $0.01 to $0.99). Once confirmed, transfers take one to two business days.

You can also transfer money into Bank of America from another bank using the same method. If you want to move money quickly, use your debit card to withdraw cash and deposit it at a Bank of America ATM, though this only works for amounts under $10,000 per day.

What happens to your money if Bank of America fails

Bank of America is FDIC-insured, which means the Federal Deposit Insurance Corporation protects your deposits up to $250,000 per account type. If the bank fails, you will receive your money back up to that limit. This protection applies to savings accounts, checking accounts, and money market accounts separately—so you could have $250,000 in savings and $250,000 in checking and both would be protected.

Online banks and credit unions also carry FDIC or NCUA insurance (credit unions use NCUA instead of FDIC, but the protection is identical). Your money is equally safe at a small online bank as it is at Bank of America.

Should you keep any money at Bank of America?

Many people keep a checking account at Bank of America for convenience—direct deposit, bill pay, and access to 16,000 ATMs nationwide. That makes sense if you use those services regularly. But there is no reason to keep savings at Bank of America when you can earn 450 times more interest elsewhere.

A common strategy is to keep $500 to $1,000 in a Bank of America checking account for immediate expenses and transfers, then move everything else to a high yield savings account at another bank. You can transfer money back to Bank of America in one to two business days if you need it, so there is no real loss of access.

Frequently Asked Questions

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

No. Bank of America checking accounts earn no interest at any balance level. If you want interest on money you use for bills and everyday spending, you would need to switch to a checking account at an online bank or credit union, though most of those also pay very little interest on checking.

Does Bank of America offer any savings product that earns more than 0.01%?

No. Both the standard savings account and the Money Market Account earn 0.01% APY. Bank of America does not offer CDs (certificates of deposit) to new customers, so there is no way to earn higher rates through the bank.

What if I have a Bank of America credit card or loan?

Keeping a savings account at Bank of America will not lower your credit card interest rate or loan rate. Those rates are set based on your credit score and the terms you agreed to. You can safely move your savings to another bank without affecting your credit card or loan.

How long does it take to move money from Bank of America to another bank?

One to two business days for an ACH transfer. If you initiate a transfer on a Friday evening, it will usually arrive on Monday. Weekends and holidays add time. If you need money faster, withdraw cash and deposit it at the other bank's ATM or branch, though this only works for smaller amounts.

Will I lose FDIC protection if I move my savings to an online bank?

No. Online banks are FDIC-insured just like Bank of America. Your deposits are protected up to $250,000 per account type at any FDIC-insured bank. Credit unions use NCUA insurance instead, which provides identical protection.