Bank of America does not offer a traditional high-yield savings account

Bank of America's standard savings account earns interest, but the rate is not competitive with what you will find at online banks or credit unions. As of now, Bank of America does not have a product specifically branded or marketed as a high-yield savings account (HYSA). Their regular savings account rates are typically well below 1%, while many online banks and credit unions offer rates between 4% and 5% on savings accounts with no minimum balance.

If you already bank with Bank of America and want to keep your money there, you have a savings account, but you should understand that you are trading higher interest for the convenience of in-person branches and the ability to link accounts easily to checking. That trade-off makes sense for some people and not for others, depending on how much money you keep in savings and how often you move it.

Key Takeaways

  • Bank of America's savings account earns less than 1% interest, which is significantly lower than online banks and credit unions offering 4% to 5%.
  • Bank of America does not market or offer a high-yield savings account product under any name.
  • If you want higher interest on savings while staying with Bank of America, you have no in-house option; you would need to move money to another institution.
  • The choice between Bank of America savings and a higher-yield account depends on whether branch access and account linking are worth the interest you give up.

What Bank of America savings accounts actually earn

Bank of America offers a regular savings account and a money market account. Both earn interest, but neither is designed to compete on rate. The savings account typically earns around 0.01% to 0.04% annual percentage yield (APY), depending on your balance tier. The money market account earns slightly more but still falls short of what you can get elsewhere.

Bank of America does not publish a single fixed rate; instead, they tier rates based on your balance. Higher balances earn more, but even the highest tier is still far below what online banks pay. For example, if you have $100,000 in a Bank of America savings account, you might earn $40 to $50 per year in interest. The same $100,000 at an online bank earning 4.5% would earn $4,500 per year.

Why Bank of America rates are lower

Bank of America's lower rates reflect their business model. They operate thousands of physical branches, employ thousands of staff, and maintain expensive infrastructure. Those costs get passed to customers through lower deposit rates and higher fees. Online banks have no branches, no tellers, and minimal overhead, so they can offer much higher rates on savings.

Bank of America also makes money by lending out deposits at higher rates than they pay you. The difference between what they pay depositors and what they charge borrowers is their profit margin. Online banks operate on thinner margins because they have lower costs, so they can afford to pay you more and still be profitable.

Alternatives if you want higher interest rates

If you want a high-yield savings account, you will need to move your money to another bank. Online banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all offer rates between 4% and 5% with no minimum balance and no monthly fees. Credit unions often offer competitive rates as well, especially if you are a member.

You do not have to close your Bank of America account to do this. Many people keep a checking account at Bank of America for everyday use and branch access, then move their savings to an online bank for the higher rate. You can transfer money between banks using ACH transfers, which typically take one to three business days. Some online banks also offer checking accounts, so you could move everything if you prefer.

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

The process is straightforward. Open an account at the online bank or credit union of your choice. You will need your Social Security number, a government-issued ID, and proof of address (usually a recent utility bill or bank statement). Most online banks let you open an account in 10 to 15 minutes on their website.

Once your new account is open, you can transfer money from Bank of America using ACH. Log into your Bank of America account, go to the transfer section, and add your new bank as an external account. You will need your new account number and routing number. Bank of America will send a small test deposit (usually $0.01) to verify the account is real, which takes one to two business days. After that, you can transfer as much as you want, and the money will arrive in one to three business days.

Alternatively, you can withdraw cash from a Bank of America branch and deposit it at your new bank, though this is slower and less convenient. Some online banks also offer mobile check deposit, so you could deposit a check from Bank of America instead.

When Bank of America savings still makes sense

Bank of America savings is not the right choice for maximizing interest, but it may be right for you if you need frequent access to your money and value having a branch nearby. If you withdraw from savings regularly, the convenience of a Bank of America branch might outweigh the interest you lose. If you keep a small emergency fund in savings and most of your money in checking, the difference in interest is small enough that it may not matter.

Bank of America also offers overdraft protection, which links your savings to your checking account and automatically transfers money if you overdraw. Some people find this useful, though it can also encourage overspending. If you use this feature, keeping savings at Bank of America might make sense for you.

Frequently Asked Questions

Can I earn more interest by putting money in a Bank of America money market account instead of savings?

Slightly, but not much. Bank of America's money market account earns a bit more than savings, but it still falls far short of online banks. Money market accounts also usually require a higher minimum balance and may limit how many withdrawals you can make per month. The rate difference is not worth the restrictions.

Will Bank of America ever offer a high-yield savings account?

Bank of America has not announced plans to do so. Their business model relies on branch networks and in-person service, which costs money. They compete on convenience and service, not on deposit rates. If high rates are your priority, you will need to use a different bank.

Is it safe to move my savings to an online bank?

Yes. Online banks are insured by the Federal Deposit Insurance Corporation (FDIC) just like Bank of America. Your deposits are protected up to $250,000 per account owner per bank. Online banks are regulated by the same agencies as traditional banks and must meet the same safety and security standards.

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

ACH transfers typically take one to three business days. Some banks offer faster transfers, but standard ACH is the most common method. Weekends and holidays do not count as business days, so a transfer initiated on Friday may not arrive until Tuesday.

What if I want to keep my money at Bank of America but earn more interest?

Bank of America does not offer a product that solves this problem. Your only options are to accept their low rates or move your money elsewhere. There is no way to earn significantly more interest while keeping your savings at Bank of America.