Yes, Bank of America offers money market accounts
Bank of America offers money market accounts (MMAs) as a savings product. These accounts combine features of checking and savings accounts: you earn interest on your balance, but you can write checks or make transfers, though usually with limits on how many times per month you can withdraw.
The specific terms—interest rate, minimum balance, withdrawal limits, and monthly fees—change based on the account tier you open and current market conditions. Bank of America typically offers different versions of money market accounts for different customer types: standard depositors, those with higher balances, and premium banking customers.
Money market accounts at Bank of America are FDIC-insured up to $250,000 per depositor, per account type, at each bank. This means if the bank fails, your money is protected up to that limit by the federal government.
Key Takeaways
- Bank of America money market accounts let you earn interest while keeping access to your money through checks and transfers, though withdrawal frequency may be limited.
- Interest rates and minimum balance requirements vary by account type and change over time, so you should check the current terms directly with the bank.
- Your deposits are FDIC-insured up to $250,000, protecting your money if the bank fails.
- Money market accounts differ from money market funds (investment products sold through brokerages), which are not FDIC-insured and carry different risks.
- Bank of America charges monthly maintenance fees on some money market accounts, though fees may be waived if you meet balance or deposit requirements.
How Bank of America money market accounts work
When you open a money market account at Bank of America, you deposit money and the bank pays you interest on that balance. The interest rate is set by the bank and changes based on Federal Reserve policy and market conditions. You can see the current rate on Bank of America's website or by calling a branch.
You can withdraw money from a money market account by writing a check, making an electronic transfer, or visiting a branch. However, federal regulations historically limited you to six withdrawals per month (though this rule was suspended during the pandemic and has not been fully reinstated). Bank of America may also impose its own limits on how often you can withdraw.
Money market accounts typically require a minimum opening deposit and a minimum balance to earn the advertised interest rate or to avoid monthly fees. If your balance falls below the minimum, the bank may charge a maintenance fee or drop your interest rate. These minimums vary by account type.
Account types and tiers at Bank of America
Bank of America structures its money market accounts by customer tier. The standard option is usually called the Money Market Account or a similar name. Customers with higher balances or those enrolled in premium banking programs (such as Preferred Rewards) may have access to different rates or terms.
To find out which account type you are may be able to access for and what the current rates and minimums are, you need to check Bank of America's website, call 1-800-432-1000, or visit a local branch. Rates and terms change frequently and vary by location in some cases.
Bank of America also offers related products like savings accounts and certificates of deposit (CDs). A savings account typically has fewer withdrawal restrictions but may pay a lower interest rate. A CD locks your money for a set term (such as 3 months or 1 year) in exchange for a may provide higher rate.
Fees and minimum balance requirements
Bank of America charges a monthly maintenance fee on some money market accounts, though the fee may be waived if you meet certain conditions. Common ways to waive the fee include maintaining a minimum daily balance (often $2,500 or higher), setting up direct deposit, or having a linked checking account with the bank.
If you do not meet the waiver conditions and the fee is charged, it is typically $12 to $25 per month, though this varies. Over a year, an unchecked fee can reduce your earnings significantly, so it is worth confirming the fee structure before you open the account.
Some Bank of America money market accounts also have limits on how many checks you can write per month or how many electronic transfers you can make. Exceeding these limits may result in a fee per transaction or conversion of the account to a different type.
Money market accounts versus money market funds
A money market account at Bank of America is a bank deposit product. It is FDIC-insured, earns interest set by the bank, and you can access your money relatively quickly.
A money market fund is an investment product, usually sold through a brokerage or investment firm. It is not FDIC-insured. Instead, it invests your money in short-term debt securities (like Treasury bills and commercial paper) and aims to maintain a stable value of $1 per share. Money market funds carry market risk and are regulated differently than bank accounts.
If you see "money market" in a Bank of America investment or brokerage account, it is likely a fund, not a bank account. The two products serve different purposes and have different protections.
How interest rates are set and what to expect
Bank of America sets the interest rate on money market accounts based on the federal funds rate (the rate the Federal Reserve charges banks to lend to each other) and competitive pressure from other banks. When the Fed raises rates, banks typically raise the rates they pay on savings products. When the Fed cuts rates, banks cut rates on deposits.
The rate you earn on a Bank of America money market account is usually lower than the rate on a CD with the same term, because you have the flexibility to withdraw money anytime. It is also typically lower than rates offered by online-only banks, which have lower overhead costs.
Interest is usually compounded daily and credited to your account monthly. This means you earn interest on your interest, though the effect is small on typical balances.
When a money market account makes sense
A money market account at Bank of America works well if you want to earn interest on money you may need to access within a few months, you value the convenience of a physical branch, or you already have other accounts at Bank of America and want to keep everything in one place.
A money market account is less useful if you have money you will not need for a year or more (a CD usually pays more), if you want the highest possible interest rate (online banks typically pay more), or if you need unlimited check-writing or transfer privileges.
Compare the current rate, minimum balance, and fees at Bank of America to rates at other banks and online savings accounts before you decide. The difference in interest earned over a year can be significant, especially on larger balances.
Frequently Asked Questions
What is the current interest rate on Bank of America money market accounts?
Interest rates change frequently and vary by account type and balance tier. Check Bank of America's website, call 1-800-432-1000, or visit a branch to see the current rate. Rates are typically lower than those offered by online-only banks.
Can I write checks on a Bank of America money market account?
Yes, most Bank of America money market accounts come with check-writing privileges. However, you may be limited to a certain number of checks per month (often three to six). Exceeding the limit may result in a fee per check.
What happens if my balance falls below the minimum?
If your balance drops below the required minimum, Bank of America may charge a monthly maintenance fee, reduce your interest rate, or convert the account to a different type. Check your account agreement for the specific consequences.
Is my money safe in a Bank of America money market account?
Yes, your deposits are protected by FDIC insurance up to $250,000 per account type. If Bank of America fails, the federal government guarantees your money up to that limit. Amounts above $250,000 are not protected.
How does a money market account differ from a regular savings account?
A money market account typically pays a higher interest rate and allows check-writing or more frequent transfers, but may have higher minimum balance requirements and monthly fees. A savings account is simpler but usually pays less interest and has fewer withdrawal options.