Yes, Bank of America offers several savings account types
Bank of America has three main savings account products: the Regular Savings Account, the Money Market Savings Account, and the Premium Savings Account. Each one has different minimum balance requirements, interest rates, and monthly fees. The account you choose depends on how much you plan to keep in savings and how often you need to withdraw money.
All three accounts let you earn interest on your balance, though the rate varies by account type and changes based on Federal Reserve decisions. You can open any of them online, by phone, or in person at a Bank of America branch. If you already have a checking account with Bank of America, opening a savings account takes about 10 minutes.
Key Takeaways
- Bank of America's Regular Savings Account has no minimum balance requirement but charges a monthly fee unless you meet certain conditions.
- The Money Market Savings Account requires a higher opening balance and offers a higher interest rate in exchange.
- The Premium Savings Account is designed for customers with larger balances and comes with additional perks like higher interest rates.
- Interest rates on all savings accounts change regularly and are currently lower than rates offered by online-only banks.
Regular Savings Account: The basic option
The Regular Savings Account requires no minimum opening deposit and no minimum balance to keep the account open. You can start with any amount. The account earns interest, though the rate is typically lower than Bank of America's other savings products.
The account charges a $5 monthly maintenance fee, but you can avoid it by keeping a minimum daily balance of $300 or more, or by having a Bank of America checking account linked to it. If you maintain either of those conditions, there is no fee. Most people with a checking account at Bank of America pay nothing to keep a Regular Savings Account open.
You can make up to six withdrawals per month without penalty. After six, the bank charges $10 per withdrawal. This limit applies to transfers to other accounts, not just cash withdrawals at the teller or ATM.
Money Market Savings Account: Higher rates for larger balances
The Money Market Savings Account requires a $2,500 minimum opening deposit. The interest rate is higher than the Regular Savings Account, and it increases as your balance grows. Bank of America uses tiered rates, meaning you earn a better rate on portions of your balance that exceed certain thresholds.
This account also charges a $12 monthly maintenance fee, which you can waive by maintaining a $2,500 minimum daily balance. Like the Regular Savings Account, you can make six withdrawals per month before facing a $10 fee per additional withdrawal.
The Money Market account is useful if you have several thousand dollars you want to keep accessible but earning more than the basic savings rate. It is not a checking account, so you cannot write checks or use a debit card.
Premium Savings Account: For larger balances with more benefits
The Premium Savings Account requires a $10,000 minimum opening deposit and a $10,000 minimum daily balance to avoid the $25 monthly maintenance fee. The interest rate is the highest of Bank of America's savings products and uses tiered rates based on your balance.
This account is designed for customers who maintain substantial savings and want to maximize their interest earnings. It includes additional benefits such as a dedicated customer service line and waived fees on certain services. Like the other savings accounts, you can make six withdrawals per month before incurring fees.
If you do not maintain the $10,000 minimum balance, the $25 monthly fee will apply, which can offset any interest you earn on smaller balances. This account makes sense only if you plan to keep at least $10,000 in savings consistently.
How interest rates work and what to expect
Bank of America's savings account interest rates are set by the bank and change based on decisions made by the Federal Reserve. When the Federal Reserve raises or lowers its benchmark rate, Bank of America typically adjusts its savings rates within days or weeks. The bank publishes current rates on its website, and you can see your account's specific rate in your online banking portal.
Interest is compounded daily and deposited into your account monthly. This means you earn interest on your interest, though the effect is small with current rates. A $10,000 balance earning 0.01% annual percentage yield (APY) would earn about $1 per year, for example. Online-only banks currently offer higher rates on savings accounts, sometimes 10 to 20 times higher than Bank of America's rates.
If earning the highest possible interest rate is your priority, you may want to compare Bank of America's rates with online banks before opening an account. If convenience and having a local branch matter more, the trade-off in interest earnings may be worth it.
Fees, limits, and what happens if you exceed them
All three savings accounts charge a monthly maintenance fee unless you meet a minimum balance or have a linked checking account. The fee ranges from $5 to $25 depending on the account type. These fees are waived automatically if you maintain the required balance or have an active Bank of America checking account.
The six-withdrawal limit per month is a federal rule that applies to all savings accounts, not just Bank of America's. Withdrawals include transfers to other accounts, automatic bill payments from savings, and checks written against the account (if applicable). ATM withdrawals and in-person teller withdrawals also count toward the limit. Exceeding the limit costs $10 per extra withdrawal.
If you frequently need to move money in and out of savings, a checking account may be more practical than a savings account. Checking accounts have no withdrawal limits and are designed for regular spending.
How to open a Bank of America savings account
You can open a savings account online through Bank of America's website, by calling 1-800-432-1000, or by visiting a local branch. Online applications take about 10 minutes and require your Social Security number, date of birth, address, and initial deposit information. You can fund the account immediately from another bank account or wait until after approval.
If you already have a Bank of America checking account, opening a savings account is faster because the bank already has your information on file. You can often complete it in the mobile app or online banking portal without calling or visiting a branch.
New accounts are typically approved within one business day. Once approved, you can start using the account right away. Debit cards and checks are not issued for savings accounts, but you can transfer money between your savings and checking accounts instantly through online banking.
Frequently Asked Questions
Can I have more than one savings account at Bank of America?
Yes. You can open multiple savings accounts of different types or multiple accounts of the same type. Some customers use separate accounts to organize savings for different goals, such as an emergency fund in one account and vacation savings in another. Each account is subject to the same fees and withdrawal limits.
What happens if my balance drops below the minimum?
If your balance falls below the minimum required to waive the monthly fee, you will be charged the maintenance fee that month. For example, if your Money Market account balance drops below $2,500, you will owe the $12 monthly fee. The fee is deducted from your account automatically.
Can I transfer money from my Bank of America savings account to another bank?
Yes. You can set up an external transfer through online banking to move money to another bank account. The transfer typically takes one to three business days. This counts as one of your six allowed withdrawals per month.
Do I need a checking account to open a savings account?
No. You can open a savings account without a checking account. However, having a checking account linked to your savings account waives the monthly maintenance fee on most savings products, so many customers open both.
How does Bank of America's interest rate compare to other banks?
Bank of America's savings rates are typically lower than rates offered by online-only banks and some credit unions. As of now, Bank of America's rates are in the range of 0.01% to 0.05% APY, while online banks often offer 4% to 5% APY. The trade-off is convenience and access to physical branches versus higher earnings on your balance.