What Bank of America offers in high-yield savings

Bank of America does not offer a dedicated high-yield savings account. The bank's standard savings accounts—Money Market Savings and Regular Savings—earn interest rates well below what online banks and credit unions currently pay. As of early 2024, Bank of America's savings rates typically range from 0.01% to 0.04% annual percentage yield (APY), depending on your account type and balance. Online banks and some credit unions regularly offer rates between 4% and 5% APY on savings accounts with no monthly fees.

If you keep money at Bank of America primarily for checking and bill pay, a savings account there may be convenient for moving funds between accounts. But if your goal is to earn meaningful interest on money you are not spending, Bank of America's rates will cost you thousands of dollars over time compared to alternatives.

Key Takeaways

  • Bank of America's savings accounts earn 0.01% to 0.04% APY, which is roughly 100 times lower than online banks currently offer.
  • The bank does not have a high-yield product; its Money Market Savings account is its highest-earning option and still pays minimal interest.
  • Moving savings to an online bank or credit union can earn you $200 to $500 per year on a $10,000 balance, with no monthly fees.
  • Bank of America savings accounts have value only if you need frequent access to your money or want to keep everything in one place for convenience.

Bank of America's actual savings account options

Bank of America offers two savings products: Regular Savings and Money Market Savings. Regular Savings has no minimum balance requirement and no monthly maintenance fee, but the interest rate is typically 0.01% APY. Money Market Savings requires a higher opening balance (usually $2,500) and pays a slightly higher rate, typically 0.04% APY, though this still lags far behind the market.

Both accounts come with the convenience of Bank of America's branch network and online banking platform. You can transfer money between your Bank of America checking and savings accounts instantly, and you have access to ATMs nationwide. But convenience does not make up for the interest rate gap. On a $10,000 balance, Regular Savings earns about $1 per year, while Money Market Savings earns about $4 per year. An online bank at 4.5% APY would earn $450 on the same balance.

Why online banks and credit unions pay more

Online banks have lower overhead costs than brick-and-mortar banks. They do not maintain physical branches, employ as many staff members, or pay for real estate. Those savings get passed to customers in the form of higher interest rates on savings accounts. Credit unions operate on a membership model and often prioritize member returns over profit margins, which also leads to higher rates.

Bank of America, by contrast, operates thousands of branches and invests heavily in physical infrastructure. The bank also generates revenue from loans, investments, and fees rather than relying on savings account interest to attract deposits. This business model means the bank has little incentive to compete on savings rates.

How to compare Bank of America savings to other options

If you are deciding whether to keep savings at Bank of America or move them elsewhere, compare the annual interest you would earn at each institution. Take your savings balance, multiply it by the APY offered, and calculate the yearly earnings. Then subtract any monthly fees (Bank of America charges none on its savings accounts, but some institutions do).

For example, a $25,000 balance at Bank of America's Money Market Savings (0.04% APY) earns $10 per year. The same balance at an online bank offering 4.5% APY earns $1,125 per year—a difference of $1,115 annually. Over five years, that gap grows to $5,575 or more, since interest compounds.

Also check whether the account has a minimum balance requirement, a monthly fee if your balance drops below a threshold, or limits on how many times per month you can withdraw funds. Bank of America's savings accounts have no withdrawal limits, but some high-yield accounts do restrict transfers to six per month (though this rule is less common now).

When Bank of America savings still makes sense

Keeping a savings account at Bank of America is reasonable if you need to access your money frequently and want everything in one place. If you use Bank of America for checking and pay bills through their platform, having a linked savings account makes it easy to move money between accounts instantly without waiting for transfers to clear.

A Bank of America savings account also works as an emergency fund if you value the security of a large, FDIC-insured bank and want to avoid managing multiple financial institutions. The account is insured up to $250,000 by the Federal Deposit Insurance Corporation, the same as any other bank.

But if your savings will sit untouched for months or years, the interest rate difference becomes significant. In that case, opening a high-yield savings account at an online bank or credit union and keeping only a small emergency buffer at Bank of America is a more practical approach.

How to move savings to a higher-rate account

Opening a high-yield savings account at an online bank takes 10 to 15 minutes and requires basic information: your name, address, Social Security number, and employment status. You will need a valid ID and a way to fund the account—usually by linking your Bank of America checking account and transferring money electronically.

Once the new account is open and funded, you can leave your Bank of America savings account open (it costs nothing to maintain) or close it. If you close it, make sure you have transferred any remaining balance first. Closing an account does not hurt your credit score, but leaving it open with a small balance gives you a backup if you ever need to move money quickly.

Popular online banks offering high-yield savings include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions like Connexus Credit Union and Pentagon Federal Credit Union also offer competitive rates. Rates change frequently, so check current offers before opening an account.

Frequently Asked Questions

Does Bank of America have any savings account that earns more than 0.04%?

No. Bank of America's Money Market Savings account is its highest-earning savings product, and it typically pays 0.04% APY or less. The bank does not offer a high-yield savings account or any savings product that competes with online banks on interest rates.

Can I earn more interest by keeping a large balance at Bank of America?

No. Bank of America does not offer tiered interest rates based on balance size. Whether you have $1,000 or $100,000 in a Money Market Savings account, the APY remains the same. Some credit unions do offer higher rates for larger balances, so this is worth checking if you are moving your savings.

What if I need my money quickly—does that justify the lower rate?

Most online banks allow you to withdraw money within one to three business days, which is nearly as fast as Bank of America. If you need cash the same day, Bank of America's branch network is an advantage, but for most people, the interest rate difference outweighs the convenience of immediate access.

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

No. Both Bank of America and online banks are FDIC-insured up to $250,000 per account holder per institution. Your money is equally protected at either place. The FDIC insurance is what matters, not the size or age of the bank.

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

Yes. Many people do this. You can keep your Bank of America checking account for bill pay and everyday spending, then open a high-yield savings account at an online bank for money you are saving. Transferring money between them takes one to three business days, which is fine for savings you are not touching regularly.