Bank of America does not offer a high yield savings account

Bank of America's standard savings account earns interest, but the rate is substantially lower than what you can find at online banks or credit unions. As of early 2024, Bank of America's savings accounts earn between 0.01% and 0.04% annual percentage yield (APY), depending on your account type and balance. A high yield savings account typically pays 4% to 5% APY or higher, meaning the difference in earnings on $10,000 would be roughly $400 to $500 per year with a high yield account versus $1 to $4 with Bank of America.

Bank of America's business model relies on branch networks and full-service banking, which costs more to operate than online-only banks. Those costs are reflected in lower deposit rates. If earning interest on savings is your primary goal, you will earn significantly more elsewhere. If you value in-person banking, ATM access, or integrated checking and savings, Bank of America may still make sense for your situation—but not for the interest rate.

Key Takeaways

  • Bank of America savings accounts pay 0.01% to 0.04% APY, far below the 4% to 5% APY offered by online banks and credit unions.
  • The difference in annual earnings on $10,000 is roughly $400 to $500 per year between a high yield account and Bank of America.
  • Bank of America's lower rates reflect the cost of maintaining physical branches and ATM networks nationwide.
  • If you keep money at Bank of America primarily for convenience or integrated banking, moving savings to a high yield account elsewhere costs nothing and takes a few days.

What Bank of America savings accounts actually offer

Bank of America offers three main savings products: the Regular Savings Account, the Money Market Account, and the Premium Savings Account. The Regular Savings Account has no minimum balance requirement and no monthly fee if you maintain a $300 minimum. The Money Market Account requires a $2,500 minimum balance and charges $12 per month if you fall below it. The Premium Savings Account requires $100,000 in combined Bank of America deposits and offers slightly higher rates to customers who meet that threshold.

All three accounts come with the same core features: FDIC insurance up to $250,000, online access, mobile banking, and the ability to link to checking accounts. You can make six withdrawals per month before facing a fee, though this limit is rarely enforced. None of these accounts compete on interest rate with high yield alternatives, even the Premium tier.

How high yield savings accounts work differently

A high yield savings account is a savings product offered by online banks, credit unions, and some traditional banks. The account itself functions identically to Bank of America's: you deposit money, earn interest, and can withdraw it. The difference is the interest rate. Online banks like Marcus, Ally, and American Express Personal Savings pay 4% to 5% APY because they have no physical branches, lower overhead, and pass those savings to depositors through higher rates.

High yield accounts are still FDIC insured up to $250,000, so your money is protected the same way it is at Bank of America. The trade-off is that you cannot walk into a branch to make a deposit or withdrawal—everything happens online or through ATM networks. For most people, this is not a meaningful limitation. Transfers between accounts take one to three business days, and ATM access is usually available through shared networks.

Moving money from Bank of America to a high yield account

Opening a high yield savings account takes 10 to 15 minutes online. You will need your Social Security number, a government-issued ID, and proof of address (a recent utility bill or bank statement). Most online banks let you link your Bank of America checking account immediately and transfer money the same day or within one business day.

You do not have to close your Bank of America savings account. Many people keep a small balance there for branch access while moving the bulk of their savings to a high yield account elsewhere. There is no penalty for having accounts at multiple banks. If you decide later that you prefer Bank of America, moving money back takes the same one to three business days.

When Bank of America savings might still make sense

If you use Bank of America for checking and want everything in one place for simplicity, keeping a savings account there has value—just not for the interest rate. The convenience of seeing all your accounts in one app and having access to branches and ATMs nationwide may outweigh the cost of earning a lower rate. This is a personal choice, not a financial optimization.

If you have a large balance and may have access to for Bank of America's Premium Savings Account (which requires $100,000 in combined deposits), the rate is still lower than high yield alternatives, but the relationship benefits—like waived fees on other products or priority customer service—might justify it. For most people, though, splitting accounts makes more financial sense: keep checking at Bank of America and move savings to a high yield account.

Comparing rates across banks

High yield savings rates change frequently and vary by bank. As of early 2024, online banks and credit unions typically offer 4% to 5.35% APY on savings accounts with no minimum balance. Some credit unions offer rates as high as 5% to 6% on share savings accounts, though these often come with membership requirements or balance caps. Bank of America's 0.01% to 0.04% rate has remained essentially flat for years.

The easiest way to compare current rates is to check the websites of online banks directly—Marcus, Ally, American Express Personal Savings, and Discover all publish their rates publicly. Credit unions like Connexus and Pentagon Federal also offer competitive rates. Rates can shift monthly, so checking before you open an account ensures you are comparing current offers, not outdated information.

Frequently Asked Questions

Can I keep my Bank of America checking account and move only savings to another bank?

Yes. You can have a checking account at Bank of America and a savings account at an online bank or credit union simultaneously. Many people do this to keep checking for convenience while earning a higher rate on savings. Transfers between the two accounts take one to three business days.

Is my money safe in a high yield savings account at an online bank?

Yes, as long as the bank is FDIC insured. Check the bank's website for the FDIC insurance statement—all major online banks display it clearly. Your money is protected up to $250,000 per account, the same as at Bank of America. The bank's physical location does not affect the safety of your deposits.

What happens if I need to withdraw money quickly from a high yield account?

You can initiate a transfer online and the money typically arrives in your Bank of America checking account within one to three business days. If you need cash immediately, you can use the online bank's ATM network or withdraw from a Bank of America ATM if you keep a small balance there. True emergencies requiring same-day access are rare for savings accounts.

Do high yield savings accounts have monthly fees?

Most high yield savings accounts have no monthly fees, no minimum balance requirements, and no limits on how much you can earn. Some credit unions charge small membership fees ($5 to $25 per year), but these are offset quickly by the higher interest rate. Always check the fee schedule before opening an account.

Will moving my savings hurt my credit score?

No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Savings accounts are not part of your credit history. You can open and close savings accounts without any impact on your ability to borrow money.