What Bank of America offers in savings accounts

Bank of America offers two main savings products: the Regular Savings Account and the Money Market Account. Neither is marketed as a high-yield or high-interest product. The Regular Savings Account pays a base rate that changes with Federal Reserve decisions; as of early 2024, that rate is well below 0.10% APY on most balances. The Money Market Account pays slightly more but still remains far below what online banks and credit unions offer.

If you already bank with Bank of America and want to keep your money in one place, these accounts work. If your goal is to earn meaningful interest on savings, Bank of America is not the right choice. The difference between Bank of America's rate and a high-yield savings account elsewhere can mean hundreds of dollars per year on a $10,000 balance.

Key Takeaways

  • Bank of America's Regular Savings Account and Money Market Account pay less than 0.10% APY, which is far below the rates offered by online banks and credit unions.
  • High-yield savings accounts at other institutions currently pay between 4% and 5% APY, meaning you earn 40 to 50 times more interest on the same balance.
  • Bank of America's savings accounts are useful if you need a place to park money temporarily or want everything under one roof, but not if building savings through interest is your goal.
  • You can open a Bank of America savings account online or at a branch, but you will need to provide identification and proof of address.

How Bank of America's rates compare to other banks

The gap between Bank of America and competitors is substantial. A high-yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings currently pays between 4% and 5% APY. A credit union savings account often pays 3% to 4% APY. Bank of America pays less than 0.10% APY on most balances.

On a $10,000 balance held for one year, Bank of America would earn you roughly $5 to $10 in interest. The same $10,000 at a high-yield savings account would earn $400 to $500. That difference compounds over time, especially if you add to your savings regularly.

Bank of America's rates have not kept pace with the Federal Reserve's interest rate increases since 2022. The bank prioritizes checking account features and branch access over competitive savings rates, which is a deliberate business choice.

Why Bank of America keeps rates low

Bank of America is a full-service retail bank with thousands of branches and ATMs. That physical infrastructure costs money. The bank makes its profit partly from the difference between what it pays depositors and what it charges borrowers—a spread that widens when deposit rates stay low. High-yield online banks have no branches, no tellers, and no physical overhead, so they can afford to pass more of their earnings to savers.

Bank of America also relies on customer inertia. Many people keep their savings at the same bank where they have checking, even if the rate is poor. The bank counts on this behavior and does not need to compete aggressively on savings rates to keep deposits flowing in.

What you get with a Bank of America savings account

The Regular Savings Account requires a $100 minimum opening deposit. There is no monthly maintenance fee if you maintain a $300 minimum balance; if your balance drops below $300, the bank charges $3 per month. You can withdraw money without penalty, though the account is not designed for frequent transactions.

The Money Market Account requires a $2,500 minimum opening deposit and charges $25 per month if your balance falls below that threshold. It offers tiered interest rates—slightly higher rates on larger balances—but the difference is minimal given how low the base rates are. Both accounts come with a debit card and online access.

If you have a Bank of America checking account, linking a savings account takes minutes online. You can transfer money between them instantly. This convenience matters if you use Bank of America for everything, but it does not change the fact that you are earning almost nothing on your savings.

When a Bank of America savings account makes sense

A Bank of America savings account is reasonable if you need a temporary holding place for money you plan to spend within weeks or months. If you are saving for a down payment due in three months, the interest rate does not matter much—you will earn $5 either way. The account is also useful if you want to keep everything at one bank for simplicity, even if you accept a lower rate as the trade-off.

A Bank of America savings account is not the right choice if you are building an emergency fund, saving for a major purchase more than a year away, or trying to grow your money through interest. In those cases, opening a high-yield savings account at an online bank or credit union costs nothing and takes 10 minutes, and the interest you earn will be substantially higher.

How to open a Bank of America savings account

You can open a savings account online at bankofamerica.com, by phone at 1-800-432-1000, or at any Bank of America branch. Online is fastest—the process takes about 10 minutes. You will need a valid government-issued ID, your Social Security number, and proof of your current address (a recent utility bill or lease works). You must be at least 18 years old.

If you already have a Bank of America checking account, opening a savings account is even faster because the bank already has your information on file. You can link the two accounts immediately and start moving money between them.

If you do not have a Bank of America account yet and are considering one for the savings rate alone, reconsider. The rate is not competitive. If you are opening one anyway because you want to bank with Bank of America for other reasons, the savings account is a reasonable add-on.

Frequently Asked Questions

Can I earn more interest by keeping a larger balance in a Bank of America savings account?

No. Bank of America does not offer tiered rates on the Regular Savings Account—all balances earn the same rate regardless of size. The Money Market Account does offer slightly higher rates on larger balances, but the difference is negligible. A $100,000 balance might earn $20 to $30 per year instead of $5 to $10, which is still far below what you would earn elsewhere.

Does Bank of America offer any promotional rates on savings accounts?

Bank of America occasionally runs limited-time promotions offering slightly higher rates for new savings accounts, but these promotions are rare and the rates are still well below market. Check the Bank of America website or ask at a branch if a promotion is currently running, but do not count on it.

What happens if my balance drops below the minimum?

The Regular Savings Account charges $3 per month if your balance falls below $300. The Money Market Account charges $25 per month if your balance falls below $2,500. These fees will eat into any interest you earn, so keep your balance above the minimum if you want to avoid them.

Can I move money from a Bank of America savings account to a high-yield account at another bank?

Yes. You can transfer money out of a Bank of America savings account to any other bank using an ACH transfer, which typically takes one to three business days. There is no penalty for closing the account or moving your money. If you decide a high-yield savings account is a better fit, you can move your balance without any cost or hassle.

Is my money safe in a Bank of America savings account?

Yes. Bank of America is FDIC-insured, meaning deposits up to $250,000 per account type are protected by the federal government. Your savings account balance is covered in full unless you have more than $250,000 in Bank of America savings accounts in your own name.