Bank of America does not offer a high-yield savings account
Bank of America's standard savings account earns interest, but the rate is significantly lower than what you can find at online banks and credit unions. As of early 2024, Bank of America's regular savings account pays around 0.01% annual percentage yield (APY), meaning $10,000 would earn roughly $1 per year. Online banks and some credit unions routinely offer rates between 4% and 5% APY on savings accounts—hundreds of dollars per year on the same $10,000.
Bank of America does not plan to launch a high-yield savings product. The bank's strategy focuses on checking accounts, credit cards, and investment services rather than competing on savings rates. If you keep money at Bank of America primarily for savings, you are losing significant interest income compared to other institutions.
Key Takeaways
- Bank of America's savings account pays around 0.01% APY, which is substantially lower than high-yield accounts offered by online banks and credit unions.
- Moving $10,000 to a 4.5% APY account instead of Bank of America's rate would earn you roughly $450 per year rather than $1.
- Bank of America's business model prioritizes checking accounts and credit products, not savings rate competition.
- You can keep a Bank of America checking account for daily banking while holding savings at a separate institution that offers higher rates.
What Bank of America's savings account actually offers
Bank of America offers two savings products: the Regular Savings Account and the Money Market Account. Both pay minimal interest. The Regular Savings Account has no monthly fee if you maintain a $300 minimum balance; the Money Market Account requires a $2,500 minimum and pays slightly more interest, but still well below market rates for high-yield accounts.
Both accounts come with Bank of America's standard features: online access, mobile app, debit card transfers, and the ability to link to your checking account. You can withdraw money without penalty, though federal rules limit you to six withdrawals per month from savings accounts (this rule applies across all banks). Neither account offers the rate advantage that makes a savings account worthwhile as a place to park emergency funds or money you are saving toward a goal.
How Bank of America's rates compare to other banks
The gap between Bank of America and high-yield savings accounts is substantial. Here is what the comparison looks like:
| Institution Type | Typical APY Range | Annual Interest on $10,000 |
|---|---|---|
| Bank of America savings | 0.01% | $1 |
| Online banks (high-yield) | 4.0% to 5.0% | $400 to $500 |
| Credit unions (high-yield) | 3.5% to 5.0% | $350 to $500 |
| Traditional brick-and-mortar banks | 0.01% to 0.05% | $1 to $5 |
Online banks like Marcus, Ally, and American Express Personal Savings consistently offer rates in the 4% to 5% range. Credit unions often match or exceed these rates, particularly if you are a member of a larger institution like Navy Federal or Connexus. Even if rates drop in the future, Bank of America's savings account is unlikely to offer more than a fraction of what these competitors provide.
Why Bank of America keeps savings rates low
Bank of America's low savings rates reflect its business model. The bank makes money primarily through checking account fees, credit card interchange, mortgage origination, and wealth management services. Savings accounts are not a profit center for them. They do not need to attract savings deposits the way online banks do, because they have a large customer base already using checking accounts and credit products.
Large traditional banks like Bank of America, Wells Fargo, and Chase all maintain similarly low savings rates. They compete on convenience, branch access, and integrated services—not on interest paid to depositors. If you value having a local branch and a single institution for all your banking, you pay for that convenience through lower savings rates.
What to do if you bank with Bank of America
You do not have to close your Bank of America account to earn a better rate on savings. Many people keep a Bank of America checking account for daily spending and bill payments, then open a high-yield savings account at an online bank or credit union for money they want to save. Transfers between institutions take one to three business days, which is slow enough that it discourages impulse spending but fast enough for genuine emergencies.
If you have a large balance at Bank of America, moving even part of it to a high-yield account makes a measurable difference. A $50,000 balance earning 0.01% at Bank of America generates $5 per year. The same $50,000 at 4.5% APY generates $2,250 per year—money that compounds and grows your savings faster. The time to set up an account at an online bank is roughly 15 minutes, and you can do it entirely on your phone.
Alternatives if you want to stay within Bank of America
If you prefer to keep all your money at one institution, Bank of America offers other products that may work better than savings accounts. Bank of America's Money Market Account pays slightly more than the regular savings account, though still far below market rates. The bank also offers certificates of deposit (CDs), which lock your money away for a set period (three months to five years) in exchange for a may provide rate. Bank of America's CD rates are also low compared to online banks, but they are higher than savings account rates.
For customers with large balances, Bank of America's Preferred Rewards program offers modest interest rate bumps on savings and checking accounts based on your total relationship balance with the bank. A customer with $100,000 or more in Bank of America accounts might earn 0.03% to 0.05% APY on savings—still far below high-yield rates, but better than the base rate. This program rewards loyalty to the bank, not competitive rates.
Frequently Asked Questions
Can I earn more interest by opening multiple Bank of America savings accounts?
No. All Bank of America savings accounts earn the same rate regardless of how many you open or how much you deposit. Opening multiple accounts does not change the APY. If you want higher rates, you need to move money to a different bank.
Does Bank of America ever raise its savings rates?
Bank of America raises and lowers rates in response to Federal Reserve policy, but it does so slowly and to a much smaller degree than online banks. When the Fed raised rates sharply from 2022 to 2023, online banks moved quickly to offer 4% to 5% rates, while Bank of America's savings rate stayed near 0.01%. The bank is unlikely to ever match high-yield rates.
What happens to my money if I move it to an online bank?
Your money is protected by FDIC insurance up to $250,000 per account at any bank, whether it is Bank of America or an online bank. Online banks are required to carry the same insurance. Your money is as safe at Marcus or Ally as it is at Bank of America. Transfers between banks are secure and reversible if something goes wrong.
Is there a penalty for closing my Bank of America savings account?
Bank of America does not charge a fee to close a savings account. You can close it online, by phone, or at a branch. If you have a balance, the bank will send it to you or transfer it to another account you specify. There is no waiting period or penalty.
Should I keep my checking account at Bank of America if I move savings elsewhere?
That depends on what you value. If you use Bank of America's branches, mobile app, and bill pay features regularly, keeping your checking account there makes sense. You can use a high-yield savings account at a different bank purely for saving, and transfer money between the two when you need it. Many people do this successfully.