Bank of America does not offer a high yield savings account

Bank of America's standard savings accounts pay rates well below what you can find elsewhere. As of now, Bank of America's regular savings account pays around 0.01% annual percentage yield (APY), and their Money Market account pays slightly higher but still under 0.05% APY. These rates have not kept pace with inflation or with what other banks offer.

If you are looking for a savings account that actually grows your money, you will need to look outside Bank of America. Online banks and some credit unions offer rates between 4% and 5% APY on high yield savings accounts, which means your money earns roughly 100 to 500 times more than it would at Bank of America.

The reason Bank of America keeps rates low is that they rely on branch networks and brand recognition rather than competing on interest. They make money by lending out deposits at higher rates, so they do not need to pay depositors much to attract funds.

Key Takeaways

  • Bank of America's savings accounts pay 0.01% to 0.05% APY, which is far below the 4% to 5% available at online banks.
  • High yield savings accounts exist at online banks like Marcus, Ally, and American Express Personal Savings, but not at Bank of America.
  • The difference between Bank of America and a high yield account means $1,000 grows to roughly $1,000.10 per year at BofA versus $1,040 to $1,050 at a high yield bank.
  • If you want to keep your money at Bank of America, a Money Market account is their highest-paying savings product, though the rate is still very low.

What Bank of America's savings products actually pay

Bank of America offers three main savings products: the regular Savings account, the Money Market account, and certificates of deposit (CDs). The Savings account is their lowest-paying option. The Money Market account requires a higher opening deposit (usually $2,500) and pays a slightly better rate, but still nowhere near what high yield accounts offer. CDs lock your money away for a set term—3 months to 5 years—in exchange for a fixed rate that is also low by current standards.

None of these products compete with high yield savings accounts at online banks. Bank of America's rates are set by the bank's own policy, not by market pressure, because most of their customers stay for convenience rather than returns.

Where to find actual high yield savings accounts

High yield savings accounts are offered by online banks that have no physical branches and lower overhead costs. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all offer rates between 4% and 5% APY on savings accounts with no monthly fees and no minimum balance requirements.

Credit unions sometimes offer competitive rates as well, though you must be a member to open an account. Some credit unions pay 3% to 4% on savings, depending on the institution and how much you deposit.

The tradeoff is that you cannot walk into a branch to deposit cash or speak to a teller in person. Most high yield banks let you transfer money electronically from another bank account, and some allow mobile check deposit through their app. If you need immediate access to cash, you can transfer money back to Bank of America or another bank with branches within one to two business days.

How much money you actually lose by staying at Bank of America

The difference compounds over time. If you keep $10,000 in a Bank of America savings account earning 0.01% APY, you earn $1 per year. The same $10,000 in a high yield account earning 4.5% APY earns $450 per year. Over five years, that is a difference of $2,245 in lost earnings.

The gap widens with larger balances. A $50,000 emergency fund at Bank of America earns $5 per year; at 4.5% APY it earns $2,250 per year. Over a decade, that is $22,450 in foregone interest.

Inflation makes this worse. If inflation is running at 3% per year and your savings earn 0.01%, you are losing purchasing power. A high yield account at 4.5% still does not beat inflation perfectly, but it comes much closer.

Why Bank of America does not need to offer high yield savings

Bank of America is the second-largest bank in the United States by assets. Most customers stay because they have a checking account there, use the ATM network, or have a mortgage or credit card with the bank. Switching banks is inconvenient, so Bank of America does not need to compete on savings rates to keep deposits.

Online banks, by contrast, have no other reason for you to stay. They compete almost entirely on interest rates, fees, and customer service. If Marcus or Ally raised their rates, customers would move their money. If Bank of America raised their rates, most customers would not notice or care because they are not shopping around.

What to do if you want to keep your money at Bank of America

If you need to stay with Bank of America for other reasons—a mortgage, a business account, or simply because you prefer having a local branch—your best option is their Money Market account. It pays more than the regular Savings account, though the rate is still low. You can also look into their CDs if you can lock money away for a fixed term.

Another option is to keep a small amount at Bank of America for convenience and move the bulk of your savings to a high yield account elsewhere. Many people maintain a checking account at a big bank for bill pay and ATM access, then keep their emergency fund or savings goals at an online bank where the money actually earns interest.

If you move money to another bank, you can set up automatic transfers from your Bank of America checking account to fund the high yield savings account. This way you get the convenience of Bank of America's checking and the returns of a high yield bank's savings.

How to move money from Bank of America to a high yield account

Opening a high yield savings account takes about 10 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 banks verify your identity instantly.

Once your account is open, you can link it to your Bank of America checking account and transfer money electronically. The first transfer usually takes three to five business days; after that, transfers often go through in one to two days. Some high yield banks offer a feature called "ACH transfer" that lets you pull money directly from your Bank of America account.

You can also set up automatic transfers. For example, you could have $500 move from your Bank of America checking account to your high yield savings account every payday. This way you build savings without thinking about it, and that money earns real interest instead of sitting idle.

Frequently Asked Questions

Does Bank of America have any savings account that earns decent interest?

No. Bank of America's Money Market account is their highest-paying savings product, and it still pays less than 0.05% APY. This is far below what you can earn at online banks. If interest earnings matter to you, you need to move your money elsewhere.

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

Yes. Online banks are insured by the Federal Deposit Insurance Corporation (FDIC) just like Bank of America. Your deposits are protected up to $250,000 per account. The bank's size or whether it has branches does not affect FDIC protection.

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

Yes. You can keep your checking account at Bank of America for convenience and move your savings to a high yield account at another bank. Many people do this to get the best of both worlds—easy access to checking and ATMs, plus competitive interest on savings.

What happens to my money if a high yield bank fails?

The FDIC takes over and pays out your deposits up to $250,000. This has happened to a few banks in recent years, and depositors got their money back. The FDIC insurance is backed by the federal government, not by the bank itself.

Can I transfer money back to Bank of America if I need it?

Yes. You can transfer money from a high yield account back to your Bank of America checking account in one to two business days. If you need cash immediately, you can withdraw it at an ATM or visit a Bank of America branch to withdraw from your checking account.