Bank of America does not offer a dedicated high yield savings account

Bank of America's standard savings accounts earn between 0.01% and 0.04% annual percentage yield (APY), depending on the account type and balance. These rates are far below what other banks call "high yield"—typically 4% to 5% APY at online banks and credit unions as of 2024. If you want a savings account that actually grows your money faster, you will need to look outside Bank of America.

Bank of America does offer a Money Market Account, which pays slightly higher rates than savings accounts but still lags behind high yield options elsewhere. The rate varies by balance tier and changes with market conditions, but it remains well below what you can earn at competitors. Bank of America's strength is in checking accounts, credit cards, and lending products—not in paying you to save.

Key Takeaways

  • Bank of America savings accounts pay 0.01% to 0.04% APY, which is roughly one-tenth of what high yield savings accounts pay at other banks.
  • Bank of America's Money Market Account pays more than savings but still does not reach high yield rates, and the exact APY depends on your balance.
  • High yield savings accounts at online banks and credit unions typically pay 4% to 5% APY and have no monthly fees or balance requirements.
  • If you keep money at Bank of America for convenience or checking account benefits, moving only your savings to a high yield account elsewhere costs nothing and takes a few days to set up.

What Bank of America savings accounts actually pay

Bank of America offers three main savings products: Regular Savings, Premium Savings, and Money Market Account. Regular Savings earns 0.01% APY regardless of balance. Premium Savings earns up to 0.04% APY if you maintain a $10,000 minimum balance; below that, it drops to 0.01%. The Money Market Account earns a higher rate but the exact percentage is not published on their website—you have to call or visit a branch to find out, and it changes based on your balance tier.

To put this in perspective: $10,000 in a Bank of America Regular Savings account earning 0.01% APY generates $1 per year in interest. The same $10,000 in a high yield savings account earning 4.5% APY generates $450 per year. Over five years, the difference is $2,245 in lost earnings. Bank of America is betting you value the convenience of having everything in one place more than you value that money.

How high yield savings accounts work at other banks

High yield savings accounts are offered by online banks (like Marcus, Ally, and American Express Personal Savings), some credit unions, and a few regional banks. They pay rates between 4% and 5.35% APY as of late 2024, though rates change when the Federal Reserve adjusts its benchmark rate. These accounts have no monthly fees, no minimum balance requirements, and no maximum deposit limits. Money moves in and out just like a regular savings account—you can transfer funds to your Bank of America checking account whenever you need them.

The catch is that high yield accounts are online-only, so you cannot walk into a branch and withdraw cash. You transfer money to your Bank of America account first, then withdraw from an ATM or at a teller. This takes one to two business days. If you need cash immediately, you keep a small emergency fund in your Bank of America account and move larger amounts to high yield savings for the long term.

Why Bank of America does not compete on savings rates

Bank of America makes money from lending—mortgages, auto loans, credit cards, and business loans. They do not need to pay high rates on savings because customers stay for checking accounts, debit cards, and the branch network. Online banks have no branches and no loan business, so they compete entirely on savings rates. It is a different business model.

Bank of America also charges monthly fees on some accounts ($12 per month on Advantage Plus Checking, for example), which online banks do not. You are paying for access to branches and customer service. If you use those services, the trade-off might make sense. If you do not, you are paying for something you do not need while earning almost nothing on your savings.

Moving money to a high yield account without closing your Bank of America account

You do not have to choose. Open a high yield savings account at an online bank or credit union, link it to your Bank of America checking account, and transfer your savings there. Your Bank of America account stays open and active. You keep your debit card, your direct deposit, and your branch access. You simply move the money that sits idle in savings to somewhere it actually earns interest.

The transfer process takes about five minutes online. You provide the high yield bank with your Bank of America account number and routing number, initiate a transfer, and the money arrives in one to two business days. You can set up automatic transfers—for example, moving $500 to high yield savings every payday—or transfer manually whenever you have extra cash. There is no penalty for moving money out of Bank of America savings, and no minimum balance you have to keep.

When Bank of America savings might still make sense

Bank of America savings is reasonable if you need cash access within hours, not days. If you keep an emergency fund and you want to be able to walk into a branch and withdraw $500 in cash immediately, a Bank of America savings account serves that purpose. The interest loss is small if you are only keeping a month or two of expenses there.

It also makes sense if you are under 18 and your parent or guardian requires a brick-and-mortar bank. Some families prefer the oversight and security of a physical branch, and Bank of America has thousands of them. In that case, the low rate is a trade-off for what the account provides—not a reason to switch.

Frequently Asked Questions

Can I transfer money from Bank of America to a high yield savings account online?

Yes. Link your high yield savings account to your Bank of America checking account using your account number and routing number, then initiate a transfer through the high yield bank's website or app. The money arrives in one to two business days. You can also do it the other way—transfer from high yield savings back to Bank of America—whenever you need the cash.

Will opening a high yield savings account hurt my credit score?

No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Credit bureaus only track borrowing and payment history, not savings accounts. You can open a high yield account without any impact on your credit.

What if Bank of America raises their savings rates in the future?

Bank of America occasionally adjusts rates, but they historically lag behind the market. Even if they raise rates to 0.5% or 1%, high yield banks will likely still pay 3% to 4% more. You can always move money back to Bank of America if rates change dramatically, but that is unlikely to happen.

Do I have to close my Bank of America account to get a high yield savings account?

No. You can keep your Bank of America checking and savings accounts open while using a high yield account elsewhere. Many people do this—they use Bank of America for checking and bill pay, and a high yield bank for savings. There is no rule against having accounts at multiple banks.

Are high yield savings accounts safe if the bank fails?

Yes. Deposits at FDIC-insured banks are protected up to $250,000 per account holder per bank. Most online banks offering high yield savings are FDIC-insured. Check the bank's website for the FDIC logo and confirmation. Your money is as safe as it is at Bank of America.