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

Bank of America's standard savings accounts earn interest rates well below what you can find elsewhere. As of now, Bank of America offers a regular savings account with a rate that typically sits between 0.01% and 0.04% annual percentage yield (APY), depending on your account type and balance. This is substantially lower than what online banks and credit unions currently offer—many high-yield savings accounts pay 4% to 5% APY or higher.

If you hold a Bank of America checking account with direct deposit or maintain a high balance, you may see a slightly better rate on their savings products, but it still will not match what the market offers for true high-yield accounts. Bank of America's business model relies on branch networks and full-service banking, which costs more to operate than online-only banks that can pass savings to customers through higher rates.

Key Takeaways

  • Bank of America savings accounts currently earn 0.01% to 0.04% APY, far below the 4% to 5% available at online banks and credit unions.
  • Bank of America does not market or offer a product specifically branded as a high-yield savings account.
  • If you want higher interest on savings while keeping your Bank of America checking account, you can open a high-yield account elsewhere and transfer money between them.
  • The trade-off for Bank of America's lower rates is access to physical branches, in-person service, and integration with their full banking suite.

What Bank of America savings accounts actually pay

Bank of America offers three main savings products: the regular Savings Account, the Money Market Account, and the Premium Savings Account. None of these are marketed or structured as high-yield products. The regular Savings Account is the most common and typically earns the lowest rate. The Money Market Account and Premium Savings Account offer slightly higher rates, but the difference is minimal—often just a few basis points—and still falls far short of what online competitors offer.

Rates vary based on your account tier and balance level. Customers with higher balances or those enrolled in Bank of America's Preferred Rewards program may see marginally better rates, but these improvements are modest. The Preferred Rewards program ties your savings rate to your checking account activity and overall relationship with the bank, so the rate you earn depends on factors beyond just the savings product itself.

How Bank of America's rates compare to the market

Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5.35% APY on high-yield savings accounts. Credit unions often offer competitive rates as well, sometimes through shared branching networks that give you access to ATMs nationwide. Bank of America's rates are roughly 100 times lower than these alternatives.

The gap matters when you have money sitting in savings. On a $10,000 balance, Bank of America would earn you roughly $1 to $4 per year in interest. The same $10,000 at a 4.5% APY account would earn $450 per year. Over time, especially with larger balances or regular deposits, the difference compounds significantly.

Why Bank of America keeps rates low

Bank of America maintains lower savings rates because it operates a massive branch network—over 4,600 locations in the United States. Staffing, real estate, and technology infrastructure for physical banking cost money. Online-only banks have no branches, no tellers, and minimal overhead, so they can afford to pay depositors more in interest.

Bank of America's business model also depends on lending money out at higher rates than it pays depositors. The wider the gap between what they pay you and what they charge borrowers, the more profit they make. Online banks operate on thinner margins but make up for it through volume and lower costs.

Your options if you want higher savings rates

You do not have to close your Bank of America checking account to earn higher interest on savings. Many people keep their Bank of America account for checking, bill pay, and branch access, then open a high-yield savings account at an online bank or credit union for money they want to grow. You can transfer money between accounts easily using online banking or by linking accounts through ACH transfers.

If you prefer to stay within one institution, some credit unions offer high-yield savings rates and may allow you to join based on where you work, live, or your membership in certain organizations. You can search for credit unions near you using the CO-OP network locator or Alliant Credit Union's shared branching tool to see if you have access to better rates without leaving your local area.

When Bank of America savings might still make sense

Bank of America savings accounts are worth keeping if you value convenience over rate of return. If you regularly visit a branch, need to deposit cash, or want everything in one place for simplicity, the lower rate may be a trade-off you accept. Parents opening savings accounts for children sometimes choose Bank of America for the same reason—the ease of management outweighs the interest difference on small balances.

If you have a very small emergency fund or are saving for a short-term goal (a few months away), the interest rate matters less because you will not have the money sitting long enough for the rate difference to add up significantly. In those cases, the convenience of your existing Bank of America account may be reason enough to use it.

How to move money between Bank of America and a high-yield account

Linking a Bank of America account to a high-yield savings account at another bank takes about five minutes. Log into your Bank of America online banking, go to the transfer or link accounts section, and enter the routing number and account number of your high-yield account. Most banks verify the link by depositing two small test deposits (usually under $1 each) to your linked account, which you then confirm in your high-yield bank's system.

Once linked, you can transfer money between accounts in one to three business days using ACH transfers. Some online banks offer faster transfers or even same-day options if you set it up early in the business day. You can automate regular transfers—for example, moving a portion of your paycheck to savings each week—through either bank's online system.

Frequently Asked Questions

Does Bank of America have any savings account that earns more than 0.04%?

Bank of America's Premium Savings Account and Money Market Account may earn slightly higher rates for customers with larger balances or active Preferred Rewards membership, but these rates still typically remain below 0.5% APY. They are not competitive with online high-yield accounts.

Can I earn better interest by keeping a high balance at Bank of America?

Bank of America does tier rates based on balance level, so maintaining a higher balance may earn you a marginally better rate. However, even with their highest balance tier, the rate will still be a fraction of what online banks offer. You would earn far more by moving that same balance to a high-yield account elsewhere.

What happens to my Bank of America savings rate if I close my checking account?

Your savings rate may decrease if you close your checking account, especially if you were enrolled in Preferred Rewards. However, since the rates are already very low, the practical impact is minimal. You can keep your checking account open for branch access and bill pay while moving your savings elsewhere.

Is it safe to move my savings to an online bank?

Online banks that are FDIC-insured offer the same deposit protection as Bank of America—up to $250,000 per account holder per bank. Check that your online bank displays FDIC insurance information on its website. Most major online banks are FDIC-insured and regulated the same way as traditional banks.

Can I use Bank of America ATMs if I open a savings account elsewhere?

Yes. You can keep your Bank of America checking account and use their ATMs and branches for cash deposits and withdrawals. Your high-yield savings account at another bank will have its own ATM network or may reimburse out-of-network ATM fees. Many online banks reimburse ATM fees nationwide, so you can still access cash easily.