Bank of America does not offer a high yield savings account

Bank of America's standard savings accounts pay interest rates well below what you can find elsewhere. As of now, BofA's regular savings account pays around 0.01% annual percentage yield (APY), and their Money Market account pays slightly higher rates depending on your balance — typically ranging from 0.01% to 0.04% APY. These rates have not kept pace with inflation or with what online banks and credit unions offer.

If you are looking for a high yield savings account, you will need to look outside Bank of America. Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5% APY, which means your money grows significantly faster. The difference between 0.01% and 4.5% on a $10,000 balance is roughly $450 per year in lost interest.

Bank of America's strategy is to keep savings rates low while offering convenience through their branch network and bundled services. If you value having a physical location to visit and do not prioritize interest earnings, BofA may still work for you. But if you want your savings to actually earn money, you will need to move that portion to a different institution.

Key Takeaways

  • Bank of America's savings accounts pay 0.01% to 0.04% APY, which is far below the 4% to 5% available at online banks.
  • BofA does not have a product called a high yield savings account and has no plans to introduce one at competitive rates.
  • You can keep your checking account at BofA for convenience while moving savings to a separate online bank that pays higher interest.
  • The interest rate difference means hundreds of dollars per year in lost earnings on a typical savings balance.

Why Bank of America keeps savings rates so low

Large traditional banks like Bank of America operate on a different business model than online-only banks. BofA has thousands of branch locations, employees, ATM networks, and physical infrastructure to maintain. These costs are built into their pricing structure, which means they do not need to attract deposits with high interest rates.

Instead, BofA makes money by lending out customer deposits at higher rates and by charging fees for services. They rely on customer loyalty, convenience, and brand recognition rather than competitive interest rates. If you keep your money at BofA, they benefit from having access to your deposits to lend out — even if they pay you almost nothing for it.

Online banks have no branch overhead, so they can pass savings directly to customers through higher interest rates. They compete almost entirely on rate and user experience, not on physical locations. This is why the rate gap between BofA and online banks has grown so wide over the past few years.

Bank of America's actual savings products and their rates

Bank of America offers three main savings vehicles. The Regular Savings Account is their basic option and pays 0.01% APY with no minimum balance requirement. You can open one online or in a branch, and there is no monthly fee if you maintain a $300 minimum balance (or $100 if you are under 18).

The Money Market Account pays slightly more — typically 0.01% to 0.04% APY depending on your balance tier. Higher balances earn higher rates, but even the top tier is still far below what online banks offer. This account also comes with a debit card and check-writing privileges, which a regular savings account does not have.

The Certificate of Deposit (CD) is BofA's third option. CDs lock your money away for a set term (3 months to 5 years) in exchange for a fixed rate. BofA's CD rates vary by term length but typically range from 4% to 5% APY — which is actually competitive. The catch is that you cannot touch the money without paying an early withdrawal penalty, usually equal to several months of interest.

How to compare Bank of America to online high yield options

When deciding whether to move your savings, calculate the actual dollar difference. Take your current balance, multiply it by the interest rate you are earning at BofA (0.01% to 0.04%), then multiply it by the rate at an online bank (4% to 5%). The gap is usually hundreds of dollars per year.

Online banks that currently offer high yield savings accounts include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. All of these are FDIC-insured, meaning your deposits are protected up to $250,000 just like they are at BofA. Opening an account takes 10 to 15 minutes online, and you can link it to your existing BofA checking account for transfers.

You do not have to close your BofA account to move your savings. Many people keep a checking account at BofA for bill pay and ATM access, then move their savings to an online bank. This gives you the convenience of BofA's branch network while earning real interest on the money you are not spending.

What happens if you keep savings at Bank of America

If you leave your money in a BofA savings account earning 0.01% APY, you are essentially losing money to inflation. When inflation runs at 3% per year and your account earns 0.01%, your purchasing power shrinks by roughly 3% annually. This is not a catastrophic loss, but it is a real one.

The only scenario where BofA's savings rates make sense is if you are using the account as a temporary holding place for money you plan to spend within weeks or months. If you are saving for a goal that is years away, the interest rate difference becomes significant enough to matter.

BofA does offer some perks that online banks do not — access to financial advisors, investment services, and the ability to walk into a branch to deposit cash or get help. If these services are worth the cost of low interest rates to you, that is a valid choice. But you should make that choice knowingly, not by accident.

Moving money from Bank of America to a high yield account

The process is straightforward. First, open an account at your chosen online bank — this takes about 15 minutes and requires your Social Security number, address, and an initial deposit (usually $0 to $25). Most online banks let you fund the new account by linking your BofA checking account and transferring money electronically.

Once the transfer clears (usually 1 to 3 business days), your money is earning the higher rate. You can leave your BofA savings account open with a small balance to avoid fees, or close it entirely. There is no penalty for moving money between banks, and your FDIC insurance follows you — you are still protected up to $250,000 at the new bank.

If you receive regular deposits (like direct deposit of your paycheck), you can update the routing information to send money directly to the online bank instead. This way new savings automatically go to the high yield account without you having to transfer manually each month.

Frequently Asked Questions

Can I earn high yield interest if I keep my checking account at Bank of America?

Yes. You can keep your BofA checking account and move only your savings to an online bank. Link the two accounts and transfer money between them as needed. This gives you the convenience of BofA's branches and bill pay while earning real interest on savings.

Is my money safe if I move it to an online bank?

Yes, as long as the online bank is FDIC-insured. All major online banks offering high yield savings are FDIC-insured, meaning deposits up to $250,000 are protected by the federal government — the same protection you have at Bank of America.

What is the catch with high yield savings accounts?

There is no catch. Online banks offer higher rates because they have lower overhead costs than traditional banks. You do sacrifice physical branch access and in-person customer service, but the account itself is straightforward — you deposit money, it earns interest, and you can withdraw it anytime without penalty.

Will Bank of America ever offer a high yield savings account?

Bank of America has shown no indication of launching a competitive high yield savings product. Their business model depends on keeping deposit rates low. If this changes, it would likely be in response to major shifts in the banking industry, but there is no timeline or announcement suggesting this will happen.

How much money do I need to open a high yield savings account?

Most online banks have no minimum opening balance — you can open an account with $0 and deposit money later. Some require a small initial deposit of $25 or less. Check the specific bank's requirements, but the barrier to entry is very low compared to traditional banks.