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

Bank of America's standard savings account earns little to no interest — the rate varies by account type and changes frequently, but it is typically well below 0.01% APY. If you are looking for a high-yield savings account (HYSA), you will not find one under the Bank of America brand. The bank's savings products are designed for basic account holders, not for people trying to grow money through interest.

Bank of America does offer a Money Market Account, which sometimes pays slightly higher rates than savings, but it still lags far behind what online banks and credit unions offer. The rate depends on your balance tier and changes without notice. If earning meaningful interest is your goal, you will need to look elsewhere.

Key Takeaways

  • Bank of America's savings accounts earn rates below 0.01% APY, which means your money grows almost not at all.
  • The bank's Money Market Account pays more than savings but still falls short of what online banks offer for high-yield accounts.
  • Online banks and credit unions typically offer HYSA rates between 4% and 5% APY, depending on the current market.
  • You can keep a Bank of America checking account for everyday use and move savings to a higher-paying account elsewhere.

Why Bank of America's rates are so low

Large brick-and-mortar banks like Bank of America have high overhead costs — physical branches, staff, advertising, and technology infrastructure. They pass these costs to customers through lower interest rates on savings and higher fees on checking. Online banks have no branches and lower operating costs, so they can offer much higher rates on savings accounts.

Bank of America also makes money by lending out customer deposits at higher rates than they pay depositors. The wider the gap between what they pay you and what they charge borrowers, the more profit they keep. A low savings rate widens that gap.

What Bank of America's Money Market Account actually pays

The Money Market Account is Bank of America's closest product to a high-yield account, but "close" is relative. The rate depends on how much money you keep in the account — higher balances earn slightly more. As of recent years, rates have ranged from 0.01% to 0.05% APY depending on your balance tier, though these figures change as the Federal Reserve adjusts its benchmark rate.

The account also comes with check-writing privileges and a debit card, which a pure savings account does not. However, the interest you earn will not offset the opportunity cost of keeping money there instead of in a true HYSA. You will also face a monthly maintenance fee unless you maintain a high minimum balance or set up direct deposit.

Where to find actual high-yield savings accounts

Online banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank offer HYSA rates that are typically 4% to 5% APY or higher, depending on the current Federal Reserve rate. Credit unions also often offer competitive rates on savings accounts, sometimes higher than online banks.

These accounts have no monthly fees, no minimum balance requirements, and FDIC insurance up to $250,000 — the same protection Bank of America offers. The only trade-off is that you cannot walk into a physical branch, but most people manage their savings online anyway.

How to move money between Bank of America and a HYSA

You do not have to close your Bank of America account to open a HYSA elsewhere. Many people keep their Bank of America checking account for everyday spending and bill pay, then transfer savings to a higher-paying account at another bank.

Most online banks let you link your Bank of America account and transfer money electronically. You can set up an external transfer by providing your Bank of America account and routing number. Transfers typically take one to three business days. Some online banks also offer a direct deposit option, which lets you send paychecks straight to the HYSA without touching Bank of America at all.

What to consider before switching

If you have a Bank of America relationship account (like a checking account with direct deposit or a mortgage), closing your savings account will not affect it. You can keep checking and close savings without penalty. However, if you have automatic transfers set up from your Bank of America savings account, you will need to update those before you close the account.

Check whether your Bank of America account has a monthly maintenance fee. If it does, closing the savings account might lower your overall banking costs. Also consider whether you use Bank of America's mobile app, ATM network, or branch access — if you do, keeping a checking account there makes sense even if you move savings elsewhere.

Frequently Asked Questions

Can I earn interest on Bank of America checking?

Bank of America checking accounts earn no interest. Some online banks offer checking accounts with interest, though rates are typically lower than HYSA rates. If you want both checking and savings interest, you may need accounts at two different banks.

What is the difference between a savings account and a Money Market Account at Bank of America?

The Money Market Account pays slightly more interest and includes check-writing and a debit card. Both earn very low rates compared to online banks. The Money Market Account also has a higher minimum balance requirement and monthly fees if you do not meet it.

Will moving my savings hurt my credit score?

Opening a new savings account at another bank does not hurt your credit. Closing a Bank of America savings account also does not affect your score — savings accounts are not reported to credit bureaus. Your credit only changes when you open or close credit products like credit cards or loans.

How much interest would I actually earn in a Bank of America savings account?

On a $10,000 balance earning 0.01% APY, you would earn about $1 per year. In a 4.5% HYSA, you would earn about $450 per year on the same balance. The difference grows with larger balances and compounds over time.

Is my money safe in an online bank HYSA?

Yes. Online banks that offer HYSA are FDIC-insured up to $250,000, the same as Bank of America. Your deposits are protected even if the bank fails. Check that the bank displays the FDIC logo and insurance information on its website.