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

Bank of America's standard savings account earns interest, but the rate is substantially lower than what you can find at online banks or credit unions. As of now, Bank of America's regular savings account pays a rate that varies by account type and balance, but typically falls between 0.01% and 0.04% annually — far below the 4% to 5% rates available elsewhere.

If you keep money at Bank of America primarily for checking and bill pay, a regular savings account works fine for small emergency funds. But if you are looking to park money and earn meaningful interest, you will need to look outside Bank of America or use a different strategy within the bank itself.

Key Takeaways

  • Bank of America's standard savings account pays between 0.01% and 0.04% annually, which is significantly lower than high-yield accounts at online banks.
  • Bank of America offers a Money Market account that pays slightly higher rates than savings, but still lags behind dedicated high-yield products.
  • If you want to earn higher interest on savings while staying with Bank of America, you can use a CD ladder or move money to an online savings account and transfer funds as needed.
  • The trade-off for staying with Bank of America is convenience and branch access, not interest earnings.

What Bank of America savings accounts actually pay

Bank of America offers two main savings products: a regular savings account and a Money Market account. The regular savings account has no minimum opening deposit and no monthly fee if you maintain a $300 minimum balance. Interest rates on this account are tiered — the more you keep in the account, the slightly higher your rate, but even the highest tier is still under 0.05% for most customers.

The Money Market account requires a higher minimum balance (typically $2,500) and pays a marginally better rate, usually between 0.03% and 0.06% depending on your balance tier. Neither product comes close to the rates offered by online banks like Marcus, Ally, or American Express Personal Savings, which currently offer rates above 4%.

Bank of America also offers Certificates of Deposit (CDs), which lock your money away for a set term (3 months to 5 years) in exchange for a fixed rate. CD rates are higher than savings rates but still lag behind some competitors. The rate depends on the term length and current market conditions.

Why Bank of America's rates are lower

Bank of America maintains physical branches, employs tellers, and operates a large branch network. Those costs are passed along to customers through lower interest rates on deposits. Online banks have no branches and minimal overhead, so they can afford to pay depositors more.

Additionally, Bank of America makes money partly by lending out deposits at higher rates than it pays you. The smaller the gap between what it pays you and what it charges borrowers, the less profit the bank makes. By keeping deposit rates low, Bank of America widens that gap.

How to earn more interest while staying with Bank of America

If you want to keep your primary banking relationship with Bank of America but earn higher interest, you have two practical options. First, open a high-yield savings account at an online bank and transfer money there when you have a surplus. You can move money back to Bank of America whenever you need it — transfers typically take one to three business days. This approach lets you earn 4% or more on savings while keeping your checking account and debit card at Bank of America.

Second, use Bank of America's CD ladder strategy. Buy multiple CDs with different maturity dates (one that matures in 1 year, one in 2 years, one in 3 years, and so on). When each CD matures, you can either renew it or move the money to a savings account. This locks in rates that are better than savings but still requires you to commit your money for a set period.

A third option is to ask your Bank of America banker about promotional rates. Occasionally, Bank of America offers limited-time higher rates on savings or money market accounts to new customers or existing customers who meet certain conditions (like setting up direct deposit). These promotions are not permanent and vary by location and customer profile.

Comparing Bank of America to online high-yield alternatives

Online banks like Marcus (owned by Goldman Sachs), Ally Bank, and American Express Personal Savings currently offer rates between 4% and 5.35% on high-yield savings accounts. 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 main trade-off is access. With an online bank, you cannot walk into a branch or speak to a teller in person. All transactions happen through a website or mobile app. For most people, this is not a problem — you can deposit checks by phone camera, transfer money instantly to other banks, and reach customer service by phone or chat.

If you need frequent in-person banking, a local credit union may offer a middle ground: some credit unions pay competitive rates on savings accounts and maintain physical branches. Credit unions are member-owned and often prioritize member returns over shareholder profits, which can result in better rates than large banks.

What happens to your money if Bank of America fails

Bank of America is a large, federally regulated bank, and deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type per depositor. This means if the bank fails, you are protected up to that limit. The same FDIC protection applies to savings accounts, money market accounts, and CDs at Bank of America and at online banks.

The FDIC limit is per account type, so you can have $250,000 in a savings account and another $250,000 in a money market account at the same bank and both are fully protected. If you have more than $250,000 to save, you can open accounts at multiple banks to stay within the insurance limit at each one.

Frequently Asked Questions

Can I move money from Bank of America to a high-yield savings account easily?

Yes. You can link your Bank of America checking account to an online savings account and transfer money between them. Transfers typically take one to three business days. You can move money back to Bank of America just as easily if you need it, so there is no penalty for trying a high-yield account.

Will opening a high-yield account somewhere else hurt my credit?

No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft check to verify your identity, but this does not show up on your credit report or impact your ability to borrow.

What if I need my money quickly from a high-yield account?

You can transfer money from a high-yield savings account back to your Bank of America checking account in one to three business days. If you need cash immediately, you can withdraw from your Bank of America account. The high-yield account is best for money you do not need right away.

Are Bank of America CDs worth it if rates are low?

Bank of America CDs pay more than their savings account, but less than CDs at online banks. If you want to lock money away for a set term, compare Bank of America's CD rates to those at Marcus, Ally, or your local credit union before deciding. The difference in earnings can be significant over a year or longer.

Does Bank of America offer any promotional rates right now?

Bank of America occasionally runs promotions on savings and money market accounts, but these vary by location and customer type. Ask your banker or check the Bank of America website for current offers. Promotional rates are temporary and typically apply only to new money or new customers.