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

Bank of America's standard savings account earns 0.01% annual percentage yield (APY) on most balances. This is far below what other banks pay — online banks and credit unions currently offer rates between 4% and 5.35% APY on savings accounts with no minimum balance or monthly fees.

Bank of America does offer a Money Market Account that pays a higher rate, but even that tops out at 0.05% APY for balances of $100,000 or more. If you keep less than $100,000, the rate drops to 0.01% APY — the same as their regular savings account.

The gap matters. On $10,000 saved for one year, Bank of America pays you $1 in interest. An online bank paying 4.5% APY pays you $450 on the same $10,000. That difference compounds if you leave the money untouched.

Key Takeaways

  • Bank of America's savings account earns 0.01% APY, which is roughly 400 times lower than rates available at online banks and credit unions.
  • The Money Market Account requires $100,000 to reach the highest rate of 0.05% APY, and most customers earn 0.01% on smaller balances.
  • If you want high yield savings, you will need to move your money to a different bank — Bank of America does not compete on interest rates.
  • Bank of America's value proposition is branch access and integrated checking-savings management, not earnings on savings balances.

Why Bank of America's rates are so low

Bank of America operates a large branch network across the United States. Maintaining thousands of physical locations, staffing them, and processing transactions in person costs money. Those costs get passed to customers through lower interest rates on deposits.

Online banks have no branches. They operate from a few data centers and handle all customer service through phone, email, and web portals. That lower overhead lets them pay depositors more interest and still turn a profit.

You are paying for convenience and familiarity when you bank with Bank of America. If your priority is earning interest on savings, that trade-off does not make financial sense.

What Bank of America's Money Market Account actually offers

The Money Market Account is Bank of America's closest product to a high yield account, but the name is misleading. It is a savings account with a tiered interest structure and a debit card.

Here is the rate structure: balances under $10,000 earn 0.01% APY. Balances from $10,000 to $99,999 earn 0.01% APY. Balances of $100,000 or more earn 0.05% APY. There is no monthly fee, but you can make only six withdrawals per month before Bank of America charges $10 per withdrawal above that limit.

The debit card is useful if you want to access your savings without going to an ATM, but it does not change the fact that you are earning almost nothing on your balance. A $100,000 deposit earns $50 per year — less than $5 per month.

Where to find actual high yield savings rates

Online banks consistently offer the highest savings rates. As of now, banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all pay between 4% and 5.35% APY with no minimum deposit and no monthly fees.

Credit unions also compete on rates. If you are a member of a credit union, check their savings account offerings — many pay 2% to 3% APY on balances up to $25,000, and some offer promotional rates as high as 5% for limited periods.

The catch with online banks and credit unions is that you cannot walk into a branch and withdraw cash or deposit a check in person. Most offer mobile check deposit and ATM networks, but if you need immediate in-person service, you sacrifice that when you leave Bank of America.

Should you keep money at Bank of America if you have savings?

If you use Bank of America for checking and need a single bank for convenience, keeping a small emergency fund there makes sense. The difference between 0.01% and 4.5% on $1,000 is only $44 per year — not worth the hassle of managing two banks if you rarely touch that money.

If you have $5,000 or more in savings that you plan to keep for more than a few months, moving it to an online bank or credit union is worth the 15 minutes it takes to open an account. You can keep your checking at Bank of America and your savings elsewhere.

If you have $100,000 or more, the math is even clearer. Bank of America's Money Market Account pays $50 per year on $100,000. An online bank paying 4.5% pays $4,500 per year on the same balance. That is $4,450 per year you are leaving on the table by staying with Bank of America.

How to move money from Bank of America to a high yield account

Most online banks let you link your Bank of America checking account and transfer money electronically. The process takes three to five business days. You provide your Bank of America account number and routing number (which you can find on a check or in your online banking portal), and the online bank pulls the money over.

You can also withdraw cash from Bank of America and deposit it into the new bank, though this is slower and less secure. If you are moving a large balance, the electronic transfer is faster and safer.

Once the money arrives at the new bank, it starts earning interest immediately. You can keep your Bank of America checking account open for bill pay and everyday spending — there is no rule that says you have to close it.

Frequently Asked Questions

Does Bank of America have any savings account that earns more than 0.01%?

The Money Market Account earns 0.05% APY on balances of $100,000 or more, but most customers earn 0.01% on smaller balances. This is still far below what online banks and credit unions pay. If you have less than $100,000, Bank of America offers no product that earns meaningful interest.

Can I keep my Bank of America checking account and move my savings elsewhere?

Yes. You can open a high yield savings account at an online bank or credit union and link it to your Bank of America checking account for transfers. Many people do this — they use Bank of America for checking and bill pay, and keep savings at a bank that actually pays interest.

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

Bank of America's savings account and Money Market Account earn the same interest rate for most customers (0.01% APY). The Money Market Account comes with a debit card and allows six free withdrawals per month, while the savings account limits you to six transfers per month. The Money Market Account charges $10 for each withdrawal beyond six.

How long does it take to move money to an online bank?

Electronic transfers from Bank of America to another bank take three to five business days. Once the money arrives, it starts earning interest immediately. You do not have to wait for the transfer to complete before opening the account — you can open it today and fund it tomorrow.

Will I lose FDIC protection if I move my savings to an online bank?

No. All banks that are members of the Federal Deposit Insurance Corporation (FDIC) protect your deposits up to $250,000 per account. Online banks are FDIC-insured just like Bank of America. Your money is equally safe at either bank.