Yes, most Bank of America savings accounts earn interest, but the rate depends on which account you have

Bank of America offers several savings products, and nearly all of them pay interest. The amount you earn depends on three things: which savings account you open, how much money you keep in it, and what the current interest rate is. The bank sets its own rates and changes them regularly, so the rate you see today may not be the rate you earn next month.

The most common option is the Regular Savings Account, which earns interest but typically at a very low rate—often less than 0.01% annually. Bank of America also offers a Money Market Account, which usually pays a higher rate in exchange for keeping a larger balance and limiting how often you withdraw. A third option is a Certificate of Deposit (CD), which locks your money away for a set time period (three months to five years) and pays a fixed rate that is usually higher than savings or money market accounts.

Key Takeaways

  • Bank of America savings accounts earn interest, but the rate varies by account type and changes monthly based on the bank's decision and market conditions.
  • Regular savings accounts earn the lowest rates; money market accounts and CDs typically pay more but require higher minimum balances or lock-in periods.
  • You can check your current rate by logging into your online account, calling 1-800-432-1000, or visiting a branch in person.
  • Interest is usually added to your account monthly, and you can see the amount earned on your monthly statement or in the activity section of your online account.

How to find out what rate your account is earning right now

The fastest way is to log into your Bank of America online account or mobile app. Look for your savings account, and the current rate should appear near the account balance. If you do not see it, click into the account details or scroll down—the Annual Percentage Yield (APY) is usually listed there.

You can also call Bank of America at 1-800-432-1000 and ask a representative for your current rate. Have your account number ready. If you prefer to ask in person, visit any Bank of America branch and a teller can tell you the rate on the spot.

The rate you see is the Annual Percentage Yield (APY), which is the total amount you will earn in a year if you leave the money untouched. For example, if your account earns 0.01% APY and you have $10,000 in it, you will earn about $1 over the course of a year.

The difference between savings accounts, money market accounts, and CDs

A Regular Savings Account has no minimum balance requirement and lets you withdraw money whenever you want. The tradeoff is that the interest rate is very low. Bank of America's regular savings account currently earns less than 0.01% APY for most customers, though the exact rate can vary.

A Money Market Account requires a higher opening balance (often $2,500 or more) and pays a higher rate in return. The catch is that you are limited to a certain number of withdrawals per month—usually six—before fees kick in. If you need to access your money frequently, this account is not a good fit.

A Certificate of Deposit (CD) locks your money away for a fixed period: three months, six months, one year, three years, or five years. In exchange, Bank of America pays you a higher rate that is set when you open the CD and does not change. If you withdraw the money before the term ends, you pay an early withdrawal penalty, which can eat into your earnings. CDs are best if you know you will not need the money for a specific length of time.

When interest is added to your account

Bank of America adds interest to your savings account monthly. The interest is calculated daily based on your balance, but you do not see it in your account until the end of the month. On your monthly statement, you will see a line item showing the interest earned, usually labeled as "Interest Paid" or "Interest Earned."

You can also check your interest earnings in real time by logging into your online account and looking at the transaction history or activity section for your savings account. The deposit will show up there as soon as it posts, which is usually on the last business day of the month.

Why Bank of America's rates are lower than some other banks

Bank of America is a large national bank with thousands of branches and a full range of services. Online-only banks and credit unions often pay higher interest rates on savings accounts because they have lower overhead costs—no physical branches to maintain, fewer employees to pay. They pass those savings on to customers in the form of higher rates.

If you are looking for the highest possible rate on a savings account, you may earn more at an online bank or credit union. However, Bank of America offers convenience: you can visit a branch, talk to a person, and access your money at any of thousands of ATMs nationwide. That convenience comes at the cost of lower interest rates.

What happens if you move your money or close the account

If you transfer money out of your savings account, you stop earning interest on that amount. Interest is only paid on the balance that remains in the account. If you close the account entirely, Bank of America will pay you any interest that has been earned up to the date of closure, and then the account is closed.

If you move your savings to another bank, that bank will begin paying interest according to its own rates and terms. There is no penalty for moving your money to a different bank—you only pay an early withdrawal penalty if you have a CD and withdraw before the term ends.

How to compare Bank of America rates to other banks

Bank of America publishes its current rates on its website under the "Rates & Fees" section. You can also call 1-800-432-1000 to ask about current rates on any product. To compare, visit the websites of other banks—both large national banks and online-only banks—and write down their current rates for the same account type.

Keep in mind that rates change frequently, sometimes weekly. A rate that is higher today may not be higher next week. If you are deciding between banks, look at the rate today, but also think about what other services matter to you: branch access, customer service, mobile app quality, or the ability to link accounts for transfers.

Frequently Asked Questions

Can I earn interest on a checking account at Bank of America?

Most Bank of America checking accounts do not earn interest, or earn a very small amount. Some premium checking accounts may offer a small rate, but it is typically much lower than what a savings account or money market account pays. If earning interest is important to you, a savings account is the better choice.

What is the minimum balance I need to earn interest?

Regular savings accounts have no minimum balance requirement to earn interest—you earn interest on whatever balance you have, even if it is $1. Money market accounts usually require a higher minimum (often $2,500) to earn the advertised rate. CDs also have minimum opening amounts, which vary by term length.

How often does Bank of America change its interest rates?

Bank of America can change its rates at any time without notice. Rates typically move when the Federal Reserve changes its benchmark rate, but banks do not have to match those changes exactly or on the same timeline. Check your account online or call to confirm the current rate if you have not checked in a few weeks.

Will I owe taxes on the interest I earn?

Yes. Interest earned on a savings account is taxable income. At the end of the year, Bank of America will send you a Form 1099-INT showing how much interest you earned. You will need to report this on your tax return. The amount is usually small, but it still counts as income.

What if I have multiple savings accounts at Bank of America—do they all earn interest?

Yes, each savings account earns interest at the same rate. However, Bank of America may limit how many savings accounts you can open. If you have questions about opening multiple accounts, call 1-800-432-1000 or ask at a branch.