Money goes in, earns interest, and you can withdraw it whenever you need it

A Bank of America savings account is a place to store money separately from your checking account. When you deposit cash or transfer funds into it, the bank holds that money and pays you interest—a small percentage of your balance each month. You can withdraw your money at any time without penalty, though the amount of interest you earn depends on the account type you choose and how much you keep in the account.

The bank uses your deposits to lend money to other customers and businesses. In return, it shares a portion of what it earns with you as interest. The rate changes based on what the Federal Reserve does with interest rates, so your earnings may go up or down over time. Bank of America publishes its current rates on its website, and you can compare them to other banks if you want to see whether you're earning competitive interest.

Key Takeaways

  • Money deposited into a Bank of America savings account earns interest monthly, and you can withdraw it anytime without a fee.
  • Interest rates vary by account type—some accounts earn more if you maintain a higher balance or set up direct deposit.
  • You can open a savings account online, by phone, or in person at a Bank of America branch.
  • The bank insures deposits up to $250,000 through the FDIC, so your money is protected even if the bank fails.
  • Transfers between your Bank of America checking and savings accounts are free and usually happen instantly or within one business day.

What happens when you deposit money

When you put money into a Bank of America savings account—whether by cash deposit at a branch, transfer from another bank, or direct deposit from your employer—the bank records the transaction and adds the amount to your balance. If you deposit cash or a check at a branch, it typically posts the same day. If you transfer money from another bank, it usually takes one to three business days, depending on the other bank's processing speed.

Once the money is in your account, it starts earning interest immediately. Bank of America calculates interest daily based on your balance and deposits it monthly. The interest rate you earn is called the Annual Percentage Yield (APY), and it tells you how much you'll earn in a year if you don't make any withdrawals. If you have $10,000 in an account earning 4.50% APY, you would earn roughly $450 over 12 months, though the actual amount depends on how the bank compounds the interest (usually daily).

How to withdraw money and move it around

You can withdraw money from a Bank of America savings account in several ways. You can visit a branch and ask a teller to withdraw cash. You can use an ATM to pull out cash if you have a debit card linked to the account. You can also transfer money from your savings account to your checking account through the Bank of America app or website, and the transfer usually completes within minutes or by the next business day.

There is no limit to how many times you can withdraw money or transfer it out each month—Bank of America does not charge a fee for these transactions. However, if you make more than six transfers or withdrawals per month (a rule that used to be federal law but is now up to each bank), some banks charge a fee. Bank of America currently does not enforce this limit, but it's worth checking the account terms or calling customer service to confirm the current policy.

Different Bank of America savings account types and their interest rates

Bank of America offers several savings account options, and the interest rate you earn depends on which one you choose. The Regular Savings Account is the basic option and typically earns the lowest rate. The Premium Savings Account requires a higher minimum balance (usually $10,000 or more) and pays a higher interest rate. The Money Market Account works like a savings account but may offer higher rates if you maintain an even larger balance, though it sometimes limits how many withdrawals you can make per month.

Bank of America also offers a Youth Savings Account for customers under 18, which has different terms and may earn interest at a different rate. Some accounts offer bonus interest if you set up direct deposit from your employer or if you maintain a relationship with Bank of America (such as having a checking account there as well). Interest rates change frequently, so check the Bank of America website or call 1-800-432-1000 to see the current rates for each account type before you open one.

FDIC insurance and what happens if the bank fails

Bank of America is insured by the Federal Deposit Insurance Corporation (FDIC), which means your deposits are protected up to $250,000 per account type, per depositor, per bank. If Bank of America were to fail, the FDIC would pay you back up to that limit. This protection covers your savings account separately from your checking account, so if you have $200,000 in savings and $100,000 in checking, both are fully protected.

If you have more than $250,000 to save, you can open multiple savings accounts at different banks, and each one would be insured separately. You can also open a joint savings account with another person, and that account gets its own $250,000 of FDIC protection. The FDIC website has a calculator that shows you exactly how much of your money is covered based on how your accounts are titled.

Fees and minimum balance requirements

Bank of America does not charge a monthly maintenance fee on most savings accounts, though some premium accounts may require a minimum balance to avoid a fee. The Regular Savings Account typically has no minimum balance requirement, meaning you can open it with $1 and keep it open with any amount. The Premium Savings Account usually requires $10,000 or more to earn the advertised interest rate; if your balance drops below that, the rate may decrease.

Bank of America does not charge fees for deposits, withdrawals, or transfers between your own accounts. However, if you use an ATM that is not owned by Bank of America, the other bank may charge you a fee (usually $2 to $3). Bank of America also does not charge overdraft fees on savings accounts because you cannot overdraw a savings account—if you try to withdraw more than you have, the transaction simply declines.

How to open a Bank of America savings account

You can open a savings account online through the Bank of America website, by phone at 1-800-432-1000, or in person at any Bank of America branch. Online is usually the fastest—you can complete the process in 10 to 15 minutes. You'll need to provide your Social Security number, date of birth, address, and a government-issued ID. You'll also need to fund the account with an initial deposit, which can come from another bank account or a debit card.

If you already have a Bank of America checking account, opening a savings account is even faster because the bank already has your information on file. You can link the two accounts immediately, which lets you transfer money between them instantly through the app or website. If you're opening your first account with Bank of America, the bank may ask additional questions to verify your identity, especially if you're opening the account online.

Frequently Asked Questions

Can I have multiple savings accounts at Bank of America?

Yes. You can open as many savings accounts as you want at Bank of America, and each one is insured separately by the FDIC up to $250,000. Some people open multiple accounts to organize money for different goals—one for an emergency fund, one for a vacation, one for a down payment. Each account earns interest independently based on its balance.

What's the difference between a savings account and a money market account?

A money market account typically earns a higher interest rate than a regular savings account, but it may require a larger minimum balance and sometimes limits how many withdrawals you can make per month. A savings account has no withdrawal limits and usually requires a lower minimum balance. Check Bank of America's current rates to see which one pays more for your situation.

How long does it take to earn interest on money I just deposited?

Bank of America calculates interest daily based on your balance, so interest starts accruing the day your deposit posts to the account. However, the bank deposits the interest into your account once a month, usually on the last day of the month or the first day of the next month. You won't see the interest payment until then.

Can I use my savings account to pay bills?

You cannot pay bills directly from a savings account the way you can from a checking account. However, you can transfer money from your savings account to your checking account (usually instantly or within one business day) and then pay bills from checking. Some people set up automatic transfers on a schedule to move money between the two accounts.

What happens if my balance drops below the minimum?

If you have a Regular Savings Account, there is no minimum balance, so your balance can be $0 and you won't be charged a fee. If you have a Premium Savings Account or Money Market Account that requires a minimum balance, your interest rate may drop to a lower tier if your balance falls below it. The bank will notify you if this happens, and you can bring the balance back up to restore the higher rate.