Bank of America savings account interest rates vary by account type and change regularly

Bank of America does not publish a single interest rate for all savings accounts. The rate you earn depends on which account you open, how much you deposit, and the current market. Rates change frequently—sometimes weekly—based on Federal Reserve decisions and what other banks are offering.

As of now, Bank of America's savings rates are significantly lower than rates offered by online banks and credit unions. A standard Bank of America savings account typically earns less than 0.01% annual percentage yield (APY), while some online savings accounts pay 4% to 5% APY. The difference matters: on a $10,000 deposit, you might earn $1 per year at Bank of America versus $400 to $500 per year elsewhere.

To find the current rate for a specific account, you need to check Bank of America's website directly or call 1-800-432-1000, because rates are not listed in marketing materials and change without announcement.

Key Takeaways

  • Bank of America savings accounts currently earn less than 0.01% APY on most accounts, far below rates available at online banks.
  • Interest rates change frequently and are not advertised; you must check the Bank of America website or call to see the current rate for your account type.
  • The account you choose—regular savings, money market, or tiered account—affects the rate you earn, and higher balances sometimes earn slightly more.
  • Interest compounds daily but is credited monthly, so you earn a small amount of interest on your interest each month.

How Bank of America calculates and pays interest

Bank of America compounds interest daily, meaning it calculates what you owe interest on each day, then adds that interest to your balance. At the end of each month, the bank credits the total interest earned to your account. This daily compounding means you earn a tiny amount of interest on the interest you already earned, though the effect is small at current rates.

The formula is simple: your daily balance multiplied by the APY, divided by 365 days. If you have $10,000 in an account earning 0.01% APY, you earn roughly $1 per year, or about 8 cents per month. If your balance changes during the month—you deposit $5,000 or withdraw $2,000—the bank recalculates based on your new balance for the remaining days.

Interest posts to your account on the first business day of the following month. You can see it listed as "Interest Paid" in your transaction history.

Account types and their interest rates

Bank of America offers several savings products, and rates differ slightly between them. A regular savings account (sometimes called a "Basic Savings Account") typically earns the lowest rate. A money market account may earn slightly more, but the difference is usually less than 0.01%. Some accounts offer tiered rates, where you earn a marginally higher rate if you maintain a higher balance—for example, a slightly better rate on balances over $100,000—but the improvement is minimal.

Bank of America also offers certificates of deposit (CDs), which lock your money away for a set term (3 months, 6 months, 1 year, or longer) in exchange for a may provide rate. CD rates are higher than savings account rates but still lag behind online banks. A 12-month CD at Bank of America might pay 4% to 5% APY, depending on when you open it, but you cannot withdraw the money without paying an early withdrawal penalty.

If you have a Bank of America checking account, you may also earn interest on that account, though rates are typically even lower than savings accounts—often 0.01% APY or less.

Why Bank of America rates are lower than competitors

Bank of America is a large branch bank with physical locations in most states. Maintaining branches, staffing, and technology costs money. Online banks like Marcus, Ally, and Discover have no branches and lower overhead, so they can pass higher rates to customers. Credit unions are member-owned and often prioritize member returns over profit, which also allows them to pay more interest.

Bank of America's customers often stay because of convenience—they can walk into a branch, use a debit card at any ATM, or deposit checks through the mobile app. They trade higher interest rates for that access. If interest income is your priority, you would earn significantly more money elsewhere.

How to check your current rate and account balance

Log into your Bank of America account online or through the mobile app. Go to your savings account details. The current APY should appear near the account balance, though it is sometimes listed under "Account Details" or "Rates and Terms" rather than on the main screen. If you do not see it, call 1-800-432-1000 and ask the representative for the APY on your specific account.

You can also visit a Bank of America branch and ask a representative. They can tell you the current rate and explain any differences between account types. Bring your account number if you call or visit, so they can look up your specific rate quickly.

Moving money to earn more interest

If you want to earn more interest on your savings, you have two main options: open an account at an online bank or credit union, or open a CD at Bank of America or elsewhere. Online savings accounts currently pay 4% to 5% APY with no minimum balance and no fees. You can transfer money from your Bank of America account to an online bank in one to three business days using an external transfer.

CDs lock your money for a set period but may provide a rate. If you open a 12-month CD at Bank of America paying 4.5% APY and deposit $10,000, you will earn $450 in interest over the year—compared to roughly $1 in a savings account. The tradeoff is that you cannot withdraw the money without paying a penalty, usually equal to a few months of interest.

Some people keep a small amount in a Bank of America savings account for immediate access and move larger sums to an online bank or CD for better returns. There is no penalty for moving money out of a savings account, only out of a CD before its term ends.

Frequently Asked Questions

Does Bank of America charge a fee to keep a savings account?

Bank of America does not charge a monthly maintenance fee on most savings accounts, but some accounts require a minimum balance to avoid fees. Check your account terms or call 1-800-432-1000 to confirm whether your account has a minimum balance requirement.

Can I move my money to another bank without losing interest?

Yes. Interest accrues daily and posts monthly, so if you transfer money out mid-month, you keep the interest earned up to that point. There is no penalty for closing a savings account or moving money to another bank. CDs are different—withdrawing early usually costs you a penalty.

What happens to my interest if I withdraw money?

Interest is calculated on your daily balance. If you withdraw $5,000, the bank recalculates interest for the remaining days of the month based on your new, lower balance. You do not lose interest already earned, but you earn less going forward because your balance is smaller.

Is the interest I earn taxable?

Yes. Bank of America will send you a 1099-INT form in January if you earned $10 or more in interest during the previous year. You must report this interest as income on your tax return. At current rates, most people earn far less than $10 per year, so they do not receive a form.

How often does Bank of America change its interest rates?

Bank of America can change rates at any time without notice. Rates typically move when the Federal Reserve changes its benchmark rate, but banks also adjust independently. Check your account online or call monthly if you want to track changes, or set a reminder to review your rate quarterly.