Bank of America savings accounts earn between 0.01% and 0.04% annual percentage yield, depending on the account type and balance
Bank of America offers three main savings products: regular savings accounts, money market accounts, and certificates of deposit (CDs). The regular savings account currently pays around 0.01% APY on most balances. Money market accounts pay slightly higher rates, typically 0.02% to 0.04% APY depending on your balance tier. CDs pay fixed rates that change based on the term length you choose — currently ranging from around 0.01% for a 3-month CD to 0.40% or higher for longer terms like 12 months or more.
These rates are set by Bank of America and change without notice. The bank adjusts rates based on Federal Reserve policy and market conditions. You can check your current rate by logging into your online account, calling 1-800-432-1000, or visiting a branch. The rate you earn depends on which specific product you hold and, for some accounts, your balance level.
Key Takeaways
- Bank of America savings accounts pay 0.01% APY on regular savings, with money market accounts paying 0.02% to 0.04% depending on your balance.
- CDs offer higher fixed rates than savings accounts, ranging from 0.01% to 0.40% or more based on how long you lock your money away.
- Interest compounds daily and is credited monthly, meaning you earn a small amount of interest on the interest you already earned.
- Your actual earnings depend on your account balance and how long the money stays in the account — a $1,000 balance earning 0.01% APY generates roughly $0.10 per year.
- Bank of America rates are lower than many online banks and credit unions, so comparing options before opening an account can significantly affect your returns.
How interest compounds and when you receive it
Bank of America compounds interest daily, which means the bank calculates your earnings on your current balance every single day. The interest earned each day is added to your account, and the next day's calculation includes that new amount. This creates a compounding effect — you earn interest on your interest, though at these low rates the difference is minimal.
Interest is credited to your account monthly, usually on the last business day of the month. You can see the exact amount credited in your transaction history. The interest you earn is taxable income, and Bank of America will send you a 1099-INT form at the end of the year if you earned $10 or more in interest.
How balance tiers affect your rate
Bank of America's money market accounts use balance tiers, meaning you earn a higher rate if you maintain a larger balance. For example, you might earn 0.02% APY on balances under $25,000 and 0.04% APY on balances of $100,000 or more. The exact tiers and rates vary and change over time.
Regular savings accounts do not have tiered rates — you earn the same rate regardless of balance. This makes them simpler but also means you have less incentive to keep a large balance in the account. If you have a substantial amount to save, a money market account or CD may pay more.
Comparing Bank of America rates to other banks
Bank of America's savings rates are significantly lower than rates offered by online banks and many credit unions. Online savings accounts currently pay 4% to 5% APY, and some money market accounts pay 4.5% or higher. Credit unions often offer competitive rates as well, particularly if you are a member.
The trade-off is convenience and branch access. Bank of America has thousands of physical locations and a large ATM network, which matters if you need to deposit cash or speak to someone in person. Online banks have lower overhead and pass those savings to you through higher rates, but they have no branches. If you prioritize earning the most interest on your savings, an online bank will pay substantially more. If you value in-person service and branch access, you are paying for that convenience through lower rates.
What you earn on different account balances
The actual dollar amount you earn depends entirely on your balance and the rate. At 0.01% APY, a $1,000 balance earns roughly $0.10 per year, or less than a penny per month. A $10,000 balance earns about $1.00 per year. A $100,000 balance earns about $10 per year at that same rate.
If you move to a money market account earning 0.04% APY, a $100,000 balance earns about $40 per year. The difference becomes meaningful only at larger balances. For most people keeping a few thousand dollars in a savings account, the interest earned is minimal regardless of which Bank of America product you choose. This is why comparing to online banks matters — earning 4.5% instead of 0.01% on $10,000 means $450 per year instead of $1.
CD rates and terms at Bank of America
Bank of America CDs lock your money for a set period — typically 3 months, 6 months, 1 year, 2 years, 3 years, or 5 years. Longer terms pay higher rates. A 3-month CD might pay 0.01% APY, while a 12-month CD might pay 0.40% or higher, and a 5-year CD could pay 0.50% or more. These rates change frequently and vary based on market conditions.
When you open a CD, you agree to leave the money untouched until the maturity date. If you withdraw early, Bank of America charges an early withdrawal penalty, typically ranging from $25 to $500 depending on the CD term. The longer the term, the larger the penalty. After the CD matures, you have a grace period (usually 10 days) to decide whether to renew it or move the money. If you do nothing, the bank automatically renews it at the current rate.
How to check and monitor your interest earnings
Log into your Bank of America online account or mobile app to see your current rate and interest earned. Under the account details or account information section, you can find the APY listed. Your monthly statement shows the exact dollar amount of interest credited. You can also call 1-800-432-1000 to speak with someone who can tell you your current rate.
Bank of America does not notify you when rates change, so if you want to know whether your rate has dropped, you need to check periodically. If rates have fallen significantly and you have a large balance, it may be worth comparing to other banks to see whether moving your money would earn you more interest.
Frequently Asked Questions
Does Bank of America charge a monthly fee on savings accounts?
Bank of America charges a $12 monthly maintenance fee on regular savings accounts unless you maintain a $300 minimum balance or have a may have access to direct deposit. Money market accounts have higher minimum balance requirements and may have higher fees. Check your account terms or call the bank to confirm the current fee structure for your specific account.
Can I move my money to a higher-paying account without closing my current account?
Yes. You can open a new account at any time without closing your existing one. If you want to move money from a savings account to a money market account or CD, you can transfer it yourself through online banking or visit a branch. There is no penalty for moving money between your own Bank of America accounts.
What happens to my interest if I withdraw money mid-month?
Interest is calculated on your daily balance, so if you withdraw money partway through the month, you earn interest only on the amount that was in the account each day. The interest is still credited at the end of the month based on those daily balances. You do not lose interest you have already earned.
Is the interest I earn on a Bank of America savings account taxable?
Yes. Any interest you earn is taxable income. If you earn $10 or more in a calendar year, Bank of America sends you a 1099-INT form in January showing the total interest earned. You report this on your tax return. The interest is taxed at your ordinary income tax rate.
How do Bank of America rates compare to credit unions?
Many credit unions pay higher rates than Bank of America on both savings accounts and money market accounts. Credit union rates vary widely depending on the institution, but some pay 3% to 4% APY on savings. If you are a member of a credit union, compare their rates to Bank of America before deciding where to keep your money.