Bank of America savings accounts earn interest, but the rate changes with the market and depends on which account you hold
Bank of America does not publish a single interest rate for all savings accounts. The rate you earn depends on three things: which savings product you have, the current federal funds rate, and how much money you keep in the account. As of now, Bank of America's savings rates are lower than many online banks offer—typically between 0.01% and 0.04% annual percentage yield (APY), though this varies. The rate your account earns can change at any time, and Bank of America can lower it without notice.
The most common Bank of America savings account is the Regular Savings Account, which currently earns one of the lowest rates the bank offers. If you have a Bank of America checking account with direct deposit or maintain a higher balance, you may may have access to for a Money Market Savings Account, which pays a slightly higher rate. Bank of America also offers a no-penalty CD (certificate of deposit) that locks your money away for a set term but pays more interest than a savings account.
Key Takeaways
- Bank of America savings accounts earn between 0.01% and 0.04% APY depending on the account type, and these rates are significantly lower than rates offered by online banks.
- The interest rate you earn can change at any time without notice, and Bank of America typically lowers rates when the Federal Reserve cuts rates.
- You can see your current rate by logging into your online account, calling 1-800-432-1000, or visiting a branch in person.
- If you want to earn more interest on savings, online banks and credit unions often pay 4% to 5% APY on savings accounts, though they do not offer in-person banking.
How to find your current interest rate
The fastest way to see what rate your account is earning is to log into your Bank of America online account or mobile app. Go to the account details page for your savings account, and the current APY will be listed there. The rate shown is what you are earning right now, though it may change in the future.
If you do not use online banking, you can call Bank of America at 1-800-432-1000 and ask a representative for your account's current APY. You can also visit a Bank of America branch in person and ask a banker to show you the rate. Keep in mind that the representative may quote you the rate for a new account you could open, not necessarily the rate on your existing account—ask specifically about the account you already have.
Why Bank of America rates are lower than other banks
Bank of America is a large national bank with thousands of branches and ATMs. That physical infrastructure costs money, and the bank passes some of that cost to customers by paying lower interest rates on deposits. Online banks like Ally, Marcus, and Discover have no branches, so they can pay higher rates because their operating costs are lower.
Bank of America also makes money by lending out the deposits you keep in savings. The more interest the bank pays you, the less profit it keeps. Online banks compete directly on interest rate because they have fewer other ways to attract customers. Bank of America competes on convenience—branch access, customer service, and integration with checking accounts—so it does not need to offer the highest rates.
How interest is calculated and paid
Bank of America calculates interest daily based on your account balance, but it pays the interest into your account monthly. If you have $10,000 in a savings account earning 0.02% APY, you would earn roughly $2 per year, or about $0.17 per month. The exact amount depends on the number of days in the month and how your balance changes throughout the month.
Interest compounds, meaning you earn interest on the interest you have already earned. With Bank of America's current rates, the effect is small—you would earn less than a dollar per year on most balances—but it does add up over time. The longer your money sits in the account, the more compounding works in your favor, even at low rates.
When Bank of America changes its savings rates
Bank of America typically lowers savings rates when the Federal Reserve cuts its benchmark interest rate, which happens during economic slowdowns. The bank may also lower rates if it has enough deposits and does not need to attract more customers. Conversely, when the Federal Reserve raises rates, Bank of America usually raises savings rates too, though often more slowly than online banks do.
The bank does not announce rate changes in advance. You will not receive a notice before your rate drops. The best way to stay aware is to check your account details online once a month, or set a reminder to call the bank quarterly and ask what your current rate is. If you find that your rate has fallen significantly below what online banks are offering, you may want to move your savings to a different bank.
Bank of America savings account types and their rates
| Account Type | Current APY Range | Minimum Balance | Best For |
|---|---|---|---|
| Regular Savings Account | 0.01% to 0.02% | $0 | Basic savings with no requirements |
| Money Market Savings Account | 0.02% to 0.04% | $2,500 | Higher balances; slightly better rate |
| No-Penalty CD | Varies by term | $1,000 | Money you will not need for 7 months to 1 year |
The Regular Savings Account is the most basic option and requires no minimum balance. The Money Market Savings Account requires you to keep at least $2,500 in the account to earn the higher rate; if your balance falls below that, you earn the lower rate. Bank of America's no-penalty CD lets you withdraw your money early without a penalty, which is unusual—most CDs charge a fee if you withdraw before the term ends.
The CD rate is higher than the savings account rate, but it varies depending on how long you lock your money away. A 7-month CD will pay less than a 1-year CD, and a 1-year CD will pay less than a longer-term CD. You can compare the rates for different terms on Bank of America's website or by calling the bank.
Comparing Bank of America to other savings options
If you keep your money in a Bank of America savings account earning 0.02% APY, you are earning roughly $20 per year on a $100,000 balance. An online bank offering 4.5% APY would pay you $4,500 per year on the same balance. That difference adds up quickly, especially if you are saving for a goal that is years away.
The trade-off is convenience. Bank of America offers in-person banking, a large ATM network, and integration with checking accounts. Online banks offer higher rates but no physical branches. Credit unions often offer rates between the two and may have branches if you live near one. The right choice depends on whether the extra interest is worth giving up in-person banking for your situation.
Frequently Asked Questions
Does Bank of America charge a fee to open a savings account?
No, Bank of America does not charge an opening fee for a Regular Savings Account or Money Market Savings Account. There is no monthly maintenance fee on savings accounts either.
Can I move my money to a higher-rate bank without losing interest?
Yes. When you transfer money from Bank of America to another bank, you do not lose any interest you have already earned. Bank of America pays interest through the last day your money is in the account. The new bank will start paying interest once the transfer clears, which usually takes one to three business days.
What happens to my interest if I withdraw money before the end of the month?
Bank of America calculates interest daily, so you earn interest on the money you have in the account each day. If you withdraw $5,000 on the 15th of the month, you earn interest on that $5,000 for the 15 days it was in the account, and the bank pays you that interest at the end of the month along with interest on your remaining balance.
Is my savings account insured if the bank fails?
Yes. The Federal Deposit Insurance Corporation (FDIC) insures Bank of America deposits up to $250,000 per account holder per bank. If you have a savings account and a checking account at Bank of America, they are insured separately, so you are covered up to $250,000 in each.
How do I know if my rate is competitive?
Check the current rates at online banks like Ally, Marcus, Discover, and American Express. Most of these banks publish their rates on their websites and update them daily. If Bank of America's rate is more than 1% lower than what online banks are offering, you are likely earning significantly less than you could elsewhere.