Bank of America savings accounts have no monthly maintenance fee, but you need a minimum opening deposit and earn interest that varies by account type

Bank of America offers three main savings accounts: the Regular Savings Account, the Advantage Savings Account, and the Premium Savings Account. None charge a monthly fee to hold the account. The difference between them is the minimum opening deposit required, the interest rate you earn, and the features included.

The Regular Savings Account requires $25 to open. The Advantage Savings Account requires $500. The Premium Savings Account requires $10,000. The higher your opening deposit, the higher the interest rate Bank of America pays you on your balance. Interest rates change frequently and vary based on how much money you keep in the account.

You do not pay to withdraw money, transfer funds, or close the account. If your balance drops below the opening deposit minimum after you open the account, you do not lose the account—you simply earn a lower interest rate.

Key Takeaways

  • Bank of America savings accounts charge no monthly maintenance fee regardless of which account type you choose.
  • The Regular Savings Account costs $25 to open, the Advantage Savings Account costs $500, and the Premium Savings Account costs $10,000.
  • Interest rates are higher on accounts with larger minimum deposits, and rates change based on Federal Reserve decisions and market conditions.
  • You can withdraw money, make transfers, and close the account without paying a fee.
  • If your balance falls below the opening minimum after you open the account, the account stays open but your interest rate may drop.

How the three account types compare

The Regular Savings Account is the entry point. You open it with $25, and Bank of America pays you interest on whatever balance you keep. The interest rate is the lowest of the three options. This account works if you want a basic savings account with no barrier to entry.

The Advantage Savings Account requires $500 to open and pays a higher interest rate than the Regular account. It is designed for people who can maintain a larger balance and want to earn more on their savings. The rate is still lower than the Premium account.

The Premium Savings Account requires $10,000 to open and pays the highest interest rate of the three. If you have a substantial amount to save and want to maximize the interest you earn, this account makes sense. Bank of America also offers higher interest rates to customers who link multiple accounts or maintain larger total balances across their accounts.

Interest rates change with the market

Bank of America does not set savings account interest rates independently. The rates follow the federal funds rate, which the Federal Reserve adjusts several times per year. When the Fed raises rates, Bank of America raises its savings rates. When the Fed lowers rates, Bank of America lowers its rates.

The exact rate you earn also depends on your account type and your balance. A customer with $50,000 in a Premium Savings Account earns a different rate than a customer with $10,000 in the same account type. Bank of America publishes current rates on its website, but the rate you see may not be the rate you receive—it depends on your specific account and balance tier.

Interest is deposited into your account monthly. You can withdraw it anytime without penalty.

Fees you might encounter

Bank of America does not charge a monthly maintenance fee on any of its savings accounts. However, you may encounter other fees depending on how you use the account. An overdraft fee applies if you try to withdraw more money than you have in the account. A wire transfer fee applies if you send money to another bank by wire. An ATM fee applies if you use an ATM that is not owned by Bank of America.

These fees are not specific to savings accounts—they apply across Bank of America's products. The overdraft fee is the most common one people encounter. If you link your savings account to a checking account and overdraw the checking account, Bank of America may transfer money from savings to cover it, and that transfer may trigger a fee depending on your account settings.

How to open a Bank of America savings account

You can open a savings account online, by phone, or in person at a Bank of America branch. Online is the fastest route—you provide your name, address, Social Security number, and initial deposit information. The account opens immediately, and you can start using it the same day.

If you open in person, bring a government-issued ID and your opening deposit. If you open by phone, a Bank of America representative walks you through the process and takes payment information over the phone. All three methods require you to provide proof of identity and your Social Security number.

If you already have a Bank of America checking account, opening a savings account is faster because the bank already has your information on file.

Comparing Bank of America to other banks

Bank of America's interest rates are typically lower than online banks like Marcus, Ally, or American Express Personal Savings. Online banks have lower overhead costs and pass those savings to customers in the form of higher rates. Bank of America's rates are competitive with other large national banks like Chase and Wells Fargo, but not with online-only institutions.

Bank of America's advantage is branch access. If you value the ability to walk into a physical location, deposit cash, or speak to someone in person, Bank of America has over 4,000 branches nationwide. Online banks have no branches. The trade-off is lower interest rates in exchange for convenience and accessibility.

If your primary goal is to earn the highest interest rate possible, an online savings account will pay you more. If you want a savings account tied to a checking account at the same bank, or if you need branch access, Bank of America is a reasonable choice despite the lower rates.

What happens to your money if Bank of America fails

Bank of America is insured by the Federal Deposit Insurance Corporation (FDIC). This means that if Bank of America fails, the FDIC guarantees your deposits up to $250,000 per account type per depositor. A savings account is one account type, so your savings account balance is protected up to $250,000.

If you have multiple savings accounts at Bank of America, they are combined for FDIC purposes—the $250,000 limit applies to all your savings accounts combined, not to each account separately. If you have a savings account and a checking account, they are separate account types and each has its own $250,000 limit.

In practice, Bank of America is one of the largest banks in the United States and is extremely unlikely to fail. FDIC insurance is a safety net for extreme scenarios, not a common occurrence.

Frequently Asked Questions

Can I earn more interest by keeping a higher balance?

Yes. Bank of America pays higher interest rates on larger balances within the same account type. A Premium Savings Account with $50,000 earns more than a Premium Savings Account with $10,000. The exact rate tiers vary and change over time, so check Bank of America's website for current thresholds.

What is the difference between a savings account and a money market account at Bank of America?

A money market account typically requires a higher opening deposit and pays a higher interest rate, but limits how many times per month you can withdraw money. A savings account has no withdrawal limits. Bank of America's money market accounts start at $2,500 to open.

Can I transfer money from my Bank of America savings account to another bank?

Yes. You can transfer money to another bank by ACH transfer (free, takes one to three business days) or by wire transfer (costs a fee, usually arrives the same day). You can also withdraw cash and deposit it elsewhere, though that is slower and less secure.

Do I have to keep the minimum deposit in the account at all times?

No. The minimum is only required to open the account. Once it is open, your balance can drop below the minimum without closing the account. However, your interest rate may decrease if your balance falls below certain thresholds.

What happens if I close my Bank of America savings account?

You can close the account anytime by visiting a branch, calling Bank of America, or using the mobile app. Bank of America sends you any remaining balance by check or transfers it to another account you specify. There is no fee to close.