Bank of America's savings account offers low interest and high fees, so it works best if you already bank there and want simplicity over returns

Bank of America's standard savings account pays almost nothing in interest—rates typically sit between 0.01% and 0.04% annually, depending on your balance and account tier. You will also pay a monthly maintenance fee of $5 unless you meet one of several conditions: keeping $300 in the account, setting up direct deposit, or maintaining a linked checking account with a minimum balance. If you are looking purely at interest earned on savings, you will earn more money in a high-yield savings account at an online bank, where rates often run 4% to 5% annually with no monthly fees.

Bank of America makes sense for savings if you already have a checking account there and want to keep everything in one place, or if you regularly fall below the balance thresholds and would rather pay the $5 fee than move your money. It does not make sense if you are trying to grow savings through interest or if you have the option to move to a bank with higher rates and lower fees.

Key Takeaways

  • Bank of America savings accounts charge a $5 monthly fee unless you maintain a $300 minimum balance, set up direct deposit, or link an active checking account.
  • Interest rates on Bank of America savings accounts are typically 0.01% to 0.04% per year, meaning a $10,000 balance earns roughly $1 to $4 annually.
  • Online banks and credit unions often offer savings rates between 4% and 5% with no monthly fees, which would earn $400 to $500 per year on the same $10,000.
  • Bank of America savings accounts are most useful if you already have a checking account there and want to avoid managing multiple banks.
  • If you are focused on building savings through interest, moving to a high-yield account elsewhere will cost you nothing to set up and will earn you significantly more.

How the monthly fee works and how to avoid it

Bank of America charges $5 per month for its regular savings account unless you meet at least one of these conditions: maintain a $300 minimum daily balance, receive a direct deposit of any amount into the account, or have an active linked checking account with Bank of America. The fee posts automatically on the same day each month, and it comes out of your savings balance.

If you are already a Bank of America checking customer, the easiest path is to link your savings account to that checking account. You do not need to keep any specific balance in the checking account—the link alone waives the fee. If you do not have a checking account there, setting up direct deposit (even a small recurring transfer from another bank) also eliminates the fee. The $300 minimum balance option is the least practical for most people, because that money sits idle and earns almost nothing.

Interest rates compared to other banks

Bank of America's savings rates are set by the bank and do not change based on the Federal Reserve's actions in the way some other banks' rates do. Current rates sit between 0.01% and 0.04% annually. On a $10,000 balance, you would earn between $1 and $4 per year before any fees.

A high-yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings typically pays 4% to 5% annually on the same $10,000 balance, which would earn $400 to $500 per year. Credit unions sometimes offer competitive rates as well, and many have no monthly fees. The difference compounds over time: after five years, the high-yield account would have earned roughly $2,000 to $2,500 more than a Bank of America account, even after accounting for the $5 monthly fee.

When Bank of America savings makes practical sense

Bank of America savings is worth keeping if you already have a checking account there and you use it as a holding place for money you plan to spend within a few months. The convenience of seeing all your accounts in one login and moving money between them instantly can outweigh the low interest rate and fee, especially if you would otherwise pay the fee anyway.

It also makes sense if you use Bank of America's physical branches regularly and want to deposit cash or speak to someone in person. Online banks have no branches, so if you need that option, the trade-off between interest rate and convenience is real. However, most people can deposit checks through a mobile app and transfer money electronically, which removes that advantage.

What happens if you move your savings elsewhere

Opening a savings account at another bank takes 10 to 15 minutes online and requires basic information: your name, address, Social Security number, and a way to fund the account (a debit card or a transfer from another bank). You do not need to close your Bank of America account—you can keep it open and simply stop using it, or close it later if you want.

Moving money out is straightforward. You can transfer funds electronically from Bank of America to your new account, which usually takes one to three business days. You can also withdraw cash at a Bank of America branch and deposit it at the new bank, though that is slower and less secure. Once the money is moved, you can set up direct deposit or automatic transfers to the new account if you want to keep adding to it.

Bank of America savings features and account tiers

Bank of America offers a tiered savings structure based on your total relationship with the bank. The standard Savings account is what most people open. If you have $20,000 or more in combined Bank of America accounts, you may may have access to for Preferred Rewards, which offers slightly higher interest rates and fee waivers. However, even with Preferred Rewards, the interest rate remains well below what online banks pay.

All Bank of America savings accounts include FDIC insurance up to $250,000, which means your money is protected if the bank fails. This protection is the same at every bank, so it is not a reason to choose Bank of America over another option. You also get access to Bank of America's mobile app and online banking, which is standard across the industry.

Frequently Asked Questions

Can I avoid the $5 fee without a checking account?

Yes. Set up a direct deposit of any amount into the savings account, even a small recurring transfer from another bank. That alone waives the fee. You can also maintain a $300 minimum daily balance, though that money earns almost nothing and is better kept in a high-yield account.

Will my interest rate go up if I keep more money in the account?

Not significantly. Bank of America's rates do not increase based on balance size the way some banks do. Your rate depends on your account tier (standard or Preferred Rewards), not on how much you have saved. You will earn more by moving to a high-yield account.

What if I need to withdraw money quickly?

Bank of America savings accounts have no withdrawal limits or penalties. You can move money to your checking account instantly through the app, or withdraw cash at any Bank of America branch or ATM. Online banks also allow instant transfers to linked accounts, so speed is not an advantage for Bank of America.

Is my money safe at Bank of America?

Yes. Bank of America is FDIC insured up to $250,000 per account type, the same as every other bank. Your savings account is protected even if the bank fails. This protection is identical at online banks, so safety is not a reason to choose one bank over another.

Should I close my Bank of America savings account?

Only if you have moved your money elsewhere and no longer need the account. You can leave it open with a zero balance if you want to keep the option to use it later. Closing it has no penalty, but keeping it open costs nothing if you link it to a checking account or set up direct deposit.