Bank of America savings rates change monthly and depend on your account type
Bank of America does not publish a single savings rate. Instead, the bank sets different rates for different account types, and those rates shift based on Federal Reserve decisions and market conditions. Your rate depends on which savings product you hold: a regular savings account, a money market account, or a certificate of deposit (CD). The bank also tiered rates based on your balance — higher balances earn higher rates on some accounts.
As of now, Bank of America's savings rates are substantially lower than rates offered by online banks and credit unions. This is typical for large brick-and-mortar banks, which prioritize branch access and customer service over competitive interest payments. If you are comparing options, you will need to check the current rate for your specific account type directly on the Bank of America website or by calling 1-800-432-1000, because rates change frequently and vary by region.
Key Takeaways
- Bank of America savings rates vary by account type (regular savings, money market, CD) and are updated regularly, so the rate you see today may not be the rate you earn next month.
- Higher account balances may earn higher rates on some Bank of America products, though the difference is usually small compared to online alternatives.
- Bank of America rates are typically lower than online banks and credit unions because the bank charges for branch access and customer service.
- You can find your current rate by logging into your account online, calling customer service, or visiting a branch in person.
How Bank of America sets rates on different account types
Bank of America offers three main savings products, each with its own rate structure. A regular savings account is the basic option — it has no minimum balance requirement and allows unlimited withdrawals, but the interest rate is the lowest of the three. A money market account requires a higher opening balance (often $2,500 or more) and limits the number of withdrawals you can make per month, but pays a higher rate. A certificate of deposit (CD) locks your money for a fixed term — typically 3 months, 6 months, 1 year, or longer — and pays the highest rate, but you cannot withdraw early without a penalty.
Within each product, Bank of America may offer tiered rates based on your balance. For example, a regular savings account might pay 0.01% on balances under $10,000 and 0.02% on balances of $10,000 or more. The difference is small, but it rewards customers who keep larger deposits. Money market accounts typically have more aggressive tiering — higher balances earn noticeably better rates. CDs do not usually tier by balance; instead, the rate depends on the term length you choose.
Why Bank of America rates are lower than online banks
Bank of America's savings rates lag behind online banks and credit unions because the bank operates thousands of physical branches, employs customer service staff, and maintains ATM networks. Those costs are real, and the bank passes some of them to customers by paying lower interest. An online bank with no branches and minimal staff can afford to pay more on deposits because it has fewer expenses to cover.
This trade-off is intentional. If you value the ability to walk into a branch, speak to a person, or deposit cash at an ATM without fees, you are paying for that convenience through lower interest rates. If you prioritize interest earnings and do not need branch access, an online bank or credit union will serve you better. The choice depends on what matters more to you: convenience or yield.
How to find your current Bank of America savings rate
Your rate is displayed in your online account dashboard. Log into your Bank of America account, navigate to your savings account, and look for the Annual Percentage Yield (APY) listed near the account balance. The APY is the rate you actually earn, including the effect of compounding. Bank of America compounds interest daily, so the APY is slightly higher than the stated daily rate.
If you do not have online access or prefer to speak with someone, call Bank of America customer service at 1-800-432-1000 and ask for the current rate on your account type. Rates can vary slightly by region and account age, so the rate a representative quotes may differ from the rate shown on the website. You can also visit a local branch and ask a banker to review your account and explain the current rate structure.
What happens to your rate when the Federal Reserve changes policy
Bank of America's savings rates are not directly tied to the Federal Reserve's benchmark interest rate, but they move in the same direction. When the Fed raises rates, banks typically raise savings rates within weeks or months. When the Fed cuts rates, banks cut savings rates even faster — sometimes within days. This asymmetry means your rate falls quickly during downturns but rises slowly during recoveries.
You will not receive a notice every time your rate changes. Bank of America updates rates on its website and in your online account, but the onus is on you to check. If you want to monitor your rate, log in once a month and note the APY. If it drops and you are unhappy, you can move your money to a higher-paying institution — there is no penalty for closing a savings account.
Comparing Bank of America to other savings options
To decide whether Bank of America is right for you, compare the current rate on your account type to rates offered by online banks, credit unions, and other brick-and-mortar banks. Online banks typically pay 4 to 5 times more than Bank of America on savings accounts, though rates fluctuate. Credit unions often offer competitive rates to members, especially if you maintain a checking account or direct deposit with them.
The trade-off is access. Bank of America offers branch locations, ATMs, and phone support. Online banks offer higher rates but limited customer service and no physical locations. Credit unions offer a middle ground — competitive rates and some branch access — but membership is restricted by employer, location, or other criteria. Write down the rates you find, then decide which combination of rate, access, and service matters most to you.
Frequently Asked Questions
Does Bank of America charge a monthly fee on savings accounts?
Bank of America does not charge a monthly maintenance fee on regular savings accounts or money market accounts. However, some accounts may have minimum balance requirements, and falling below that minimum can trigger a fee. Check your account terms or call customer service to confirm whether your specific account has a minimum balance requirement.
Can I move my money to a higher-paying bank without penalty?
Yes. Closing a Bank of America savings account has no penalty. You can transfer your balance to another bank at any time. The only exception is if you hold a CD — withdrawing before the maturity date triggers an early withdrawal penalty, which is typically a few months of interest. After the CD matures, you can move the money without penalty.
How often does Bank of America change its savings rates?
Bank of America can change rates at any time, though major changes usually follow Federal Reserve decisions. Rates may shift monthly or even more frequently. You should check your account rate at least quarterly to stay aware of changes. If the rate drops significantly and you are unhappy, moving to another bank is your only recourse.
What is the difference between APY and the stated interest rate?
The stated rate is the daily interest rate the bank pays. The APY (Annual Percentage Yield) is the effective annual rate after accounting for compounding — the rate you actually earn over a year. Bank of America compounds interest daily, so the APY is always slightly higher than the stated rate. Always compare APYs when shopping for savings accounts, not stated rates.
Will my rate stay the same if I keep my money in the account?
No. Your rate can change at any time, and Bank of America will adjust it without your permission. You are not locked into a rate unless you hold a CD. With a regular savings or money market account, your rate floats and can go up or down based on market conditions and the bank's decisions.