What Bank of America pays on savings accounts right now
Bank of America's savings account interest rate varies by account type and changes based on Federal Reserve decisions. As of early 2024, the bank's standard savings accounts earn between 0.01% and 0.04% annual percentage yield (APY), while their money market accounts typically pay between 0.04% and 0.10% APY. These rates are significantly lower than what online banks and credit unions offer — often 4% to 5% APY on comparable accounts.
The exact rate you receive depends on your account type, your balance, and whether you maintain a relationship with Bank of America for checking, credit cards, or loans. Bank of America does not publish a single rate; instead, they tier rates by balance level and account category. Your specific rate appears in your account agreement and online banking portal.
Bank of America's rates move when the Federal Reserve changes its benchmark interest rate, but the bank does not always pass the full change to savers. When the Fed raised rates sharply between 2022 and 2023, Bank of America's savings rates rose much more slowly than competitors'. When the Fed pauses or cuts rates, Bank of America typically reduces savings rates quickly.
Key Takeaways
- Bank of America savings accounts currently earn 0.01% to 0.04% APY, which is substantially lower than online banks and credit unions offering 4% to 5% on the same type of account.
- Your exact rate depends on your account type, balance tier, and customer relationship with the bank — not a single published rate for all customers.
- Bank of America adjusts rates when the Federal Reserve moves, but typically lags behind competitors and does not pass along the full increase to savers.
- You can see your current APY in your account agreement, on your monthly statement, or by logging into your online banking portal.
How Bank of America's savings account tiers work
Bank of America offers several savings products, each with its own rate structure. The basic Savings Account is the most common and pays the lowest rates. The Money Market Account pays slightly higher rates but requires a larger minimum balance and limits the number of withdrawals per month. The Individual Retirement Account (IRA) savings option also earns a stated rate, though most savers use CDs or money market funds within an IRA instead.
Within each account type, Bank of America uses balance tiers. A customer with $500 in a savings account earns a different rate than a customer with $100,000. The bank does not publish these tier breakpoints publicly; you must contact a branch or check your account agreement to learn which tier you fall into and what rate applies to your balance.
Bank of America also offers CDs (Certificates of Deposit) with fixed rates that lock in for a set term — typically 3 months to 5 years. CD rates are higher than savings account rates because you agree not to withdraw the money for the full term. If you withdraw early, you pay a penalty that can wipe out all interest earned.
Why Bank of America's rates are lower than competitors
Bank of America is a large national bank with thousands of branches and ATMs. That physical infrastructure costs money. Online banks like Ally, Marcus, and Discover have no branches, so they pass the savings to customers through higher interest rates. Credit unions are member-owned and often prioritize competitive rates on savings to attract deposits.
Bank of America also makes money by lending out deposits at higher rates. When savings rates are low, the bank keeps a larger spread — the difference between what they pay you and what they charge borrowers. This is profitable for the bank but not for savers.
Additionally, many Bank of America customers stay because of convenience — they use the bank's checking account, credit cards, or mortgage. The bank does not need to offer competitive savings rates to keep these customers, so it does not.
How to find your current rate and compare it
Your Bank of America savings rate appears in three places: your monthly statement, your account agreement (which you can request or download from online banking), and your online banking portal under account details. The rate is shown as an APY, which includes the effect of compounding interest over a year.
To compare Bank of America's rate to other banks, visit rate-tracking sites like Bankrate, DepositAccounts, or the FDIC's National Rates and Rate Caps search tool. These sites update daily and show rates from hundreds of banks and credit unions. Enter your account type (savings, money market, or CD) and term length to see what other institutions pay.
Keep in mind that a higher rate elsewhere may come with trade-offs: no physical branches, fewer ATMs, or a smaller institution. But if you rarely visit a branch and have online access, the rate difference can add up significantly over time. A $10,000 balance earning 0.01% at Bank of America generates $1 per year in interest, while the same balance at 4.5% generates $450 per year.
When Bank of America changes its savings rates
Bank of America adjusts savings rates when the Federal Reserve changes its benchmark rate, which is called the federal funds rate. The Fed typically meets eight times per year and announces rate decisions on scheduled dates. When the Fed raises rates, banks can charge borrowers more, so they sometimes raise savings rates to attract deposits. When the Fed cuts rates, banks lower savings rates to reduce what they pay out.
However, Bank of America does not automatically match the Fed's move dollar-for-dollar. The bank may wait weeks or months before adjusting savings rates, and it may raise rates by less than the Fed's increase. This lag is intentional — it allows the bank to widen its profit margin during rate-hiking cycles.
You will not receive advance notice of a rate change. Bank of America updates rates in your account without announcement. Check your statement or online portal periodically if you want to track whether your rate has moved.
FDIC protection on Bank of America savings accounts
Bank of America is an FDIC-insured bank, which means deposits up to $250,000 per account type are protected if the bank fails. This protection covers your savings account balance, your money market account balance, and your CD balance separately — so you could have $250,000 in savings, $250,000 in a money market account, and $250,000 in CDs, and all three would be fully protected.
Joint accounts are insured separately, so a joint savings account with your spouse receives its own $250,000 protection. IRAs are also insured separately from regular accounts. If you have more than $250,000 to deposit, you can spread it across multiple account types or multiple banks to stay within the FDIC limit.
Alternatives to Bank of America savings accounts
If you want higher interest on savings, consider opening an account at an online bank, credit union, or regional bank that competes on rates. Online banks like Ally, Marcus, and Discover currently offer savings rates between 4% and 5% APY with no monthly fees and no minimum balance. Credit unions often offer competitive rates to members and may have lower fees than large banks.
You do not have to close your Bank of America account to open a savings account elsewhere. Many people keep a Bank of America checking account for its branch network and ATM access, then move savings to a higher-rate institution. This strategy lets you earn more interest while keeping the convenience of a large bank for everyday transactions.
If you want to lock in a rate for a specific time period, Bank of America CDs pay more than savings accounts, though still less than online banks. A 12-month CD at Bank of America currently pays around 4.00% to 4.50% APY, depending on your balance tier, while online banks offer similar or higher rates on the same term.
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 its standard Savings Account or Money Market Account. However, some accounts may have fees for excessive withdrawals (more than six per month), overdrafts, or other services. Check your account agreement or contact the bank to confirm what fees apply to your specific account.
Can I move money between my Bank of America savings account and checking account without a fee?
Yes. Transfers between your own Bank of America accounts are free and typically process instantly online or within one business day. The six-withdrawal limit that used to apply to savings accounts was suspended by the Federal Reserve and most banks no longer enforce it, though some still do — check your account rules.
What happens to my interest if I withdraw money from my savings account?
Interest accrues daily based on your balance and is deposited monthly. If you withdraw money mid-month, you earn interest only on the balance you held for that period. There is no penalty for withdrawals from a savings account, unlike CDs. Your rate does not change based on how much you withdraw.
How often does Bank of America compound interest on savings accounts?
Bank of America compounds interest daily and deposits it monthly. This means interest is calculated on your balance every day, and the total is added to your account once per month. The APY shown in your account agreement already accounts for daily compounding, so you do not need to calculate it yourself.
Is there a minimum balance required to open a Bank of America savings account?
Bank of America does not require a minimum opening deposit for a savings account, though some account types or promotional offers may have minimums. You can open an account with $1 and begin earning interest immediately. However, some balance tiers earn higher rates, so a larger balance will earn more interest.