Bank of America's interest rates depend on the account type and product you hold
Bank of America does not have a single interest rate. The rate you earn or pay depends on what you own: a savings account, money market account, CD, credit card, home loan, or personal loan all carry different rates. Rates also change based on the Federal Reserve's decisions, your account balance, your credit score, and current market conditions.
If you hold a Bank of America savings or money market account, you earn interest on your deposit. If you carry a credit card balance or have a loan, you pay interest to the bank. The rates the bank offers to new customers often differ from the rates existing customers receive, and promotional rates expire.
The fastest way to find the current rate for your specific product is to log into your Bank of America account online or call 1-800-432-1000. Rates change frequently and vary by location and account tier.
Key Takeaways
- Bank of America's interest rates vary by product type: savings accounts, money market accounts, CDs, credit cards, mortgages, and personal loans each have their own rates.
- Deposit rates (what you earn) are typically lower than loan rates (what you pay), and both change when the Federal Reserve adjusts its benchmark rate.
- Your account balance, credit score, and whether you are a new or existing customer affect the rate you receive.
- The rate you see advertised online may differ from the rate you may have access to for, so you must check your own account or speak to a representative for your actual rate.
How Bank of America sets deposit account rates
Bank of America offers interest on savings accounts, money market accounts, and certificates of deposit (CDs). The rates on these products are set by the bank and typically move in the same direction as the Federal Reserve's benchmark rate, though not always by the same amount.
Savings and money market accounts at Bank of America earn interest that compounds daily. The annual percentage yield (APY) you receive depends on the account type and your balance tier. Some accounts offer higher rates for balances above a certain threshold, while others offer the same rate regardless of balance.
CDs lock your money for a fixed term—typically 3 months to 5 years—and pay a fixed rate for that entire period. The longer the term, the higher the rate is usually offered. If you withdraw money before the term ends, you pay an early withdrawal penalty that reduces your earnings.
How Bank of America sets borrowing rates
When you borrow from Bank of America—through a credit card, home loan, auto loan, or personal loan—you pay interest. The rate depends on the loan type, your credit score, the loan term, and current market conditions.
Credit card rates at Bank of America vary by card and by individual. The bank publishes a prime rate, and most credit cards carry a rate that is the prime rate plus a margin. If you carry a balance, you pay the purchase APR shown in your card agreement. Promotional rates (such as 0% APR for a period) expire and revert to the standard rate.
Mortgage rates, auto loan rates, and personal loan rates are quoted based on your creditworthiness and the loan term. A borrower with a 750 credit score will receive a lower rate than a borrower with a 650 score on the same loan product. Rates also vary by whether you lock in a rate for 15, 30, or another term.
Where to find your current rate
Log into your Bank of America online account or mobile app to see the APY on savings or money market accounts, or the APR on credit cards and loans. The rate displayed in your account is the rate you are currently earning or paying.
If you are shopping for a new product, Bank of America publishes rates on its website for savings accounts, money market accounts, and CDs. These rates are current but may change daily. Loan rates (mortgages, auto loans, personal loans) are quoted individually based on your application and credit profile, so you will not see a single published rate.
To compare rates or discuss options, call Bank of America at 1-800-432-1000 or visit a local branch. Representatives can explain how your credit score, balance, or account type affects the rate you would receive.
Why Bank of America rates change
The Federal Reserve sets a benchmark interest rate that influences rates across the banking system. When the Fed raises its rate, banks typically raise deposit rates and loan rates. When the Fed lowers its rate, banks usually lower both. However, banks do not always move rates by the same amount or at the same speed.
Bank of America also adjusts rates based on competition, funding costs, and business strategy. During periods of high demand for deposits, the bank may raise savings rates to attract customers. During periods of low loan demand, the bank may lower mortgage or auto loan rates.
Promotional rates—such as a limited-time high yield on a new savings account—are temporary and designed to attract new customers. These rates expire and revert to the standard rate after the promotional period ends, which can be anywhere from 3 months to 2 years depending on the offer.
Understanding APY versus APR
APY (annual percentage yield) is the rate you earn on deposits. It includes the effect of compounding, so it is always equal to or higher than the stated interest rate. If a savings account earns 4.50% APY, you earn that rate on your balance, compounded daily.
APR (annual percentage rate) is the rate you pay on borrowed money. It includes interest and certain fees, expressed as a yearly rate. A credit card with a 19.99% APR means you pay that rate on any balance you carry, calculated monthly.
When comparing accounts or loans, always look at APY for deposits and APR for borrowing. These figures make it easier to compare products across different banks because they are calculated the same way.
Frequently Asked Questions
What is Bank of America's current savings account interest rate?
Bank of America's savings account rates change frequently and vary by account type and balance. Check your account online, call 1-800-432-1000, or visit bankofamerica.com to see the current rate for the specific account you hold or want to open.
Do I earn interest on my Bank of America checking account?
Most Bank of America checking accounts earn little to no interest. Some premium checking accounts may offer a small rate, but it is typically much lower than savings or money market accounts. Contact the bank to confirm whether your checking account earns interest.
Why is my credit card APR higher than the rate I saw advertised?
Advertised rates are often promotional rates for new cardholders or apply only to certain transactions (like balance transfers). Your actual rate depends on your credit score, credit history, and the card you hold. Existing cardholders may not receive the advertised promotional rate.
Can I lock in a rate on a Bank of America savings account?
Savings and money market account rates are variable, meaning they can change at any time. CDs, however, lock in a fixed rate for the entire term. If you want a may provide rate, open a CD instead of a savings account.
What happens to my rate if the Federal Reserve cuts interest rates?
If the Fed lowers rates, Bank of America typically lowers the rates it pays on savings accounts and money market accounts. Rates on existing CDs do not change—they remain fixed for the term. Loan rates may also fall, but the timing and amount vary.