Advantage Plus checking accounts do not earn interest
Advantage Plus is a checking account product offered by several banks, most commonly Bank of America. These accounts are structured as non-interest-bearing checking accounts, which means the bank does not pay you interest on the money you keep in them. Your balance sits at zero percent annual percentage yield (APY), regardless of how much you deposit or how long you leave the money there.
The account is designed around features like debit card access, check writing, and online banking rather than savings growth. If earning interest on your checking balance is important to you, Advantage Plus will not deliver that. You would need to move money into a separate savings account or money market account to earn any return.
Key Takeaways
- Advantage Plus checking accounts earn zero percent interest on any balance you maintain.
- The account focuses on transaction features like debit cards and checks rather than interest income.
- To earn interest on your money, you would need to open a savings or money market account at the same bank or elsewhere.
- Some checking accounts at other banks do offer interest, though rates are typically very low and come with specific requirements.
What Advantage Plus checking actually offers instead of interest
Since Advantage Plus does not pay interest, the account's value comes from other features. Most versions include a debit card with no annual fee, the ability to write checks, online and mobile banking access, and bill pay functionality. Some versions offer overdraft protection or waived overdraft fees under certain conditions, depending on which bank offers the product and what tier you hold.
Bank of America's Advantage Plus, for example, waives the monthly maintenance fee if you maintain a minimum balance (typically $500 to $1,500 depending on the specific product) or set up direct deposit. The account may also include ATM access and customer service, but none of these features generate interest on your balance.
How interest-bearing checking accounts work, if you want them
Some banks and credit unions do offer checking accounts that pay interest, though the rates are usually very low—often between 0.01% and 0.50% APY. These accounts typically come with requirements: you may need to maintain a high minimum balance, set up automatic deposits, use your debit card a certain number of times per month, or meet other conditions to earn the stated rate.
Online banks and some credit unions are more likely to offer interest-bearing checking than traditional brick-and-mortar banks. If you want to compare, you would need to check the specific terms each institution publishes, because the requirements and rates vary widely. Even at the highest rates available, the interest earned on a typical checking balance is modest—a $5,000 balance at 0.50% APY would earn about $25 per year.
Where to put money if you want it to earn interest
If you use Advantage Plus checking and want your money to earn something, the standard move is to open a savings account or money market account at the same bank or elsewhere. Savings accounts typically earn higher interest than checking accounts, though rates still vary. Money market accounts often pay slightly more than savings but may require a higher minimum balance and limit how many withdrawals you can make per month.
You can keep your Advantage Plus checking for daily transactions and move money into savings when you have amounts you do not need to access immediately. This way your checking account handles payments and purchases, while your savings account works toward interest income. The tradeoff is that you have two accounts to manage and may face limits on moving money between them.
Why banks structure checking and savings separately
Banks separate checking and savings accounts because they serve different purposes and carry different costs. Checking accounts are designed for frequent transactions—deposits, withdrawals, transfers, and payments. The bank expects to process many transactions per month, which costs them money in processing and customer service.
Savings accounts are meant to hold money longer with fewer transactions. Because the bank can count on the money staying put, they can lend it out or invest it, which generates income they can share with you as interest. Advantage Plus checking is built for the transaction side, so it does not include interest. If you want interest, you move money to a product designed to hold it.
What to do if you want better returns on your money
If the zero-percent interest on Advantage Plus bothers you, you have a few paths. First, check whether your bank offers a savings account with a competitive rate—many banks have raised savings rates in recent years, and you may find one that works for you. Second, look at online banks or credit unions, which sometimes offer higher rates because they have lower overhead costs.
Third, consider whether you actually need Advantage Plus at all. If the account's features (debit card, checks, online banking) are available elsewhere with better interest options, switching might make sense. Fourth, if you have a large balance sitting in checking, moving even part of it to savings could generate meaningful interest over time, even at low rates.
Frequently Asked Questions
Can I switch from Advantage Plus to an interest-bearing account at the same bank?
Yes. You can open a savings or money market account while keeping your Advantage Plus checking open, or you can close Advantage Plus and switch to a different checking product if your bank offers one that earns interest. Contact your bank to see what options they have and what the requirements are for each.
Will I lose money if I keep my balance in Advantage Plus?
No. Your balance will not shrink because the account earns zero interest. You will simply not gain any interest income. If inflation is rising, the purchasing power of your money decreases over time, but the account itself does not charge you for holding the balance.
Do all checking accounts not earn interest?
Most traditional checking accounts do not earn interest, but some do. Credit unions and online banks are more likely to offer interest-bearing checking than large brick-and-mortar banks. The rates and requirements vary, so you would need to check with specific institutions to find out what they offer.
How much interest would I actually earn on a checking account?
Very little. If a checking account pays 0.25% APY and you keep $2,000 in it, you would earn about $5 per year. Higher-rate accounts might pay 0.50% or slightly more, but even then the income is modest unless your balance is very large. Savings accounts typically pay more, which is why they are the better choice if interest income matters to you.
Should I move all my money to savings to earn interest?
No. You need a checking account for regular bills, purchases, and transfers. The standard approach is to keep enough in checking to cover your monthly expenses and move extra money to savings. This way you have liquidity for transactions and your surplus earns interest.