Bank of America does not offer a traditional high yield savings account

Bank of America's standard savings account earns interest, but the rate is not competitive with accounts marketed as high yield. As of early 2024, Bank of America's regular savings account pays a rate that varies by account type and balance, but typically falls well below 4% annual percentage yield (APY). If you opened a savings account at Bank of America expecting rates comparable to online banks or credit unions, you would earn significantly less.

Bank of America does offer a Money Market Account, which pays a higher rate than their basic savings account, but it still typically lags behind dedicated high yield savings accounts you can find elsewhere. The Money Market Account requires a higher minimum balance to earn the top tier rate, and the rate itself remains lower than what online banks routinely offer.

Key Takeaways

  • Bank of America's standard savings account pays rates well below what high yield accounts offer, making it a poor choice if rate is your priority.
  • Bank of America's Money Market Account pays more than their savings account but still typically earns less than online high yield options.
  • If you value in-person banking and branch access, Bank of America's convenience may offset the lower rate, but you will earn less interest over time.
  • Online banks and credit unions routinely offer rates two to three times higher than Bank of America's savings products.

Why Bank of America's rates are lower than online banks

Bank of America maintains a large branch network, employs thousands of staff, and operates physical locations in most U.S. cities. Those costs are real, and the bank passes them along by paying lower interest rates on deposits. Online banks have no branches, no tellers, and no physical overhead, so they can return more of their earnings to depositors as interest.

This is not a flaw in Bank of America's business model — it is a trade-off. You pay for convenience and access by accepting a lower rate. If you need to deposit cash, speak to someone in person, or prefer a familiar brand, that convenience has value. But if your goal is to earn the highest interest on savings, Bank of America is not the right tool.

What Bank of America's Money Market Account actually offers

Bank of America's Money Market Account combines features of a checking and savings account. You get a debit card, check-writing ability, and tiered interest rates based on your balance. The higher your balance, the higher your rate — but even the top tier rate is typically lower than what you would earn in a high yield savings account at an online bank.

The Money Market Account also requires a minimum opening deposit and a minimum balance to avoid a monthly fee. If your balance drops below that threshold, you pay a fee that erases any interest you earned. For most people, this makes the account less attractive than a simple high yield savings account with no minimums and no fees.

Comparing Bank of America to actual high yield options

A high yield savings account at an online bank typically earns between 4% and 5% APY, depending on the current rate environment. Bank of America's Money Market Account usually earns between 0.01% and 1%, depending on your balance tier. Over one year, the difference on a $10,000 deposit is substantial — you would earn roughly $400 to $500 in a high yield account versus $10 to $100 at Bank of America.

Credit unions also offer competitive rates on savings accounts, sometimes matching or beating online banks. If you are a member of a credit union, check their rates before assuming Bank of America is your best option. Many credit unions have no minimum balance requirements and no monthly fees.

When Bank of America savings might still make sense

If you already bank with Bank of America and use their checking account, keeping savings there simplifies your finances. You see all your accounts in one place, transfers are instant, and you can deposit cash at any of their branches. For some people, that convenience is worth the lower rate.

Bank of America also offers overdraft protection and other features tied to your overall account relationship. If you value those services and do not mind earning less interest, staying with Bank of America is a reasonable choice. Just understand the cost: you are trading interest income for convenience.

How to find a high yield savings account if you leave Bank of America

If you decide to move your savings to a higher-rate account, you do not have to close your Bank of America checking account. Many people keep checking at a traditional bank for bill pay and branch access, then move savings to an online bank for the better rate. This hybrid approach gives you both convenience and competitive interest.

When you open a high yield savings account elsewhere, you will provide your new account number to Bank of America and initiate an external transfer. The money typically moves within one to three business days. You can keep your Bank of America account open indefinitely, even if you do not use it for savings.

Frequently Asked Questions

Does Bank of America offer any account that earns high yield rates?

No. Bank of America's highest-rate product is their Money Market Account, which typically earns between 0.01% and 1% APY depending on your balance. This is not considered high yield. Online banks and credit unions routinely offer rates four to five times higher.

Can I get a better rate if I keep a large balance at Bank of America?

Bank of America's Money Market Account does pay higher rates at higher balance tiers, but even the top tier rate is usually below 1% APY. You would earn far more by moving that same balance to a high yield account at an online bank, even if that account pays a flat rate with no tiers.

What happens to my Bank of America account if I move my savings elsewhere?

Your Bank of America account stays open and active. You can keep using it for checking, bill pay, and branch deposits. Moving savings to another bank does not affect your checking account or your relationship with Bank of America.

Is it safe to keep savings at an online bank instead of Bank of America?

Yes. Online banks are FDIC-insured just like Bank of America, meaning deposits up to $250,000 are protected by federal insurance. The only real difference is that you cannot walk into a branch — everything is done online or by phone.