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

Bank of America's standard savings account earns 0.01% annual percentage yield (APY) on most balances, which is far below what high-yield savings accounts pay elsewhere. As of early 2024, high-yield savings accounts at online banks typically pay between 4% and 5% APY, meaning the difference on a $10,000 balance would be roughly $400 to $500 per year versus $1 at Bank of America.

Bank of America does offer a Money Market Account, but it also pays a low rate — typically 0.01% to 0.02% APY depending on your balance tier. Neither product is designed to compete with high-yield savings accounts. If you bank with Bank of America primarily for checking or other services, you would need to open a separate account elsewhere to earn a meaningful return on savings.

Key Takeaways

  • Bank of America's savings account and money market account both pay 0.01% to 0.02% APY, which is significantly lower than high-yield savings accounts at online banks.
  • High-yield savings accounts elsewhere currently pay 4% to 5% APY, meaning you would earn roughly $400 to $500 more per year on a $10,000 deposit at another bank.
  • Bank of America's low rates reflect its business model as a full-service retail bank with physical branches, not an online-only savings specialist.
  • You can keep your Bank of America checking account and open a high-yield savings account at a different bank for your savings goals.

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

Bank of America maintains a large network of physical branches and employs thousands of staff, which costs money. Those costs are reflected in lower deposit rates — the bank does not need to offer high rates to attract savings because customers often stay for convenience, direct deposit, or mortgage and credit card products.

Online banks like Marcus, Ally, and American Express Personal Savings have no branches and minimal overhead, so they pass savings on to depositors through higher rates. They compete almost entirely on rate, not location or brand recognition. Bank of America competes on convenience and bundled services instead.

What Bank of America savings products actually offer

Bank of America's Regular Savings Account has no monthly fee if you maintain a $300 minimum balance. It earns 0.01% APY on most account tiers. There is no limit on how many withdrawals you can make per month, which differs from some savings accounts elsewhere.

The Money Market Account requires a higher opening deposit (typically $2,500) and pays a tiered rate based on your balance. Balances under $10,000 earn 0.01% APY; balances $10,000 and above earn 0.02% APY. You get a debit card and limited check-writing ability, which a standard savings account does not offer. The monthly fee is waived if you maintain the minimum balance.

Both accounts are FDIC-insured up to $250,000, which is the same protection you get at any other bank. The insurance does not make up for the rate difference, but it does mean your money is safe.

How to compare Bank of America to high-yield alternatives

If you are deciding whether to move your savings, calculate the annual difference in dollars, not just percentages. On a $5,000 balance, the difference between 0.01% at Bank of America and 4.5% at an online bank is about $225 per year. On $50,000, it is about $2,250 per year. The larger your balance and the longer you keep it there, the more the rate difference matters.

Consider also whether you use Bank of America for other services. If you have a mortgage, credit card, or checking account there, moving savings to another bank does not require closing your Bank of America relationship. You can keep both. Some people maintain a Bank of America checking account for everyday use and a high-yield savings account elsewhere for goals like an emergency fund or down payment.

When Bank of America savings might still make sense

Bank of America savings accounts are useful if you need to deposit cash frequently and have no nearby online bank branches. Online banks typically do not have physical locations, so you cannot walk in and deposit a check or cash. If you receive cash regularly and want to avoid fees for mobile deposit or ATM transfers, a Bank of America savings account linked to your checking account may be worth the lower rate.

They also make sense if you are saving a very small amount — under $1,000 — where the annual rate difference is just a few dollars. The convenience of having everything in one place might outweigh the minimal interest loss.

Moving money from Bank of America to a high-yield account

Opening a high-yield savings account at another bank takes about 10 minutes online. You will need your Social Security number, a government ID, and proof of address (a recent utility bill or bank statement). Most online banks let you fund the new account by transferring money from your Bank of America checking account using your routing and account numbers.

The transfer typically takes one to three business days. You do not have to close your Bank of America account — you can leave it open with a small balance or close it later if you decide you do not need it. There is no penalty for moving money between banks.

Frequently Asked Questions

Does Bank of America offer any promotional rates on savings?

Bank of America occasionally runs promotions for new checking account customers, but these rarely include savings accounts. Promotions, when they exist, typically offer a one-time bonus (like $100 to $300) rather than a higher ongoing APY. Check the Bank of America website or ask in a branch for current offers, as they change frequently and vary by location.

Can I earn more at Bank of America if I have a lot of money?

No. Bank of America's savings and money market accounts do not offer meaningfully higher rates for large balances. The money market account pays 0.02% on balances of $10,000 and above, but that is still far below high-yield rates. Wealth management services for customers with $250,000 or more may include different products, but standard savings accounts do not scale with balance.

What if I want to keep everything at one bank?

If you prefer one bank for simplicity, you are trading rate for convenience. The cost of that choice is real — roughly $400 to $500 per year on a $10,000 balance. Some people decide that trade-off is worth it. Others open a high-yield account at a second bank just for savings and keep Bank of America for checking and other services.

Are online high-yield savings accounts as safe as Bank of America?

Yes. Online banks like Marcus, Ally, and American Express Personal Savings are all FDIC-insured, just like Bank of America. Your deposits are protected up to $250,000 at each bank. The main difference is that online banks have no physical branches, so you manage your account entirely through their website or app.