Bank of America does not offer a dedicated 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 the 4% to 5% range offered by online banks and credit unions. If you want a high-yield savings account, you will need to open one at a different institution — Bank of America is not competitive in this category.

Bank of America does offer a tiered rewards checking account called Preferred Rewards, which provides higher interest rates on both checking and savings accounts if you maintain a may have access to balance or have a mortgage with them. However, even with Preferred Rewards, the savings rate remains well below what you can find elsewhere. The highest tier of Preferred Rewards raises the savings APY to only 0.04%, still a fraction of what high-yield accounts pay.

Key Takeaways

  • Bank of America's standard savings account pays 0.01% APY, which will not keep pace with inflation.
  • Preferred Rewards membership can raise the rate to 0.04% APY if you meet balance or mortgage requirements, but this is still significantly lower than online high-yield options.
  • Online banks and credit unions typically offer 4% to 5% APY on high-yield savings accounts with no minimum balance requirements.
  • If you want high-yield savings, you can open an account at another institution while keeping your Bank of America checking account for everyday use.

What Bank of America savings accounts actually pay

Bank of America offers two main savings products: the regular savings account and the money market account. The regular savings account starts at 0.01% APY with no minimum balance to open. The money market account also begins at 0.01% APY but requires a $2,500 minimum balance and allows you to write checks, though it functions more like a hybrid between savings and checking.

Both accounts earn the same base rate regardless of how much money you deposit. The only way to earn more is through Preferred Rewards, which requires either a $20,000 combined balance across Bank of America accounts or an active mortgage with them. Even then, the boost is minimal — moving from 0.01% to 0.04% on a $10,000 balance means earning $4 per year instead of $1.

How Preferred Rewards changes the interest rate

Preferred Rewards is Bank of America's tiered program that rewards customers who maintain higher balances or have a mortgage. The program has three levels: Silver (0.01% APY boost), Gold (0.02% APY boost), and Platinum (0.04% APY boost). You reach each level by either maintaining a combined balance of $20,000, $50,000, or $100,000 across Bank of America accounts, or by having an active mortgage with them.

Even at the Platinum level, your savings account would earn only 0.05% APY — still far below the 4% to 5% you can find at online banks. The program is designed to reward Bank of America's most profitable customers, not to compete on savings rates. If high-yield savings is your goal, Preferred Rewards will not get you there.

Why online banks pay so much more

Online banks offer rates 80 to 100 times higher than Bank of America because they have lower overhead costs. They do not maintain physical branches, do not employ tellers, and do not spend on advertising the way traditional banks do. Those savings are passed to customers in the form of higher interest rates on deposits.

Banks like Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings currently offer rates between 4% and 5.35% APY on high-yield savings accounts. Credit unions such as Connexus and Pentagon Federal Credit Union also compete in this range. All of these accounts are insured by the FDIC or NCUA up to $250,000, so your money is equally safe whether you bank with Bank of America or an online competitor.

How to move money to a high-yield account while keeping Bank of America

You do not have to close your Bank of America account to open a high-yield savings account elsewhere. Many people keep a Bank of America checking account for everyday spending and bill payments, then open a high-yield savings account at an online bank for money they want to grow.

To set this up, open the high-yield account at your chosen bank — most online banks let you do this in 10 minutes with your Social Security number, a government ID, and proof of address. Once the account is open, you can transfer money from Bank of America using the external transfer feature in your Bank of America online banking portal, or by providing the online bank with your Bank of America account and routing numbers so they can pull the money directly. Transfers typically take one to three business days.

What to look for in a high-yield savings account

When comparing high-yield accounts, focus on three things: the current APY, whether there are monthly fees, and whether there is a minimum balance requirement. Most online banks charge no monthly fees and have no minimum balance, so the APY is the main difference between them.

Check the rate at the time you are ready to open the account, because rates change frequently — they move up and down with the Federal Reserve's interest rate decisions. A bank offering 5.35% today might offer 4.5% in six months if rates fall. Read the account terms to confirm the rate applies to all balances, not just balances above a certain threshold. Some banks also offer promotional rates for new customers that expire after a few months, so understand what your ongoing rate will be.

Bank of America CDs as an alternative to savings accounts

If you want to keep all your money at Bank of America, certificates of deposit (CDs) offer slightly better rates than savings accounts, though still not competitive with online options. Bank of America CDs currently pay between 0.01% and 0.35% APY depending on the term length, with terms ranging from three months to five years. The longer the term, the slightly higher the rate — but even a five-year CD at Bank of America pays less than a high-yield savings account at an online bank.

The trade-off with a CD is that your money is locked up for the term. If you withdraw before the term ends, you pay an early withdrawal penalty. For most people saving for a goal within the next few years, a high-yield savings account at an online bank is more flexible and pays more.

Frequently Asked Questions

Can I earn more interest by moving my Bank of America savings to a different account type?

No. Bank of America's money market account, savings account, and CDs all pay rates well below high-yield options elsewhere. Your best option for earning meaningful interest is to open an account at an online bank or credit union.

Will I lose FDIC protection if I move my money to an online bank?

No. Online banks like Ally and Marcus are FDIC-insured just like Bank of America. Your deposits are protected up to $250,000 per account owner per bank. If you have more than $250,000 to save, you can spread it across multiple banks to stay fully insured.

How long does it take to transfer money from Bank of America to a high-yield account?

Most transfers take one to three business days. You can initiate the transfer through your Bank of America online banking portal by linking the external account, or you can provide the new bank with your Bank of America routing and account numbers so they can pull the money directly.

What happens to my Bank of America account if I open a high-yield savings account elsewhere?

Nothing. You can keep your Bank of America checking and savings accounts open while using a high-yield account at another bank. Many people do this to maintain their existing payment setup while earning better interest on savings.

Do I need a minimum balance to open a high-yield savings account at an online bank?

Most online banks have no minimum balance requirement. You can open an account and deposit as little as $1. Bank of America, by contrast, requires no minimum for savings but does require $2,500 for its money market account.