Yes, Bank of America offers money market accounts
Bank of America offers a Money Market Account (sometimes called a Money Market Savings Account) as part of its standard deposit products. It functions like the money market accounts you would find at other banks: you earn interest on your balance, you can make a limited number of withdrawals per month, and your money is insured by the FDIC up to $250,000.
The specific terms—the interest rate, the withdrawal limits, the minimum balance required—change based on how much money you keep in the account and current market conditions. This means the account that works for you depends on your balance and how often you need to move money out.
Key Takeaways
- Bank of America's money market account earns interest and limits your withdrawals to a set number per month, typically six.
- The interest rate Bank of America pays varies by account tier and changes regularly, so you should check their current rates before opening.
- You need a minimum opening deposit, which varies by account type—some tiers require $2,500 or more.
- Your deposits are FDIC-insured up to $250,000, protecting your money if the bank fails.
- If you need to withdraw more than the monthly limit, you can do so but may face a fee per excess withdrawal.
How Bank of America structures its money market tiers
Bank of America organizes its money market account into tiers based on your balance. The more money you keep in the account, the higher the interest rate you earn. The bank calls these tiers by different names depending on whether you are a regular customer or a Preferred Rewards member (their loyalty program for customers with multiple accounts or investments with them).
For a standard money market account, you might see tier names like "Money Market Savings" with different rate brackets. A typical structure requires a minimum opening deposit—often $2,500 or $10,000 depending on the tier—and then your rate climbs as your balance grows. You should visit Bank of America's website or call 1-800-432-1000 to see the current tier structure and rates, because these change frequently and vary by location.
If you are a Preferred Rewards member, you may see higher rates or lower minimum balances. Preferred Rewards membership is free and is based on your relationship with Bank of America—how many accounts you have, how much you keep on deposit, or whether you have investments with them.
Interest rates and how they compare
Bank of America's money market rates are set by the bank and change when the Federal Reserve adjusts its benchmark interest rate. The rate you receive depends on which tier your balance falls into and whether you are a Preferred Rewards member.
Bank of America's rates are typically lower than what you would find at online-only banks or credit unions, because Bank of America operates physical branches nationwide and has higher operating costs. If earning the highest possible interest is your main goal, you may find better rates elsewhere. If convenience and having a local branch matter to you, the rate difference may be worth it.
You can compare Bank of America's current rates to other banks by visiting their website, calling their customer service line, or visiting a local branch. Rates change frequently, so what is true today may not be true next month.
Withdrawal limits and what happens if you exceed them
Bank of America's money market account typically allows you to make up to six withdrawals or transfers per month without penalty. This limit comes from federal banking rules that used to apply to all savings accounts, though those rules have loosened in recent years. Bank of America still enforces the limit on money market accounts.
If you make more than six withdrawals in a month, Bank of America may charge you a fee for each excess withdrawal—usually $10 per transaction, though you should confirm the current fee with the bank. Some customers find this limit frustrating if they need to access their money frequently. If you think you will need to withdraw more than six times per month, a regular savings account or checking account might suit you better.
The six-withdrawal limit resets on the first day of each calendar month. Withdrawals include transfers to other accounts, checks written against the account, and debit card transactions if the account has a debit card attached.
Minimum balance requirements and opening an account
Bank of America requires a minimum opening deposit to start a money market account. The amount varies by tier—some accounts require $2,500, others $10,000 or more. If your balance drops below the minimum after you open the account, Bank of America may charge you a monthly maintenance fee (often $12 to $25) until you bring it back up, or they may close the account.
You can open a Bank of America money market account online, by phone at 1-800-432-1000, or in person at any Bank of America branch. You will need a government-issued ID, your Social Security number, and your initial deposit. If you open online, you can fund the account from another bank account you own.
Before you open, confirm the current minimum balance requirement for the tier you are interested in, because these can change. Also ask whether the bank will waive the minimum if you set up direct deposit or maintain a certain balance in a linked checking account.
FDIC insurance and account safety
Your money in a Bank of America money market account is protected by FDIC insurance up to $250,000 per depositor, per bank, per account category. This means if Bank of America fails, the FDIC will reimburse you for your balance up to that limit. Money market accounts are their own category for FDIC purposes, so the $250,000 limit applies separately from your checking account or savings account at the same bank.
If you have more than $250,000 to deposit, you can open multiple money market accounts at different banks to keep all your money insured. You can also open a money market account in a different ownership category—for example, one in your name alone and one in joint ownership with your spouse—and each would be insured separately.
Comparing Bank of America to other options
Bank of America's money market account competes mainly with savings accounts at other traditional banks and with money market accounts at online banks. The trade-off is usually between convenience and rate. Bank of America offers branches, phone support, and the ability to manage your account in person. Online banks typically offer higher interest rates because they have lower operating costs, but you cannot walk into a branch if you need help.
Credit unions also offer money market accounts, sometimes with competitive rates and lower fees. If you are a member of a credit union, it is worth comparing their money market terms to Bank of America's. Some credit unions have lower minimum balances or no withdrawal limits.
Your choice depends on what matters most to you: the highest interest rate, access to a physical branch, customer service quality, or a combination of these factors.
Frequently Asked Questions
What is the current interest rate on Bank of America money market accounts?
Bank of America's rates change regularly and vary by account tier and Preferred Rewards status. You can find current rates on their website, by calling 1-800-432-1000, or by visiting a local branch. Rates are typically lower than online banks but higher than regular savings accounts.
Can I use a debit card to withdraw from my Bank of America money market account?
Some Bank of America money market accounts come with a debit card, but using it counts toward your six monthly withdrawals. Check with the bank about whether your specific account includes a debit card and how transactions are counted against your limit.
What happens if my balance falls below the minimum?
If your balance drops below the required minimum, Bank of America typically charges a monthly maintenance fee (usually $12 to $25) until you bring it back up. If the balance stays low for an extended period, the bank may close the account. You can avoid this by maintaining the minimum or asking about waivers when you open the account.
Can I transfer money from my Bank of America checking account to my money market account?
Yes, you can transfer between your Bank of America accounts. Each transfer counts as one of your six allowed monthly withdrawals from the money market account. After six transfers in a month, additional ones may incur a fee.
Is my money safe in a Bank of America money market account?
Yes. Your deposits are insured by the FDIC up to $250,000. If Bank of America fails, the FDIC will reimburse you for your full balance up to that limit. Money market accounts are insured separately from checking and savings accounts at the same bank.