Bank of America's current savings rates and how they compare

Bank of America offers several savings products, each with its own interest rate. As of now, their standard savings account pays a rate that varies by account type and balance tier — the exact rate depends on your location and the specific account you open. Their Advantage Savings account, for example, pays different rates based on your balance level, with higher balances earning more. You can check the current rate for your state on Bank of America's website or by calling 1-800-432-1000, since rates change regularly and differ by region.

Bank of America also offers a Money Market Account, which typically pays a higher rate than their standard savings account but requires a larger opening deposit and minimum balance. They previously offered a high-yield savings product, but as of 2024 that product is no longer available to new customers. If you already hold one, your rate may differ from what new customers can open today.

Key Takeaways

  • Bank of America's savings rates vary by account type, balance level, and your state, so you must check their website or call for your specific rate.
  • The Advantage Savings account pays tiered rates — higher balances earn more interest — while the Money Market Account typically offers a higher rate but requires a larger minimum balance.
  • Bank of America's rates are generally lower than those offered by online banks and credit unions, which is a trade-off for having physical branches.
  • Your rate can change at any time, and Bank of America can lower rates without advance notice, so review your account periodically.

How Bank of America's tiered rate structure works

Bank of America uses a tiered rate system for its Advantage Savings account, meaning the interest rate you earn depends on how much money you keep in the account. A customer with $500 in the account earns a different rate than a customer with $50,000. The bank publishes these tiers on their website, but the exact breakpoints and rates change over time and vary by state.

To find your tier, log into your Bank of America account online or call their customer service line. They can tell you which tier your current balance falls into and what rate you are earning. If you move money in or out, your tier may change, which means your rate changes too — usually effective the next day.

Why Bank of America rates are lower than online alternatives

Bank of America's savings rates are typically lower than those offered by online banks such as Marcus, Ally, or American Express Personal Savings. This difference exists because Bank of America maintains thousands of physical branches and ATMs across the country, which costs money. Online banks have no branches, so they can pass higher rates to customers. The trade-off is convenience: you can walk into a Bank of America branch to deposit cash or speak to someone in person, but you pay for that convenience in lower interest earnings.

If your priority is earning the highest possible interest on savings, an online bank or credit union may be a better choice. If you value having a physical location nearby and are willing to accept a lower rate, Bank of America may fit your needs. The difference in earnings can be significant over time — a $10,000 balance earning 0.01% at Bank of America versus 4.50% at an online bank would earn roughly $450 less per year at Bank of America.

How to find your current Bank of America savings rate

The fastest way to see your exact rate is to log into your Bank of America account online. Once logged in, go to your savings account details — the rate should be listed there, along with the annual percentage yield (APY) you are earning. The APY accounts for how often interest is compounded, so it is the number that matters for comparing accounts.

If you do not have an account yet and want to know the rate before opening one, visit bankofamerica.com and look for the savings account rates page, which is usually under "Rates & Fees" or "Products." You can also call 1-800-432-1000 and ask a representative for the current rate in your state. Rates change frequently, so the number you see today may not be the same next month.

What happens when Bank of America changes its rates

Bank of America can raise or lower its savings rates at any time without asking your permission. When the Federal Reserve raises or lowers its benchmark interest rate, banks typically adjust their savings rates in response — though not always by the same amount. Bank of America may lower rates faster than it raises them, which is common across the banking industry.

You will not receive advance notice of a rate cut, though the bank is required to notify you of the change. Check your account statements or log in periodically to see if your rate has changed. If you notice your rate has dropped significantly and you have a large balance, it may be worth comparing Bank of America's rate to competitors and moving your money if another bank offers substantially more.

Bank of America savings accounts versus their Money Market Account

Bank of America offers both a savings account and a Money Market Account. The Money Market Account typically pays a higher interest rate but requires a higher opening deposit — usually $2,500 or more — and a higher minimum balance to avoid a monthly fee. The savings account has a lower opening deposit requirement and no monthly fee as long as you maintain a small balance.

If you have a larger amount to save and want to earn more interest, the Money Market Account may be worth considering. If you are building savings gradually or want maximum flexibility with lower minimums, the Advantage Savings account is the simpler choice. Both accounts allow you to withdraw money, though federal rules limit you to six withdrawals per month (this rule has been relaxed in recent years, but limits may still apply depending on the account type).

Frequently Asked Questions

Is Bank of America's savings rate better than a CD?

No. Bank of America's CDs typically pay higher rates than their savings accounts because you agree to lock your money away for a set period — three months, six months, one year, or longer. The longer the term, the higher the rate. However, you cannot withdraw the money early without paying a penalty. If you need access to your savings, a savings account is better; if you can lock money away, a CD usually pays more.

Can I move my savings to a higher-rate Bank of America account?

If you have a standard savings account and want a higher rate, you can open a Money Market Account if you meet the minimum balance requirement. You can also transfer money between your own Bank of America accounts without penalty. However, if you want the highest possible rate, you may need to move your money to a different bank entirely — Bank of America's rates are generally lower than online competitors.

What is the difference between APY and interest rate?

The interest rate is the percentage the bank pays on your balance. The APY (annual percentage yield) is the rate you actually earn after accounting for how often interest is compounded — usually daily at Bank of America. APY is always the number to use when comparing accounts, because it shows the true earnings. Bank of America will show you both numbers, but focus on the APY.

Does Bank of America charge a fee on savings accounts?

Bank of America's Advantage Savings account has no monthly maintenance fee as long as you maintain a minimum balance (usually $100 to $500, depending on the account tier) or set up direct deposit. If your balance falls below the minimum, you may be charged a monthly fee. Check the current fee schedule on their website, as these requirements change.

How often does Bank of America compound interest?

Bank of America compounds interest daily on savings accounts, which means you earn interest on your interest every day. This is standard across most banks. The APY they show you already accounts for daily compounding, so you do not need to calculate it yourself — just compare the APY between accounts.