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 balances of any size. This rate has remained unchanged for several years and is far below what online banks and credit unions currently offer — many high-yield savings accounts pay between 4% and 5% APY. If you keep money in a Bank of America savings account expecting to earn meaningful interest, you will earn almost nothing.

Bank of America does offer a Money Market account, which pays a slightly higher rate, but it still falls well short of high-yield options. The Money Market account's rate varies by balance tier and changes frequently, but it typically stays below 1% APY. Neither product is designed to compete with banks that focus on savings rates as a core business feature.

Key Takeaways

  • Bank of America's savings account pays 0.01% APY, which means $10,000 earns about $1 per year in interest.
  • The Money Market account pays a higher rate than savings but still typically under 1% APY, depending on your balance.
  • Online banks and credit unions often pay 4% to 5% APY on high-yield savings accounts with no monthly fees.
  • If you use Bank of America for checking, keeping savings there may cost you thousands in foregone interest over time.
  • Moving money to a high-yield account takes minutes and requires only your routing number and account details.

Why Bank of America's rates lag so far behind

Bank of America is a large, full-service bank with thousands of physical branches. That infrastructure — the buildings, the staff, the ATM networks — costs money. The bank makes its profit primarily through lending (mortgages, auto loans, credit cards) rather than through savings products. Savings accounts are a way to gather deposits cheaply, not a profit center. Because of this business model, Bank of America has little incentive to offer competitive rates.

Online banks like Marcus, Ally, and American Express Personal Savings have no branches and minimal overhead. They can pass savings directly to customers in the form of higher rates. Credit unions, which are member-owned rather than shareholder-owned, also tend to prioritize member returns over profit maximization. This structural difference explains why the rate gap between Bank of America and high-yield alternatives is so wide.

What Bank of America's Money Market account actually offers

The Money Market account requires a higher opening deposit than the savings account — typically $2,500 — and pays interest based on your balance tier. The rates change frequently and vary by region, so you would need to check with your local branch or call 1-800-432-1000 to learn the current rate. Historically, these rates have ranged from 0.03% to 0.75% APY depending on the balance level and the current interest rate environment.

The Money Market account also comes with a debit card and check-writing privileges, which a savings account does not. However, there is a monthly maintenance fee of $12 unless you maintain a minimum balance (usually $2,500) or meet other conditions like setting up direct deposit. For most people saving money rather than spending from savings, these features add little value.

How much interest you would actually earn

The difference between Bank of America's rates and high-yield rates compounds quickly. On a $10,000 balance held for one year:

  • Bank of America savings at 0.01% APY: $1 in interest
  • Bank of America Money Market at 0.50% APY: $50 in interest
  • High-yield savings at 4.50% APY: $450 in interest

On a $50,000 balance over five years, the gap widens to thousands of dollars. A high-yield account earning 4.5% would generate roughly $12,000 in interest, while Bank of America's savings account would earn only $25. Even if you never add another dollar, the difference is substantial enough to justify moving your money.

When it might make sense to keep savings at Bank of America

If you have a Bank of America checking account and use their ATM network regularly, there is a small convenience factor to keeping savings in the same place. You can transfer money between accounts instantly online, and you will see all your balances in one login. However, this convenience costs you real money in foregone interest.

Bank of America also offers a Preferred Rewards program that gives you slightly higher rates on savings and Money Market accounts if you maintain a high checking balance or invest through their brokerage. Even with these boosts, the rates remain well below high-yield alternatives. The only scenario where Bank of America savings makes financial sense is if you are holding money for a very short time — a few days or weeks — before spending it, in which case the interest rate does not matter anyway.

How to move money 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-issued ID, and your current address. Most banks verify your identity instantly and allow you to start depositing money the same day.

To transfer existing money from Bank of America, you have two options. You can initiate an external transfer from the new bank's website using your Bank of America account and routing number — this typically takes 3 to 5 business days. Alternatively, you can withdraw cash from Bank of America and deposit it into the new account, though this is slower and less secure. Many high-yield banks reimburse ATM fees, so you can withdraw from any ATM without penalty.

High-yield alternatives to consider

Several banks consistently offer rates between 4% and 5.35% APY on savings accounts with no monthly fees and no minimum balance requirements. Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Wealthfront Cash Account are among the most widely used. Credit unions like Connexus Credit Union and Pentagon Federal Credit Union also offer competitive rates, though membership requirements vary.

The best rate changes month to month as banks adjust their offerings. Before opening an account, check the current APY on the bank's website — do not rely on marketing materials or ads, which may be outdated. Also confirm there are no monthly fees, no minimum balance requirements, and that the bank is FDIC-insured (or NCUA-insured if it is a credit union). These protections mean your money is safe up to $250,000 per account.

Frequently Asked Questions

Does Bank of America have any savings account that earns decent interest?

No. Bank of America's highest-yielding savings product is the Money Market account, which typically pays under 1% APY. This is still 4 to 5 percentage points below what online banks offer. If earning interest on your savings is a goal, Bank of America is not the right place for that money.

Will I lose access to my money if I move it to an online bank?

No. High-yield savings accounts are fully liquid — you can withdraw or transfer your money at any time, usually within one business day. There are no penalties for withdrawals, and you can move money back to Bank of America whenever you want. The only difference is that you will not have a physical branch to visit.

Is my money safe in a high-yield savings account at an online bank?

Yes, as long as the bank is FDIC-insured. All major online banks that offer high-yield savings are FDIC-insured, which means your deposits are protected up to $250,000 per account. This is the same protection you have at Bank of America. Check the bank's website for the FDIC insurance statement.

Can I keep my Bank of America checking account and move only savings elsewhere?

Yes. Many people keep their checking account at Bank of America for convenience and move savings to a high-yield account at another bank. You can transfer money between them online whenever you need to. This gives you the best of both — the branch access and debit card you use regularly, plus competitive interest on money you are saving.

What if Bank of America raises its savings rates in the future?

Bank of America has not raised its savings rate meaningfully in years, even as the Federal Reserve raised interest rates significantly. The bank's business model does not depend on competitive savings rates, so there is no reason to expect this to change. If you are saving money now, do not wait for Bank of America to become competitive — move your money to a high-yield account today.