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. This rate has remained flat for years and is far below what online banks and credit unions currently offer—many high-yield accounts pay 4% to 5% APY. If you keep money in a Bank of America savings account expecting meaningful interest, you will earn almost nothing.
Bank of America does offer a tiered savings product called Advantage Savings, but the highest tier still pays only around 0.01% APY. The rate does not change based on your balance or account tier. The bank's focus is on checking accounts and lending products, not on competing for savings deposits through interest rates.
If you already bank with Bank of America for checking or other services, moving your savings elsewhere does not require closing your account. You can keep your checking account open and move savings to a high-yield account at a different institution—many people do exactly this.
Key Takeaways
- Bank of America's savings accounts pay 0.01% APY, which means $10,000 earns about $1 per year in interest.
- Online banks and credit unions currently offer 4% to 5% APY on high-yield savings, meaning the same $10,000 earns $400 to $500 per year.
- You do not have to close your Bank of America checking account to move savings to a higher-paying account elsewhere.
- Bank of America's strength is in branch access and checking products, not in savings rates.
Why Bank of America's rates lag so far behind
Large national banks like Bank of America have high overhead costs—thousands of branches, staff, and physical infrastructure. They also do not rely heavily on savings deposits to fund their operations, so they have less incentive to offer competitive rates. Instead, they make money through checking account fees, overdraft fees, credit cards, and loans.
Online banks have no branches and minimal staff, so their costs are much lower. They compete almost entirely on savings rates because that is their main product. A bank with one data center and a website can afford to pay 4.5% APY; a bank with 4,000 branches cannot.
This is not a flaw in Bank of America—it is a structural difference in how the two types of banks operate. If you value branch access and in-person service, you pay for it through lower interest rates. If you prioritize interest earnings, you choose an online bank and accept that you cannot walk into a physical location.
What Bank of America savings accounts actually offer
Bank of America's Regular Savings Account requires a $100 minimum balance and charges a $3 monthly maintenance fee if you fall below that. The fee is waived if you maintain the minimum or set up a direct deposit. Interest accrual is negligible—you will earn less than $2 per year on a $1,000 balance.
The Advantage Savings account is tiered by balance but offers no rate advantage. At any tier, the APY remains 0.01%. The account does waive the monthly fee if you maintain a higher balance (usually $500 to $2,500 depending on your account type), but the interest rate itself does not change.
Both accounts allow unlimited deposits and six withdrawals per month without penalty. You can link them to a Bank of America checking account for easy transfers. If you need a savings account primarily for holding money short-term or keeping an emergency fund liquid, these accounts work fine—but they will not grow your money through interest.
How Bank of America compares to actual high-yield options
A high-yield savings account at an online bank typically pays 4% to 5.25% APY, depending on the institution and current market conditions. Some credit unions offer similar rates through their savings products. The difference in earnings is dramatic:
| Account Type | APY | Interest on $10,000 per year |
|---|---|---|
| Bank of America Savings | 0.01% | $1 |
| High-yield savings (typical) | 4.5% | $450 |
| High-yield savings (top rate) | 5.25% | $525 |
Over five years, $10,000 in a Bank of America account grows to $10,000.50. The same amount in a 4.5% high-yield account grows to $12,462. That is not a small difference—it is the difference between your money staying flat and actually building wealth through interest.
Online banks offering high-yield rates include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Wealthfront. Credit unions often offer competitive rates through their savings accounts or share certificates. Rates change frequently, so you should check current offers before opening an account.
When Bank of America savings might still make sense
If you already have a Bank of America checking account and need a place to park money for a few weeks or months, using their savings account is convenient—no new login, no transfer delays between institutions. The interest loss is small if the money is there only briefly.
If you value in-person banking and live near a Bank of America branch, you might prioritize that convenience over interest rates. Some people prefer handling all their finances at one bank, even if it costs them in earnings. That is a valid choice, but it should be a conscious one.
Bank of America also offers certificates of deposit (CDs) with rates higher than their savings account, though still below what online banks pay. If you have money you will not need for a set period—six months, one year, two years—a CD might earn more than a savings account. Check their current CD rates against online options before committing.
How to move 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, address, and a form of ID. Most online banks verify your identity instantly and let you fund the account the same day.
To move money from Bank of America, you have two options. You can initiate an ACH transfer from the new bank's website—you will enter your Bank of America account number and routing number, and the money moves in one to three business days. Alternatively, you can log into Bank of America and initiate the transfer from their side, which is equally fast.
You do not need to close your Bank of America account. Many people keep a checking account at a large bank for bill pay and branch access while holding savings at an online bank for the higher rate. This hybrid approach gives you both convenience and earnings.
Frequently Asked Questions
Does Bank of America have any savings product that pays more than 0.01%?
Bank of America's CDs pay higher rates than their savings accounts, though rates vary by term length and change frequently. Their highest CD rates are still typically lower than online banks offer. Check their current CD rates on their website and compare them to online options before opening one.
Will I lose FDIC protection if I move to an online bank?
No. Online banks are FDIC-insured just like Bank of America. Your deposits are protected up to $250,000 per account type at any FDIC-insured bank, whether it has branches or not. The insurance is the same; only the interest rate and service model differ.
Can I keep my Bank of America checking account and move only my savings?
Yes. You can open a high-yield savings account at another bank and leave your Bank of America checking account open. Many people do this to keep their checking account at a large bank for convenience while earning better interest on savings elsewhere. There is no requirement to consolidate everything at one institution.
What if Bank of America raises their savings rate in the future?
It is possible but unlikely in the near term. Large national banks have not significantly raised savings rates even as the Federal Reserve raised interest rates over the past two years. If rates do change, you can always move money back—there is no penalty for closing a savings account or transferring funds out.
Is a high-yield savings account safe if the bank fails?
Yes. All FDIC-insured banks—online and traditional—are backed by the same federal insurance. If an online bank fails, your deposits up to $250,000 are protected by the FDIC, just as they would be at Bank of America. The safety is identical; the interest rate is what differs.