Bank of America does not offer a dedicated high-yield savings account

Bank of America's standard savings account earns interest, but the rate is not competitive with what you can find at online banks or credit unions. As of now, Bank of America does not have a product specifically branded or structured as a high-yield savings account. If you keep your money in a regular Bank of America savings account, you will earn a much lower rate than accounts marketed as high-yield.

This matters because the difference compounds over time. A high-yield savings account at another bank might pay 4% or 5% annually, while Bank of America's savings account pays a fraction of that. On $10,000, that gap means hundreds of dollars per year in interest you would not earn.

Key Takeaways

  • Bank of America offers a standard savings account but not a high-yield savings account, so the interest rate will be significantly lower than online alternatives.
  • Bank of America's savings rates change based on the Federal Reserve's actions, but they typically lag behind online banks and credit unions.
  • If you want a high-yield savings account, you will need to open one at a different bank, though you can keep a checking account at Bank of America if you prefer.
  • Some Bank of America customers use a high-yield account elsewhere as their primary savings vehicle while keeping a checking account at Bank of America for everyday use.

Why Bank of America does not compete on savings rates

Bank of America is a large branch-based bank with physical locations in most states. That infrastructure costs money—rent, staff, technology for branches. Online banks have no branches, so they pass those savings to customers through higher interest rates on savings accounts.

Bank of America makes money partly from the difference between what they pay you on savings and what they charge borrowers on loans. A lower savings rate widens that gap in their favor. They rely on customers who value convenience and brand recognition over rate shopping, and many customers do stay for that reason.

What Bank of America savings accounts actually offer

Bank of America has two main savings products: the Regular Savings Account and the Money Market Account. The Regular Savings Account has no minimum balance requirement and no monthly fee if you maintain a $300 minimum balance. If your balance drops below $300, you pay $3 per month.

The Money Market Account requires a higher opening deposit and minimum balance—typically $2,500—and charges a monthly fee if you fall below that. In exchange, it usually pays a slightly higher rate than the regular savings account, though still lower than high-yield accounts elsewhere. Both accounts limit you to six withdrawals per month before fees apply.

Neither account is designed to compete on rate. They are designed for customers who already have a Bank of America checking account and want a place to park money without switching banks entirely.

How to find a high-yield savings account if you want one

Online banks like Marcus, Ally, American Express Personal Savings, and Discover all offer high-yield savings accounts with no branch network and lower overhead. Credit unions sometimes offer competitive rates too, especially if you are a member. You can open an account at any of these while keeping your Bank of America checking account open.

When you compare rates, look at the Annual Percentage Yield (APY), not just the interest rate. APY tells you what you will actually earn over a year, including compounding. Check the rate on the bank's website directly—rates change frequently and vary by bank.

You do not need to move your paycheck or everyday spending to a new bank. Many people keep a checking account at Bank of America for convenience and direct deposit, then move money to a high-yield savings account elsewhere for goals they are saving toward.

The trade-off between convenience and rate

Bank of America's advantage is access. You can walk into a branch, talk to a person, and deposit cash. Online banks have no branches, so you deposit by transfer or mobile check deposit. If you rarely need to deposit cash or talk to someone in person, an online bank's higher rate is worth the trade-off.

If you do need branch access regularly, you have options. Some credit unions are part of shared branching networks, meaning you can use branches at other credit unions. Some online banks partner with retailers like Allpoint or MoneyPass to let you withdraw cash at ATMs without fees. Research what matters to your actual life before deciding.

What happens to Bank of America rates when the Federal Reserve moves

Bank of America's savings rates move when the Federal Reserve changes its benchmark rate, but they typically move slower and by smaller amounts than online banks. When the Fed raises rates, online banks often raise their savings rates within days. Bank of America may take weeks or months, and the increase is often smaller.

This lag means that if you are watching rates rise, you could move money to a high-yield account and earn more during the transition period. Conversely, when rates fall, Bank of America's rates may fall more slowly, so you might earn slightly more for a short time—but this does not make up for the lower baseline rate.

Should you keep money at Bank of America if you want to save

If you have a Bank of America checking account and a small amount of savings—under $1,000—the difference in interest might be $5 to $10 per year. The hassle of opening another account might not be worth it. But if you are saving $5,000 or more, the difference becomes real money.

A practical approach: keep your checking account at Bank of America if you like it, but open a high-yield savings account elsewhere for money you are actually trying to grow. Move money between them as needed. Most transfers take one to two business days, so this works fine for savings you are not touching frequently.

Frequently Asked Questions

Can I get a higher rate if I have a large balance at Bank of America?

No. Bank of America does not offer tiered rates based on balance size for savings accounts. Your rate is the same whether you have $300 or $300,000 in the account. Some banks do offer higher rates for larger balances, but Bank of America does not.

What if I want to keep all my money at one bank?

You can, but you will earn less interest than you would at a bank that offers high-yield savings. If staying at one bank matters more to you than maximizing interest, that is a valid choice. Just know what you are trading away.

Does Bank of America have any savings product that earns more?

Bank of America offers CDs (certificates of deposit) that lock your money away for a set term and pay a higher rate. But the rate is still typically lower than high-yield savings accounts at online banks, and you cannot access the money without a penalty. A high-yield savings account gives you both a better rate and flexibility.

If I open a high-yield account elsewhere, do I need to close my Bank of America savings account?

No. You can have savings accounts at multiple banks. Many people keep a Bank of America savings account for emergency access and a high-yield account elsewhere for long-term savings. There is no penalty for having both.

How often do Bank of America savings rates change?

Bank of America changes rates when they choose to, usually in response to Federal Reserve moves or competitive pressure. There is no set schedule. You can check your current rate by logging into your account or calling customer service.