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 elsewhere. As of now, Bank of America pays around 0.01% APY on regular savings accounts — meaning $10,000 sitting in the account for a year earns about $1 in interest. High-yield accounts at other banks pay 4% to 5% APY on the same $10,000, which would earn $400 to $500 per year.

If you already bank with Bank of America and want higher returns on savings, you have two paths: move money to a different bank's high-yield account, or look at what Bank of America does offer that comes closer to competitive rates.

Key Takeaways

  • Bank of America's regular savings account earns around 0.01% APY, which is significantly lower than high-yield accounts at online banks.
  • Bank of America offers a Money Market account that pays a higher rate than savings, though still below what dedicated high-yield accounts offer.
  • If you keep a high balance or maintain multiple accounts with Bank of America, you may may have access to for their Preferred Rewards program, which adds a small bonus to savings rates.
  • Opening a high-yield savings account at a different bank does not require closing your Bank of America account — many people maintain both.

What Bank of America's Money Market account pays

Bank of America's Money Market account is their closest product to a high-yield savings account. It earns more interest than their regular savings account, but the rate still lags behind dedicated high-yield options at online banks. The exact rate depends on your balance tier — higher balances earn slightly more.

Money Market accounts come with a debit card and check-writing privileges, which regular savings accounts do not have. This makes them useful if you need to access your money quickly, but the trade-off is that the interest rate remains modest compared to accounts designed specifically for savings.

How Bank of America's Preferred Rewards program affects savings rates

If you have a Bank of America checking account and maintain a may have access to balance, you may be enrolled in Preferred Rewards. This program adds a small percentage boost to your savings and Money Market rates. The boost depends on your tier — Bronze, Silver, Gold, or Platinum — which is determined by your total relationship balance with the bank (checking, savings, investments, and loans combined).

Even with the Preferred Rewards boost, Bank of America's rates typically remain below what you would earn at a dedicated high-yield savings bank. The boost might move you from 0.01% to 0.03% or 0.04%, which is still far behind accounts paying 4% or higher.

Why Bank of America's rates are lower than high-yield banks

Bank of America is a full-service bank with physical branches, ATMs, and customer service staff. Those costs are built into their business model. High-yield savings accounts are usually offered by online-only banks with no branches, which means lower overhead and the ability to pass savings rates directly to customers.

Bank of America's lower rates reflect the convenience of having a local branch and the ability to handle all your banking in one place. If that convenience matters to you, the trade-off might be worth it. If you prioritize earning the most interest on your savings, moving money to a high-yield account at another bank makes financial sense.

How to compare Bank of America against high-yield options

To decide whether to keep savings with Bank of America or move to a high-yield account elsewhere, calculate what your money would actually earn. Take your savings balance, multiply it by the APY as a decimal, and divide by 12 to see monthly earnings. A $25,000 balance at Bank of America's 0.01% earns about $2 per year. The same balance at 4.5% APY earns about $1,125 per year — a difference of over $1,100.

You do not have to choose between Bank of America and a high-yield account. Many people keep a checking account with Bank of America for everyday banking and bill payments, then move savings to a high-yield account at another bank. Your Bank of America account can stay open and active while your savings earn more elsewhere.

Moving money to a high-yield account without closing Bank of America

Opening a high-yield savings account at another bank takes about 10 minutes online. You will need your Social Security number, a government ID, and proof of address. Once the account is open, you can transfer money from your Bank of America account using the other bank's transfer tool or by setting up a transfer from Bank of America's website.

The transfer itself usually takes one to three business days. Your Bank of America account remains open and active — you are simply moving some of your savings to earn a better rate. This is a common strategy and does not affect your Bank of America relationship or any other accounts you hold there.

Frequently Asked Questions

Does Bank of America have any savings account that earns a competitive rate?

Bank of America's Money Market account earns more than their regular savings account, and the Preferred Rewards program adds a small boost if you may have access to. However, even with both, the rate remains well below what online banks offer. If earning the highest interest is your priority, a dedicated high-yield account elsewhere will serve you better.

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 transfer your savings there while keeping your Bank of America checking account open for everyday use. Many people do this because it gives them the convenience of Bank of America for checking and bill pay while earning a competitive rate on savings.

What happens to my FDIC insurance if I move savings to another bank?

Each bank's FDIC insurance is separate. Your Bank of America savings are insured up to $250,000, and your new high-yield account at another bank is also insured up to $250,000. Moving money between banks does not affect your insurance coverage — you simply have two separate insured accounts.

Will opening a high-yield account hurt my credit score?

Opening a savings account does not involve a credit check and does not affect your credit score. Banks may do a soft inquiry to verify your identity, but this does not show up on your credit report or impact your score. You can open a high-yield account without any credit consequences.

How often do Bank of America's savings rates change?

Bank of America adjusts rates based on Federal Reserve decisions and market conditions. Rates can change at any time, though major changes usually happen when the Fed raises or lowers its benchmark rate. Check your account statements or Bank of America's website to see your current rate.