What Bank of America Currently Pays on Savings
Bank of America's savings account interest rate varies by account type and changes regularly based on Federal Reserve decisions. As of now, their standard savings accounts earn rates well below 1%, while their high-yield savings products (where available) may offer slightly higher rates. The exact rate you receive depends on your account balance, your region, and which specific savings product you hold.
Bank of America does not publicly advertise a single fixed rate across all customers. Instead, rates are tiered by balance level, and the bank adjusts them periodically. To find your exact current rate, you need to log into your online banking account, call 1-800-432-1000, or visit a branch. The rate posted on their website is typically the lowest tier rate and may not reflect what you actually earn.
The bank also offers a Money Market Account, which sometimes carries a different rate structure than their standard savings account. Again, this rate is not fixed and changes without notice.
Key Takeaways
- Bank of America's savings rates are tiered by balance and change regularly, so you must check your account or call the bank to learn your specific rate.
- Standard savings accounts at Bank of America typically earn less than 0.5% annual percentage yield, which is lower than many online banks offer.
- The rate shown on their website is usually the minimum rate for the lowest balance tier, not the rate you will receive.
- Money Market Accounts at Bank of America may offer a different rate structure, but they also carry monthly maintenance fees unless you meet balance requirements.
How Bank of America Rates Compare to Other Banks
Bank of America's savings rates are typically lower than rates offered by online-only banks and credit unions. Online banks like Marcus, Ally, and American Express Personal Savings often pay 4% to 5% annual percentage yield on savings accounts, while Bank of America's standard savings account pays a fraction of that amount.
The gap exists because Bank of America operates physical branches nationwide, which costs money to maintain. Online banks have lower overhead and pass some of those savings to customers in the form of higher rates. If your primary goal is to earn interest on savings, moving funds to an online savings account will earn you significantly more money over time.
Credit unions sometimes offer competitive rates as well, particularly if you are a member of a larger institution. It is worth checking what your local credit union pays before deciding to keep money at Bank of America.
Why Bank of America Rates Stay Low
Bank of America keeps savings rates low because they do not need to compete aggressively for deposits. The bank has a large customer base, many of whom keep accounts there for convenience (branch access, existing checking accounts, payroll direct deposit) rather than for interest earnings. This means the bank can offer lower rates and still retain customers.
The bank's business model relies on lending money out at higher rates than it pays depositors. The wider the gap between what they pay you and what they charge borrowers, the more profit they make. Keeping deposit rates low widens that gap.
Fees That Reduce Your Effective Earnings
Bank of America charges a monthly maintenance fee on most savings accounts unless you meet certain balance requirements. The standard Savings Account carries a $4 monthly fee that is waived if you maintain a $500 minimum balance or set up a direct deposit of at least $250 per month. Over a year, that $4 monthly fee can erase a significant portion of the interest you earn.
The Money Market Account has a higher monthly fee—typically $12—unless you keep a $2,500 minimum balance. If you fall below that threshold, the fee applies and further reduces your net earnings. These fees do not appear as interest deductions; they simply post as charges to your account.
When comparing Bank of America to other banks, factor in these fees. An online bank paying 4.5% with no monthly fee will earn you far more than Bank of America paying 0.4% while charging you $4 per month.
How to Check Your Current Rate
Log into your Bank of America online banking account and navigate to your savings account details. The current annual percentage yield (APY) should display there. If you do not use online banking, call 1-800-432-1000 and ask a representative for your account's current rate. Rates can differ between customers, so the number you receive is specific to your account.
Bank of America does not send notifications when rates change. You should check your rate every few months, especially after the Federal Reserve announces rate changes. If the rate drops significantly and you have other options, moving your money to a higher-paying account may make financial sense.
Moving Money to a Higher-Rate Account
If you decide Bank of America's rate is too low, transferring money to another bank is straightforward. Most online banks allow you to link your Bank of America account and move funds electronically within one to three business days. You do not need to close your Bank of America account; you can simply move the savings portion elsewhere while keeping your checking account if you use it.
Before you move, confirm the new bank's rate is may provide for at least 30 days (rates can change after that). Also verify there are no fees for transfers or account setup. Some online banks offer promotional rates for new customers that expire after a few months, so read the terms carefully.
If you have a large balance, the difference in interest earned can be substantial. A $10,000 balance earning 0.4% at Bank of America generates $40 per year. The same $10,000 at 4.5% generates $450 per year—a difference of $410 annually, or about $34 per month.
When Bank of America Savings Still Makes Sense
Bank of America savings accounts are most useful if you value convenience over interest earnings. If you already bank there, use the branch network regularly, and want to keep your savings in the same place as your checking account, the low rate may be worth the trade-off. The account is simple to manage and you can access your money immediately.
Bank of America also offers overdraft protection, which links your savings account to your checking account and can prevent overdraft fees. If you use this feature regularly, staying with the bank may be practical even if the rate is lower.
For emergency funds that you need to access quickly and do not plan to keep long-term, the convenience of a Bank of America savings account may outweigh the interest difference. For money you plan to hold for years, however, the rate difference becomes significant enough to justify moving to another bank.
Frequently Asked Questions
Does Bank of America offer a high-yield savings account?
Bank of America does not offer a product specifically labeled "high-yield savings." Their Money Market Account is their highest-rate option, but it still pays significantly less than online banks' high-yield accounts and carries a $12 monthly fee. If you are looking for a true high-yield account, you will need to use an online bank.
Will my Bank of America savings rate go up if I deposit more money?
Bank of America uses tiered rates, meaning higher balances may earn slightly more interest. However, the difference between tiers is usually small—often less than 0.1%. You would need to maintain a very large balance to see a meaningful rate increase. The fee waiver (keeping $500 to avoid the $4 monthly charge) is a better reason to maintain a higher balance.
How often does Bank of America change its savings rates?
Bank of America can change rates at any time without notice. Historically, they adjust rates when the Federal Reserve changes its benchmark rate, but they may also adjust independently. Check your rate every few months to stay aware of changes.
Can I move my Bank of America savings to another bank without closing my checking account?
Yes. You can transfer your savings balance to another bank while keeping your Bank of America checking account open. Simply set up a transfer through the new bank's website or visit a Bank of America branch to request a wire transfer. Your checking account remains unaffected.
What happens to my interest if I withdraw money before the end of the month?
Bank of America calculates interest daily and deposits it monthly, so you earn interest on the balance you hold each day. If you withdraw money mid-month, you lose interest only on the amount withdrawn for the days you did not hold it. There is no penalty for early withdrawal.