Bank of America Savings Account Interest Rates: March 2024 (2024)

Vault’s Viewpoint on Bank of America

• The standard Bank of America APY is 0.01%.
• It’s possible to earn up to 0.04% APY on savings accounts, but the amount you need to have deposited with Bank of America to earn that rate is incredibly high.
• Alternative places to park your money with Bank of America, such as a certificate of deposit (CD), could earn a better yield.

Overview of Bank of America Savings Account

Bank of America offers one savings account: the Bank of America Advantage Savings account. The features of the savings account are as comprehensive as you would expect from the second largest bank in the U.S., but at 0.01% APY for standard accounts, your earnings on a savings account with Bank of America are basically nil.

All have a $100 minimum deposit and $8 monthly maintenance fee that can be waived if you meet one of the following circ*mstances:

• Are under the age of 25
• Maintain a daily balance of $500
• Have a Bank of America Advantage checking account linked
• Qualify for Gold, Platinum, Platinum honors, Diamond or Diamond Honors status with the Preferred Rewards program

There’s also a six-month grace period for monthly maintenance fees when you first open your account.

It is possible to earn slightly more from the savings account. The more you have deposited with the bank, the higher up in the ranks of the Preferred Rewards Program you’ll go, and the higher APY you’ll qualify for. But even then, you can’t earn more than 0.04% APY—and that’s with at least $100,000 deposited with the bank as a Platinum Honors member.

Bank of America interest rates aren’t known for being competitive with those from a high-yield savings account. If it simplifies your life, and you already bank with Bank of America, it couldn’t hurt to open a savings account or two. Just don’t expect to earn much interest from it.

Pros of a Bank of America Savings Account

Though the Bank of America Advantage Savings account doesn’t have a good yield, there are some other benefits potential customers may want to consider. These include:

• Monthly maintenance fee waived for students under 25
• Online education resources for personal finance topics
• Earn cash back on everyday purchases

Cons of a Bank of America Savings Account

There isn’t a compelling reason to keep your savings in an account at Bank of America, other than for ease of use. You may already be a customer and be satisfied with its services, but be aware that your money could be earning you more money in a high-yield savings account.

• Low APY
• High deposit requirements to earn more interest
• No Bank of America high-yield savings account

How Much Can You Earn With a Bank of America Savings Account?

After a year with $10,000 deposited in a Bank of America account, you might be able to buy a candy bar with the $1 you earned. It’s not a good rate at all, but it’s similar to what every mainstream bank is offering.

The yield increases the more money you have deposited with the bank, but it’s hard to imagine a reason for parking $10,000,000 in a bank to earn $4 for every $10,000 deposited.

How to Open a Savings Account with Bank of America

If you’re interested in opening a Bank of America savings account, you can do it all online. It’s also possible to apply at a branch location. The application is straightforward and takes less than 10 minutes. Here are the steps you’ll take.

Step 1: Collect Your Personal Information

You’ll need some basic information to apply for the savings account. This includes:

• Name, date, birthdate, Social Security number
• Email address
• Mailing address
• Co-applicant information

If you already bank with Bank of America, the information can be pre-filled for you.

Step 2: Apply Online

Fill out the application online. In addition to the personal information, you’ll specify if the account is joint or individual, what your employment status is and what industry you work in. You’ll also authorize the bank to pull your credit.

Step 3: Verify Your Identity

It’s possible Bank of America can verify your identity online. However, if there are issues, you may need to take two forms of ID with you to the nearest branch location. If you prefer to apply at a physical location anyway, you can schedule an appointment with Bank of America online.

Step 4: Set Up the Account

After your identity has been verified, you’ll be able to set up your online account with a username and password.

Step 5: Accept the Terms and Conditions

You can read the account disclosures before making a final decision about a savings account with Bank of America. In the account disclosures, you’ll see what yield the savings account has along with any fees and charges.

After this step, you can start saving money in the account.

Alternatives to a Savings Account with Bank of America

Savings accounts aren’t the only option for holding your money. You also have Bank of America individual retirement accounts (IRAs), CDs and checking accounts. Each has benefits and disadvantages compared to Bank of America savings accounts.

Bank of America IRAs

IRAs are tax-advantaged retirement accounts that can hold investments. They grow tax-free and can either reduce your taxable income when you contribute or allow you to enjoy tax-free distributions in retirement. It might be wise to talk with a financial advisor or tax professional about which type of IRA is right for you.

They’re much different from savings accounts in that they’re geared toward earning money. A savings account isn’t exposed to the market for earnings and growth; they’re simply given a fixed rate by the bank. IRAs can have a wide variety of investments to help your money grow so it’s ready for you in retirement.

Bank of America CDs

Bank of America CDs earn a much higher APY. However, this elevated earnings rate comes at the expense of tying up your money for months or years at a time.

Bank of America offers three types of CDs: a featured CD account, a fixed-term CD account and a flexible CD account. The rates range from .03% to 5.15%. Terms are for seven months to 10 years for deposits over $1,000.

Bank of America Checking Accounts

Bank of America offers three checking accounts: SafeBalance, Advantage Plus and Advantage Relationship. They each have monthly maintenance fees, but these can be waived if you meet certain requirements. For example, the SafeBalance monthly maintenance fee is waived if you maintain a $500 minimum daily balance.

The Advantage Relationship is the only checking account that earns interest. It ranges between 0.01% to 0.04% APY depending on your Preferred Rewards tier just like the savings account. All of the Bank of America checking accounts have a promotional offer of $200 for new customers who make qualifying deposits of $2,000 within 90 days of account opening.