Savings account interest rates continue to rise after years of remaining dormant, making them a solid option for safely growing your money. Why are rates rising? The Federal Reserve is hiking interest rates to try to cool runaway inflation, which is indirectly driving up interest rates on financial accounts like credit cards, loans and mortgages, as well as savings accounts.
Some banks are now offering annual percentage yields just north of 4%, making it a more attractive time to park your money in a savings account. (APY is the compounding interest rate you earn on your savings.) The higher the APY, the more you’ll earn in interest over time. Though APYs have been low for the past few years, many banks are boosting their APYs. But other large banks haven’t moved an inch… yet.
Bank of America continues to offer relatively low APYs, even if you have tens of thousands of dollars in a savings account. However, if getting a higher interest rate is not as important as having nationwide access to physical branches or bringing all your finances under one roof, Bank of America might make sense for you.
Read on for more information about Bank of America’s savings account, what APY you can earn and how it compares to other banks.
Bank of America savings account options
Bank of America has just one savings account: Advantage Savings. The base APY is 0.01%, but if you’re eligible and enroll for the Preferred Rewards program, you can earn up to 0.04%.
The Preferred Rewards tiers are: Advantage Savings Gold Tier, Platinum Tier and Platinum Honors Tier. The only difference among them is the amount of APY you can earn.
Bank of America savings account options, compared
|Account name||APY||Minimum deposit to open the account||Monthly service fee*||Balance required|
|Advantage Savings, Gold Tier||0.02%||$100||$0||$20,000 to less than $50,000**|
|Advantage Savings, Platinum Tier||0.03%||$100||$0||$50,000 to less than $100,000**|
|Advantage Savings, Platinum Honors||0.04%||$100||$0||$100,000 to less than $1 million**|
*Fees are waivable.
**Three-month combined average daily balance in Bank of America deposit accounts and/or Merrill investment accounts.
Note: APYs vary by region, and Bank of America’s savings account may not be available everywhere. You’ll need to check your ZIP code on Bank of America’s website to see your options.
Bank of America Advantage Savings
Advantage Savings is Bank of America’s standard savings account. You earn 0.01% APY (well below the national average APY for savings accounts) and interest compounding monthly. You can open this account with an initial deposit of $100. You’ll be charged an $8 monthly maintenance fee, unless you meet one of Bank of America’s listed criteria, such as maintaining a minimum balance of $500 or linking to Bank of America Advantage Relationship Banking®.
For any new account opened, though, Bank of America will waive the fee for the first six months.
Preferred Rewards Bank of America Advantage Savings
If you maintain a higher balance, you may be eligible for Preferred Rewards membership, which can earn a higher APY on the money in your Advantage Savings account.
To get approved for a higher APY account, you’ll need a Bank of America checking account and a three-month combined daily average in any of your your Bank of America deposit accounts (i.e. checking and savings) and/or a Merrill investment account.
Here’s how much APY you can earn and money you’ll need for each of the upper-tier accounts:
- Gold: 0.02% APY; $20,000 to less than $50,0000
- Platinum: 0.03% APY; $50,000 to less than $100,000
- Platinum Honors: 0.04% APY; $100,000 to less than $1 million
As a Preferred Rewards client, you don’t have to pay the $8 monthly fee.
Enrolling in the Preferred Rewards higher tiers isn’t automatic. Once you reach $20,000 in assets, Erica, Bank of America’s AI-driven financial assistant, will nudge you to enroll in the Preferred Rewards program to get the benefits. Once you enroll, you’ll be automatically bumped into the higher tiers as your assets reach the additional thresholds, according to a Bank of America spokesperson.
If you’ve got a lot of assets stored at Bank of America and/or Merrill investment accounts, Advantage Savings might make sense for you -- but you’ll still be earning relatively low APY compared to the national average and competitors offering over 1% APY.
How Bank of America’s APYs compare with other banks
While other brick-and-mortar banks like Chase and Wells Fargo also have monthly fees and similarly low APYs, their standard savings accounts tout some benefits over Bank of America’s. For example, both have cheaper monthly fees -- $5 instead of $8 -- and the option to waive the fee with just $300 in your savings account -- $200 less than what Bank of America requires.
|Account name||APY||First year earnings on $5,000|
|Bank of America Advantage Savings||0.01%||$0.50|
|Chase Premier Savings||0.02%||$1.00|
*Varo’s savings account enables you to start earning 3.00% APY and then qualify to earn 5.00% APY.
Opening a standard savings account with Chase and Wells Fargo is also more accessible than Bank of America. Chase doesn’t require a minimum deposit for a savings account, and Wells Fargo requires just $25 for its base savings account -- four times less than what Bank of America requires.
Parking your savings in an online bank may make sense if you want to earn more in interest. Online banks can offer high APYs, because they don’t have physical locations to manage, reducing their overhead costs, which they then pass on to customers in the form of reduced fees and higher interest rates.
That noted, there are some banks you can visit in-person that offer high APYs and no account fees, including Capital One’s 360 Performance Savings, which offers a robust 3.40% APY.
For more banks offering higher savings account rates, check out our picks for the best savings accounts.
Who should open a Bank of America savings account?
Customers who prefer bank branches with a national presence to conduct business in person will appreciate the vast presence that Bank of America provides. Bank of America also offers a robust mobile banking service with state-of-the-art technology tools for managing your banking needs remotely. The savings accounts don’t offer competitive rates. Customers interested in maximizing their savings growth should consider other big banks that provide similar services but offer better rates.
How to open a Bank of America savings account
You can open a savings account at Bank of America by visiting one of its physical branches or completing an application online or through the mobile app. To open a savings account, use the following steps:
1. Complete an application.
2. Verify your identity with a government issued photo ID, such as your driver’s license.
3. Provide your Social Security number.
4. Deposit at least the required minimum of $100.
Bank of America certificates of deposit
As an alternative option to savings accounts, Bank of America offers two types of CDs: Fixed Term and Featured. The Fixed Term CD comes in one-month increments, ranging from one month to 10 years. It earns a small but steady 0.03% APY, across all terms, which is well below the national average. The current average one-year CD APY is 1.58% according to CNET’s sister site Bankrate.com. You can find much more competitive rates for high-yield CD accounts at other banks.
Bank of America’s Featured CDs are more promising, offering higher APYs than the fixed-term option. Featured CDs come in five terms -- seven-, 10, 13-, 25- and 37-month -- require a minimum deposit is $1,000 and have no annual or transaction fees.
Bank of America Featured CD rates
|CD term||Interest rate||APY|
More banking advice
- Chase Savings Account Rates
- Best Checking Accounts
- Best Savings Accounts
- Best High-Yield Savings Accounts
- Best CD Rates
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