Bank of America Savings Account Interest Rates: October 2024

Bank of America savings account interest rates, at a maximum of 0.04% APY for the highest tier, are an all-around disappointment. In today’s rising interest rate environment, where many banks offer interest rate increases just about every other week, Bank of America is holding onto the absolute bare minimum rate possible for the average customer. In addition, BofA also charges a monthly fee unless you’re diligent about qualifying for a waiver each month.

You can boost your rate if you maintain many thousands of dollars on deposit, but you’d still lag behind virtually any high-yield savings account.

Bank of America Savings Account Rates
Account	Required Opening Deposit	APY Range	Monthly Fee
Standard: Bank of America Advantage Savings	$100	0.01%	$8
Gold Tier: Bank of America Advantage Savings	$100	0.02%	$0
Platinum Tier: Bank of America Advantage Savings	$100	0.03%	$0
Platinum Honors: Bank of America Advantage Savings	$100	0.04%	$0

Compare Bank of America Savings Account Rates

Unless you have a compelling reason to stick with Bank of America for your savings journey, we recommend choosing another bank. You could potentially earn far more in interest with just about any other bank, especially if you’re comfortable choosing an online-only option.

Bank of America Savings Accounts: Key Features

Bank of America Advantage Savings Key Features
APY Range	0.01%–0.04%
Minimum Balance to Earn Highest APY	$100,000
Minimum Deposit	$100
Withdrawal Limit	6 per month
Monthly Service Fee	$8 (waiver available)

Some banks offer several types of savings accounts for people in different situations, but not Bank of America: It only offers one option, the Bank of America Advantage Savings account. Instead, it modifies this single bank account to waive fees or offer higher rates depending on your circumstances.

The different savings account tiers (Gold, Platinum, Platinum Honors) refer to the levels of Bank of America’s Preferred Rewards program; the more money you hold in eligible Bank of America and Merrill Lynch accounts, the higher your tier. Gold requires at least $20,000; Platinum requires $50,000; and Platinum Honors requires $100,000.

The base savings account charges an $8 monthly fee, although it’s waived for the first six months after you open the account. After that, you can qualify for a monthly fee waiver in a few different ways:

If you’re a minor or a student under the age of 25
If you keep at least $500 in your savings account
If you’re a member of the Bank of America Preferred Rewards program
If you link certain Bank of America checking accounts to this savings account (each of which carries its own set of fees and waivers)

Keep in mind that each of these options is either a limited-duration event, or will require active monitoring on your part each month to ensure you’re not charged a fee. You’ll also be charged a $10 fee if you make more than six withdrawals each month, regardless of the method, and a $2.50 ATM fee for using non-Bank of America ATMs (plus any third-party ATM fees charged by the machine’s operator).

In return for all of these fees, you’ll earn just about the lowest rate that any bank in the country is offering right now. Any interest you are able to earn will be compounded monthly and credited to your account with each statement cycle.

Pros and Cons of Bank of America Savings Accounts

Pros

Large branch and ATM network
Minors, eligible students, and others can qualify for monthly service fee waivers
Automatic transfers between deposit accounts

Cons

APYs significantly lower than national average
$8 monthly service fee
$100 opening deposit

Pros Explained

Large branch and ATM network: Bank of America is the second-largest bank in the United States. Fans of in-person banking enjoy access to nearly 3,900 branches in 38 states. And because the bank has around 15,000 ATMs, it’s easy to withdraw cash from your savings account without having to pay a $2.50 fee for using an out-of-network ATM.
Minors, eligible students, and others can qualify for monthly service fee waivers: No one likes paying monthly service fees to their bank. And while Bank of America does charge an $8 monthly service fee for its Advantage Savings account, eligible students, minors, and certain other customers may qualify for a waiver. And like other banks, you can also qualify for a waiver by keeping a certain amount of money in the account ($500, in this case).
Automatic transfers between deposit accounts: Customers can schedule automatic, recurring transfers between eligible deposit accounts to make it easier to reach their financial goals.

Cons Explained

APYs significantly lower than national average: The interest rates that Bank of America offers its customers are some of the lowest of any bank in the country. The national average savings account rate isn’t great, and BofA is usually even lower than that. Compare that to the best high-yield savings accounts, where you can earn many times more.
$8 monthly service fee: Unless you qualify for a waiver, you’ll have to pay an $8 monthly service fee to maintain your savings account with Bank of America.
$100 opening deposit: Although the $100 opening deposit requirement isn’t a huge figure, it could still be an obstacle to some individuals—especially younger savers.

How to Open a Bank of America Savings Account

Follow these steps to open a new Bank of America Savings account:

Open online: Although you can open a new account through a local branch, you can easily open a Bank of America savings account online. Visit Bank of America's website and select "Open Now" to start an application. According to the bank, the process takes about 10 minutes.
Enter your personal information: Bank of America’s application asks for your legal name, date of birth, address, phone number, email address, citizenship status, and employment information.
Consent to a credit check: Bank of America will ask you to consent to a credit check or other banking information checks to verify your details.
Choose how to fund the account: You must deposit at least $100 to open an account. Enter your banking details from an existing account to transfer funds to the new account.
Wait for a response: Bank of America will review your banking application. If you're approved, you'll receive a follow-up email.

Who Are Bank of America’s Savings Accounts Best For?

If you're an existing Bank of America customer looking to stash a relatively small amount for short-term emergencies, a BofA savings account could be convenient. And if you have a qualifying checking account or maintain a $500 balance, Bank of America will waive the monthly fee.

However, Bank of America's APYs are significantly lower than the national average for savings accounts. For larger sums or for those who don't have a Bank of America checking account, a high-yield savings account from another bank or credit union likely makes more sense.

Other Bank of America Savings Options

In addition to savings accounts and certificates of deposit, Bank of America offers a full suite of other financial products as well, making it a one-stop shop. The general pattern among all of these accounts is that unless you qualify for a Preferred Rewards tier, you’ll earn interest rates so low you’ll hardly see anything accrue and you’ll be constantly working to avoid fees as well.

If you keep at least $20,000 deposited with Bank of America, you’ll be able to qualify for the lowest-level Gold Tier in its Preferred Rewards program. If you really want to bank with Bank of America, we recommend aiming for this level at a minimum since this will, at least, waive your monthly fees.

Higher balances (up to $1,000,000 or more) come with more benefits, but remember you’ll want to avoid keeping more than $250,000 with any one bank in order to make sure your money is fully protected by FDIC insurance.

About Bank of America

Bank of America is one of the largest financial institutions in the world. In the U.S., it's the second-largest commercial bank based on assets; only J.P. Morgan Chase is larger.

Bank of America serves over 69 million customers in the U.S., and it operates approximately 3,800 branches and 15,000 ATMs. It was initially launched in 1904. Today, it's based in Charlotte, North Carolina.

Like many other financial institutions, Bank of America has been the subject of controversy and regulatory action. In 2023, the Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $100 million to affected consumers for improperly charging fees.

Alternatives to Bank of America Savings Accounts

Bank of America has a wide network of branches and ATMs that could be appealing to some. However, its savings accounts offer low rates and they aren’t the best option to build your savings. Below are four alternatives to Bank of America savings accounts you may want to consider.

High-yield savings accounts: The best high-yield savings accounts typically feature APYs that are higher than the national average from banks that offer FDIC insurance to keep your money safe.
Certificates of deposit (CDs): If you’re comfortable keeping your cash in savings for a set period of time, a certificate of deposit might be worth considering. In return, the best CD rates often feature higher returns than savings accounts or other deposit accounts.
Money market accounts (MMAs): If you’re interested in a savings account with the option to write checks, a money market account might be a good fit for you. The best money market accounts often come with competitive interest rates, FDIC insurance, and other great benefits for savers.
Savings account bonuses: Banks and credit unions compete with one another for business. In an effort to attract new customers, some financial institutions offer savings account bonuses that you might benefit from if you’re in the market for a new account.

In the News

The Fed cut rates for the first time since 2020, reducing them by 50 basis points to a range of 4.75%–5.00% at its Sept. 18, 2024, meeting. The federal funds rate had been at a two-decade high after 11 increases from March 2022 through July 2023 in an effort to bring down inflation. Further cuts are expected, which means savings rates will decline after reaching heights not seen in more than 20 years.

Bank of America vs. American Express vs. Chase

Before opening a new bank account, it's a good idea to shop around to compare the fees and rates offered by multiple banks and credit unions. Savings account deposit requirements, annual percentage yields (APYs), and fees vary significantly by institution.

Here’s how Bank of America stacks up to two other major institutions, American Express and Chase.

	Bank of America	American Express	Chase
Minimum Deposit	$100	$0	$0
Monthly Fee	$8 (may be waived if you meet balance or deposit requirements)	$0	$0 to $25 per month (may be waived if you meet balance or deposit requirements)
APY	0.01% to 0.04% (depending on relationship tier)	4.25%	0.01%–0.02% (depending on relationship tier)

Bank of America vs. American Express

If your focus is on earning more interest without paying monthly fees (or worrying about meeting requirements to waive those fees), America Express could be a useful option. Its High Yield Savings Account has no minimum opening deposit requirement, and unlike Bank of America, it doesn't charge monthly maintenance fees. Plus, its savings account pays a much higher-than-average APY, so it's a good choice for those looking to make their money grow.

Bank of America vs. Chase

Chase is the only bank larger than Bank of America (by assets), and it has multiple savings account options. While Bank of America requires at least $100 to open an account, Chase doesn't have a minimum deposit requirement. However, it does charge monthly fees for its savings accounts—as high as $25, though fees can be waived by meeting certain requirements. The accounts offer low APYs, however.

Frequently Asked Questions (FAQs)

Does Bank of America Have a High-Yield Savings Account?

No, Bank of America does not offer a high-yield savings account. If you keep enough money on deposit with Bank of America ($20,000 or more), you may qualify for a higher-level interest rate tier, but even then, the rates are extremely low. Check out the best high-yield savings accounts to see the top rates available today.

How Often Can You Withdraw Money From a Bank of America Savings Account?

You can make up to six withdrawals per month from a Bank of America Savings account. This limit applies to all withdrawal methods—in person at a branch location, online, via ATM, etc. If you go above that, Bank of America will charge you a $10 excessive withdrawal fee for each instance, up to six times per month (a potential total of $60 in penalty fees each month).

How Can I Open a Saving Account With Bank of America?

You can open a savings account online directly on the Bank of America website. If you live near a branch location, you can also apply for an account in person. You’ll need to provide a few bits of information on your application, including your Social Security number, contact information, and the routing and account number for your current bank account.

How Much Do I Need to Open a Bank of America Savings Account?

You need at least $100 for a minimum deposit to open a new Bank of America savings account.

Are Bank of America Savings Accounts FDIC-Insured?

Yes, Bank of America savings accounts are FDIC-insured up to the standard $250,000. The bank does offer extra bonuses and perks if you deposit more money beyond this level, but because your money isn’t protected in these cases, it’s not recommended practice to do this.

Does Bank of America Have a Free Savings Account?

No, Bank of America does not have a free savings account available for the general public. Certain people may qualify for a waiver based on their demographic characteristics, notably minors under age 18 and students under age 25. You can also qualify for a monthly fee waiver if you meet certain requirements each month, such as becoming a Preferred Rewards member; but if not, you’ll be charged $8 per month.

What Is the Fee for a Bank of America Savings Account?

Bank of America’s Advantage Savings account has an $8 monthly fee. However, you can qualify for a fee waiver if you meet one of the following requirements:

You're under the age of 25
Maintain a minimum daily balance of $500 or more
Link your new account to a Bank of America Advantage Checking account
Enroll in the Preferred Rewards program and qualify for the gold, platinum, platinum honors, diamond, or diamond honors tier

Why Is Bank of America Savings Interest So Low?

Bank of America has a large network of in-person branches. Unlike online banks that have lower overhead, Bank of America has a lot of expenses to cover. The high cost of running an organization so large likely impacts the interest rates that Bank of America is able and willing to offer its customers.

Is Bank of America Good for Savings?

Bank of America has lower-than-average rates on its savings accounts, so your money won't accrue very much in interest. If your goal is to grow your money as quickly as possible, a high-yield savings account is likely a better choice.