If you’re looking for a decent yield on your savings account, extend your search beyond Bank of America, which offers savings rates ranging from a measly 0.01% to 0.04%. Unless you’re interested in saving with a Bank of America Certificate of Deposit, you won’t earn much here.
Account details and annual percentage yields (APYs) are accurate as of June 7, 2024.
Are Bank of America savings account rates worth it?
Bank of America’s low rates aren’t competitive — especially compared to the best savings accounts on the market. In the current high-interest rate environment, it’s not uncommon to see savings accounts with rates surpassing 4.50% APY. The national average rate, while nowhere close to the best rates, is more than ten times higher than Bank of America’s highest rate.
All that to say, if you’re looking for the best savings account rates, Bank of America likely isn’t worth it. But if you prioritize savings accounts with other features and benefits — like in-person banking and a full suite of products and services — Bank of America might be worth your consideration.
Overview of Bank of America rates
Bank of America offers one primary personal savings account, the Bank of America Advantage Savings account. The account includes a “standard” tier with the lowest rates, plus additional balance tiers for Preferred Rewards members.
To become a Preferred Rewards member, you need an eligible Bank of America® personal checking account and an average three-month combined daily balance of at least $20,000 in qualifying Bank of America deposit accounts and/or Merrill® investment accounts. As your combined daily balance increases, you can qualify for additional tiers that may earn higher rates. Here’s an overview of the different Preferred Rewards balance tiers:
- Gold Tier: $20,000 to less than $50,000.
- Platinum Tier: $50,000 to less than $100,000.
- Platinum Honors Tier: $100,000 to less than $1 million.
- Diamond Tier: $1 million to less than $10 million.
- Diamond Honors Tier: $10 million and over.
Below is a breakdown of Bank of America Advantage Savings tiers and rates for customers in the New York-Tri-State area. Rates may vary by location.
| FILING STATUS | MODIFIED AGI | DEDUCTION |
|---|---|---|
Standard | Less than $2,500 | 0.01% |
Standard | $2,500 and over | 0.01% |
Gold* | Less than $2,500 | 0.02% |
Gold* | $2,500 and over | 0.02% |
Platinum* | Less than $2,500 | 0.03% |
Platinum* | $2,500 and over | 0.03% |
Platinum Honors* | Less than $2,500 | 0.04% |
Platinum Honors* | $2,500 and over | 0.04% |
Diamond* | Less than $2,500 | 0.04% |
Diamond* | $2,500 and over | 0.04% |
Diamond Honors* | Less than $2,500 | 0.04% |
Diamond Honors* | $2,500 and over | 0.04% |
*Must be a Preferred Rewards member to qualify.
How much can you earn with a Bank of America Savings Account?
Unfortunately, you won’t earn much with a Bank of America Savings account compared to the best high-yield savings accounts. Your earnings will vary based on your account balance and what rate you qualify for.
The following table shows how much interest you can earn over three years with a $10,000 balance in each tier of the Advantage Savings account:
| TIER | DEPOSIT AMOUNT | APY | INTEREST EARNED AFTER 5 YEARS | INTEREST EARNED AFTER 10 YEARS |
|---|---|---|---|---|
Standard | $10,000 | 0.01% | $5 | $10 |
Gold | $10,000 | 0.02% | $10 | $20 |
Platinum | $10,000 | 0.03% | $15 | $30 |
Platinum Honors and above | $10,000 | 0.04% | $20 | $40 |
Assuming you qualify for the highest rate this savings account offers — and the rate remains consistent over five years — a deposit of $10,000 will only earn you $20 in interest over five years.
How does Bank of America compare?
With rates ranging from 0.01% to 0.04% APY, Bank of America’s savings account doesn’t compare to the best savings accounts — or even average savings accounts — when it comes to interest earnings. However, most of the high-yield savings accounts are with online-only banks.
If having a bank where you can meet with someone is important to you, here are some of the savings accounts from other banks that have physical locations: Wells Fargo, PNC and U.S. Bank. See rates and fees for the Wells Fargo Platinum Savings, PNC Standard Savings Account and U.S. Bank Standard Savings Account below.
| ACCOUNT | APY | MINIMUM DEPOSIT | MONTHLY MAINTENANCE FEE |
|---|---|---|---|
Bank of America Advantage Savings | 0.01% | $100 | $8 (waivable) |
Wells Fargo Platinum Savings | 0.05% | $25 | $12 (waivable) |
PNC Standard Savings Account | 0.01% | $0 | $5 (waivable) |
U.S. Bank Standard Savings Account | 0.01% | $25 | $4 (waivable) |
Other savings options at Bank of America
Aside from the Advantage Savings account, Bank of America offers savings IRAs and certificates of deposit (CD).
Savings IRAs come with tax benefits to help you accelerate your retirement savings. Bank of America offers the following types of savings IRAs:
- Money Market IRAs.
- Featured CD IRAs.
- Fixed Term CD IRAs.
- Flexible CD IRAs.
Each of these accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 — but rates, terms, minimum deposits and other features vary by account.
And if you’re wondering how rates compare when it comes to Bank of America savings accounts vs. CDs, the Bank of America Certificates of Deposit come out on top. Bank of America offers three types of CDs:
- Bank of America Featured CDs.
- Bank of America Fixed Term certificates of deposit.
- Bank of America Flexible CD.
Amongst the three CD accounts offered, terms range between 28 days to 10 years and rates vary. All three require $1,000 to open.
About Bank of America
Headquartered in Charlotte, NC, Bank of America is one of the largest banks in the country — second only to Chase Bank. Branches or ATMs are available across 38 states and the District of Columbia, and the bank’s highly-rated mobile app lets you manage your accounts from almost anywhere.
As a full-service financial institution, Bank of America offers a lot more than just savings accounts. Checking accounts, credit cards, home loans, auto loans and investments are all available — plus small business banking and wealth management services.
Recently, the Consumer Financial Protection Bureau (CFPB) took action against the bank for double-dipping on customer fees and withholding credit card rewards. Still, the bank has an A- rating by the Better Business Bureau (BBB).
Frequently asked questions (FAQs)
Bank of America’s savings account rates are much lower than the current national average. For comparison, the Advantage Savings account’s highest rate is currently 0.04% APY on balances between $100,000 to $999,999.99 APY (for Preferred Rewards members in the Platinum Honors tier or higher) — while, according to the FDIC, the national average savings rate is 0.46% APY (as of September 16, 2024). And when you consider what some of the best online banks and credit unions are offering, Bank of America’s savings rates look even worse.
Yes, but you can waive the fee. The Bank of America Advantage Savings account charges a monthly maintenance fee of $8, but it’s waivable under the following circ*mstances:
- You maintain a minimum daily balance of $500.
- You link your account to a Bank of America Advantage Relationship Banking®, Bank of America Advantage® with Tiered Interest Checking, or Bank of America Advantage® Regular Checking Accounts.
- You’re a Bank of America Preferred Rewards Member.
- You’re under age 25 and qualify as a student.
Bank of America will also waive the monthly fee for a new account holder’s first six months.
It’s possible you can increase your Bank of America savings account rate with a higher balance, but not by much. The Advantage Savings account has several different balance tiers, above the Standard tier, for Preferred Rewards members and rates can vary slightly by tier. For example, the Standard tier currently earns 0.01% APY — while the Gold tier, the next highest, earns 0.02% APY. Currently, the highest tiers only earn 0.04% APY.
Rates may also be the same across multiple tiers, as is currently the case for the Platinum Honors tier and higher.
