Bank Of America Savings Account Interest Rates – Forbes Advisor

Bank of America is a well-known banking brand with over 4,000 branches and 16,00 ATMs. If you hold one of the bank’s many credit cards or use the bank for your primary checking account, you might also consider it for a savings account. But are Bank of America’s savings account interest rates competitive? And how do the bank’s rates compare against national averages?

Bank of America’s interest rates vary by ZIP code. For this review, we used the New York ZIP code 10001. Rates are accurate as of June 2, 2023.

Bank of America Savings Interest Rates

Bank of America offers just one interest-bearing savings account: the Bank of America Advantage Savings. This account requires a $100 opening deposit and an $8 monthly maintenance fee, which is easily waivable by maintaining a minimum balance of $500. The Bank of America Advantage Savings pays interest at a rate of 0.01% APY.

Bank of America Vs. Other Banks

Like many large, traditional banks, Bank of America’s savings account interest rate lags behind the national average. The APY on the Bank of America Advantage Savings account is 0.01%. In contrast, the FDIC reports the national average savings account interest rate as 0.40% as of May 15, 2023.

Consumers can get an interest rate even higher than that average by considering the best online savings accounts. If you move $5,000 from a Bank of America savings account to a high-yield savings account that earns a 3.00% APY, you can expect to have almost $150 more in your pocket after one year.

Other Options From Bank of America

You can keep your savings with Bank of America and earn a greater return by opting to purchase a certificate of deposit, or CD, from the bank. With a CD, you sacrifice a bit of liquidity for more interest growth. You won’t be able to take your money out before your CD term ends without paying an early withdrawal penalty, and you won’t be able to add more money to the CD once purchased. But the interest rate you earn will be significantly higher than that on a savings account.

Bank of America Standard Term Certificates of Deposit require a minimum opening deposit of $1,000 or $10,000—depending on the CD—and interest rates up to 4.50% APY.

Interest rates vary based on the amount of money you deposit and the term you select for the CD. To explore Bank of America’s CD interest rates, go to the bank’s CD page and select “See available terms and rates” under “Compare CD options.”

Increase Your Interest Rate With Preferred Rewards

If you want to keep your money with Bank of America and retain the liquidity of a savings account, check if you qualify for an interest rate boost through the bank’s Preferred Rewards program. This program rewards customers for holding large balances in deposit and investment accounts.

Preferred Rewards customers qualify for a variety of perks, including interest rate bonuses on checking accounts. The Gold tier, which requires an average daily balance of $20,000 in deposits and investments over three months, is the entry-level tier. Tiers go all the way up to Diamond Honors tier for customers with greater than $10 million on deposit. Here are the rates you can expect if you qualify for the Preferred Rewards program.

How To Find the Current Bank of America Savings Account Interest Rate

You can find current Bank of America savings interest rates on Bank of America’s rate sheet. The rates are region dependent, so enter your ZIP code if prompted and click on “View PDF.” The PDF contains all of Bank of America’s deposit interest rates and APYs for consumer checking accounts.

Is Bank of America a Good Choice for a Savings Account?

If your priority is earning a competitive interest rate on your savings account, then Bank of America is not a good choice for a savings account. The bank’s interest rates are well below the national average, and you can do much better with a high-yield savings account at another bank.

One good reason to maintain a Bank of America checking account is for simplicity. If you do all of your other banking with Bank of America, then its savings rates might not matter much to you—especially if you don’t normally keep a large balance in your savings account.

However, likely the best reason to keep a Bank of America savings account is to qualify for Preferred Rewards Platinum or Diamond status, particularly if you’re a heavy user of one of the bank’s rewards credit cards or have a home or auto loan with the bank. Keeping $100,000 on deposit will qualify you for Platinum Honors status and get you a 75% rewards bonus on many of the bank’s credit cards.

If you have a mortgage, auto loan or home equity line of credit with BofA, you can also qualify for an interest rate discount. The additional perks you get from having Platinum Honors status in the Preferred Rewards program might outweigh the opportunity cost of earning more interest elsewhere.

Bottom Line

Bank of America’s savings APY lags far behind the national average. Putting your money into a high-yield savings account or CD is one way to get a better interest rate on your savings. For those who can take advantage of the bank’s Preferred Rewards program, keeping a substantial balance in a savings account might make sense, given the greater credit card rewards and interest rate deductions on mortgages, home equity lines and credit or auto loans.