Updated 10:39 am ET March 13, 2023
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Many Bank of America’s CD terms offer unimpressive rates, with an annual percentage yield (APY) as low as 0.03%. The bank’s best offerings, the Feature CDs, do offer better yields, but have fewer terms available.
Annual percentage yields (APYs) and account details are accurate as of March 1, 2023.
Overviews of Bank of America CDs
Bank of America offers two groups of certificates of deposit (CDs):
- Bank of America Fixed Term CDs have great customization options. The minimum deposit is $1,000, which is normal, but the term range is exceptional. Most CD terms range from six months to five years but these CDs let you pick terms of 28 days to ten years. No matter your term, your APY is a miniscule 0.03%.
- Bank of America Featured CDs require a similar opening deposit, but with higher yields and fewer available terms. Many banks offer CDs in standard term lengths, such as 6-month or 12-month. Bank of America’s CDs tend to tack on an extra month. For example, you’ll find a 13-month CD instead of a 12-month option. More importantly, the terms are skewed shorter, which doesn’t help those looking for long-term CDs.
Once you open the CD, the interest is compounded and added to your account on a monthly basis. Compounding interest is a powerful tool to make money using your money. You have the option to collect the interest at maturity or at intervals throughout the term. Early withdrawal penalties apply.
How much can you earn with Bank of America CDs
The point of a CD is to grow and protect your funds. Here’s what you would earn with a $10,000 investment when earnings are compounded monthly.
How Bank of America CDs compare
While some of Bank of America’s CD rates are above the national average, many are well below and all of them are lower than what top competitors offer. Its minimum deposit requirements while affordable, can be beaten. Both Capital One and Synchrony Bank don’t have CD minimum balance requirements.
Shop around before diving into a CD with any particular bank. As you consider your CD options, take the time to compare rates and terms across multiple financial institutions. You might be pleasantly surprised to find a better deal.
About Bank of America
In terms of assets, Bank of America is the second largest commercial bank in the United States and has roots that go back more than 240 years. The full-service bank has approximately 3,900 physical branch locations. But, if in-person banking isn’t your first choice, you can take advantage of its strong online banking platform and highly-rated mobile app, which has at least 4.6 stars out of five on both Apple and Google’s app store.
Frequently asked questions (FAQs)
You can see CD rates directly on bank websites. But it’s often easier to shop around for CD rates through a site that compiles up-to-date rates. With the information in one place, you can more easily find a CD that suits your needs—whether you’re after the absolute best return on your savings or certain term lengths. Here’s how to start investing.
Most CDs compound interest on a daily or monthly basis and will credit the interest earned to your account each month. With Bank of America’s Featured CDs, you’ll see your interest compounded and credited on a monthly basis.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
