Bank of America Interest Rates: How To Get the Best Rates

Bank of America
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If you’re looking to set aside funds for a rainy day, Bank of America offers several savings account options. However, due to Bank of America’s size, its savings accounts tend to offer high fees and relatively low interest rates compared to the national average. It’s important to note that Bank of America offers different interest rates depending on customer location, so its rates may vary. To get a better interest rate on your savings accounts, you should compare the different offerings from Bank of America — and try to avoid any fees that might negate your savings.

Bank of America Savings Account Rates

Bank of America offers three types of savings accounts: Advantage Savings, Minor Savings and Custodial (UTMA) Savings. The latter two are child savings accounts, but they function differently. The Minor Savings account is jointly owned by the child and the parent or guardian. With the Custodial (UTMA) Savings account, the parent or guardian is the custodian, and the minor does not have access to the funds before age 18. Here’s a look at the annual percentage yields and minimum opening deposit amounts for each of Bank of America’s savings accounts:

Account APY Minimum Opening Deposit
Bank of America Advantage Savings 0.01% $100
Minor Savings Account 0.01% $25
Custodial (UTMA) Savings Account 0.01% $100

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How Rates at Bank of America and Other Banks Compare

While Bank of America’s savings rates tend to be fairly low, so do the rates at other national banks. However, online banks commonly offer much higher rates than their brick-and-mortar counterparts.

To get an idea, take a look at this table that compares the interest rates for savings accounts and one-year CD accounts at both national and online banks:

Bank Savings Account APY 12-month CD Account APY
Bank of America 0.01% 0.03% for all balance tiers
Chase 0.01% 0.02% for balances under $10,000, then 0.05%
Wells Fargo 0.01% 0.01%-0.02%
Ally Bank 0.50% 0.55%
Vio Bank 0.53% 0.15%
Marcus by Goldman Sachs 0.50% 0.55%

The rates on savings accounts for Bank of America, Chase and Wells Fargo are identical at 0.01% APY, and they’re nowhere near the rates online banks like Ally and Vio offer at 0.50% APY or better. And while Bank of America dominates in the 12-month CD category among national banks, with a 0.03% APY, the rate is still considered low relative to the top interest rates offered by online banks.

How To Make the Most of Your Savings at Bank of America

Because its savings rate is 0.01% APY, it’s important to avoid Bank of America’s monthly fees, which can potentially cancel out any interest you may earn. The Minor Savings account does not have a monthly maintenance fee, but both the Advantage Savings and Custodial (UTMA) Savings accounts carry an $8 monthly maintenance fee. As long as you carry a $500 balance each month in either account, however, Bank of America will waive the fee.

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Customers can also qualify for Preferred Rewards, which provides interest-rate boosters:

Preferred Rewards Tier APY
Gold 0.02%
Platinum 0.03%
Platinum Honors 0.05%

The booster increases Bank of America’s standard rate by at least 5%, 10% or 20% as you enter each respective Preferred Rewards tier, which can help you make the most of your savings balance.

Alexandria Bova contributed to the reporting for this article.

This content is not provided by Bank of America. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Bank of America.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 10, 2021.

About the Author

Cynthia Measom is a personal finance writer and editor with over 12 years of collective experience. Her articles have been featured in MSN, Aol, Yahoo Finance, INSIDER, Houston Chronicle, The Seattle Times and The Network Journal. She attended the University of Texas at Austin and earned a Bachelor of Arts degree in English.

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