Bank of America is a multinational investment bank that offers a wide range of financial products and services. Its customer base has access to credit cards, home and auto loans, investment accounts, checking accounts, savings accounts, certificates of deposit and individual retirement accounts from one of the largest banks in the country.
- How To Get the Best Bank of America Interest Rates
- How Do Bank of America’s Rates Compare To Other Banks?
- Bank of America Checking Account Interest Rates
- Bank of America Savings Account Interest Rates
- Bank of America Mortgage Interest Rates
- Bank of America CD Interest Rates
Interest rates can play a considerable role in your finances, but it’s sometimes difficult to understand how they work. Consumers often earn only a small amount of interest from their savings accounts while paying different rates for their auto loans and mortgages. The Federal Reserve sets a federal funds rate, which impacts the interest rates that banks charge for certain loan products. If you’re a borrower, you’ll want interest rates to be low. But savings accounts work a little differently — you’re giving money to the bank to let other consumers borrow. As an incentive to put money into the account, you’ll earn interest on your savings.
Due to Bank of America’s size, its checking and savings accounts tend to offer high fees and very low interest rates. Here’s an overview of Bank of America’s account types:
|Bank of America Accounts|
|Bank of America Advantage Savings||Savings Account|
|Bank of America Child Savings||Savings Account|
|Bank of America Advantage Banking||Checking Account|
|12-Month CD/IRA||Certificate of Deposit/Individual Retirement Account|
|13-Month CD/IRA||Certificate of Deposit/Individual Retirement Account|
|25-Month CD/IRA||Certificate of Deposit/Individual Retirement Account|
|37-Month CD/IRA||Certificate of Deposit/Individual Retirement Account|
|28- to 179-Day Fixed-Term CD||Certificate of Deposit|
|6- to 11-Month Fixed-Term CD||Certificate of Deposit|
|12- to 17-Month Fixed-Term CD||Certificate of Deposit|
|18- to 23-Month Fixed-Term CD||Certificate of Deposit|
|24- to 35-Month Fixed-Term CD||Certificate of Deposit|
|36- to 47-Month Fixed-Term CD||Certificate of Deposit|
|48- to 59-Month Fixed-Term CD||Certificate of Deposit|
|60- to 119-Month Fixed-Term CD||Certificate of Deposit|
|120-Month Fixed-Term CD||Certificate of Deposit|
|18- to 23-Month IRA/CESA||Individual Retirement Account/Coverdell Education Savings Account|
|30-Year Fixed Mortgage||Fixed-Rate Mortgage|
|15-Year Fixed Mortgage||Fixed-Rate Mortgage|
|5/1 ARM Variable||Adjustable-Rate Mortgage|
It’s important to note that Bank of America offers different interest rates depending on customer location, so its rates will not be the same for everyone. To secure a lower interest rate for your loans, you’ll need to have an established credit history and the best possible credit score for your situation. To get a better interest rate on your savings accounts, you should compare the different offerings from Bank of America — and make sure you can avoid any fees that might negate your savings.
While Bank of America’s interest rates tend to be fairly low, they actually fare well against other large national banks. Wells Fargo, Chase and U.S. Bank do not offer any interest on checking accounts, whereas PNC Bank offers a low annual percentage yield of 0.01%.
This table compares the interest rates for checking accounts, savings accounts and one-year CD accounts from each national bank:
|How Do Bank of America’s Rates Compare?|
|Bank||Checking Account APY||Savings Account APY||12-month CD Account APY|
|Bank of America||0.00%||0.03%||0.05%|
Bank of America dominates in the savings account category with a 0.03% APY, but it’s still considered fairly low relative to the top interest rates. Bank of America also offers one of the lowest APYs for a 12-month CD compared to other national banks.
Related: Best National Banks of 2020
Bank of America offers a checking account called Bank of America Advantage Banking. Though it is labeled as one account, consumers can choose from three separate settings: Advantage SafeBalance, Advantage Plus and Advantage Relationship.
Advantage SafeBalance is marketed as a checkless banking account that helps you spend only the money you have available. There is a $4.95 monthly fee, but you can waive this if you are an eligible student or enrolled in Preferred Rewards.
Advantage Plus provides more opportunities to waive the monthly fee, which is $12. For Advantage Plus, you will need to have a monthly direct deposit of at least $250 or maintain a minimum balance of $1,500.
Advantage Relationship wants to reward you for larger balances by paying interest and waiving the $25 monthly fee. You must keep a combined minimum balance of $10,000 in all linked accounts or be enrolled in Preferred Rewards.
There are two types of savings accounts at Bank of America: Advantage Savings and Child Savings. The Child Savings account is fairly self-explanatory, allowing parents to save now for their child’s future. Both of these savings accounts have the same interest rate, at 0.03% APY.
Customers can also qualify for Preferred Rewards, which provides interest-rate boosters:
|Preferred Rewards Tier With Interest-Rate Booster|
The booster increases Bank of America’s standard 0.03% rate by at least 5%, 10% or 20% as you enter each respective Preferred Rewards tier.
Bank of America Review: Online and In-Person Convenience
Bank of America offers three mortgage types, which include a 15-year fixed, a 30-year fixed and a 5/1 ARM variable. The interest rates for these mortgages are based on the assumption that the borrower has excellent credit, which is a score of 740 or higher, and is looking at a $250,000 purchase price with a $50,000 down payment:
|Bank of America Mortgage Interest Rates|
|Mortgage Type||Rate||Annual Percentage Rate|
|5/1 ARM variable||2.625%||3.796%|
Note that the interest rate for Bank of America’s 5/1 ARM is subject to increase after five years.
Read More: 15 Mortgage Questions To Ask Your Lender
Bank of America offers a Featured CD and a Standard Term CD. The biggest difference between these two accounts is the minimum opening deposit. You can open a Standard Term CD with just $1,000, but you will need $10,000 to open a Featured CD. The term lengths vary greatly, from 13 to 37 months for the Featured CD and 28 days to 10 years for the Standard Term CD.
The APY you will get also varies based on the balance and term length of your account. It’s important to note that no additional deposits are allowed until the CD matures, and there is a considerable penalty for early withdrawal from these accounts.
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Disclaimer: 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. All other information on accounts is accurate as of Jan. 31, 2020.