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. 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|
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.
|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%|
|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.
Customers can also qualify for Preferred Rewards, which provides interest-rate boosters:
|Preferred Rewards Tier||APY|
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 January 12, 2022.