Bank of America, Member FDIC, is one of the largest banks in the U.S. and can be a one-stop solution to all your financial needs. If you wish to deposit your money into a savings account, Bank of America might be a good choice for you.
Bank of America Savings Account Interest Rates
Like most large banks, Bank of America’s rates are on the lower side. There are two kinds of savings account options:
- Advantage Savings
- Preferred Rewards Advantage Savings
Bank of America Advantage Savings
This is the standard savings account from Bank of America, and it provides Annual Percentage Yield to its users. You need a minimum of $100 to open the account and will be allowed to make a total of six transfers and withdrawals each month without any fees, anything over that will incur a $10 fee.
There is a monthly fee of $8 but it can be waived in any of the following ways:
- Maintain a daily balance of at least $500.
- Link your savings account to your Advantage Relationship account.
- Become a Preferred Rewards member.
- If you are a student under the age of 25.
- If you are below the age of 18.
Preferred Rewards Advantage Savings
You can qualify for the Preferred Rewards membership if you have an eligible personal checking account and a three-month combined average daily balance of $20,000 or more in qualifying accounts. There are no monthly fees and users can get access to interest rate boosters depending on their balance.
| Tier | 3-Month Combined Average Balance | APY |
|---|---|---|
| Gold | $20,000 to $50,000 | |
| Platinum | $50,000 to $100,000 | |
| Platinum Honors | $100,000 to $1 million |
Are Bank of America Savings Account Interest Rates Competitive?
When it comes to interest rates on savings accounts, Bank of America falls a bit behind. If you wish to grow your money through savings accounts, there are other options that you can consider.
Bank of America vs. Wells Fargo
Wells Fargo’s interest rates for savings accounts go up to with their Platinum Savings account, which is higher than Bank of America offers. Users can open an account with $25 and the monthly fee is only $12 which can be avoided by maintaining a minimum balance of $3,500.
Bank of America vs. Chase
Chase Premier Savings offers an APY of which is more than the basic APY offered by Bank of America. Chase also has lower minimum balance requirements and a monthly fee of $25.
Bank of America vs. Discover Bank
Discover Bank Online Savings account has a significantly higher interest rate than that of Bank of America. It provides an APY of and there is no stipulation for having a minimum balance.
Benefits of Bank of America Savings Accounts
Despite the interest rates being on the lower side, Bank of America savings accounts have a number of advantages. The Advantage Savings accounts have added security and smart money management tools. Moreover, all Bank of America accounts have excellent fraud protection and debit card control mechanisms that help users with convenient banking.
Final Take
Bank of America savings account interest rates are not competitive. If earning interest on savings is your main priority, then you will be better off with a different online bank. However, Bank of America has thousands of ATMs and Financial Centers across the country and offers a wide range of banking services that might fit your needs.
FAQ
Here are the answers to some questions commonly asked about Bank of America.- What is the interest rate on Bank of America's savings accounts?
- Bank of America savings account rates start at 0.01% APY and can go up to 0.04% APY with the Preferred Rewards program.
- Which bank gives 7.00% interest on savings accounts?
- Landmark Credit Union can provide a high-interest rate on savings that falls in this range. However, there are certain conditions that account holders must fulfill to be eligible for this rate.
- Are Bank of America savings accounts good?
- Bank of America offers basic savings accounts with interest rates that are not as high as other online banks. If you want to earn high interest on your savings, Bank of America might not be the best option.
- Does Bank of America offer high-yield savings accounts?
- No, Bank of America does not offer a high-yield savings account option.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 6, 2023.
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The information related to Chase Premier Savings was collected by GOBankingRates and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. GOBankingRates does not receive commission for this product.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.