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Bank of America is a well-known banking brand with over 4,000 branches and 16,000 ATMs. If you have one of the bank's many credit cards or use the bank as your primary checking account, you might also consider it for a savings account. But are Bank of America savings account interest rates competitive? And how do the bank's interest rates compare to the national average?
Bank of America interest rates vary by zip code. For this review, we used the New York zip code of 10001. Rates are current as of July 1, 2024.
Bank of America Savings Rates
Bank of America offers only one interest-bearing savings account: Bank of America Advantage Savings. This account requires a $100 opening deposit and a monthly maintenance fee of $8, which is easily waived if you maintain a minimum balance of $500. Bank of America Advantage Savings' interest rate is 0.01% per annum.
Bank of America and other banks
Like many large traditional banks, Bank of America's savings account interest rates are below the national average: Bank of America's Advantage Savings Account has an APY of 0.01%. In comparison, the FDIC reports the national average savings account interest rate as of June 17, 2024, as 0.45%.
Consumers can get even higher-than-average interest rates by looking at the best online savings accounts: if you transfer $5,000 from your Bank of America savings account to a high-yield savings account with a 3.00% annual interest rate, you can expect to have about $150 more in your pocket after one year.
Other options from Bank of America
You can earn a higher yield by keeping your savings with Bank of America and buying a certificate of deposit (CD) from the bank. With a CD, you sacrifice some liquidity in exchange for a higher interest rate. You can't take your money out before the CD expires without paying an early withdrawal fee, and you can't put more money into a CD once you buy it. But the interest rate you earn is significantly higher than a savings account rate.
Bank of America certificates of deposit require a minimum opening deposit of $1,000 or $10,000 (depending on the certificate) and interest rates of up to 4.00% APY.
Your interest rate will vary depending on the amount you deposit and the term you choose for the CD. To find Bank of America's CD rates, go to the bank's CD page and select “View available terms and rates” under “Compare CD options.”
Increase your interest rate with priority rewards
If you're looking to park your funds with Bank of America and keep your savings account liquid, see if you're eligible for higher interest rates through the bank's Preferred Rewards program, which rewards customers who carry large balances in their savings and investment accounts.
Preferred Rewards customers can enjoy a variety of benefits, including interest rate bonuses on checking accounts. The Gold tier is the entry-level tier with a three-month average daily balance of $20,000 in deposits and investments. Tiers continue up to the Diamond Honors tier for customers with more than $10 million in deposits. Here are the interest rates you can expect if you qualify for the Preferred Rewards program:
How to Find Current Bank of America Savings Account Interest Rates
Current Bank of America savings rates can be found on the Bank of America interest rate table. Rates vary by location, so enter your zip code when prompted and click “View PDF.” The PDF lists all savings rates and APYs for Bank of America's consumer checking accounts.
Is Bank of America a good choice for a savings account?
If getting a competitive interest rate on your savings account is a priority, Bank of America isn't a good choice for a savings account: the bank's interest rates are well below the national average, and you'll be much better off with high-yield savings accounts from other banks.
One reason to keep your checking account with Bank of America is simplicity: If you do all your other banking with Bank of America, its savings interest rate may not mean much to you, especially if you don't keep a large balance in your savings account.
But perhaps the best reason to hold a Bank of America savings account is to qualify for Preferred Rewards Platinum or Diamond status, especially if you frequently use the bank's rewards credit cards or take out a mortgage or car loan with the bank. If you keep $100,000 in the account, you'll qualify for Platinum Honors status and earn a 75% rewards bonus on many of the bank's credit cards.
If you take out a mortgage, auto loan, or home equity line of credit with BofA, you'll also receive interest rate discounts, and the added perks you get by earning Platinum Honors status in the Preferred Rewards program may outweigh the opportunity cost of getting a better interest rate elsewhere.
Find the best high-yield savings accounts for 2024
Conclusion
Bank of America's annual savings interest rate is much lower than the national average. Putting your money in a high-yield savings account or CD is one way to earn a higher interest rate on your savings. For those who qualify for the bank's Preferred Rewards program, which offers generous credit card rewards and interest deductions on mortgages, home equity lines, credit loans and car loans, it may make sense to keep a healthy balance in a savings account.