Bank of America Savings Account Rates for September 2024
Bank of America is the second largest U.S. bank according to the Federal Reserve. You get access to personalized customer service at any of its 4,000 branches nationwide, a large network of 16,000 ATMs, a highly rated mobile app, and a full suite of financial products including checking and savings accounts, credit cards, loans, and investment services.
Bank of America isn’t known for competitive annual percentage yields, or APYs, on its savings accounts. If maximizing your interest growth is a priority, check out CNET’s list of the best high-yield savings accounts . But if you value personalized, nationwide access or the ability to keep all of your finances under one roof, Bank of America might be right for you.
Comparison of Bank of America Savings Account Options
| Account name | APY | Minimum deposit to open the account | Monthly service costs* | Balance required |
| Benefit savings | 0.01% | $100 | $8 | $0 |
| Benefit Savings, Gold Tier | 0.02% | $100 | $0 | $20,000 to less than $50,000** |
| Benefit Savings, Platinum Level | 0.03% | $100 | $0 | $50,000 to less than $100,000** |
| Benefit Savings, Platinum Honors | 0.04% | $100 | $0 | $100,000 to less than $1 million** |
*Fees have been waived.
**Average daily balance over three months on Bank of America deposit accounts and/or Merrill investment accounts.
Please note: APYs vary by region and the Bank of America savings account may not be available in all areas. You must Check your zip code on the Bank of America website to view your options.
Bank of America Savings Account Options
Bank of America has just one savings account: Advantage Savings. The base APY is 0.01%, but if you qualify and enroll in the Preferred Rewards program, you can earn up to 0.04%.
The Preferred Rewards tiers include the Advantage Savings Gold Tier, Platinum Tier, and Platinum Honors Tier. The only difference is the APY you can earn.
Bank of America Advantage Savings Account
Advantage Savings is Bank of America’s standard savings account. You’ll earn 0.01% APY (well below the national average for savings accounts) and interest that is compounded monthly. You can open this account with an initial deposit of $100.
You will be charged a monthly maintenance fee of $8 unless you meet one of Bank of America’s requirements. mentioned criteriasuch as maintaining a minimum balance of $500 or linking to Bank of America Advantage Relationship Banking.
However, Bank of America does not charge fees for new accounts for the first six months.
Bank of America Advantage Savings Preferred Rewards
If you maintain a higher balance, you may qualify for a Preferred Rewards membership, which allows you to earn a higher APY (Annual Interest Rate) on the money in your Advantage Savings account.
To qualify for an account with a higher APY, you will need a checking account with Bank of America and a three-month combined daily average in one of your Bank of America deposit accounts (i.e. checking and savings accounts) and/or a Merrill investment account.
Here’s how much interest you can earn and the minimum amount you need for each of the top accounts:
- Gold: 0.02% APY, $20,000 to less than $50,000
- Platinum: 0.03% APY, $50,000 to less than $100,000
- Platinum Awards: 0.04% APY, $100,000 to less than $1 million
As a Preferred Rewards customer, you don’t have to pay the $8 monthly fee.
Enrolling in the higher tiers of Preferred Rewards isn’t automatic. Once you reach $20,000 in assets, Bank of America’s AI-powered financial assistant, Erica, will prompt you to enroll in the Preferred Rewards program to get the benefits. Once you enroll, you’ll automatically be moved up to the higher tiers as your assets reach additional thresholds, a Bank of America spokesperson said.
If you have a lot of assets stored in investment accounts with Bank of America and/or Merrill, Advantage Savings may be a good option for you. However, you will still earn a relatively low APY compared to the national average and competitors that offer APYs above 5%.
While other traditional banks like Chase and Wells Fargo also have monthly fees and similarly low annual interest rates, their standard savings accounts offer a number of advantages over Bank of America’s.
For example, both banks charge lower monthly fees ($5 instead of $8) and offer the option to waive the fee if you have just $300 in your savings account ($200 less than what Bank of America charges).
APY comparison
| Account name | APY | First annual income of $5,000 |
| Bank of America Advantage Savings Account | 0.01% | $0.50 |
| Chase Premier Savings Standard Rate | 0.01% | $0.50 |
| Chase Premier Relationship Rate | 0.02% | $1.00 |
| Wells Fargo | 0.01% | $0.50 |
| Newtek Bank | 5.25% | $268.91 |
| Synchrony | 4.50% | €229.70 |
Opening a basic savings account with Chase and Wells Fargo is also more accessible than Bank of America. Chase doesn’t require a minimum deposit for a savings account, and Wells Fargo requires just $25 for its basic savings account — four times less than what Bank of America requires.
Park your savings in a online bank can make sense if you want to earn more interest. Online banks can offer high APYs because they don’t have physical locations to manage, which reduces their overhead costs, which they then pass on to customers in the form of lower fees and higher interest rates.
However, there are also banks you can visit in person that offer high APYs and no account fees. One of these is Capital One’s 360 Performance Savings, which offers a robust APY of 4.35%.
Check out our selection of the best savings accounts for more banks offering higher savings rates.
Who is a Bank of America savings account suitable for?
Customers who prefer a bank with locations across the country will appreciate Bank of America’s extensive presence. Bank of America also offers a robust mobile banking service with state-of-the-art technology tools to manage your banking remotely.
The savings accounts do not offer competitive rates. Customers interested in maximizing their savings growth should consider other major banks that offer similar services but better rates.
How to Open a Savings Account with Bank of America
You can open a savings account with Bank of America by visiting one of the physical branches or by filling out an application online or through the mobile app. To open a savings account, follow these steps:
1Fill out an application.
2Verify your identity with a government-issued photo ID, such as your driver’s license.
3Provide your Citizen Service Number or your Individual Taxpayer Identification Number.
4. Deposit at least the required minimum amount of $100.
Other Savings Options at Bank of America
Bank of America offers three types of CDs: fixed term, featured, and flexible. The fixed term CDs range from 28 days to 10 years, and the featured CDs range from seven months to 37 months. The flexible CD account only offers a 12-month term.
All Bank of America CDs require a $1,000 deposit to get started and there are no annual or transaction fees. Rates vary depending on your balance and term. However, you can find more competitive rates on a wider range of terms for high-yield CD accounts at other banks.
Flexible CDs allow full withdrawal of the balance without penalty after the sixth day the account is open. Terms are limited to 12 months and the rate is 3.85% APY. After a flexible CD matures, it automatically renews to a 9-month term at 0.01% APY unless you request a change during the seven-day grace period.
Bank of America unveiled CD rates
| CD term | APY |
| 7 months | 4.35% |
| 10 months | 4.00% |
| 13 months | 3.25% |
| 25 months | 2.00% |
| 37 months | 0.05% |
Frequently Asked Questions
According to the Federal Deposit Insurance CompanyThe average savings account interest rate in the US is 0.46% as of September 20, 2024. You can find high-yield savings accounts with APYs of 5% or more on many online banksbut you should be comfortable with doing your banking without access to personal assistance.
Money market accounts, certificates of deposit And series I bonds are safe alternatives to savings accounts. MMAs offer check-writing privileges with the interest-earning benefits of a savings account, but generally require a higher initial deposit than savings accounts. CDs and Series I bonds require an initial lump sum investment and work best when you can leave the money there for a specific period of time.
You can make six penalty-free withdrawals per month from Advantage Savings. After six withdrawals, Bank of America will charge you $10. You can pay this additional withdrawal fee up to six times, for a total penalty of $60. You can waive this fee if you:
- Qualify as a student
- Are under 18 years of age
- Are enrolled in the Preferred Rewards program
- Maintain a minimum daily balance of at least $20,000
No. Major brick-and-mortar banks like Bank of America, Chase, and Wells Fargo typically charge a monthly fee for a savings account. If you can’t meet the requirement to have the monthly fee waived, consider a savings account with no monthly fees, such as Capital 1 360 Savings Account.
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