Bank of America does not offer a dedicated high yield savings account
Bank of America's standard savings accounts pay rates well below the market rate for high yield savings. As of early 2024, Bank of America's regular savings account pays around 0.01% annual percentage yield (APY), while accounts marketed as high yield typically pay 4% to 5% APY at online banks and credit unions. Bank of America does offer a Money Market account that pays slightly more than savings, but it still falls short of what you would earn elsewhere.
If you want a high yield savings account, you will need to look outside Bank of America. Online banks like Marcus, Ally, and American Express Personal Savings, as well as credit unions, consistently offer rates 200 to 400 times higher than Bank of America's savings product. The difference matters: on $10,000, Bank of America pays roughly $1 per year, while a high yield account pays $400 to $500.
Key Takeaways
- Bank of America's savings account pays around 0.01% APY, which is far below high yield rates of 4% to 5% available elsewhere.
- Bank of America's Money Market account pays more than savings but still lags behind online banks and credit unions by a wide margin.
- You can move money between Bank of America and an external high yield account using ACH transfer, which typically takes one to three business days.
- Many people keep a checking account at Bank of America for convenience while holding savings at a high yield provider for better returns.
What Bank of America's savings products actually pay
Bank of America offers two main savings products: a regular savings account and a Money Market account. The regular savings account has tiered rates based on balance, but even the highest tier pays less than 0.05% APY. The Money Market account requires a higher minimum balance (usually $2,500) and pays slightly better, but still typically under 0.10% APY depending on your balance tier.
These rates change periodically as the Federal Reserve adjusts its benchmark rate, but Bank of America has historically kept its savings rates significantly lower than competitors. The gap between Bank of America and high yield providers is not a matter of a few basis points—it is a structural difference in how these institutions operate. Online banks and credit unions can offer higher rates because they have lower overhead costs and do not maintain physical branches.
How high yield savings accounts work at other banks
A high yield savings account is a deposit account that pays interest at a rate much closer to the Federal Reserve's current benchmark. When the Fed's rate is around 5%, a high yield account typically pays 4% to 5.25% APY. Your money remains insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, just as it would at Bank of America.
High yield accounts function exactly like regular savings accounts: you deposit money, earn interest monthly, and can withdraw funds. Most high yield providers are online-only, which means no branch visits but also no monthly fees. Transfers in and out happen through ACH, which takes one to three business days. Some providers limit the number of withdrawals per month, though this restriction has become less common.
Moving money between Bank of America and a high yield account
You can link a high yield savings account at another bank to your Bank of America checking account and transfer money between them using ACH transfer. To set this up, you will need your routing number and account number from the high yield bank. Bank of America's website allows you to add external accounts under "Transfer Funds" or "Manage External Accounts."
ACH transfers typically take one to three business days to complete. Some high yield banks offer faster transfers or even same-day ACH for an additional fee. Many people use this setup to keep their checking account at Bank of America (for ATM access and bill pay) while maintaining a high yield savings account elsewhere for emergency funds or short-term savings goals.
When Bank of America savings might make sense anyway
Bank of America's savings account makes sense only if you value the convenience of having everything in one place and do not mind the cost of that convenience. If you maintain a Bank of America checking account for direct deposit or bill pay, adding a savings account requires no new login or transfer setup. For very small balances under $1,000, the difference in annual interest is minimal—a few dollars either way.
Bank of America also offers promotional rates occasionally, usually for new customers opening a Money Market account. These promotions might pay 4% to 4.50% APY for the first few months, then drop to the standard rate. If you see such an offer and plan to move the money anyway after the promotional period ends, it can be worth using temporarily.
Comparing Bank of America to common high yield alternatives
| Provider | Account Type | Typical APY (early 2024) | Minimum Balance | FDIC Insured |
|---|---|---|---|---|
| Bank of America | Savings | 0.01% | $0 | Yes, up to $250,000 |
| Bank of America | Money Market | 0.08% | $2,500 | Yes, up to $250,000 |
| Marcus (Goldman Sachs) | High Yield Savings | 4.50% | $0 | Yes, up to $250,000 |
| Ally Bank | High Yield Savings | 4.35% | $0 | Yes, up to $250,000 |
| American Express | Personal Savings | 4.40% | $0 | Yes, up to $250,000 |
Rates change frequently and vary based on market conditions. The table above reflects typical rates from early 2024 but should not be treated as current pricing. Check each provider's website for the rate available on the day you open an account.
What to watch if you move money to a high yield account
When you open a high yield savings account elsewhere, make sure the bank is FDIC insured. All the major online banks are, but some smaller or newer fintech platforms may not be. FDIC insurance protects your deposit up to $250,000 if the bank fails. You can verify FDIC status on the FDIC's website by searching the bank's name.
Also check whether the high yield bank charges monthly maintenance fees, requires a minimum balance to earn the advertised rate, or limits the number of transfers per month. Most high yield providers charge no monthly fee and have no minimum, but terms vary. Read the account agreement before funding the account so you understand what you are signing up for.
Frequently Asked Questions
Can I keep my Bank of America checking account and open a high yield savings account somewhere else?
Yes. Many people do this. You link the two accounts via ACH transfer and move money between them as needed. Your checking account stays at Bank of America for convenience, and your savings earn a much higher rate elsewhere.
Will moving money to a high yield account affect my credit score?
No. Opening a savings account or transferring money between banks does not trigger a hard inquiry or affect your credit. Only credit applications (loans, credit cards) do that.
What happens to my high yield savings if the bank fails?
Your deposits are protected by FDIC insurance up to $250,000. If the bank fails, the FDIC steps in and ensures you get your money back. This protection applies to all FDIC-insured banks, whether they are online or have branches.
How often does the interest rate change on a high yield account?
Rates change based on Federal Reserve decisions and market competition. A bank might lower its rate when the Fed cuts rates, or raise it to compete for deposits. You will receive notice before a rate change takes effect, usually via email or your online account.
Is there a penalty for closing a high yield savings account?
Most high yield providers have no early closure penalty. You can withdraw your money and close the account whenever you want. Check the account terms to confirm, but this is standard across major online banks.