Yes, Bank of America savings accounts earn interest, but the rate depends on the account type and changes regularly
Bank of America offers interest on most savings accounts, but the amount you earn is small compared to what online banks pay. A standard Bank of America savings account currently earns less than 0.01% annual percentage yield (APY) on balances under $100,000. The Money Market Account pays slightly more—usually between 0.01% and 0.05% APY depending on your balance tier. These rates change without notice and are set by Bank of America, not by federal regulators.
The reason the rates are low is that Bank of America is a brick-and-mortar bank with physical branches. Online-only banks have lower overhead costs and pass some of that savings to depositors through higher rates. If you keep money in a Bank of America savings account earning 0.01% APY, you earn roughly $1 per year on a $10,000 balance. The same $10,000 at an online bank earning 4% to 5% APY would earn $400 to $500 per year.
Key Takeaways
- Bank of America savings accounts earn interest, but rates are typically below 0.05% APY and are much lower than online banks offer.
- The Money Market Account tier pays more interest if you maintain higher balances, with rates that vary by balance range.
- Interest rates change at any time and are not may provide—Bank of America sets them independently.
- You can check your current rate by logging into your account online or calling Bank of America customer service at 1-800-432-1000.
How Bank of America calculates and pays interest
Bank of America uses daily compounding, which means interest is calculated on your balance every day and added to your account. The interest you earn is based on the APY posted for your account type. If your account earns 0.01% APY and you have $10,000, the bank divides that annual rate by 365 days, calculates interest for that day, and adds it to your balance. The next day, interest is calculated on the new (slightly higher) balance.
Interest is typically deposited into your account monthly, though Bank of America may deposit it less frequently depending on the account. You can see the interest posted in your transaction history. The amount will be small—often just a few cents per month on a typical balance—but it does accumulate over time.
Bank of America savings account types and their rates
Bank of America offers three main savings products. The Regular Savings Account is the basic option and earns the lowest rate, currently under 0.01% APY. The Money Market Account earns more interest but requires a higher opening balance (usually $2,500) and charges a monthly fee if your balance falls below the minimum. The Certificate of Deposit (CD) locks your money away for a set term—3 months, 6 months, 1 year, or longer—and pays a fixed rate for that entire period.
Money Market Account rates are tiered by balance. A balance of $2,500 to $10,000 earns one rate; $10,000 to $25,000 earns a slightly higher rate; and balances above $25,000 earn the highest tier. Bank of America does not publish these rates on its website—you have to call or visit a branch to learn the exact rate for your balance level. CD rates are posted online and vary by term length. Longer terms (like 1-year or 2-year CDs) typically pay more than shorter terms.
Why Bank of America rates are lower than online banks
Online banks like Marcus, Ally, and Discover have no physical branches, no tellers, and no retail overhead. They pass those cost savings to customers through higher interest rates. Bank of America maintains thousands of branches and ATMs across the country, which costs money. The bank also makes money by lending out deposits at higher rates than it pays you in interest—the difference is called the spread. A larger spread means lower rates for savers.
If you prioritize convenience and in-person service, the lower rate may be worth it. If you want to maximize interest earned on savings, moving money to an online bank's savings account or high-yield savings account will earn you significantly more. Many people keep a small amount at Bank of America for everyday banking and move larger savings balances to online banks.
How to find your current interest rate
Log into your Bank of America online account and go to the account details page for your savings account. The APY should be listed there, along with the interest earned year-to-date. If you cannot find it online, call Bank of America at 1-800-432-1000 and ask a representative for the current APY on your specific account. Rates change without advance notice, so the rate you see today may not be the rate you see in three months.
You can also visit a Bank of America branch in person and ask a banker for the current rate. Bring your account number or debit card to speed up the process. If you have a Money Market Account, ask the banker to confirm which balance tier you fall into and what rate applies to that tier.
When Bank of America raises or lowers interest rates
Bank of America changes savings rates in response to changes in the federal funds rate set by the Federal Reserve. When the Fed raises rates, banks typically raise savings rates too—though usually by a smaller amount. When the Fed cuts rates, banks cut savings rates as well. However, banks do not always move at the same speed or by the same amount. Some online banks raise rates faster than Bank of America does.
You will not receive a notice before Bank of America changes your rate. The bank updates rates on its website and in customer accounts, but does not send emails or letters announcing the change. Check your account periodically if you want to track whether your rate has moved, or set a reminder to review it every few months.
Frequently Asked Questions
Does Bank of America charge a fee to earn interest?
No. Interest is free on all Bank of America savings accounts. However, the Money Market Account charges a monthly maintenance fee (usually $12) if your balance falls below the required minimum. Regular savings accounts have no monthly fee. CDs have no ongoing fees, though some banks charge a penalty if you withdraw money before the CD matures.
Can I move my savings to a higher-paying account without closing my Bank of America account?
Yes. You can open a savings account at an online bank and transfer money there while keeping your Bank of America checking account open. The two accounts are separate, and moving money between them takes one to three business days via ACH transfer. You do not have to close your Bank of America savings account.
What happens to my interest if I withdraw money from my savings account?
Interest is calculated on your daily balance, so if you withdraw money, the next day's interest calculation uses the lower balance. You keep all interest that has already been deposited into your account. There is no penalty for withdrawals from a regular savings or Money Market Account (though the Money Market Account fee applies if you drop below the minimum balance).
Is my interest may provide?
No. Bank of America can change the interest rate at any time without notice. The rate you earn today may be different next month. If you want a may provide rate, a CD locks in a fixed rate for the entire term—but you cannot withdraw the money early without paying a penalty.
How much interest will I earn on $10,000?
On a regular Bank of America savings account earning 0.01% APY, you would earn approximately $1 per year on a $10,000 balance. On a Money Market Account earning 0.05% APY, you would earn about $5 per year. At an online bank earning 4.5% APY, you would earn $450 per year on the same $10,000.