Yes, Bank of America offers multiple savings account types
Bank of America has several savings account options, each with different features, minimum balances, and interest rates. The main types are the Regular Savings Account, the Money Market Savings Account, and the Premium Savings Account. Each one works differently depending on how much money you keep in it and how often you make withdrawals.
Your choice depends on your balance, how frequently you need to access your money, and whether you want to earn more interest. Bank of America also offers savings accounts linked to checking accounts, which can help you move money between them quickly.
Key Takeaways
- Bank of America's Regular Savings Account has no minimum opening deposit but charges a monthly fee unless you maintain a certain balance or set up direct deposit.
- The Money Market Savings Account typically requires a higher opening balance and pays interest that increases as your balance grows.
- Interest rates on all Bank of America savings accounts change based on the federal funds rate and vary by account type and balance tier.
- You can open a savings account online, by phone, or in person at any Bank of America branch.
- Savings accounts are separate from checking accounts, and Bank of America limits how many times per month you can transfer money out of savings without a fee.
Regular Savings Account: No minimum to open, but watch the monthly fee
The Regular Savings Account requires no minimum deposit to open. However, Bank of America charges a monthly maintenance fee unless you meet one of these conditions: maintain a minimum daily balance (the amount varies), set up a direct deposit of at least $250 per month, or link it to a Bank of America checking account with a may have access to balance.
If you do not meet any of these conditions, the monthly fee applies automatically. You can avoid it by keeping enough money in the account or by arranging direct deposit from your employer or benefits provider. The interest rate on this account is typically lower than on Money Market accounts, and it changes when the Federal Reserve adjusts interest rates.
Money Market Savings Account: Higher balance, higher interest
The Money Market Savings Account requires a higher opening deposit than the Regular Savings Account—typically $2,500, though this can vary. The main advantage is that the interest rate is higher, and it increases in tiers as your balance grows. If you keep $10,000 in the account, you earn a different rate than if you keep $25,000.
This account also has a monthly maintenance fee that you can waive by maintaining the minimum balance or meeting other conditions. Like the Regular Savings Account, the interest rate moves with Federal Reserve decisions. You can make up to six transfers or withdrawals per month without penalty; additional transfers may trigger a fee or require you to close the account.
Premium Savings Account: For larger balances
Bank of America offers a Premium Savings Account designed for customers who maintain higher balances. The minimum opening deposit is higher than the Money Market account, and the interest rate structure rewards larger balances with better rates. This account also has tiered interest rates that increase as your balance grows.
The monthly maintenance fee is waived if you maintain the required minimum balance. Like other savings accounts, you are limited to six transfers or withdrawals per month under federal banking rules. If you exceed this limit, Bank of America may charge a fee or convert the account to a checking account.
How interest rates work and when they change
Bank of America savings accounts earn interest, but the rate is not fixed. The bank sets rates based on the federal funds rate, which the Federal Reserve adjusts several times per year. When the Fed raises rates, Bank of America typically raises savings rates within days or weeks. When the Fed lowers rates, savings rates fall as well.
The exact rate you receive depends on your account type and balance tier. You can check your current rate on Bank of America's website or by calling customer service. Rates are not may provide and can change at any time. Interest is usually deposited into your account monthly.
Transfer limits and how they affect your account
Federal banking rules limit you to six transfers or withdrawals per month from a savings account. This includes transfers to another account, transfers to pay bills, and withdrawals at an ATM or teller. Deposits do not count toward this limit.
If you exceed six transfers in a month, Bank of America may charge a fee for each additional transfer, typically $10. If you repeatedly exceed the limit, the bank may convert your savings account to a checking account or close the account. To avoid this, use your savings account for deposits and occasional withdrawals, not for frequent transfers.
How to open a Bank of America savings account
You can open a savings account online through Bank of America's website, by phone at 1-800-432-1000, or in person at any Bank of America branch. Online applications usually take 10 to 15 minutes. You will need to provide your Social Security number, date of birth, address, and government-issued ID.
If you already have a Bank of America checking account, opening a linked savings account is faster because the bank already has your information. You can fund the account immediately with a transfer from your checking account or from another bank. If you are opening your first Bank of America account, you may need to make an initial deposit, though the Regular Savings Account requires none.
Frequently Asked Questions
Can I have multiple savings accounts at Bank of America?
Yes. You can open more than one savings account at Bank of America, though each account counts toward the six-transfer limit per month. Some customers open multiple accounts to organize money for different goals, but each account will have its own monthly fee if you do not meet the minimum balance requirement.
What happens if I do not meet the minimum balance?
Bank of America charges a monthly maintenance fee, typically $5 to $25 depending on the account type. You can waive the fee by maintaining the required minimum balance, setting up direct deposit, or linking the account to a may have access to checking account. If you cannot meet the balance, you may want to switch to the Regular Savings Account, which has no minimum to open.
How do I avoid the monthly fee?
You can avoid the fee by maintaining the minimum daily balance for your account type, setting up direct deposit of at least $250 per month, or linking the savings account to a Bank of America checking account that meets certain balance requirements. The exact requirements vary by account, so check Bank of America's website or ask in a branch.
Can I withdraw money from my savings account anytime?
Yes, but you are limited to six withdrawals or transfers per month. You can withdraw at an ATM, through a teller, or by transferring money online. Deposits do not count toward the limit. If you need to withdraw more than six times per month regularly, a checking account may be better suited to your needs.
Do I earn interest on Bank of America savings accounts?
Yes, all Bank of America savings accounts earn interest. The rate depends on your account type and balance. Interest rates change when the Federal Reserve adjusts the federal funds rate. You can view your current rate on your account statement or online, and interest is usually added to your account monthly.