Bank of America does not currently offer a dedicated high-yield savings account

Bank of America's standard savings accounts earn interest rates well below what other banks and online platforms offer. As of now, BofA does not have a product branded or marketed as a high-yield savings account (HYSA). Their regular savings accounts typically earn rates between 0.01% and 0.04% annual percentage yield (APY), depending on your balance and account type. If you are looking for a savings account that compounds money faster, you will need to look outside Bank of America.

The reason matters: banks that operate physical branches and ATM networks nationwide have higher operating costs than online-only banks. Those costs get passed along as lower interest rates. Bank of America prioritizes branch access and customer service infrastructure over rate competitiveness. If earning interest is your primary goal, that trade-off usually works against you.

Key Takeaways

  • Bank of America's savings accounts pay 0.01% to 0.04% APY, which is significantly lower than rates available elsewhere.
  • Online banks and credit unions commonly offer HYSA rates between 4% and 5% APY, meaning your money grows much faster outside BofA.
  • If you value branch access and want to keep all accounts in one place, BofA's savings account is convenient but costs you money in foregone interest.
  • You can open a HYSA at another institution while keeping your checking account at Bank of America—the two do not have to be linked.

How Bank of America savings accounts actually work

Bank of America offers three main savings products: the Regular Savings Account, the Money Market Account, and the Premium Savings Account. All three are FDIC-insured up to $250,000, which means your deposits are protected if the bank fails. The difference between them is primarily the interest rate and the minimum balance required.

The Regular Savings Account has no minimum opening deposit and no monthly maintenance fee if you maintain a $300 minimum balance. If your balance drops below $300, you pay $3 per month. The Money Market Account requires a $2,500 minimum balance and pays a slightly higher rate, but still nowhere near what you would earn at an online bank. The Premium Savings Account requires a $100,000 minimum balance and is designed for customers with substantial deposits.

None of these accounts limit how many withdrawals you can make per month, which is different from older federal rules that used to cap savings withdrawals at six per month. That rule was suspended in 2020 and has not returned, so you can move money in and out freely.

Why online banks and credit unions pay more

Online-only banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5% APY on their savings accounts. Credit unions often offer similar rates through their savings or share accounts. The difference between 0.01% and 4.5% is enormous over time: on $10,000, you would earn roughly $1 per year at Bank of America versus $450 per year at an online bank.

The reason is operational cost. Online banks have no branches, no tellers, and no physical infrastructure. They pass those savings directly to customers through higher interest rates. They make money on volume and on the loans they fund with customer deposits, not on fees. Bank of America, by contrast, maintains thousands of branches and ATMs, pays thousands of employees in person, and generates revenue from both interest and fees.

Interest rates on savings accounts change frequently and are set by each bank independently. They do not follow the federal funds rate directly, though they tend to move in the same direction. When the Federal Reserve raises rates, online banks usually respond faster than traditional banks. When rates fall, online banks drop theirs faster too. If you are shopping for a HYSA, check the current rate on the bank's website before opening an account, because rates posted here will have changed.

How to compare Bank of America savings to other options

If you want to keep money at Bank of America for convenience but also want better interest rates, you have two realistic paths. The first is to open a HYSA at an online bank or credit union and transfer money there for savings, while keeping your checking account at BofA. The second is to switch your primary banking entirely to an institution that offers both competitive savings rates and the services you need.

When comparing accounts, look at three things: the APY (annual percentage yield), any minimum balance requirements, and whether there are monthly fees. A HYSA with no minimum balance and no fees is almost always better than one with restrictions, even if the rate is slightly lower. Also check whether the bank is FDIC-insured (for banks) or NCUA-insured (for credit unions). Both protections cover up to $250,000 per account.

Moving money between banks is straightforward. You can set up an external transfer from your Bank of America account to another bank using the other bank's routing number and your account number. The transfer usually takes one to three business days. You do not have to close your Bank of America account to open a HYSA elsewhere—many people keep both.

What Bank of America savings accounts are actually good for

Bank of America savings accounts make sense if you value convenience over rate. If you use BofA's branches regularly, deposit cash frequently, or need to speak to someone in person about your account, the low interest rate might be worth the trade-off. The accounts are simple, have no hidden fees if you maintain the minimum balance, and integrate seamlessly with your checking account.

They are also appropriate for very short-term savings—money you plan to spend within weeks or months. If you are saving for a down payment due in three months, the difference between 0.01% and 4.5% is only about $10 on $10,000. But if you are building an emergency fund or saving for something a year or more away, that difference becomes substantial.

Bank of America also offers certificates of deposit (CDs), which lock your money away for a set term (three months to five years) in exchange for a may provide rate. Their CD rates are also low compared to online banks, but they are predictable and FDIC-insured. If you want may provide returns and do not mind locking money away, a CD might be worth considering alongside a HYSA elsewhere.

Moving money to a high-yield account without leaving Bank of America

You do not have to choose between Bank of America and a HYSA. Many people keep their checking account at BofA for bill pay and direct deposit, then move a portion of their paycheck to a HYSA at another bank for savings. This strategy gives you the convenience of BofA's checking infrastructure while earning real interest on your savings.

To set this up, open a HYSA at an online bank or credit union. Then log into your Bank of America account and add the other bank as an external transfer destination. You will need the other bank's routing number and your account number there. Once linked, you can transfer money between accounts in one to three business days. Some people set up automatic transfers on payday so money moves without them having to think about it.

The main limitation is that Bank of America's mobile app and website do not show balances at other banks, so you will need to log into the other bank's app separately to see your HYSA balance. But the money is yours, fully insured, and earning interest the whole time.

Frequently Asked Questions

Can I earn more interest by putting more money in a Bank of America savings account?

No. Bank of America's interest rate is the same regardless of your balance. The Premium Savings Account requires a $100,000 minimum but does not pay a meaningfully higher rate than the regular account. If you have a large amount to save, an online bank's HYSA will pay you far more interest on that same balance.

What happens if my Bank of America savings account balance drops below the minimum?

For the Regular Savings Account, if your balance falls below $300, you are charged $3 per month until the balance rises again. The Money Market Account charges $25 per month if the balance drops below $2,500. You can avoid these fees by maintaining the minimum or by switching to an account with no minimum requirement.

Is my money safe in a Bank of America savings account?

Yes. Bank of America is FDIC-insured, which means deposits up to $250,000 are protected if the bank fails. This protection applies to all their savings accounts. Online banks and credit unions have the same insurance protection, so safety is not a reason to choose BofA over a HYSA elsewhere.

Can I transfer money from Bank of America to a HYSA at another bank?

Yes. Log into your Bank of America account, add the other bank as an external transfer destination using their routing number, and initiate a transfer. The money usually arrives in one to three business days. You can set up recurring transfers if you want money to move automatically on a schedule.

Do I have to close my Bank of America account to open a HYSA elsewhere?

No. You can keep your Bank of America checking and savings accounts open while opening a HYSA at another bank. Many people do this to maintain branch access and bill-pay convenience at BofA while earning better interest elsewhere.