Bank of America savings account interest rates change monthly, and the rate you earn depends on which account type you hold
Bank of America offers several savings products, each with its own interest rate. The most common are the Regular Savings Account, Money Market Savings Account, and CDs (certificates of deposit). As of now, rates vary—a Regular Savings Account typically earns less than 0.01% annual percentage yield (APY), while Money Market accounts and CDs earn higher rates that shift with the Federal Reserve's decisions. The exact rate for your account appears in your online banking portal, on your statement, or by calling 1-800-432-1000.
Interest rates are not fixed. Bank of America adjusts them based on what the Federal Reserve does with its benchmark rate. When the Fed raises rates, banks typically raise savings rates. When the Fed cuts rates, savings rates fall. This means the rate you earn today may be different next month.
You can see your current rate by logging into your Bank of America account online, checking your most recent statement, or asking a representative at your branch. The rate is listed as APY, which shows what you would earn in a year if you made no deposits or withdrawals.
Key Takeaways
- Bank of America's savings rates vary by account type, with Money Market and CD accounts paying more than Regular Savings accounts.
- Rates change monthly and follow decisions made by the Federal Reserve, so your earnings can increase or decrease without action on your part.
- You can find your current rate in your online account, on your statement, or by calling customer service.
- CDs lock your money for a set term (3 months to 5 years) in exchange for a may provide rate that does not change during that period.
- Interest is calculated daily but usually paid monthly, and the amount you earn depends on your balance and how long you hold the money.
How Bank of America calculates and pays interest
Bank of America calculates interest daily based on your account balance. The bank takes your balance at the end of each day, applies the annual rate to that amount, and divides by 365 to get that day's interest. These daily amounts add up, and the total is usually deposited into your account once a month.
The more money you keep in the account and the longer you keep it there, the more interest you earn. If you deposit $10,000 and withdraw $5,000 halfway through the month, you earn interest only on the amounts you actually held each day. Interest compounds, meaning you earn interest on the interest you already earned—though at Bank of America's current rates, this effect is small.
Regular Savings vs. Money Market vs. CDs
A Regular Savings Account has no minimum balance requirement and no lock-in period. You can deposit and withdraw money whenever you want. The trade-off is that the interest rate is very low—currently under 0.01% APY at Bank of America. This account is useful for an emergency fund or money you need quick access to, but it is not a tool for building wealth through interest.
A Money Market Savings Account requires a higher opening balance (typically $2,500) and pays a higher rate than Regular Savings. You can still withdraw money, but the account may limit how many withdrawals you can make per month. The rate is still modest compared to other savings options, but it is better than Regular Savings if you have the balance to open one.
Certificates of Deposit (CDs) lock your money for a fixed term—usually 3 months, 6 months, 1 year, 2 years, 3 years, or 5 years. In exchange, Bank of America guarantees a rate that does not change, even if the Fed cuts rates. If you withdraw before the term ends, you pay an early withdrawal penalty (the amount varies by term length). CDs currently pay more than savings accounts because your money is locked away and the bank can count on having it.
| Account Type | Minimum Balance | Withdrawal Limits | Rate Tier |
|---|---|---|---|
| Regular Savings | None | Unlimited | Lowest |
| Money Market Savings | $2,500 | Limited per month | Higher than Regular |
| CD (3 months to 5 years) | $1,000 | None until maturity | Highest |
Why Bank of America rates are lower than online banks
Bank of America's savings rates are typically lower than rates offered by online-only banks like Ally, Marcus, or Discover. This is because Bank of America operates physical branches, pays for staff, maintains buildings, and invests in technology infrastructure. Those costs are passed along as lower rates to depositors. Online banks have fewer overhead costs, so they can pay more interest on the same deposit.
If you are comparing Bank of America to an online bank, you may see a difference of 4% to 5% APY or more. Over time, this adds up. A $10,000 deposit earning 0.01% at Bank of America earns about $1 per year. The same $10,000 at an online bank earning 4.5% earns $450 per year. The trade-off is that online banks have no branch network and no tellers—everything is done by phone, email, or app.
How to find your current rate and compare options
Log into your Bank of America online account and go to the Accounts section. Your current APY is listed next to each account. You can also call 1-800-432-1000 or visit a branch to ask. If you are considering opening a new account, ask the representative for the current rates on Regular Savings, Money Market, and any CD terms you are interested in.
To compare Bank of America rates to other banks, visit the Federal Deposit Insurance Corporation (FDIC) website at fdic.gov, which publishes rates from thousands of banks and credit unions. You can filter by state, account type, and balance to see what is available near you or online. This takes 10 minutes and gives you a clear picture of whether Bank of America's rates match what you could earn elsewhere.
What happens if rates drop or rise
If the Federal Reserve raises its benchmark rate, Bank of America usually raises savings rates within a few weeks. You do not have to do anything—the new rate applies automatically to your account. If rates drop, your earnings fall the same way. With a CD, your rate is locked in, so you are protected from rate cuts but also cannot benefit from rate increases until the CD matures and you renew it.
If you are unhappy with your current rate, you have options. You can move money to a higher-paying account at Bank of America (like a Money Market or CD). You can move money to another bank entirely—there is no penalty for closing a savings account and taking your money elsewhere. You can also ladder CDs, opening multiple CDs with different maturity dates so that some mature and can be renewed at higher rates if rates have risen.
Frequently Asked Questions
How often does Bank of America change savings rates?
Bank of America can change rates at any time, though most changes happen when the Federal Reserve meets (roughly every six weeks). You will not receive a notice before a rate change on savings accounts—the new rate simply takes effect. Check your account online or call to see if your rate has changed.
Is my money safe if I keep it in a Bank of America savings account?
Yes. Bank of America is FDIC-insured, which means deposits up to $250,000 per account type are protected if the bank fails. This protection is backed by the U.S. government. If you have more than $250,000, spread it across different account types or different banks to stay within the limit.
Can I earn more interest by moving money between Bank of America accounts?
Yes, if you move from Regular Savings to Money Market or a CD. Money Market accounts pay more than Regular Savings, and CDs pay the most. However, CDs lock your money, so you cannot access it without paying a penalty. Choose based on when you need the money and how much interest matters to you.
What is the early withdrawal penalty on a Bank of America CD?
The penalty depends on the CD term. Shorter CDs (3 to 6 months) have smaller penalties, usually equal to a few months of interest. Longer CDs (1 to 5 years) have larger penalties. Ask Bank of America for the exact penalty before you open a CD, because it varies by term and changes over time.
Should I open a savings account at Bank of America or an online bank?
If you need branch access, ATM access, or prefer in-person service, Bank of America makes sense despite lower rates. If you rarely visit a branch and want to maximize interest, an online bank will earn you significantly more. Many people use both—a Bank of America account for checking and emergency access, and an online savings account for money they want to grow.