Savings Account Interest Bank Of America

How To Make The Most Of Your Savings At Bank Of America

Because its savings rate is 0.01% APY, its important to avoid Bank of Americas monthly fees, which can potentially cancel out any interest you may earn. The Minor Savings account does not have a monthly maintenance fee, but both the Advantage Savings and Custodial Savings accounts carry an $8 monthly maintenance fee. As long as you carry a $500 balance each month in either account, however, Bank of America will waive the fee.

Customers can also qualify for Preferred Rewards, which provides interest-rate boosters:

The booster increases Bank of Americas standard rate by at least 5%, 10% or 20% as you enter each respective Preferred Rewards tier, which can help you make the most of your savings balance.

Alexandria Bova contributed to the reporting for this article.

This content is not provided by Bank of America. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Bank of America.

Rates are subject to change unless otherwise noted, rates are updated periodically. Savings and CD rates were updated on April 22, 2022 to reflect current rates. All other information on accounts is accurate as of June 10, 2022.

Average Savings Account Rates

The average savings account rate among U.S. banks recently fell to 0.04% and has since seen a small increase. However, there are several banks offering far beyond the current 0.06% average. The largest banks, which stick to the traditional brick-and-mortar business model, typically won’t offer more than 0.01% APY on their standard savings accounts. At that rate, a savings balance of $10,000 would earn just ten cents a year.

Online savings accounts tend to offer a slightly better deal, with interest rates of up to 0.50% currently. While these options typically donât usually provide branch locations, advances in digital banking technology have made it extremely easy for users to check savings balances and arrange transfers from their smartphone screens.

Bank Of America Savings Account Fees

Brick-and-mortar banks usually charge a monthly maintenance fee for savings accounts. Fortunately, the fee is usually low and most of the time there are several ways to eliminate it.

BofA charges an $8 per month fee on their basic savings accounts, and thats enough to cancel out the interest earned on typical savings balances.

You can avoid the fee by doing one of the following:

• Maintain a minimum account balance of $500.
• Link your savings account to your Bank of America Advantage Relationship Banking account
• Become a Bank of America Preferred Rewards client . Qualification for the Preferred Rewards program tiers is based on having an active Bank of America personal checking account and maintaining a three-month average combined balance across your Bank of America accounts. Gold tier status requires a minimum combined balance of $20,000 while Platinum status requires $50,000 and Platinum Honors requires $100,000.
• Prove that you are a qualifying student under 24, for whom the fees are waived automatically .

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Overview Of Bank Of America Cds

Bank of Americas Featured CDs require a minimum opening balance of $10,000, which is relatively high, considering the low rates that this bank pays. Many other banks pay higher APYs while requiring a lower minimum deposit, or no minimum at all.

Notably, Bank of Americas Featured CDs come in odd terms, generally one month longer than whats standard. For example, the bank offers a seven-month CD, though a six-month term is more common. Instead of a 12-month CD, it offers a 13-month CD.

Interest on the banks CDs is compounded monthly and credited to your account monthly. You can also choose to have interest disbursed at maturity or at certain intervals.

If you take your money out of the CD before the term is up, youll have to pay a penalty for early withdrawal. For CD terms of 90 days to 12 months, the early withdrawal penalty is 90 days worth of interest on the amount withdrawn. For CD terms of 12 to 60 months, the early withdrawal penalty is 180 days of interest on the amount withdrawn.

Average Interest Checking Rates

Interest checking, sometimes called high-yield checking, doesn’t usually earn more interest than a traditional savings account. Major banks only give out around 0.01% APY on most interest checking options, and the slightly higher national average of 0.03% is mostly a reflection of the high interest rates of online banks and smaller regional banks whose account policies tend to be more generous.

Another reason you won’t find many high-interest checking options is that most people find it easier to earn better interest with savings accounts, which tend to see few withdrawals. Checking account balances are always fluctuating due to the frequent expenses of everyday living, making it difficult to earn reliable interest. The few checking accounts that do earn interest are usually premium accounts that require large amounts of money to open or to waive the account fees charged by the bank each month.

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How Bank Of America Compares To Online Banks

Large national banks tend to have savings accounts with low interest rates, in part because the institutions spend a lot of money on physical bank branches. You can find higher rates at online banks. They tend to have savings accounts with high yields, often with no monthly fees or minimum balance requirements.

» Dive deeper: Read NerdWallets Bank of America review

How Bank Of Americas Cds Compare

Bank of Americas CD yields are much lower than those of the best CD rates. This banks rates are also significantly lower than the national average CD rates, according to the FDIC.

You can find a better deal on CD rates than what Bank of America offers. Especially when you consider its minimum deposit requirement of $10,000, this banks CDs are nowhere near competitive$10,000 is a big commitment in exchange for very little return.

This is an excellent reminder to shop around and do your research on CD rates. Your bank or banks in your immediate geographic area may not have the best CD rates, so consider online options as well. Compare rates from several banks and credit unions and see who can offer you the best deal so you can get the highest possible return on your investment.

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Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit accounts and provide higher interest rates and penalty-free withdrawals for income.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this article.

Consumers Credit Union: 500%

Consumers Credit Union is a federal credit union based in Michigan. Anyone who lives works, or prays in the Lower Peninsula is eligible to become a member. Shares start at $25, which equates to the minimum deposit requirement to open an account. Unlike bank accounts, however, this share makes you a part-owner of the credit union.

While the credit union offers a wide range of financial products and services, its Rewards Checking account is the APY rockstar with starting rates at 3.00% applicable on balances of up to $10,000. It drops off to 0.020% for any amount over and above this threshold.

With other requirements, you can earn an APY rate up to 5.00%.

While there is no monthly maintenance fee, the minimum deposit requirement for this account is $1,000. Members get quite a few perks, including discounts from local stores and restaurants, free ATM withdrawals from over 30,000 ATMs, and many others, including features common with checking accounts.

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What Are The Different Types Of Savings Accounts

Generally speaking, there is only one type of savings account. Some savings accounts may be called high-yield savings accounts but that doesnt necessarily mean that they offer higher yields. Money market accounts also fall under the official definition of savings deposit accounts.

Some banks may also offer special savings accounts for children, while other institutions may one one account for everyone but allow accounts to be titled as custodial savings accounts.

Here are some possible titling options to designate the owner of a savings account:

Not all savings accounts are created equal. Many online banks, for example, pay higher yields than their brick-and-mortar counterparts. When choosing a savings account, consider APY, minimum deposit requirements and your financial goals. The best savings accounts should provide a competitive APY, but also give you the flexibility to securely withdraw or transfer money each statement period.

What Do The Best Savings Accounts Have In Common

A low minimum opening balance requirements, competitive APY, and low or no fees are common traits among the best savings accounts. Monthly maintenance fees are an especially important consideration, because they can eat into any earned interest, principal or a high-interest savings account that pays a particularly high yield.

The good news is its easy to find an account that pays a high APY without getting hit with costly fees. Heres what to consider when shopping for a savings account.

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Digital Federal Credit Union: 617%

DCU, short for Digitial Credit Union, is a credit union based in Massachusetts. They serve customers in all 50 states and have some 900,000 members.

While they offer a wide range of financial products and services, our primary interest lies with their Primary Savings account, which comes with a whopping APR of 6.17%. This APR is only applicable on balances of up to $1,000.00. Anything over this amount will see the interest rate drop to 0.25%, which isnt a terrible interest rate .

With the full rate on offer, youll make $63.64 per year, provided you keep the entire $1,000 in your account. The account has no monthly service fee, and there is no minimum amount required to earn the full APY.

With DCU being a federal credit union, you get insurance on your account through the NCUA, so its as safe as it can ever be.

They also offer a mobile banking app, which is available for both Android and Apple devices. The inclusion of an app should make managing your money relatively easy.

How To Open a DCU Account

To open the account, youll need to meet their membership application criteria, which are pretty relaxed.

Theres a long and extensive list of participating employers, communities , and condominium associations.

Suppose you do not qualify for any of these. In that case, you can join a participating organization such as Reach Out for Schools, with memberships starting at just $10.

Bank Of America Interest Rates

» Check out high-interest rate options with NerdWallets best high-yield online savings accounts

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What Do Other Banks Offer

As we mentioned earlier, the average APY rate in the US is much lower than 5%. It is nowhere near that amount. We also discussed how while a high APY is beneficial, a higher APY does not always mean a better account.

There are many other things to consider, with banks that offer lower account rates typically making up for it in other areas. Now lets look at some of the best savings rates on offer by top financial institutions in the country.

While these might fall short of the 5% mark, these accounts typically offer other benefits, which you might not necessarily find in other accounts.

• Ally Bank: 2.00% APY on their Online Savings Account
• Axos Bank: up to 1.25% APY on their Rewards Checking Account
• Capital One: 1.90% APY on their Savings Account
• American Express: 1.90% APY on their High Yield Savings Account
• Bank of America: up to 0.04% APY on their Advantage Savings Account
• CIT Bank: up to 0.85% APY on their Savings Builder account with a $25,000 minimum deposit or $100 monthly deposits with a $100 opening deposit requirement
• CitiBank: 2.00% APY on their Citi® Accelerate Savings account
• Bread SavingsTM : 2.15% APY on their High-Yield Savings Account
• Synchrony: 2.05% APY on their High-Yield Savings Account
• UFB Direct: 0% on their UFB Rewards Savings Account
• Vio Bank: 0.75% APY on their High Yield Online Savings Account

Earn Interest Over 5x The National Savings Averagethe Apy For The Online Savings Account As Of Xx/xx/xxxx Is More Than Five Times The National Average Apy For Interest Bearing Savings Accounts With A Balance Of $500 As Reported By Curinos As Of Xx/xx/xxxx National Average Is Based On Information Regarding The Top 50 Banks And May Not Include Information From Variations In Regional Pricing At Such Banks Or Information From Products That May Not Be Widely Available To Their Customers Rates Were Obtained From Curinos Who Relies On The Data From The Banks It Tracks And Such Information Cannot Be Guaranteed Apys Are Subject To Change At Any Time

Advertised Online Savings Account APY is accurate as of XX/XX/XXXX. Applies to personal accounts only. APY may change before or after the account is opened. No minimum deposit to open.

5x the National Savings Average

The APY for the Online Savings Account as of XX/XX/XXXX is more than five times the national average APY for interest bearing savings accounts with a balance of $500 as reported by Curinos as of XX/XX/XXXX. National average is based on information regarding the top 50 banks and may not include information from variations in regional pricing at such banks or information from products that may not be widely available to their customers. Rates were obtained from Curinos, who relies on the data from the banks it tracks and such information cannot be guaranteed. APYs are subject to change at any time.

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How Bank Of America’s Apys Compare To Other Banks

While other brick-and-mortar banks like Chase and Wells Fargo also have monthly fees and similarly low APYs, their standard savings accounts tout some benefits over Bank of America’s. For example, both have cheaper monthly fees — $5 instead of $8 — and the option to waive the fee with just $300 in your savings account — $200 less than what Bank of America requires.

Bank Of America Savings Account Maintenance Fee

This savings account does have a $8 monthly maintenance fee, which is a bit high compared to some savings accounts that have no monthly maintenance fee.

This account bears a $35 overdraft fee and returned item fee, as well as a $12 deposited item returned fee.

Here’s a snippet of some of the other fees that come with this account:

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What To Look For In A Savings Account

As we discussed earlier, a high APY rate is nothing short of amazing. Still, there are many other things that you need to consider. After all, even the best account comes with requirements and restrictions that can limit how much money you can earn.

Here are the top things to consider when looking for an account with a great interest rate

Is Bank Of America A Good Choice For A Savings Or Cd Account

Bank of America may be good for full-service banking and breadth of locations, but you wont earn the best interest rates on your savings.

In fact, you can easily earn many multiples of Bank of Americas interest rates from a range of high-yield savings account and high-yield CD options. There are other benefits though, too, and more details to consider beyond just interest rate.

For example, Bank of Americas monthly fees and minimum deposit requirements can end up being more costly in the long run when youre already earning very little interest. Many other savings and CD options have no fees and much smaller minimum deposit requirements or no requirement at all.

However, you should also remember: If you have a savings goal or want to bulk up your emergency fund, the most important thing you can do is start saving and making regular contributions. Even the best interest rates are small compared to the difference you can make by building your balance over time, even if you only add a few dollars each month or each pay period.

But if you want the boost that a great interest rate can give, a high-yield savings account or CD may be the better option, especially today.

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About Bank Of America

Bank of America is a full-service national bank with 240 years of history, and its the second largest U.S. bank by assets. It offers 4,100 branch locations, an online banking platform and a highly rated mobile app. Bank of America provides personal, business and commercial banking products and services.