This in-depth analysis of the retail banking powerhouse will help you understand how the Bank of America savings account system works as well as whether or not its interest rate or rates yield high returns. It will also help you determine whether or not its deposit accounts are suited for you.
Overview
Bank of America’s oldest section dates back 240 years. It became the first bank to extend all the way across the continent in the United States when BankAmerica and NationsBank merged in 1998. It has also grown into a global financial services corporation that serves one in every two American families.
Through its 4,300 branches, Bank of America serves roughly 66 million consumers as well as small businesses. It has the largest consumer deposit market share in the United States and is the most popular small business lender. In Bankrate’s overall analysis of its deposit accounts, Bank of America received 3.2 out of 5 stars and received a 2.7 out of 5-star rating for its savings accounts.
Regardless of how long the bank has been standing and what offers and how many stars they’ve earned, it still has advantages and disadvantages.
Let’s take a look at them.
Advantages of Bank of America Banking System
#1. Unrivaled Access to Your Money Any Time Anywhere
Bank of America operates one of the largest branch and ATM networks in the United States. As a result, customers may rest assured that their funds will be accessible no matter where they go.
#2. Opening a checking or savings account with a low minimum balance
Consumers can start checking or savings accounts for $100 or less, making switching banks easier.
#3. Better rates and loan discounts through Preferred Rewards
Bank of America rewards customers with higher rates, discounts on lending products, and higher rewards on select credit cards for having a longer engagement with the bank.
Disadvantages of Bank of America Banking System
#1. No High-Yield Savings Account Alternatives Available
Customers are unable to earn competitive interest rates due to the lack of a high-yield savings account.
#2. Fees for Using ATMs Are Not Waived or Repaid
With nearly 17,000 ATMs, most clients will be able to find one close by. However, if you use another ATM, Bank of America will charge you $2.50 plus the costs charged by the other bank.
#3. Certificate of Deposit (CD) Rates That Aren’t Competitive
There are certificates of deposit (CDs) available with terms ranging from one month to ten years, but all interest rates are 0.05 percent or less. However, Customers’ ability to earn a competitive rate on their money is harmed by this low rate.
Bank of America High Yield Savings Account
Despite being a huge bank, they understand that customers’ demands vary and that one option, offered to them, will almost definitely not suit all of their needs. So Bank of America Advantage Savings offers a number of different savings accounts.
The following are savings accounts of the Bank of America
- Minor Savings Account
- Advantage Savings
- Custodial (UTMA) Savings Account
- Advantage Savings, Gold
- Platinum Advantage Savings
- Advantage Savings, Platinum Honors
Bank of America Savings Account and Interest Rates
The following Bank of America high yield savings account rates below are for residents of the New York tri-state area, and they may differ by state.
Account Name | Interest Rate | APY | Minimum Deposit |
| Minor Savings Account | 0.01% | 0.01% | $25 |
| Custodial (UTMA) Savings Account | 0.01% | 0.01% | $100 |
| Advantage Savings | 0.01% | 0.01% | $100 |
| Advantage Savings, Gold | 0.02% | 0.02% | $100 |
| Advantage Savings, Platinum | 0.03% | 0.03% | $100 |
| Advantage Savings, Platinum Honors | 0.04% | 0.04% | $100 |
Bank of America Savings Accounts vs Top Yielding Banks
The bank’s Advantage Savings account offers tiered rates based on the amount of money you keep in the account: That is, the bigger your balance, the more return you can receive. However, Bank of America’s savings accounts rates are easily surpassed by many other financial organizations, with 0.04 percent APY as the highest payout option. Furthermore, Savings accounts at several institutions are currently earning 0.5 percent annual percentage yield (APY) or higher.
Banks such as Vio Bank, Ally Bank, and Marcus by Goldman Sachs all offer substantially higher rates on savings accounts. So, if you need a bank with a high yield account, Bankrate’s list of high-yielding institutions might help you find the greatest rates.
Savings accounts at Bank of America have an $8 monthly maintenance cost. Though you can avoid paying this cost if you meet certain requirements, such as keeping a $500 balance, linking this account to your Bank of America Advantage Relationship Banking checking account, or becoming a Bank of America Preferred Rewards client.
Furthermore, for the first six months, new customers are exempt from paying a monthly charge. Students under the age of 25 who are enrolled in school may also be eligible for a waiver. Many other banks do not levy monthly fees on savings accounts.
Other Bank of America Savings Alternatives
Besides savings accounts, Bank of America offers a variety of different savings choices. It offers certificates of deposit (CD) with durations ranging from 28 days to 10 years, although the rates are modest when compared to those offered by other banks.
Bank of America CDs
Standard term CDs with a $1,000 minimum deposit are available at Bank of America. Standard CDs come with annual percentage yields (APYs) ranging from 0.03% to 0.05% as well as periods ranging from one month to ten years.
Also, there are Promotional CDs with a $10,000 minimum deposit known as featured CDs. Customers can lock in a higher promotional APY despite the fact that they have fewer term options.
Unless otherwise stated, all CDs automatically renew at the end of their period. Hence, customers have up to seven days after maturity to cancel the renewal and remove it without penalty, depending on the duration of the CD.
If you close the CD before the maturity date, the bank will charge you an early withdrawal penalty. That is to say, penalties differ depending on the CD’s term.
Bank of America Checking Account
Bank of America offers three checking accounts that need a minimum deposit of $100.
- Firstly, Advantage SafeBalance is a no-fee account with a debit card that helps consumers remain on track with their finances. There are no overdraft fees, also if you are a student under the age of 25, the $4.95 monthly charge is eliminated.
- Secondly, Advantage Plus checking account can be removed with an eligible direct deposit of $250 or more, or by maintaining a minimum daily level of $1,500, the $12 monthly charge
- Thirdly, the Advantage Relationship account pays interest on your balances and waives fees for new checking or savings accounts, domestic wire transfers, and regular check purchases. When you keep a cumulative balance of $10,000 in eligible linked accounts, the $25 monthly charge is waived.
All three checking accounts have monthly fees eliminated for Preferred Rewards members.
Using an ATM at a different bank will cost you $2.50 per transaction plus any fees levied by the other bank. Also, know that your Bank of America checking account does not waive or repay these costs.
When you make purchases with your bank’s debit card, you can participate in Bank of America’s Keep the Change program to save money. It takes your purchases and rounds them up to the nearest dollar, then deposits the difference into your savings account.
Conclusion
In summary, Bank of America has a variety of savings accounts to keep your money safe, but the rates aren’t great for growing your money. They’re lower than the national average, and several competing banks’ savings accounts provide better returns.
FAQs
Is bank of America a good bank?
Bank of America has received several J.D. Power awards over the years. The bank received the top ranking for Retail Banking Advice in 2021. In 2020, the Bank of America Corporate, Commercial, and Business Banking Contact Centers earned J.D. Power Certification for the 11th consecutive year
What is the interest rate on a Bank of America money market account?
Bank of America money market account offers an interest rate starting at 0.01% with no high yield savings
Does Bank of America have high yield savings?
The Bank of America does not have high yield savings account rates. It is as low as 0.01% annual percentage yield or APY.
Which bank has the highest interest rate for savings?
Bank of America is not the perfect bank when it comes to high yield or interest rates for a savings account. However, online banks do well with that. An example of one is discovering an online savings account.
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