A variety of savings accounts are available from Bank of America for storing your money, but their low-interest rates won’t do much to increase your savings. It’s below the national average, and many other banks’ savings accounts provide higher returns. This article explains what bank of America savings account interest rates is about.
Bank of America Savings Account Interest Rates
With more than 4,000 locations and 16,000 ATMs, Bank of America is a well-known name in banking. You can also think about opening a savings account with the bank if you have one of its many credit cards or use it as your main checking account. But are the interest rates on Bank of America’s savings accounts competitive? How do the rates at the bank stack up against the national averages? You should be aware of the bank of America savings account interest rates. Those who participate in the bank’s Preferred Rewards program, however, can get somewhat better rates.
While rates at other major banks are comparable to those at Bank of America, they are far less than those provided by several online organizations. (The best APYs for savings are between 3 and 4%. There is only one interest-bearing savings account available from Bank of America, and it’s called Bank of America Advantage Savings. The minimum balance requirement for this account is $500, and there is a $100 starting deposit requirement as well as an $8 monthly maintenance cost. A rate of 0.01% APY is the interest rate for Bank of America Advantage Savings.
How Do the Highest-Yielding Banks Compare to Bank of America’s Savings Accounts
The bank’s Advantage Savings account has tiers of interest rates depending on the amount of money you deposit there: the more money you have in the account, the more interest you can get. Yet, Bank of America’s savings account rates is easily surpassed by many other financial organizations, with 0.04 percent APY as the highest payout option. Currently, certain banks will give you more than 4% APR on your savings.
Ally Bank, Capital One, and Marcus by Goldman Sachs all have savings accounts available, and their rates are also significantly higher. However, you may get the greatest savings account rates by consulting Bankrate’s list of financial institutions with high yields.
Furthermore, for its savings accounts, Bank of America charges an $8 maintenance fee per month. Many other banks don’t levy monthly fees on savings accounts, even if it is possible to get this fee waived if you meet certain requirements, such as keeping a $500 balance.
Alternatives Besides Bank of America
By choosing to buy a certificate of deposit, or CD, from the bank, you can also decide to keep your funds with Bank of America and earn a higher return. With a CD, you give up some liquidity in exchange for higher interest growth. You won’t be able to withdraw your funds before the CD’s term expires without incurring an early withdrawal fee, and once the CD has been bought, you won’t be able to add more funds to it. Your interest rate, however, will be far larger than the interest on a savings account.
The minimum beginning deposit for a Standard Term CD at Bank of America is $1,000 or $10,000, depending on the CD, and the annual percentage yield (APY) is up to 3.00%. The bank’s 13-month and 25-month highlighted CDs currently provide the best interest rates.
Depending on how much you deposit and the CD’s term you choose, different interest rates apply. Visit the bank’s CD page and click “View available terms and rates” under “Compare CD options” to learn more about Bank of America’s CD interest rates.
The Preferred Rewards Program Will Boost Your Interest Rate
See if you are eligible for a rate increase through the bank’s Preferred Rewards program if you want to keep your money with them and maintain the liquidity of a savings account. Customers are rewarded under this program for maintaining sizable balances in their bank and investment accounts.
Customers who use Preferred Rewards are also eligible for a number of benefits, such as increased interest rates on checking accounts. The starting level is the Gold tier, which necessitates a daily average of $20,000 in deposits and investments for a period of three months. Customers with more than $10 million in deposits are eligible for the Diamond Honors tier, which is the highest tier. If you meet the requirements for the Preferred Rewards program, these are the rates you may anticipate.
Bank of America Savings Account Interest Rates
| APY on balances | 0.01%. |
| How it compares | The average national rate for savings accounts is 0.35% APY. |
| Monthly fees | $8, waived for the first six months. |
| How to avoid monthly fees | Maintain a minimum daily balance of at least $500, link to a qualifying checking account, or enroll in the Preferred Rewards Program. (To enroll, you’ll need to have qualifying accounts with a three-month combined average daily balance of at least $20,000. Other perks include loan discounts and no-fee ATM transactions.) Or, No fee if the account owner is under the age of 18. |
| Minimum opening deposit | $100. |
| APY on balances for premium savings accounts | Up to 0.04% APY for customers enrolled in Preferred Rewards. (APYs may vary depending on where you live.) |
Can I Open a Savings Account at Bank of America?
If a high-interest rate on your savings is a top priority, you should look elsewhere than Bank of America. You can do considerably better with a high-yield savings account at another bank because the bank’s interest rates are much below the national average. The convenience of having a checking account with Bank of America is one excellent reason. In particular, if you don’t often hold a sizable sum in your savings account, its savings rates may not mean much to you if you conduct all of your other banking with Bank of America.
The best reason to maintain a Bank of America savings account, though, is probably to maintain Preferred Rewards Platinum or Diamond status, especially if you use one of the bank’s rewards credit cards frequently or have a home or car loan with them. You can get Platinum Honors status and a 75% rewards boost on many of the bank’s credit cards by maintaining $100,000 in deposits.
You may also be eligible for a discount on the interest rate on any mortgages, vehicle loans, or home equity lines of credit that you have with BofA. The benefits of obtaining Platinum Honors status in the Preferred Rewards program may outweigh the loss of the chance to earn a higher rate of interest elsewhere.
Bank of America Savings Account Interest Rates VS. Wells Fargo Savings Rate
If you have a Wells Fargo Way2Save® Savings Account, just like with Bank of America, you’ll receive a 0.15% Annual Percentage Yield (APY). If you open a Wells Fargo Platinum Savings Account and meet the requirements for a relationship rate by having a linked Wells Fargo checking account, you might also be able to earn 0.02% APY.
The key distinction between Wells Fargo and Bank of America is the daily as opposed to monthly compounding of interest. Daily vs monthly compounding, however, probably won’t make a significant difference in how much you earn because both institutions pay such low rates.
In the end, you might decide to patronize the bank with the branch that is situated the closest to your house.
Bank of America Savings Account Interest Rates VS. Chase Savings Rate
There is not much of a difference between Chase and Bank of America savings accounts. 0.01% as of 2/16/2023, the usual rate for Chase SavingsSM. Interest rates can change and are erratic. Nevertheless, depending on whether you are eligible for a relationship rate and hold a Chase Premier SavingsSM Account, you could earn up to 0.01% to 0.02%. You must have Chase Premier Plus CheckingSM or Chase SapphireSM Checking in order to earn 0.02% APY, and you must conduct at least five transactions from your checking account each month.
If you’re set on a physical bank, your decision between Bank of America and Chase may come down to which bank has a location close to where you live.
What Is the Minimum Balance That Bank of America Requires?
Bank of America savings accounts have a daily minimum balance requirement of $500. It indicates that to avoid paying a monthly charge, the balance that is reported to the account at the end of each day must be $500 or higher.
Yet, the end-of-day account balance is what matters; the actual balance may go below the required minimum daily balance throughout the day.
Excess Withdrawal Standard Procedure
Your monthly fee withdrawal and transfer limit at Bank of America is six in total. The bank will charge you $10 for each withdrawal or transaction after you’ve made those six. This charge is applicable to all withdrawals and transfers, including those made at ATMs and financial institutions as well as those started by phone, mail, online banking, or any other electronic method. That is a common practice among banks.
Fortunately, Bank of America limits the withdrawal limit cost to six transactions; as a result, you won’t pay more than $60 for those transactions in a single month.
Nevertheless, if you can keep your savings account balance at or over $20,000 on a daily basis or if you’re a member of the Preferred Members club, BofA will let you take money from it more frequently without charging you any extra fees.
Read Also: Capital One 360 Savings: 2023 Interest Rates & All You Need
What is the Bank of America Savings Account Interest Rates?
The Bank of America Savings Account Interest Rates has an annual percentage yield of 0.01%. On the other hand, as of February 21, 2023, the FDIC states that the average interest rate on savings accounts nationwide was 0.35%. The top online savings accounts allow customers to receive interest rates much greater than the average.
Will My Savings Account Earn Interest at Bank of America?
Advantage Savings is the only savings account offered by Bank of America. However, if you are qualified and sign up for the Preferred Rewards program, you can also earn up to 0.04% in addition to the base APY of 0.01%.
Is Bank of America Savings Account Good?
Due to its high monthly charge and stringent fee-waiver requirements, the Bank of America Rewards Savings account is not a suitable option for savings. When connected to a Bank of America checking account, it might also act as a convenient cash reserve for emergencies. If not, you won’t actually be able to increase your funds.
How Much Interest Will I Get On $1000 a Year in a Savings Account?
You’ll also receive a higher rate of interest if you can save a larger sum of money. You’ll also have $1,000.10 after a year of saving at 0.01% APY. A high-yield savings account would however earn you roughly $5 per year on the same $1,000 you deposit.
Which Bank Is Best for Savings Account in USA?
Here are the best banks that are best for savings accounts in USA:
- Citibank – APY: 3.85%
- American Express National Bank – APY: 3.75%
- Marcus by Goldman Sachs – APY: 3.75%
- Barclays Bank – APY: 3.60%
- Discover Bank – APY: 3.60%
- Ally Bank – APY: 3.40%
- Capital One – APY: 3.40%
How Much Interest Will $10000 Earn?
The interest rates offered by money market funds currently range from 0.85% to 1.05%. Using it, you can get an annual interest income of $85 to $105 on a $10,000 investment. Deposit certificates (CDs). However, financial companies provide CDs for predetermined amounts of time.
Final Thoughts
The annual percentage yield (APY) on savings accounts at Bank of America is very low. One option to increase the bank of America savings account interest rates on your funds is to place them in a high-yield savings account or certificate of deposit (CD). Those eligible for the bank’s Preferred Rewards program may benefit from holding a sizable savings balance in an account, as doing so may earn them higher credit card points and reduce their interest rate on mortgages, home equity lines, credit cards, and auto loans.
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