synnbiob
Related Articles
Bank of America is the second largest US bank according to the Federal Reserve. You’ll enjoy access to in-person customer service at one of its 4,000 branches nationwide, a large network of 16,000 ATMs, a highly rated mobile app and a full suite of financial products — including checking and savings accounts, credit cards, loans and investing services.
Bank of America isn’t known for competitive annual percentage yields, or APYs, on its savings accounts. If maximizing your interest growth is a priority, check out CNET’s list of the best high-yield savings accounts. But if you value in-person, nationwide access or the ability to keep all your finances under one roof, Bank of America might make sense for you.
Bank of America savings account options compared
| Account name | APY | Minimum deposit to open the account | Monthly service fee* | Balance required |
| Advantage Savings | 0.01% | $100 | $8 | $0 |
| Advantage Savings, Gold Tier | 0.02% | $100 | $0 | $20,000 to less than $50,000** |
| Advantage Savings, Platinum Tier | 0.03% | $100 | $0 | $50,000 to less than $100,000** |
| Advantage Savings, Platinum Honors | 0.04% | $100 | $0 | $100,000 to less than $1 million** |
*Fees are waivable.
**Three-month combined average daily balance in Bank of America deposit accounts and/or Merrill investment accounts.
Note: APYs vary by region, and Bank of America’s savings account may not be available everywhere. You’ll need to check your ZIP code on Bank of America’s website to see your options.
Bank of America savings account options
Bank of America has just one savings account: Advantage Savings. The base APY is 0.01%, but if you’re eligible and enroll in the Preferred Rewards program, you can earn up to 0.04%.
The Preferred Rewards tiers include the Advantage Savings Gold Tier, Platinum Tier and Platinum Honors Tier. The only difference is the APY you can earn.
Bank of America Advantage Savings
Advantage Savings is Bank of America’s standard savings account. You earn 0.01% APY (well below the national average for savings accounts) and interest compounding monthly. You can open this account with an initial deposit of $100.
You’ll be charged an $8 monthly maintenance fee, unless you meet one of Bank of America’s listed criteria, such as maintaining a minimum balance of $500 or linking to Bank of America Advantage Relationship Banking.
However, Bank of America will waive the fee for the first six months on new accounts.
Preferred Rewards Bank of America Advantage Savings
If you maintain a higher balance, you may be eligible for Preferred Rewards membership, which can earn a higher APY on the money in your Advantage Savings account.
To get approved for a higher APY account, you’ll need a Bank of America checking account and a three-month combined daily average in any of your Bank of America deposit accounts (i.e. checking and savings) and/or a Merrill investment account.
Here’s how much interest you can earn and the minimum amount you’ll need for each of the upper-tier accounts:
- Gold: 0.02% APY, $20,000 to less than $50,0000
- Platinum: 0.03% APY, $50,000 to less than $100,000
- Platinum Honors: 0.04% APY, $100,000 to less than $1 million
As a Preferred Rewards client, you don’t have to pay the $8 monthly fee.
Enrolling in the Preferred Rewards higher tiers isn’t automatic. Once you reach $20,000 in assets, Erica, Bank of America’s AI-driven financial assistant, will nudge you to enroll in the Preferred Rewards program to get the benefits. Once you enroll, you’ll be automatically bumped into the higher tiers as your assets reach the additional thresholds, according to a Bank of America spokesperson.
If you have a lot of assets stored at Bank of America and/or Merrill investment accounts, Advantage Savings might make sense for you — but you’ll still be earning relatively low APY compared to the national average and competitors offering over 5% APY.
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).
APY comparison
| Account name | APY | First year’s earnings on $5,000 |
| Bank of America Advantage Savings | 0.01% | $0.50 |
| Chase Premier Savings standard rate | 0.01% | $0.50 |
| Chase Premier relationship rate | 0.02% | $1.00 |
| Wells Fargo | 0.01% | $0.50 |
| Newtek Bank | 5.25% | $268.91 |
| Synchrony | 4.50% | $229.70 |
Opening a standard savings account with Chase and Wells Fargo is also more accessible than Bank of America. Chase doesn’t require a minimum deposit for a savings account, and Wells Fargo requires just $25 for its base savings account — four times less than what Bank of America requires.
Parking your savings in an online bank may make sense if you want to earn more in interest. Online banks can offer high APYs because they don’t have physical locations to manage, reducing their overhead costs, which they then pass on to customers in the form of reduced fees and higher interest rates.
That noted, there are some banks you can visit in person that offer high APYs and no account fees, including Capital One’s 360 Performance Savings, which offers a robust 4.35% APY.
For more banks offering higher savings account rates, check out our picks for the best savings accounts.
Who should open a Bank of America savings account?
Customers who prefer a bank with branches across the country will appreciate Bank of America’s vast presence. Bank of America also offers a robust mobile banking service with state-of-the-art technology tools for managing your banking needs remotely.
The savings accounts don’t offer competitive rates. Customers interested in maximizing their savings growth should consider other big banks that provide similar services but offer better rates.
How to open a Bank of America savings account
You can open a savings account at Bank of America by visiting one of its physical branches or completing an application online or through the mobile app. To open a savings account, use the following steps:
1. Complete an application.
2. Verify your identity with a government issued photo ID, such as your driver’s license.
3. Provide your Social Security number or Individual Taxpayer Identification Number.
4. Deposit at least the required minimum of $100.
Other savings options at Bank of America
Bank of America offers three types of CDs: fixed term, featured and flexible. Its fixed-term CDs range from 28 days to 10 years, and its featured CDs range from seven months to 37 months. The flexible CD account only offers a 12-month term.
Bank of America’s CDs all require a $1,000 deposit to get started and have no annual or transaction fees. Its rates vary depending on your balance and term. However, you can find more competitive rates on a wider variety of terms for high-yield CD accounts at other banks.
Flexible CDs permit a full withdrawal of the balance without penalty after the sixth day the account was opened. Terms are limited to 12 months and the rate is 3.85% APY. After a flexible CD matures, it will automatically renew into a 9-month term at 0.01% APY unless you request a change during the seven-day grace period.
Bank of America featured CD rates
| CD term | APY |
| 7-month | 4.35% |
| 10-month | 4.00% |
| 13-month | 3.25% |
| 25-month | 2.00% |
| 37-month | 0.05% |
FAQs
According to the Federal Deposit Insurance Corporation, the average savings account interest rate in the US is 0.46% as of Sept. 20, 2024. You can find high-yield savings accounts with APYs of 5% or more at many online banks, but you’ll need to be comfortable managing your banking needs without access to in-person assistance.
Money market accounts, certificates of deposit and series I bonds are secure alternatives to savings accounts. MMAs offer checking-writing privileges with the interest-earning benefits of a savings account but generally require a higher initial deposit than savings accounts. CDs and series I bonds require an initial one-time investment and work best when you can leave the money deposited for a specific period.
You can withdraw from Advantage Savings six times per month without penalty. After six withdrawals, Bank of America charges you $10. You can incur this additional withdrawal fee six times, for a total penalty of $60. You can waive this fee if you:
- Qualify as a student
- Are under the age of 18
- Are enrolled in the Preferred Rewards program
- Maintain a minimum daily balance of at least $20,000
No. Large brick-and-mortar banks such as Bank of America, Chase and Wells Fargo typically charge a monthly fee for a savings account. If you can’t satisfy the requirement to waive the monthly fee, consider a savings account without monthly fees, such as Capital One’s 360 Savings account.
Recommended Articles
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
Source link
