Curious about how much your money can grow with a Bank of America CD? Let's dive in!
Are you considering a Certificate of Deposit (CD) with Bank of America but wondering what kind of returns you can expect? You've come to the right place! CDs can be a great way to save money with predictable returns, especially if you have a lump sum you don't need immediate access to. This comprehensive guide will walk you through everything you need to know about Bank of America CD rates, terms, and how to get started.
Understanding Bank of America CD Rates
Bank of America offers a variety of CD options, and the rates can vary significantly based on the type of CD, the term length, and sometimes even the deposit amount and your geographic location. It's important to understand that Bank of America, as a large traditional bank, may not always offer the absolute highest CD rates in the market compared to online-only banks or credit unions. However, they provide the convenience of widespread branches and existing banking relationships.
Currently, as of June 2025, Bank of America offers three main types of CDs:
- Fixed Term CDs: These are their standard CDs with a set interest rate for the entire term.
- Featured CDs: These are often promotional CDs that may offer higher rates for specific, shorter terms. These are sometimes referred to as "CD specials."
- Flexible CDs: These offer some flexibility for early withdrawals without a penalty under certain conditions.
Let's look at some example rates. Please note: Rates are highly dynamic and change frequently. The figures below are illustrative based on current data and may not be the exact rates you receive. Always check Bank of America's official website or speak with a representative for the most up-to-date rates for your specific location and desired term.
- Typical Fixed Term CD Rates:
- Short-term (e.g., 1-5 months): Can be quite low, sometimes around 0.03% - 0.05% APY.
- Mid-term (e.g., 12-24 months): Might see rates in the range of 0.05% - 0.10% APY.
- Long-term (e.g., 3-5 years or more): Could be slightly higher, perhaps 0.10% - 0.15% APY.
- Featured CD Rates (Promotional): These often have significantly higher rates than Fixed Term CDs. For instance, you might see:
- 7-month Featured CD: Around 4.00% APY
- 10-month Featured CD: Around 3.45% APY
- 13-month Featured CD: Around 2.75% APY
- Note: These promotional rates often require a specific minimum deposit, usually $1,000, but some might be higher, like $10,000 for certain featured IRA CDs.
- Flexible CD Rates: These typically have a 12-month term and might offer rates around 3.25% APY. The key benefit here is the flexibility, not necessarily the highest yield.
It's crucial to compare these with national averages and offerings from other institutions if maximizing your return is your primary goal.
Step 1: Discovering Your Needs and Exploring CD Types
Ready to get started? Fantastic! The first step in determining "how much does Bank of America pay for CDs" is to understand your own financial goals and what type of CD best suits you.
What are your savings goals?
- Short-term savings? If you need your money back relatively soon (e.g., less than a year), a shorter-term CD or even a high-yield savings account might be suitable.
- Mid-term savings? For goals a few years out (e.g., a down payment on a car, a major vacation), a 1-3 year CD could be a good fit.
- Long-term savings? For goals 5+ years away (e.g., retirement, college tuition), longer-term CDs might offer slightly better rates, but remember interest rate risk.
Understanding Bank of America's CD Offerings
Bank of America categorizes its CDs into a few distinct types, each with its own characteristics:
-
Fixed Term CDs:
- Overview: These are your traditional Certificates of Deposit. You deposit a lump sum for a specific period (the "term"), and in return, you earn a fixed interest rate for the entire term. This offers predictability and guaranteed returns.
- Terms Available: From as short as 28 days to as long as 10 years.
- Minimum Deposit: Typically $1,000.
- Interest Compounding: Usually compounded monthly.
- Early Withdrawal Penalty: Yes, a significant penalty applies if you withdraw funds before maturity. This is the main trade-off for the guaranteed rate.
- Auto-renewal: Fixed Term CDs usually auto-renew into another Fixed Term CD of the same length unless you instruct otherwise during the grace period.
-
Featured CDs (Promotional CDs):
- Overview: These are Bank of America's special offers designed to attract new deposits. They often have higher APYs than standard Fixed Term CDs for specific, often shorter, terms.
- Terms Available: Common terms include 7, 10, 13, 25, and 37 months.
- Minimum Deposit: Typically $1,000, but sometimes higher for specific promotions or IRA versions (e.g., $10,000 for some IRA Featured CDs).
- Interest Compounding: Monthly.
- Early Withdrawal Penalty: Yes, a penalty applies.
- Auto-renewal: Featured CDs often renew into a 3-month Flexible CD at maturity unless you take action during the grace period. This is an important detail to note, as the renewal rate for the Flexible CD is generally much lower.
-
Flexible CDs (No-Penalty CDs):
- Overview: These are a hybrid product offering some of the benefits of a CD (fixed rate for a period) with the flexibility of early withdrawal without a penalty.
- Terms Available: Usually a 12-month term.
- Minimum Deposit: Typically $1,000.
- Interest Compounding: Monthly.
- Early Withdrawal Penalty: Generally waived if you withdraw after the initial six days of the account term. However, any withdrawals within the first six days will incur a penalty.
- Auto-renewal: A 12-month Flexible CD will typically auto-renew into a 3-month Flexible CD at a potentially much lower rate.
Step 2: Checking Current Rates and Terms
Now that you know the types of CDs, the next crucial step is to get the most current rates directly from Bank of America.
A. Visiting the Bank of America Website:
This is usually the most convenient way to get up-to-date information.
- Navigate to Bank of America's Official Website: Go to
www.bankofamerica.com. - Find "Deposits" or "Savings & CDs": Look for sections related to personal banking, savings accounts, or Certificates of Deposit. You might find a link directly labeled "CDs" or "Interest Rates."
- Locate CD Rates: Bank of America typically has a dedicated page for "Bank Account Interest Rates" or "CD Rates." You'll often find a table listing the different CD types (Fixed Term, Featured, Flexible) and their corresponding Annual Percentage Yields (APYs) for various terms.
- Input Your Location (if prompted): Rates can sometimes vary by zip code or state. Make sure you're viewing rates for your specific area.
B. Contacting Bank of America Directly:
For the most precise and personalized information, especially for larger deposit amounts or specific circumstances, direct contact is best.
- Call Customer Service: You can find the customer service number on their website. Ask to speak with someone about Certificate of Deposit rates.
- Visit a Local Branch: If you prefer face-to-face interaction or have a complex scenario, visiting a Bank of America financial center is a good option. A representative can provide current rates, discuss your options, and help you open an account.
C. What to Look For When Comparing Rates:
- Annual Percentage Yield (APY): This is the most important figure. It represents the total amount of interest earned on your deposit over a year, taking into account compounding interest.
- Term Length: How long do you want to lock up your money? Shorter terms offer more liquidity but might have lower rates (unless it's a Featured CD). Longer terms typically offer slightly higher rates but tie up your money for longer.
- Minimum Deposit Requirement: Ensure you meet the minimum opening deposit for the CD you're interested in. Most Bank of America CDs require a $1,000 minimum.
- Early Withdrawal Penalties: Understand the cost if you need to access your money before maturity. This can vary by CD type and term.
- Auto-renewal Policy: Know what happens when your CD matures. Does it roll into the same term and type, or does it change? Bank of America's Featured and Flexible CDs often roll into a 3-month Flexible CD at a much lower rate.
Step 3: Understanding the Fine Print: Fees and Penalties
Before you commit, it's absolutely critical to understand any potential costs associated with your CD.
A. Early Withdrawal Penalties:
This is the most significant "fee" associated with CDs. When you open a CD, you agree to keep your money deposited for the entire term. If you withdraw funds before the maturity date (except for Flexible CDs after the initial 6 days), Bank of America will impose a penalty. These penalties are typically calculated as a forfeiture of a certain number of days' worth of interest.
- For CDs with terms less than 90 days: All interest earned on the amount withdrawn or 7 days of interest on the amount withdrawn, whichever is greater.
- For CDs with terms of 90 days up to 12 months: 90 days of interest on the amount withdrawn.
- For CDs with terms of 12-60 months: 180 days of interest on the amount withdrawn.
- For CDs with terms of 60 months or longer: 365 days of interest on the amount withdrawn.
Important Consideration: If your CD hasn't earned enough interest to cover the penalty, Bank of America will deduct the difference from your principal deposit, meaning you could get back less than you originally put in.
B. Grace Period:
Bank of America CDs typically have a 7-calendar day grace period after maturity (1 calendar day for terms of 7-27 days). During this grace period, you can:
- Withdraw your funds without penalty.
- Make additional deposits.
- Change the term of your CD.
- Cancel the automatic renewal.
It's crucial to act during this grace period if you don't want your CD to auto-renew or if you wish to change its terms.
C. Other Potential Fees:
While CDs generally don't have monthly maintenance fees like some checking accounts, always review the "Deposit Agreement and Disclosures" document provided by Bank of America. This document will outline all terms, conditions, and potential fees.
Step 4: Opening a Bank of America CD
Once you've done your research and decided on the right CD for you, opening the account is relatively straightforward.
A. Eligibility Requirements:
To open a CD with Bank of America, you'll generally need to:
- Be at least 18 years old.
- Have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Provide a valid government-issued ID (e.g., driver's license, state ID, passport).
- Have a current residential address.
B. How to Open a CD:
You have a few options for opening a Bank of America CD:
-
Online (for most standard and featured CDs):
- Visit the Bank of America website and navigate to the CD section.
- Select the CD type and term you're interested in.
- Follow the online application prompts, providing your personal information, desired deposit amount, and funding source.
- Note: There might be an online deposit limit (e.g., $250,000). For larger deposits, you may need to visit a financial center.
-
In Person at a Financial Center:
- This is often the preferred method for many, especially if you have questions or want to discuss your options with a representative.
- Schedule an appointment online or simply walk into your nearest Bank of America branch.
- Bring the necessary identification and your initial deposit.
-
By Phone:
- You can call Bank of America's customer service to inquire about opening a CD. They can guide you through the process over the phone.
C. Funding Your CD:
When opening your CD, you'll need to make your initial deposit. Common methods include:
- Transferring funds from an existing Bank of America account.
- Transferring funds from an account at another bank.
- Using a debit card.
- Mailing a check or money order.
Step 5: Managing Your Bank of America CD
Once your CD is open, managing it is generally minimal until maturity.
A. Monitoring Your CD:
- You can view your CD account details, including the maturity date and interest earned, through Bank of America's online banking or mobile app.
- Bank of America will typically send you a maturity notice before your CD's term ends. This notice is critical as it informs you of the upcoming maturity, the grace period, and the auto-renewal terms.
B. At Maturity:
When your CD reaches its maturity date, you have a few options during the grace period:
-
Renew the CD:
- Allow it to auto-renew for the same term and type (for Fixed Term CDs) or into a 3-month Flexible CD (for Featured and Flexible CDs). Be aware of potential rate changes upon renewal.
- Renew it for a different term or type.
- Renew a portion of the funds and withdraw the rest.
-
Withdraw the Funds:
- Withdraw the principal and earned interest. You can have the funds transferred to another account or receive a check.
-
Add Funds:
- During the grace period, you can typically add more funds to your CD if you choose to renew it.
Failing to act during the grace period will result in your CD automatically renewing according to Bank of America's default policy.
10 Related FAQ Questions
Here are 10 frequently asked questions about Bank of America CDs, along with quick answers:
How to find the most current Bank of America CD rates?
You can find the most current rates by visiting the "Bank Account Interest Rates" section on Bank of America's official website, using their online banking portal, or contacting a financial center directly.
How to open a Bank of America CD online?
Visit the Bank of America website, navigate to the CD section, select the desired CD type and term, and follow the online application prompts. You'll need your personal information and a funding source.
How to avoid early withdrawal penalties on a Bank of America CD?
To avoid early withdrawal penalties, choose a Flexible CD (which waives penalties after the first 6 days) or ensure you can commit to keeping your funds in a Fixed Term or Featured CD until its maturity date.
How to know when my Bank of America CD matures?
Bank of America will send you a maturity notice prior to your CD's maturity date. You can also check the maturity date through your online banking account or by calling customer service.
How to renew a Bank of America CD?
During the 7-day grace period after your CD matures, you can contact Bank of America online, by phone, or in person to renew it for the same or a different term, or allow it to auto-renew according to its default policy.
How to withdraw funds from a Bank of America CD at maturity?
During the grace period after maturity, you can log into online banking, call customer service, or visit a branch to request a transfer of funds (principal and interest) to another account or a check.
How to determine the best CD term for my needs at Bank of America?
Consider your financial goals and when you anticipate needing the funds. Shorter terms offer more liquidity, while longer terms may offer slightly higher rates for fixed CDs (but less so for Bank of America's standard fixed terms). Featured CDs often have competitive rates for specific, usually shorter, terms.
How to make additional deposits to a Bank of America CD?
Generally, additional deposits to Bank of America CDs are not allowed until maturity. You can only add funds during the grace period if you choose to renew the CD.
How to compare Bank of America CD rates with other banks?
Visit online financial aggregators or comparison websites that list CD rates from various banks. Always compare the APY, term length, and minimum deposit requirements.
How to understand the difference between APY and interest rate for a Bank of America CD?
The interest rate is the simple percentage rate at which your money grows. The Annual Percentage Yield (APY) takes into account the effect of compounding interest over a year, giving you a more accurate representation of your total earnings. APY is always the better figure to compare.
