How Much Interest Does Bank Of America Give On Saving Account

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      • Base APY: 0.01%
      • Minimum opening deposit: $100
      • Monthly service fee: $8 (can be waived)
      • Waiver criteria: maintain minimum daily balance of $500, link to qualifying checking account, or be a Preferred Rewards member.
      • Interest compounded monthly.
      • Tiers: Gold, Platinum, Platinum Honors (and Diamond/Diamond Honors, though higher tiers also typically cap out at Platinum Honors APY for savings).
      • Qualifying balances (combined across accounts):
        • Gold: $20,000 - $49,999
        • Platinum: $50,000 - $99,999
        • Platinum Honors: $100,000 - $1 million (or more)
      • APYs with Preferred Rewards:
        • Gold: 0.02%
        • Platinum: 0.03%
        • Platinum Honors: 0.04%
      • Perks: extra interest, loan discounts, no-fee ATM transactions, fee waivers.
      • National average APY (as of June 2025): ~0.60% (Bankrate) or 0.45% (FDIC, Nov 2024).
      • Top HYSAs: 4.00% to 5.00% APY and higher.
      • Key takeaway: Bank of America's rates are significantly lower than HYSAs and the national average.
    • Engaging Introduction: Start with a question or relatable scenario about savings.
    • Step 1: The Harsh Reality: Bank of America's Standard Savings Account Interest Rates:
      • What is the standard APY?
      • What does that actually mean for your money? (Small example)
      • Minimums and fees.
    • Step 2: Unlocking Slightly Better Rates: The Preferred Rewards Program:
      • What is it?
      • How to qualify (tiers and balances).
      • Interest rate boosts for each tier.
      • Other benefits of Preferred Rewards.
    • Step 3: Understanding APY vs. Interest Rate:
      • Define APY.
      • Define Interest Rate.
      • Why APY is important for comparison.
    • Step 4: The Big Picture: How Bank of America Compares to the Market:
      • National average savings rate.
      • High-Yield Savings Accounts (HYSAs) and their typical rates.
      • The significant difference in potential earnings.
      • Consideration: Why would someone still choose BofA? (Branch network, existing relationship).
    • Step 5: Maximizing Your Savings (Beyond Bank of America's Standard Offerings):
      • Reiterate Preferred Rewards.
      • Suggest exploring HYSAs from online banks.
      • Briefly mention CDs as an alternative.
    • Conclusion: Summarize key points.
    • 10 "How to" FAQs: With quick answers.
    • Introduction: "Ever wondered how much your hard-earned money is truly growing in your Bank of America savings account?"
    • Styling: Use italics for emphasis and bold for headings and key terms.
    • Examples: Use a simple calculation to show the low interest earnings.
    • Flow: Ensure smooth transitions between sections.
    • Add more descriptive language.
    • Ensure the "very lengthy" requirement is met.
    • Double-check accuracy of rates and details based on search results (note that rates are current as of June 2025 where possible, but BofA's core savings rates tend to be consistently low). Acknowledge that rates can change.
    • Make sure the steps are logical and easy to follow.
    • How to check my current BofA savings APY?
    • How to qualify for Bank of America Preferred Rewards?
    • How to avoid Bank of America savings account monthly fees?
    • How to calculate interest earned on my BofA savings?
    • How to transfer money to a BofA savings account?
    • How to open a Bank of America savings account?
    • How to find high-yield savings alternatives?
    • How to understand APY vs. interest rate?
    • How to withdraw money from a Bank of America savings account?
    • How to contact Bank of America customer service about rates?

Step 1: Understanding the Foundation – The Bank of America Advantage Savings Account

Let's get straight to the point: have you ever logged into your Bank of America account and wondered if your savings are truly working for you? For most Bank of America customers, their primary savings vehicle is the Bank of America Advantage Savings account. This is the standard offering, and it's where we begin our exploration of interest rates.

What is the Standard APY (Annual Percentage Yield)?

As of June 2025, the standard Annual Percentage Yield (APY) on a Bank of America Advantage Savings account is typically a very modest 0.01%.

What does 0.01% APY truly mean for your money? Let's put it into perspective:

  • If you have $1,000 in your savings account for a year, you would earn approximately $0.10 in interest.
  • If you have $10,000 in your account for a year, you would earn approximately $1.00 in interest.

As you can see, at the standard rate, your money grows at an extremely slow pace. This rate is significantly lower than the national average for savings accounts, and far below what many online-only high-yield savings accounts offer.

Initial Deposits and Monthly Fees

While the interest rate is low, it's important to understand the other aspects of the account:

  • Minimum Opening Deposit: You generally need a $100 minimum deposit to open a Bank of America Advantage Savings account.
  • Monthly Service Fee: This account typically comes with an $8 monthly service fee. However, this fee can often be waived if you meet certain criteria.

How to Potentially Waive the Monthly Service Fee:

Bank of America offers a few ways to avoid that $8 monthly charge:

  • Maintain a minimum daily balance of at least $500.
  • Link your savings account to a qualifying Bank of America checking account (e.g., Advantage Plus or Advantage Relationship Banking) and make at least one qualifying direct deposit of $250 or more each statement cycle to the checking account.
  • Be enrolled in the Bank of America Preferred Rewards program (more on this in the next step!).
  • If you're under 18 or 25 and a student, specific waivers might apply.

Understanding these basics is the first crucial step in managing your Bank of America savings effectively.

How Much Interest Does Bank Of America Give On Saving Account
How Much Interest Does Bank Of America Give On Saving Account

Step 2: Unlocking Slightly Better Rates – The Preferred Rewards Program

While the standard 0.01% APY might seem discouraging, Bank of America offers a way for its most loyal customers to earn a slightly higher interest rate through its Preferred Rewards program. This program rewards clients who maintain substantial combined balances across their Bank of America banking and Merrill investment accounts.

What is Preferred Rewards?

Preferred Rewards is a tiered loyalty program designed to offer various benefits, including interest rate boosters on eligible savings accounts, discounts on loans, and waived fees. The benefits increase as your combined balance grows.

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How to Qualify for Preferred Rewards:

To qualify, you need to maintain a three-month average combined balance across your eligible Bank of America deposit accounts (checking, savings, CDs) and Merrill investment accounts. There are different tiers, each with its own balance requirement and corresponding benefits:

  • Gold Tier: Requires a combined balance of $20,000 to less than $50,000.
  • Platinum Tier: Requires a combined balance of $50,000 to less than $100,000.
  • Platinum Honors Tier: Requires a combined balance of $100,000 to less than $1 million.
    • Note: There are also Diamond and Diamond Honors tiers for balances over $1 million, but the savings account APY generally maxes out at the Platinum Honors level.

Interest Rate Boosts with Preferred Rewards:

If you are enrolled in Preferred Rewards, your Bank of America Advantage Savings account will receive an interest rate "booster" over the standard rate. Here's what you can expect:

  • Gold Tier: Approximately 0.02% APY
  • Platinum Tier: Approximately 0.03% APY
  • Platinum Honors Tier: Approximately 0.04% APY

Even with the Preferred Rewards boost, it's important to recognize that these rates remain quite low compared to many other savings options available in the market today. For example, if you have $100,000 in a Platinum Honors account, you'd earn about $40 in interest over a year.

Other Benefits of Preferred Rewards:

Beyond the small interest rate bump, Preferred Rewards offers other valuable perks that might make it worthwhile for some customers, such as:

  • Waived monthly fees on eligible checking and savings accounts.
  • Credit card rewards bonuses.
  • Discounts on home equity lines of credit (HELOCs) and mortgages.
  • Reduced fees on certain banking services.

Therefore, while the interest rate increase itself might not be a primary motivator for Preferred Rewards, the cumulative benefits could be attractive if you already have significant assets with Bank of America.

Step 3: Dissecting the Terminology – Interest Rate vs. APY

When discussing how much your money grows, you'll often hear the terms "interest rate" and "Annual Percentage Yield" (APY). While they sound similar, understanding the difference is key to comparing savings accounts accurately.

Interest Rate Explained

The interest rate is the basic percentage rate at which your bank pays you for keeping money in your account. It's usually expressed as a simple percentage per year. For example, if a bank offers a 0.01% interest rate, it means for every $100 you have, you'd earn $0.01 over a year if the interest were only calculated once.

APY (Annual Percentage Yield) – The True Measure

The Annual Percentage Yield (APY) is a more comprehensive and important figure because it reflects the total amount of interest you'll earn in one year, taking into account the effect of compounding interest.

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  • Compounding Interest: This is the magic! It means that the interest you earn is added to your principal balance, and then that new, larger balance begins to earn interest as well. Bank of America, like most banks, compounds interest on savings accounts monthly. This means your interest is calculated and added to your account each month, and then the next month's interest is calculated on that slightly larger sum.

Why is APY more useful? Because it provides a standardized way to compare different savings products. Even if two accounts have the same nominal interest rate, if one compounds daily and the other compounds monthly, the one compounding daily will have a slightly higher APY and thus, you'll earn marginally more. For Bank of America's Advantage Savings, the interest rate and APY are typically the same (e.g., 0.01% Rate / 0.01% APY) because the rates are so low that the effect of monthly compounding is negligible.

Always look for the APY when comparing savings accounts, as it gives you the most accurate picture of your potential earnings over a year.

Step 4: The Big Picture – How Bank of America Compares to the Market

Now that you understand Bank of America's savings rates, let's zoom out and see how they stack up against the broader financial landscape. This perspective is vital for making informed decisions about where to keep your savings.

The National Average Savings Rate

As of June 2025, the national average savings account yield in the U.S. is around 0.60% APY (according to sources like Bankrate). Compare this to Bank of America's standard 0.01% APY or even their top Preferred Rewards APY of 0.04%. You can clearly see a significant disparity.

The Rise of High-Yield Savings Accounts (HYSAs)

In recent years, online banks and some credit unions have revolutionized the savings landscape by offering High-Yield Savings Accounts (HYSAs). These accounts typically boast APYs ranging from 4.00% to over 5.00% as of mid-2025.

Let's illustrate the difference with an example:

How Much Interest Does Bank Of America Give On Saving Account Image 2
Account TypeAPYInterest Earned on $10,000 in 1 Year
Bank of America Advantage Savings0.01%~$1.00
BofA Advantage Savings (Plat. H.)0.04%~$4.00
National Average Savings~0.60%~$60.00
High-Yield Savings Account (HYSA)~4.50%~$450.00

The difference in potential earnings is staggering. With an HYSA, your $10,000 could earn you hundreds of dollars more per year compared to a Bank of America savings account.

Why Do People Still Choose Bank of America for Savings?

Given these rate differences, you might wonder why anyone would keep their savings at Bank of America. Here are some common reasons:

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  • Convenience and Existing Relationship: Many people have checking accounts, loans, or credit cards with Bank of America and prefer to keep all their banking under one roof for simplicity.
  • Branch Access: Bank of America has a vast network of physical branches and ATMs, which is appealing for those who prefer in-person banking services, depositing cash, or needing immediate access to funds.
  • Brand Recognition and Trust: Large, established banks often provide a sense of security and familiarity.
  • Limited Awareness: Some customers may not be aware of the significantly higher rates offered by online HYSAs.

For emergency funds or money you might need immediate, in-person access to, a traditional bank like Bank of America might offer some peace of mind. However, for long-term savings goals where growth is a priority, exploring alternatives is highly recommended.

Step 5: Maximizing Your Savings Growth – Beyond the Standard

Now that you have a clear picture of Bank of America's savings interest rates, the next logical step is to consider how you can make your money work harder for you.

Option 1: Leverage Bank of America's Preferred Rewards (If Applicable)

If you already have significant assets with Bank of America (or are close to reaching the thresholds), enrolling in the Preferred Rewards program can provide a small boost to your savings interest rate, along with other valuable perks like waived fees and loan discounts. This is an incremental improvement, not a transformative one for interest earnings.

Option 2: Explore High-Yield Savings Accounts (HYSAs)

For most individuals aiming for substantial savings growth, the most impactful step is to consider a High-Yield Savings Account (HYSA) from an online bank.

  • Higher APYs: As discussed, HYSAs typically offer APYs many times higher than traditional brick-and-mortar banks.
  • FDIC Insured: Just like traditional banks, reputable online banks offering HYSAs are FDIC-insured up to $250,000 per depositor, per bank, for each ownership category. This means your money is safe.
  • Lower Fees: Many HYSAs have no monthly maintenance fees and no minimum balance requirements.
  • Convenience: Opening and managing an HYSA is typically done entirely online, with easy transfers to and from your primary checking account.

Consider parking your long-term savings or emergency fund in an HYSA to maximize your interest earnings. You can keep a smaller amount in your Bank of America savings for immediate access if needed.

Option 3: Consider Certificates of Deposit (CDs)

For money you won't need for a specific period (e.g., 6 months, 1 year, 3 years), a Certificate of Deposit (CD) can offer a fixed, often higher, interest rate than a traditional savings account. Bank of America offers CDs, but their rates can also be on the lower side compared to other banks.

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  • Fixed Rate: You lock in an interest rate for the duration of the CD term.
  • Penalty for Early Withdrawal: Be aware that withdrawing funds before the CD matures typically incurs a penalty.
  • Laddering Strategy: You can create a "CD ladder" by investing in CDs with staggered maturity dates to maintain liquidity while still earning higher rates.

Option 4: Money Market Accounts (MMAs)

Money Market Accounts often bridge the gap between checking and savings, offering slightly higher interest rates than traditional savings accounts and sometimes check-writing privileges. However, they usually come with higher minimum balance requirements. Bank of America also offers Money Market Savings accounts, with rates varying by balance and Preferred Rewards tier, similar to their Advantage Savings.

By taking these steps, you can ensure that your savings are not just sitting idle, but actively growing and contributing to your financial goals.

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Frequently Asked Questions

Frequently Asked Questions (FAQs) About Bank of America Savings Account Interest

Here are 10 common "How to" questions related to Bank of America savings account interest, with quick answers:

1. How to check my current Bank of America savings account APY?

You can find your specific Annual Percentage Yield (APY) by logging into your Bank of America online banking account, reviewing your account statement, or visiting the Bank of America website's "Bank Account Interest Rates" section and entering your ZIP code.

2. How to qualify for Bank of America Preferred Rewards to get higher interest rates?

To qualify for Preferred Rewards, maintain a three-month average combined balance of at least $20,000 across your eligible Bank of America deposit accounts and Merrill investment accounts.

3. How to avoid the monthly service fee on my Bank of America Advantage Savings account?

You can avoid the $8 monthly fee by maintaining a minimum daily balance of $500, linking to a qualifying Bank of America checking account with direct deposits, or by being enrolled in the Preferred Rewards program.

4. How to calculate the interest I could earn on my Bank of America savings?

Multiply your principal balance by the APY (as a decimal) to estimate annual earnings. For example, $10,000 * 0.0001 (0.01% APY) = $1.00 per year. For precise calculations, use an online interest calculator with monthly compounding.

5. How to transfer money into my Bank of America savings account?

You can transfer funds to your Bank of America savings account via online banking, the mobile app, direct deposit setup from your employer, an ATM deposit, or by visiting a branch.

6. How to open a Bank of America savings account online?

Visit the Bank of America website, navigate to the "Savings Accounts" section, select "Advantage Savings," and follow the prompts to apply online. You'll need personal information and your initial deposit.

7. How to find high-yield savings account alternatives to Bank of America?

Research reputable online banks like Ally Bank, Capital One 360, Discover Bank, or Synchrony Bank. Websites like Bankrate, NerdWallet, and Investopedia regularly publish lists of the best high-yield savings accounts.

8. How to understand the difference between an interest rate and APY for my savings?

The interest rate is the basic percentage, while the APY (Annual Percentage Yield) reflects the true annual return, taking into account compounding interest. Always compare APYs for an accurate understanding of earnings.

9. How to withdraw money from my Bank of America savings account?

You can withdraw money through a Bank of America ATM, by visiting a Bank of America branch, or by transferring funds to a linked checking account via online banking or the mobile app.

10. How to contact Bank of America customer service about savings account rates or fees?

You can contact Bank of America customer service by calling the number on the back of your debit card, finding the general customer service number on their website, or visiting a local branch.

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