Thinking about where to park your hard-earned money and make it grow? A savings account is often the first step, and if you're considering Bank of America, you're probably wondering: how much interest can I actually earn? This guide will break down Bank of America's savings account interest rates, explain what influences them, and walk you through the process of setting up an account.
How Much is Bank of America Savings Account Interest? A Detailed Look
Let's dive right into the core of your question. When it comes to Bank of America savings accounts, it's important to set realistic expectations. Traditional brick-and-mortar banks, like Bank of America, generally offer lower interest rates on their standard savings accounts compared to online-only banks or credit unions.
As of June 2025, Bank of America's standard savings account, the Advantage Savings account, typically offers a very modest Annual Percentage Yield (APY).
 |
| How Much Is Bank Of America Savings Account Interest |
Step 1: Understanding the Standard Advantage Savings APY
Are you ready to see the numbers? For the vast majority of Bank of America Advantage Savings account holders, the standard APY is 0.01%.
-
What does 0.01% APY mean for your money? It means that for every $100 you have in your account for a year, you'd earn a mere $0.01 in interest. Yes, that's one cent. This rate applies whether you have less than $2,500 or $2,500 and over in your account.
-
Why so low? This is typical for large, traditional banks. Their primary business model often relies on other revenue streams, and savings accounts are more about providing convenience and a safe place to store funds rather than maximizing interest earnings.
Step 2: Exploring Preferred Rewards Tiers for Higher APYs
Now, before you get disheartened, there's a significant caveat for Bank of America customers: Preferred Rewards. If you have a larger financial relationship with Bank of America, you might be eligible for their Preferred Rewards program, which offers tiered interest rates on your Advantage Savings account.
The Preferred Rewards program has different tiers (Gold, Platinum, Platinum Honors, and Diamond/Diamond Honors), and your tier depends on your combined eligible balances across Bank of America banking and Merrill investment accounts.
Here's a general breakdown of how the Advantage Savings APY can increase with Preferred Rewards (as of current information):
Tip: Patience makes reading smoother.
- Gold Tier APY: Typically around 0.02%
- Platinum Tier APY: Typically around 0.03%
- Platinum Honors and Diamond/Diamond Honors Tier APY: Typically around 0.04%
While these rates are still relatively low compared to top-yielding online savings accounts, they are a step up from the standard 0.01%.
Sub-heading: How to Qualify for Preferred Rewards
To qualify for Preferred Rewards, you need to meet certain balance thresholds:
- Gold: $20,000 - $49,999 in eligible balances
- Platinum: $50,000 - $99,999 in eligible balances
- Platinum Honors: $100,000 - $999,999 in eligible balances
- Diamond/Diamond Honors: $1,000,000+ in eligible balances
These tiers can also offer other benefits like reduced fees on banking services, credit card rewards bonuses, and investment guidance.
Step 3: Understanding the Monthly Maintenance Fee
Beyond the interest rate, it's crucial to understand any associated fees. Bank of America's Advantage Savings account typically carries an $8 monthly maintenance fee.
However, this fee can be waived if you meet certain criteria:
- Maintain a minimum daily balance of $500 or more in your account.
- Link your savings account to a Bank of America Advantage Relationship Banking® account.
- Are under age 25.
- Are enrolled in the Preferred Rewards program (this typically waives fees on multiple accounts).
It's essential to ensure you meet one of these criteria to avoid having the monthly fee erode any interest you might earn.
Tip: Focus on sections most relevant to you.
Step 4: Considering Other Bank of America Savings Options (and their Rates)
While the Advantage Savings account is the most common, Bank of America offers other deposit products that might offer slightly better returns, though they serve different purposes:
Sub-heading: Money Market Accounts (MMAs)
Bank of America offers a Money Market Account, which generally provides a slightly higher interest rate than a standard savings account, especially for higher balances. However, MMAs often come with higher minimum balance requirements and may have limits on transactions.
 |
- Current estimated MMA APY: Bank of America's Elite Money Market account shows tiered rates. For balances under $25,000, the APY is often 0.01%. For higher balances, particularly $50,000 and above, the APY can go up to 3.25%. It's crucial to check their website for the most current and localized rates, as they can vary.
Sub-heading: Certificates of Deposit (CDs)
Certificates of Deposit (CDs) generally offer the highest interest rates among savings products because you agree to lock your money away for a fixed period (the "term"). The longer the term, generally the higher the interest rate. However, you'll incur penalties for early withdrawals.
- Current estimated CD APY: Bank of America's CD rates vary significantly by term and balance. For example, some featured CDs might offer APYs ranging from 0.11% to 4.00%, depending on the term (e.g., 7-month CD might be higher than a 37-month CD). Standard term CDs can be as low as 0.03%. Always check their official rates for the specific term you're interested in.
Step 5: How to Open a Bank of America Savings Account
Ready to open an account? Here's a step-by-step guide:
Sub-heading: What You'll Need
Before you begin, gather the following information:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Current Residential Address
- Email Address
- A form of ID: Government-issued photo ID (driver's license, state ID, passport)
- Initial Deposit Funds: You'll need money to fund your new account. This can be transferred from an existing Bank of America account, another bank account, or by debit card, check, or money order.
Sub-heading: Online Application Process
- Visit the Bank of America Website: Go to Bank of America's official website (bankofamerica.com) and navigate to the "Savings Accounts" section.
- Choose Your Account: Select the "Advantage Savings" account or any other savings product you're interested in.
- Start Application: Click on the "Open Account" or "Apply Now" button.
- Enter Personal Information: You'll be prompted to provide your personal details, including your name, address, date of birth, and SSN.
- Verify Information: Review all the information you've entered to ensure accuracy.
- Choose Features & Funding: Select any additional features you desire and specify how you'll make your initial deposit.
- Review and Submit: Carefully read the terms and conditions, then submit your application.
Sub-heading: In-Person Application Process
- Schedule an Appointment (Optional but Recommended): You can schedule an appointment online or by calling Bank of America customer service to ensure a banking specialist is available to assist you.
- Gather Documents: Bring all the necessary identification and information listed above.
- Visit a Financial Center: Go to your nearest Bank of America branch.
- Speak with a Representative: A banking specialist will guide you through the application process, answer any questions you have, and help you complete the paperwork.
Step 6: What to Expect After Opening Your Account
Once your application is submitted:
QuickTip: Read with curiosity — ask ‘why’ often.
- You'll typically receive an email confirmation that your application has been received.
- Approval usually takes 1-2 business days. You'll get a follow-up email or letter regarding your approval status.
- Your account documents will be sent via U.S. Mail within 7-10 business days.
- If you've applied online, you may need to mail back a signed signature form to enable full account servicing.
Final Thoughts on Bank of America Savings Interest
While Bank of America offers the convenience of a vast branch network and comprehensive banking services, their standard savings account interest rates are generally very low. For those primarily seeking to maximize interest earnings on their savings, exploring high-yield online savings accounts from other institutions might be a more lucrative option. However, if you value the in-person service, ATM access, and integrated banking experience that Bank of America provides, and especially if you qualify for their Preferred Rewards program, their savings accounts can serve as a functional place for your funds.
10 Related FAQ Questions
How to calculate Bank of America savings account interest?
To calculate the approximate interest on your Bank of America savings account, multiply your principal balance by the Annual Percentage Yield (APY) and then divide by the number of days in the year, and multiply by the number of days the interest is calculated for. For example, with $1,000 at 0.01% APY for a year: $1,000 * 0.0001 = $0.10.
How to avoid Bank of America savings account fees?
You can avoid the $8 monthly maintenance fee on a Bank of America Advantage Savings account by maintaining a minimum daily balance of $500 or more, linking it to an Advantage Relationship Banking account, being under age 25, or being enrolled in the Preferred Rewards program.
How to check my Bank of America savings account balance?
You can check your Bank of America savings account balance through their online banking portal, the Bank of America mobile app, at an ATM, by calling customer service, or by visiting a financial center.
How to transfer money from my Bank of America savings account?
You can transfer money from your Bank of America savings account via online banking, the mobile app, at an ATM, through a teller at a financial center, or by setting up automatic transfers.
How to increase my Bank of America savings account interest rate?
To increase your Bank of America savings account interest rate, consider enrolling in the Preferred Rewards program by maintaining higher combined eligible balances across your Bank of America and Merrill accounts, which can boost your Advantage Savings APY. Alternatively, explore Bank of America's Money Market Accounts or Certificates of Deposit (CDs) for potentially higher rates, depending on your balance and willingness to lock up funds.
Tip: Review key points when done.
How to open a Bank of America savings account for a minor?
To open a Bank of America savings account for a minor, a parent or legal guardian typically needs to open a joint account (like the SafeBalance Banking® for Family Banking account or a standard Advantage Savings account with the child as a joint owner). You'll need identification for both the adult and the minor (e.g., birth certificate, SSN), and you may need to visit a financial center.
How to close a Bank of America savings account?
You can close a Bank of America savings account by visiting a financial center, calling customer service, or sometimes through online banking if the balance is zero. Ensure all outstanding transactions have cleared before closing.
How to set up direct deposit to my Bank of America savings account?
To set up direct deposit to your Bank of America savings account, provide your employer or payer with your Bank of America routing number and your specific savings account number. You can usually find this information in your online banking account or on a voided check if you have a linked checking account.
How to find my Bank of America savings account number?
You can find your Bank of America savings account number on your monthly statement, by logging into your online banking account, or by contacting Bank of America customer service.
How to access funds from my Bank of America savings account?
You can access funds from your Bank of America savings account via ATM withdrawals (with a linked debit card), transfers to a checking account for debit card purchases, online bill pay, or by visiting a financial center for teller-assisted withdrawals.
 |
