Do you want to make your money work harder for you? Are you looking for a way to maximize your savings without taking on excessive risk? If you're a Bank of America customer, or considering becoming one, you might be wondering how to get a "high yield savings account" with them.
It's important to set realistic expectations from the outset. While Bank of America is a major financial institution offering a wide range of services, their standard savings accounts typically offer very low interest rates compared to what you might find at online-only banks or credit unions that specialize in high-yield savings. However, Bank of America does offer ways to boost your savings rate through their Preferred Rewards program. This post will guide you through understanding how to get the most out of your savings with Bank of America.
Understanding "High Yield" at Bank of America: The Preferred Rewards Program
Unlike many online-only banks that offer a single, competitive high-yield savings account to all customers, Bank of America's approach to "higher yield" on their Advantage Savings account is primarily tied to their Preferred Rewards program. This program rewards customers who maintain significant combined balances across their Bank of America deposit accounts and Merrill investment accounts.
Let's dive into how it works and what you need to do.
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| How To Get A High Yield Savings Account Bank Of America |
Step 1: Assess Your Current Banking Relationship (Are You Ready to Elevate Your Savings?)
Before we even begin, ask yourself: Are you already a Bank of America customer, or are you considering making them your primary banking institution? Your existing relationship and the total amount of money you have with Bank of America (or are willing to move there) will be the biggest factor in determining your potential for a higher yield.
If you're starting fresh, be prepared to consolidate a good portion of your finances with them to truly benefit from their Preferred Rewards program.
Step 2: Understand Bank of America's Advantage Savings Account
Bank of America offers one primary savings account: the Bank of America Advantage Savings account. On its own, without any special programs, its Annual Percentage Yield (APY) is quite low. As of recent data, it can be as low as 0.01%. This is why relying solely on this account without the Preferred Rewards program won't get you a "high yield."
QuickTip: Slow down if the pace feels too fast.
Sub-heading: Key Features of the Advantage Savings Account
- Minimum Opening Deposit: Typically $100.
- Monthly Maintenance Fee: There's usually an $8 monthly fee, but this can be waived if you meet certain criteria, such as maintaining a minimum daily balance ($500) or being under the age of 25. Enrollment in Preferred Rewards also waives this fee.
- Access: You'll have access to Bank of America's extensive network of ATMs and financial centers, plus online and mobile banking.
Step 3: Unlocking Higher Yields with Bank of America Preferred Rewards
This is where the magic happens (or at least, the potential for higher yields). The Bank of America Preferred Rewards program offers interest rate boosters on your Advantage Savings account, along with other banking and investing benefits.
To qualify for Preferred Rewards, you need an eligible Bank of America personal checking account and a 3-month combined average daily balance of $20,000 or more in qualifying Bank of America deposit accounts and/or Merrill investment accounts.
Sub-heading: Preferred Rewards Tiers and APY Boosts
The higher your combined balance, the higher your Preferred Rewards tier, and consequently, the higher the interest rate booster you receive on your Advantage Savings account. Here's a general overview of the tiers and their potential APY boosts (rates are subject to change, so always check Bank of America's official website for the most current information):
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Gold Tier:
- Combined Average Daily Balance: $20,000 to < $50,000
- Savings APY Booster: Typically a 5% interest rate booster on your Bank of America Advantage Savings account. This means if the base rate is 0.01%, your Gold Tier rate might be 0.02%.
- Other Benefits: No monthly maintenance fees on select banking services, credit card rewards bonuses, priority service, and more.
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Platinum Tier:
- Combined Average Daily Balance: $50,000 to < $100,000
- Savings APY Booster: Typically a 10% interest rate booster on your Bank of America Advantage Savings account. This could bring your APY to around 0.03%.
- Other Benefits: Enhanced credit card rewards bonuses, more no-fee ATM transactions at non-Bank of America ATMs, and deeper discounts on loans.
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Platinum Honors Tier:
- Combined Average Daily Balance: $100,000 to < $1 million
- Savings APY Booster: Typically a 15% interest rate booster on your Bank of America Advantage Savings account, potentially reaching 0.04% or more.
- Other Benefits: Even greater credit card rewards, unlimited no-fee ATM transactions, and the best loan discounts.
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Diamond Honors Tier: (For very high balances, typically $1 million+)
- Combined Average Daily Balance: $1 million+
- Savings APY Booster: The highest available booster, which could bring the APY slightly higher than Platinum Honors.
- Other Benefits: Premium services and benefits tailored for high-net-worth clients.
Important Note on "High Yield": Even with the Preferred Rewards boosters, Bank of America's Advantage Savings account APY, while higher than its base rate, may still not compare to the truly high-yield savings accounts offered by many online banks. Online banks often offer APYs well over 4% or 5% (as of current market conditions) without requiring such high combined balances.
Step 4: Consolidate Your Balances
To qualify for Preferred Rewards and its associated interest rate boosters, you'll need to aggregate your funds with Bank of America and Merrill.
Sub-heading: What Counts Towards Your Combined Balance?
- Bank of America Deposit Accounts: Checking accounts, savings accounts, Certificates of Deposit (CDs), and Money Market Accounts (MMAs).
- Merrill Investment Accounts: Brokerage accounts, IRAs, and other investment holdings with Merrill (Bank of America's investment arm).
Actionable Tip: If you have funds spread across different banks or investment platforms, consider moving them to Bank of America and Merrill to reach the desired Preferred Rewards tier. However, always evaluate if the benefits outweigh any potential transfer fees or inconvenience.
QuickTip: Repetition reinforces learning.
Step 5: Enroll in the Preferred Rewards Program
Once you believe you meet the balance requirements, you can enroll in the Preferred Rewards program.
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Sub-heading: How to Enroll
- Online Banking: The easiest way to enroll is through your Bank of America online banking account. Look for a section related to "Preferred Rewards" or "Benefits."
- Financial Center: Visit a Bank of America financial center and speak with a banking specialist who can guide you through the enrollment process.
- Customer Service: Call Bank of America customer service. Their general inquiries and new account opening line is usually a good starting point.
Remember: Enrollment typically happens automatically once your qualifying balances are met for the 3-month average. However, it's always good to confirm your enrollment and tier.
Step 6: Explore Other Bank of America Savings Options (Beyond Standard Savings)
While the Advantage Savings account with Preferred Rewards is the primary way to get a boosted rate, Bank of America also offers other products that can serve as excellent savings vehicles, potentially with higher rates, depending on your financial goals and liquidity needs.
Sub-heading: Certificates of Deposit (CDs)
Bank of America offers various Certificates of Deposit (CDs) with different terms (e.g., 7-month, 10-month, 13-month, 25-month, 37-month). CDs generally offer higher interest rates than standard savings accounts because you agree to keep your money deposited for a fixed period. However, withdrawing funds before maturity usually incurs an early withdrawal penalty.
- Consider CDs if: You have money you won't need for a specific period and want a guaranteed return.
- Important: CD rates at Bank of America can still be lower than those offered by some online banks for similar terms. Always compare rates before committing.
Sub-heading: Money Market Accounts (MMAs)
Bank of America offers Money Market Accounts. These accounts can offer slightly higher interest rates than regular savings accounts, often with tiered rates (meaning you earn more interest on higher balances). They also typically come with some checking features, like limited check-writing or debit card access, making them more liquid than CDs.
- Consider MMAs if: You want a slightly better rate than a standard savings account but still need some liquidity.
- Note: Bank of America's Elite Money Market Account, for example, offers tiered rates, with higher balances potentially earning a more competitive APY.
Step 7: Automate Your Savings
Regardless of the account type, consistency is key to growing your savings.
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Sub-heading: Tools to Boost Your Savings Habits
- Automatic Transfers: Set up recurring transfers from your Bank of America checking account to your Advantage Savings account (or CD/MMA). Even small, regular contributions add up over time.
- Keep the Change® Program: This program rounds up your debit card purchases to the nearest dollar and transfers the difference from your checking account to your enrolled savings account. It's a simple, passive way to save.
- BankAmeriDeals®: Earn cash back on everyday purchases with this program, and you can direct this cash back into your savings account.
Step 8: Regularly Review and Optimize
Financial landscapes change, and so do interest rates. It's crucial to periodically review your accounts and strategies.
Sub-heading: Tips for Ongoing Optimization
- Check Rates: Stay updated on Bank of America's current Advantage Savings, CD, and MMA rates, as well as the Preferred Rewards tiers and benefits.
- Compare with Competitors: Don't be afraid to compare Bank of America's offerings with other financial institutions, especially online banks known for high-yield savings. If you find significantly better rates elsewhere, it might be worth considering diversifying your savings.
- Reassess Your Goals: As your financial goals evolve, your savings strategy should too. Are you saving for a short-term goal or long-term growth? This will influence the best account type for you.
10 Related FAQ Questions
How to check my Preferred Rewards tier with Bank of America?
You can check your Preferred Rewards tier by logging into your Bank of America online banking account or mobile app. The program status is usually displayed prominently on your account summary or a dedicated Preferred Rewards section.
How to avoid monthly fees on Bank of America Advantage Savings?
You can waive the $8 monthly fee on the Bank of America Advantage Savings account by maintaining a minimum daily balance of $500 or more, being under the age of 25, or being enrolled in the Preferred Rewards program (Gold tier or higher).
How to open a Bank of America Advantage Savings account online?
You can open a Bank of America Advantage Savings account online by visiting the Bank of America website, navigating to the savings accounts section, and following the "Open Account" prompts. You'll need personal information like your Social Security number, current address, and a way to make your initial deposit.
How to find current Bank of America savings interest rates?
Current Bank of America savings interest rates (including base rates and Preferred Rewards boosted rates) can be found on their official website under the "Savings Accounts" or "Rates" sections. It's always best to check directly on their site or contact them for the most up-to-date figures.
How to increase my combined balance for Preferred Rewards?
To increase your combined balance for Preferred Rewards, you can transfer more funds into your Bank of America checking, savings, CD, or money market accounts, or transfer investment assets into Merrill accounts linked to your Bank of America profile.
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How to contact Bank of America customer service for savings accounts?
You can contact Bank of America customer service for savings accounts by calling their general customer service number (often found on their website), through their online banking message center, or by visiting a local financial center.
How to set up automatic transfers to my Bank of America savings account?
You can set up automatic transfers to your Bank of America savings account through your online banking portal or mobile app. Look for options like "Transfers" or "Scheduled Transfers" and follow the prompts to set up recurring payments.
How to enroll in Bank of America's Keep the Change program?
You can enroll in Bank of America's Keep the Change program through your online banking account or mobile app. You'll need to link a Bank of America checking account and a Bank of America savings account.
How to determine if a Bank of America CD is right for me?
A Bank of America CD might be right for you if you have funds you can commit for a fixed period (e.g., 7 months to several years) and want a potentially higher, guaranteed interest rate than a standard savings account, without the risk of market fluctuations. However, be mindful of early withdrawal penalties.
How to compare Bank of America's high-yield options with other banks?
To compare Bank of America's high-yield options with other banks, research online-only banks and credit unions known for offering competitive high-yield savings accounts. Look at their APYs, minimum balance requirements, fees, and FDIC/NCUA insurance. Use online comparison tools or financial websites to get a broad view of the market.
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