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|Bank of America Mortgage Rates
Bank Of America Savings Account Interest Rates Of March 2023
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations. Bank of America is a well-known banking brand with over 4,000 branches and 16,00 ATMs.
If you hold one of the bank’s many credit cards or use the bank for your primary checking account, you might also consider it for a savings account. But are Bank of America’s savings account interest rates competitive?
And how do the bank’s rates compare against national averages? Here’s what you need to know about Bank of America savings interest rates. Bank of America’s interest rate varies by ZIP code. For this review, we used the New York ZIP code 10001.
Rates are accurate as of Feb. 28, 2023. Bank of America Savings Interest Rates Bank of America offers just one interest-bearing savings account: the Bank of America Advantage Savings.
This account requires a $100 opening deposit and an $8 monthly maintenance fee, which is easily waivable by maintaining a minimum balance of $500. The Bank of America Advantage Savings pays interest at a rate of 0.01% APY. Bank of America Vs. Other Banks Like many large, traditional banks, Bank of America’s savings account interest rate lags behind the national average.
The APY on the Bank of America Advantage Savings account is 0.01%. In contrast, the FDIC reports the national average savings account interest rate as 0.35% as of Feb. 21, 2023. Consumers can get an interest rate even higher than that average by considering the best online savings accounts.
If you move $5,000 from a Bank of America savings account to a high-yield savings account that earns a 3.00% APY, you can expect to have almost $150 more in your pocket after one year. Other Options From Bank of America You can keep your savings with Bank of America and earn a greater return by opting to purchase a certificate of deposit, or CD, from the bank. With a CD, you sacrifice a bit of liquidity for more interest growth.
You won’t be able to take your money out before your CD term ends without paying an early withdrawal penalty, and you won’t be able to add more money to the CD once purchased. But the interest rate you earn will be significantly higher than that on a savings account. Bank of America Standard Term Certificates of Deposit require a minimum opening deposit of $1,000 or $10,000—depending on the CD—and interest rates up to 3.00% APY.
Currently, the bank offers the best rates on its 13-month and 25-month featured CDs. Interest rates vary based on the amount of money you deposit and the term you select for the CD. To explore Bank of America’s CD interest rates, go to the bank’s CD page and select “See available terms and rates” under “Compare CD options.”
Increase Your Interest Rate With Preferred Rewards If you want to keep your money with Bank of America and retain the liquidity of a savings account, check if you qualify for an interest rate boost through the bank’s Preferred Rewards program.
This program rewards customers for holding large balances in deposit and investment accounts. Preferred Rewards customers qualify for a variety of perks, including interest rate bonuses on checking accounts.
The Gold tier, which requires an average daily balance of $20,000 in deposits and investments over three months, is the entry-level tier.
Tiers go all the way up to Diamond Honors tier for customers with greater than $10 million on deposit. Here are the rates you can expect if you qualify for the Preferred Rewards program.
How To Find the Current Bank of America Savings Account Interest Rate You can find current Bank of America savings interest rates on Bank of America’s rate sheet.
The rates are region dependent, so enter your ZIP Code if prompted and click on “View PDF.” The PDF contains all of Bank of America’s deposit interest rates and APYs for consumer checking accounts.
Is Bank of America a Good Choice for a Savings Account? If your priority is earning a competitive interest rate on your savings account, then Bank of America is not a good choice for a savings account. The bank’s interest rates are well below the national average, and you can do much better with a high-yield savings account at another bank.
One good reason to maintain a Bank of America checking account is for simplicity. If you do all of your other banking with Bank of America, then its savings rates might not matter much to you—especially if you don’t normally keep a large balance in your savings account.
However, likely the best reason to keep a Bank of America savings account is to qualify for Preferred Rewards Platinum or Diamond status, particularly if you’re a heavy user of one of the bank’s rewards credit cards or have a home or auto loan with the bank.
Keeping $100,000 on deposit will qualify you for Platinum Honors status and get you a 75% rewards bonus on many of the bank’s credit cards. If you have a mortgage, auto loan or home equity line of credit with BofA, you can also qualify for an interest rate discount.
The additional perks you get from having Platinum Honors status in the Preferred Rewards program might outweigh the opportunity cost of earning more interest elsewhere.
Bottom Line Bank of America’s savings APY lags far behind the national average. Putting your money into a high-yield savings account or CD is one way to get a better interest rate on your savings.
For those who can take advantage of the bank’s Preferred Rewards program, keeping a substantial balance in a savings account might make sense, given the greater credit card rewards and interest rate deductions on mortgages, home equity lines and credit or auto loans.
Find The Best Online Savings Accounts Of 2023
Bank Of America CD Rates: March 2023
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
Bank of America’s Featured CD accounts come in five CD terms, ranging from seven months to 37 months. The bank’s CD rates tend to be much lower than the best CD rates from online banks:
BofA offers rates as low as 0.05% APY for some terms on its Featured CDs, with a minimum opening deposit of $1,000. Bank of America also offers Standard Term CDs, which allow you to choose any term from 28 days to 10 years.
Standard Term CDs have a minimum deposit of $1,000 and offer 0.03% APY on all terms and balances. Here’s an overview of Bank of America’s CD rates. This article focuses on Bank of America’s Featured CDs, which offer a higher APY and require a higher minimum deposit. Rates are accurate as of Feb. 28, 2023.
Overview of Bank of America CDs Bank of America’s Featured CDs require a minimum opening balance of $1,000, which is relatively high, considering the low rates that this bank pays. Many other banks pay higher APYs while requiring a lower minimum deposit, or no minimum at all. Notably, Bank of America’s Featured CDs come in odd terms, generally one month longer than what’s standard.
For example, the bank offers a seven-month CD, though a six-month term is more common. Instead of a 12-month CD, it offers a 13-month CD. Interest on the bank’s CDs is compounded monthly and credited to your account monthly.
You can also choose to have interest disbursed at maturity or at certain intervals. If you take your money out of the CD before the term is up, you’ll have to pay a penalty for early withdrawal.
For CD terms of 90 days to 12 months, the early withdrawal penalty is 90 days’ worth of interest on the amount withdrawn.
For CD terms of 12 to 60 months, the early withdrawal penalty is 180 days of interest on the amount withdrawn. How Much Can You Earn With Bank of America’s CD Rates? Because Bank of America’s CD rates are relatively low across terms, don’t expect much of a return.
Find out what you can earn with Bank of America’s CDs by plugging the numbers into our CD calculator: How Bank of America’s CDs Compare Bank of America’s CD yields are much lower than those of the best CD rates.
This bank’s rates are also significantly lower than the national average CD rates, according to the FDIC. This is an excellent reminder to shop around and do your research on CD rates.
Your bank or banks in your immediate geographic area may not have the best CD rates, so consider online options as well. Compare rates from several banks and credit unions and see who can offer you the best deal so you can get the highest possible return on your investment.
About Bank of America Bank of America is a full-service national bank with 240 years of history, and it’s the second largest U.S. bank by assets. It offers 4,100 branch locations, an online banking platform and a highly rated mobile app.
Bank of America provides personal, business and commercial banking products and services. Frequently Asked Questions (FAQs) What are some alternatives to saving with CDs?
If you want a safe place to keep your savings, one option is a savings account. Savings accounts are FDIC insured, but these demand deposit accounts do not have early withdrawal penalties.
And if you choose one of the best online savings accounts, you may get a better APY than you could from a CD. Do all CDs charge an early withdrawal penalty?
It depends on the type of CD and financial institution. Some banks offer no-penalty CDs, which are a type of CD that doesn’t charge an early withdrawal penalty.
Depending on the bank, the APY on no-penalty CDs may be lower than a standard CD—you may have to agree to accept a lower yield in exchange for more liquidity.
What is a CD ladder strategy? A CD ladder is a savings strategy to help maximize your yield—and provide more liquidity—by opening multiple CDs with different terms and maturity dates.
The goal is to take advantage of higher interest rates and lock in a variety of CDs that give you a range of yields over time. Instead of putting all your eggs in one basket with one CD and one fixed rate, a CD ladder can help you take advantage of higher yields and help avoid early withdrawal penalties. To build a CD ladder, do your research to find the best rates, terms and minimum deposits.