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Business Insider's personal finance team has compared Bank of America savings accounts to the best high-yield savings accounts and found them to need improvement.
Similar to other national, brick-and-mortar financial institutions, Bank of America pays low savings rates overall.The best banks offer significantly higher interest rates on savings accounts. On top of that, they do not charge monthly service fees.
Bank of America has one primary savings account. Bank of America Advantage Savings Account rates depend on whether you qualify for Preferred Rewards, a rewards program that offers higher interest rates on savings accounts and discounts on bank accounts, auto loans, and mortgages.
Overview of Bank of America Savings
Bank of America is a nationwide, brick-and-mortar bank that offers banking services, credit cards, mortgages, and more.
Its savings account is called the Bank of America Advantage Savings Account. This savings account offers a low interest rate of 0.01% to 0.04% APY. The higher interest rates can be earned by having a Bank of America checking account and keeping a certain amount of money across all of your deposit accounts and investment accounts with Bank of America. This account also charges a monthly service fee that can be waived several ways.
Bank of America Savings Account Rates
Bank of America savings rates are lower than the average savings account. The Bank of America Advantage Savings Account pays 0.01% to 0.04% APY.
Generally, the savings account pays 0.01% APY, but you can earn 0.02% to 0.04% APY by becoming a member of the Preferred Rewards program. To join, you must also have a Bank of America personal checking account and maintain a certain three-month total average balance in all your Bank of America bank accounts or Merrill Lynch investments.
The three-month total average balance requirement is $20,000 for the Gold tier, $50,000 for the Platinum tier, and $100,000 for the Platinum Honors tier.
Here are the rates for the Bank of America Advantage Savings Account:
| Account Tier | Annual Percentage Yield (APY) |
| Advantage Savings (if you don't qualify for Preferred Rewards) | 0.01% |
| Advantage Savings Gold | 0.02% |
| Advantage Savings Platinum | 0.03% |
| Advantage Savings Platinum Honors | 0.04% |
$8 monthly service fee
0.01% to 0.04%
$100
None
- New accounts have monthly fee waived for the first 6 months
- Multiple ways to waive monthly fee after the first 6 months
- No excess withdrawal fee if your balance is at least $20,000, or if you're a Preferred Rewards customer
- Low APY
- Compounds interest monthly, not daily
- $100 opening deposit
- $8 monthly service fee
- $10 excess withdrawal fee
The Bank of America Advantage Savings Account rates are lower than the average savings account but similar to what other national banks pay. If you're searching for a high interest rate on a savings account, you'll earn more by opening one of the best high-yield savings accounts.
- Access to over 3,900 branches and 15,000 ATMs
- Earn slightly higher rates by becoming a Preferred Rewards customer and qualifying for the Gold, Platinum, or Platinum Honors tier
- Earn cash back when you make a debit card or credit card purchase through the BankAmeriDeals® program; Cardholders will automatically be enrolled in the program when setting up online banking and a list of eligible offers and deals will be available through online banking
- Waive $8 monthly service fee by maintaining $500 balance, OR linking to your Bank of America Advantage Relationship Banking® account, OR by becoming a Preferred Rewards customer
- Waive monthly fee if you're a student under age 25
- Waive monthly fee if an account holder is under age 18
- Interest compounded monthly and paid monthly
- FDIC insured
How Bank of America Savings Works
Bank of America Savings Account Setup Process
Bank of America is a nationwide physical bank, so you can go into a branch to open an account. Bank of America also allows you to open bank accounts online or over the phone.
Remember to have what you need to open a bank account: two forms of identification and information like your U.S. address and your Social Security number or individual taxpayer identification number. Also, Bank of America savings accounts require a minimum opening deposit of $100.
Bank of America Savings Earnings
To maximize your savings in the Bank of America Advantage Savings Account, you'll want to qualify to waive its monthly service fee. To earn more than 0.01% APY, you also need to be a Preferred Rewards member. A Preferred Rewards member needs to keep a large account balance, though. For example, the Platinum Honors tier earns 0.04% APY, but it will require you to keep at least $100,000 across all of your Bank of America accounts for three months.
Keep in mind, though, that you won't be earning a competitive APY even if you meet these requirements. To get a better interest rate, choose an online bank instead. If you want to bank with Bank of America but want to earn a better rate, you could also open a CD along with your savings accounts. Bank of America's CD rates are better than its savings account rates.
Bank of America Savings Fees and Charges
The Bank of America Advantage Savings Account comes with both a minimum opening deposit and minimum balance requirements. You'll need at least $100 to open a savings account with Bank of America.
The Bank of America Advantage Savings Account comes with a $8 monthly service fee after the first six months. Luckily, you can avoid this bank fee a few ways:
- Have a minimum daily balance of at least $500
- Link your savings account with other Bank of America accounts
- Enroll in the Preferred Rewards program and qualify for Gold tier or above
- Be under 25 years old
If none of these apply to you, you'll have to pay the monthly service fee.
Bank of America also isn't the best bank for avoiding ATM fees. It doesn't charge anything for in-network ATM usage, but it will charge $2.50 for out-of-network ATM usage in the U.S. and $5 for out-of-network international ATMs.
It also charges fees for wire transfers, both incoming and outgoing.
Bank of America Savings User Experience and Accessibility
Bank of America Savings Mobile App Features
Bank of America has a mobile banking app. It's received an average rating of over 4.5 on both the Google Play store and the Apple App Store. It also ranked second highest for mobile banking app satisfaction in J.D. Power's 2024 study on bank and credit card apps. This puts it above Chase, but below Capital One.
Bank of America Savings Online Banking Experience
In addition to the mobile app, you'll be able to access your Bank of America Savings Account on Bank of America's website, over the phone, and at one of Bank of America's physical branches. While Bank of America's website offers many of the same services that the mobile app offers, it doesn't have everything. For example, you won't be able to access Bank of America's personal assistant, Erica, on the Bank of America website.
Bank of America Savings Customer Service and Support
Bank of America is not a bank with 24/7 customer service. However, it does offer extended customer service hours, with phone lines available on weekends and after regular work hours. The bank's exact availability hours will depend on what you're calling for, though. And branch hours will depend on where you're going.
Bank of America Savings Security
Like most banks, Bank of America is FDIC-insured. That means your money will be safe from Bank of America failing up to $250,000 per person, per account type. In addition, Bank of America secures your personal information. It uses encryption, and it lets you set up two-factor authentication for your account.
Bank of America Savings Rates Pros and Cons
Bank of America Savings Account Pros
- Over 3,900 locations and 15,000 ATMs
- New accounts do not have a monthly service fee during the first 6 months
Bank of America Savings Account Cons
- Lower interest rate than the average savings account, even if you qualify for Preffered Rewards
- Monthly service fees after the first 6 months on new accounts (unless you qualify to waive them)
- Interest compounded monthly, not daily
- $100 minimum opening deposit for a savings account
Is Bank of America Savings Right For You?
The Bank of America Advantage Savings Account rates are lower than the average savings account but similar to what other national banks pay. If you're searching for a high interest rate on a savings account, you'll earn more by opening one of the best high-yield savings accounts.
Bank of America Savings Account Alternatives
Bank of America Savings Rates vs. Wells Fargo Savings Rates
Your Wells Fargo savings rate will be 0.01% APY if you have the Wells Fargo Way2Save® Savings Account. If you get the Wells Fargo Platinum Savings Account, you may be able to earn a more competitive interest rate depending on your account balance. This account pays 0.05% to 2.51% APY.
When comparing Bank of America savings accounts to other banks, its savings rate will generally be lower than the other bank you're interested in, which is true for Wells Fargo depending on the account. Wells Fargo's other main advantage over Bank of America is that it compounds interest daily rather than monthly. But because both banks pay low rates compared to the best online banks, you'll likely find other financial institutions that are ultimately much better for earning a competitive savings rate.
When it comes down to it, you may just choose the bank that has a location closest to your home.
Bank of America Savings Rates vs. Chase Savings Rates
Chase and Bank of America's savings accounts are pretty similar.
Overall, Chase savings rates are significantly lower than the national average. The standard rate for Chase Savings℠ is 0.01% APY. But if you have the Chase Premier Savings℠ Account you have the potential to earn 0.01% to 0.02% APY depending on whether you qualify for a relationship rate. To earn 0.02% APY, you'll need to have Chase Premier Plus Checking℠ or Chase Sapphire℠ Banking, and make at least five monthly transactions from your checking account.
If you're set on a brick-and-mortar bank, then your choice between Bank of America and Chase could come down to which bank has a location near your home.
Why You Should Trust Us: How We Review Bank of America Advantage Savings
At Business Insider, we rate bank accounts on a scale from zero to five stars. For our Bank of America Savings Rates review, we used our savings account methodology which looks at interest rates, minimum opening deposits, monthly service fees, customer support availability, mobile app ratings, and ethics of the company.
Bank of America Advantage Savings FAQs
Bank of America offers one traditional savings account, the Bank of America Advantage Savings Account. It also offers other types of specialized savings accounts, such as CDs.
The Bank of America Advantage Savings Account pays 0.01% to 0.04% APY. The rate will depend on whether you qualify for a tier in the Preferred Rewards program.
Bank of America savings accounts are available to people with a U.S. address, two forms of identification, and either a Social Security number or an individual taxpayer identification number. You can open a Bank of America savings account by filling out an application online, calling Bank of America's customer service, or going into an in-person branch.
Yes, there's a monthly service fee for the Bank of America Advantage Savings Account. It is automatically waived for new customers for the first six months. After that, you'll need to maintain at least $500 in your account daily, sign up for the bank's Preferred Rewards program, or link to an Advantage Relationship Checking Account. If you're under the age of 18 or a student under the age of 25, there's no monthly service fee.
Yes, Bank of America savings accounts are secure. They're FDIC-insured for up to $250,000 per person, per account type, and your personal information is encrypted.
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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*The annual percentage yield (APY) is accurate as of November 7, 2024 and subject to change at the Bank's discretion. Refer to product's website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. **Earn 5.00% APY when you deposit at least $250 per month, earn 4.00% standard APY if minimum isn't met. ***Rate are determined by balance tiers and amount deposited. Earn 4.80% APY with balances over $250,000 and 4.50% APY for balances under $250,000. ****0.25% APY on balances under $5,000. Rates as of 5/3/2024. CIT Bank is a division of First-Citizens Bank & Trust Company, a member of the Federal Deposit Insurance Corporation (FDIC), which means your deposit accounts are insured up to $250,000 per depositor, for each account ownership category. Deposits held under the names First Citizens Bank & Trust Company and CIT Bank are not separately insured but must be combined for purposes of determining whether a depositor has exceeded the federal insurance deposit limit. *****SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
