May 2023 Interest Rates for Savings Accounts at Bank of America

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Bank of America, a recognizable banking brand, has a massive reach with over 4,000 branches and 16,000 ATMs. If you're an existing Bank of America credit cardholder or primary checking account customer, you may be thinking of opening a savings account with them. But, before you do, you may want to check out Bank of America's savings account interest rates and see how it compares to the national average.

Bank of America's interest rates depend on the geographical location of the account-holder. For this study, the New York ZIP code 10001 was utilized. The rates were checked on May 2, 2023.

Bank of America Savings Interest Rates

Bank of America offers only one savings account that earns interest, the Bank of America Advantage Savings. This account necessitates an initial deposit of $100 and entails an monthly maintenance charge. However, you can waive this fee simply by maintaining a balance of at least $500. The Bank of America Advantage Savings account pays interest at the rate of 0.01% APY.

Bank of America Vs. Other Banks

Like other traditional large banks, Bank of America's savings account interest rates are below the national average. The APY of a Bank of America Advantage Savings account is 0.01%. In contrast, according to the FDIC, the national average savings account interest rate is 0.40% as of May 15, 2023.

Customers can obtain even higher interest rates by considering the best online savings accounts. Shifting $5,000 from a Bank of America savings account to a high-yield savings account earning 3.00% APY can gain nearly $150 in a year.

Other Options From Bank of America

You can earn more with Bank of America by purchasing a certificate of deposit (CD) from the bank and keeping your savings with them. With a CD, liquidity is sacrificed for more interest growth. You can't withdraw your money before the CD's term ends without incurring an early withdrawal penalty, nor can you add more funds to the CD once purchased. However, the interest rate you earn will be significantly higher than that of a standard savings account.

Bank of America Standard Term CDs demand a minimum opening deposit of $1,000 or $10,000, depending on the CD, with interest rates of up to 4.35% APY. Interest rates vary based on how much money you deposit and the term you choose for the CD. To peruse Bank of America's CD interest rates, visit the bank's CD webpage and select "See available terms and rates" under "Compare CD options."

Increase Your Interest Rate with Preferred Rewards

If your goal is 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. The program rewards customers for holding large balances in deposit and investment accounts.

Preferred Rewards customers are eligible for various perks, including interest rate bonuses on checking accounts. The Gold tier, which necessitates an average daily balance of $20,000 in deposits and investments over three months, is the lowest level tier. Tiers increase to the Diamond Honors tier for customers with over $10 million on deposit. Here are the rates you can anticipate if you qualify for the Preferred Rewards program.

How To Find the Current Bank of America Savings Account Interest Rate

To check the latest Bank of America savings interest rates, visit their rate sheet. Keep in mind that rates vary by region, so enter your ZIP code and click on “View PDF” to access all deposit interest rates and APYs for consumer checking accounts.

While Bank of America may not be the best option for earning a competitive interest rate on your savings account, it can offer simplicity if you do all your banking with them. However, if you're looking to maximize your savings potential, consider a high-yield savings account at another bank instead.

On the other hand, if you're a heavy user of Bank of America's rewards credit cards or have a home or auto loan with them, maintaining a savings account can help you qualify for Preferred Rewards Platinum or Diamond status. This status provides a 75% rewards bonus on select credit cards and an interest rate discount on loans, making it a more lucrative option for some.

Ultimately, the decision to open or maintain a Bank of America savings account depends on your financial priorities and personal situation. While their savings APY lags behind the national average, the additional benefits of the Preferred Rewards program might outweigh the opportunity cost of earning more interest elsewhere.