Bank of America Savings Account Rates
Bank of America’s savings account interest rates are disappointingly low compared to many other banks in the current rising interest rate market. Despite this environment, Bank of America maintains minimal rates for the average customer, coupled with monthly fees unless specific qualifications are met regularly.
While Bank of America provides slightly better treatment to some customers, such as those maintaining larger deposits, the rates offered still fall significantly behind those of high-yield savings accounts. Different tiers, like Gold, Platinum, and Platinum Honors, tied to the Preferred Rewards program, offer slight rate increases based on the amount deposited but still lag behind the competition significantly.
See the best high-yield savings account rates available today before deciding on your savings account choice.
Bank of America Savings Accounts: Key Features
Bank of America only offers the Advantage Savings account, modifying it to provide fee waivers or higher rates based on individual circumstances.
The account tiers, like Gold, Platinum, and Platinum Honors, depend on deposit levels in eligible Bank of America and Merrill Lynch accounts. Increased balances lead to higher tiers with associated benefits.
Monthly fees can be waived through various means, like maintaining a minimum balance, participating in the Preferred Rewards program, or linking specific checking accounts to the savings account.
Despite these features, Bank of America’s base savings account imposes monthly fees and limitations on withdrawals, offering one of the lowest interest rates currently available in the banking industry.
Pros and Cons of Bank of America Savings Accounts
Pros
- Access to a large branch and ATM network across 38 states
- Potential fee waivers for students and specific customer segments
- Convenient automatic transfers between deposit accounts
Cons
- Low APY rates compared to industry averages
- Imposition of an $8 monthly service fee
- $100 minimum opening deposit requirement
About Bank of America: Other Savings Options
Bank of America’s extensive branch network makes it a convenient option, but its savings accounts may not offer the best terms for savers due to low rates and fees. Additionally, the bank provides a range of financial products beyond savings accounts, targeting various customer needs.
While Bank of America’s retail footprint is substantial, the rates and fees associated with its accounts may not offer the best value proposition. For higher benefits, qualifying for the Preferred Rewards program by maintaining a significant deposit with the bank is advisable.
Maintaining balances above $20,000 can help earn fee waivers, but it’s essential to consider diversifying deposits to ensure FDIC insurance coverage.
Alternatives to Bank of America Savings Accounts
While Bank of America may suit certain preferences, its savings accounts may not be the most attractive option due to lower rates and fees. Consider these alternatives for better savings account options:
High-Yield Savings Accounts
High-yield savings accounts at other banks offer competitive rates to help your savings grow faster, often surpassing national average rates with the security of FDIC insurance.
Certificates of Deposit (CDs)
Consider CDs for higher returns over a set period in exchange for limited access to funds.
Money Market Accounts
Money market accounts provide check-writing options with competitive interest rates and FDIC insurance for savers.
Savings Account Bonuses
Explore savings account bonuses offered by different financial institutions to benefit from new customer incentives.
Compare Savings Account Rates
Considering the current market offerings, exploring options beyond Bank of America may provide more lucrative savings opportunities with higher interest rates, particularly from online banks.
In recent news, the Federal Reserve’s rate-hike campaign has influenced savings rates, with some institutions offering improved rates compared to Bank of America’s offerings.
Frequently Asked Questions (FAQs)
No, Bank of America does not offer a high-yield savings account. However, maintaining a significant deposit with the bank may qualify you for higher interest rate tiers. Compare with the best high-yield savings accounts for superior rates.
You can make up to six withdrawals per month from a Bank of America Savings account, with penalties for exceeding this limit.
You can easily open a savings account with Bank of America online or in person at their branch locations. Required information includes personal details and current account information.
Yes, Bank of America savings accounts are FDIC-insured up to $250,000, providing standard protection for deposited funds.
Bank of America does not offer a free savings account, but waivers may apply to certain demographics or through specific monthly requirements.
Bank of America’s low savings interest rates may be attributed to its extensive branch network and associated operational costs compared to online-only banks with lower overhead expenses.
Your Guide to Savings Accounts
- Understanding Savings Accounts and Their Functions
- Exploring High-Yield Savings Accounts
- Steps to Opening a High-Yield Savings Account
- Managing and Closing Savings Accounts
- Safeguarding Funds Beyond Savings Accounts
- Optimizing Savings with Multiple Accounts
- Delving into Savings Account Interest Rates
- Interest Computation in Savings Accounts
- Tax Implications of Savings Accounts
- Distinguishing Money Market Funds and Savings Accounts
- Comparing CDs and Savings Accounts
- Recommended Savings Accounts for Investors
- Top Choices for High-Yield and Free Savings Accounts
- Best Savings Solutions for Young Savers