| Bank of America Advantage Savings Key Features | |
|---|---|
| APY Range | 0.01%–0.04% |
| Minimum Balance to Earn Highest APY | $100,000 |
| Minimum Deposit | $100 |
| Withdrawal Limit | 6 per month |
| Monthly Service Fee | $8 (waiver available) |
Some banks offer several types of savings accounts for people in different situations, but not Bank of America: It only offers one option, the Bank of America Advantage Savings account. Instead, it modifies this single bank account to waive fees or offer higher rates depending on your circ*mstances.
The different savings account tiers (Gold, Platinum, Platinum Honors) refer to the levels of Bank of America’s Preferred Rewards program; the more money you hold in eligible Bank of America and Merrill Lynch accounts, the higher your tier. Gold requires at least $20,000; Platinum requires $50,000; and Platinum Honors requires $100,000.
The base savings account charges an $8 monthly fee, although it’s waived for the first six months after you open the account. After that, you can qualify for a monthly fee waiver in a few different ways:
- If you’re a minor or a student under the age of 25
- If you keep at least $500 in your savings account
- If you’re a member of the Bank of America Preferred Rewards program
- If you link certain Bank of America checking accounts to this savings account (each of which carries its own set of fees and waivers)
Keep in mind that each of these options is either a limited-duration event, or will require active monitoring on your part each month to ensure you’re not charged a fee. You’ll also be charged a $10 fee if you make more than six withdrawals each month, regardless of the method, and a $2.50 ATM fee for using non-Bank of America ATMs (plus any third-party ATM fees charged by the machine’s operator).
In return for all of these fees, you’ll earn just about the lowest rate that any bank in the country is offering right now. Any interest you are able to earn will be compounded monthly and credited to your account with each statement cycle.
About Bank of America: Other Savings Options
Bank of America is the second-largest bank in the country, featuring almost 3,900 branches across 38 states. All of those in-person branch locations are expensive to operate, which is probably one of the factors keeping the rates low and the fees high on Bank of America accounts.
That said, if you prefer to do your banking in person, even if it means earning a nearly-nonexistent interest rate and paying high fees, then it’s hard to beat BofA’s footprint. Only two other banks—Chase and Wells Fargo—offer more locations. Among retail banks, Bank of America received middling reviews in J.D. Power’s annual survey of customer satisfaction in 2023.
In addition to savings accounts and certificates of deposit, Bank of America offers a full suite of other financial products as well, making it a one-stop shop. The general pattern among all of these accounts is that unless you qualify for a Preferred Rewards tier, you’ll earn interest rates so low you’ll hardly see anything accrue and you’ll be constantly working to avoid fees as well.
If you’re able to keep at least $20,000 deposited with Bank of America, you’ll be able to qualify for the lowest-level Gold Tier in its Preferred Rewards program. If you really want to bank with Bank of America, we recommend aiming for this level at a minimum since this will, at least, waive your monthly fees.
Higher balances (up to $1,000,000 or more) come with more benefits, but remember you’ll want to avoid keeping more than $250,000 with any one bank in order to make sure your money is fully protected by FDIC insurance.
Compare Savings Account Rates
Unless you have a compelling reason to stick with Bank of America for your savings journey, we recommend choosing another bank. You could potentially earn far more in interest with just about any other bank, especially if you’re comfortable choosing an online-only option.
In the News: Savings account rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last four meetings, however, the Fed has held the federal funds rate steady, and signaled on Jan. 31 that the committee’s rate-hike cycle has almost certainly ended. While most Fed members expect two to four ratedecreaseswill occur in 2024, the Fed has cautioned that it could be some timebefore the first cut is implemented.
Because savings account yields closely follow the fed funds rate, the Fed’s current holding pattern has caused savings rates to plateau, and declines should be expected once it appears the Fed is ready to make its first cut.
Does Bank of America Have a High-Yield Savings Account?
No, Bank of America does not offer a high-yield savings account. If you keep enough money on deposit with Bank of America ($20,000 or more), you may qualify for a higher-level interest rate tier, but even then, the rates are extremely low. Check out the best high-yield savings accounts to see the top rates available today.
How Often Can You Withdraw Money From a Bank of America Savings Account?
You can make up to six withdrawals per month from a Bank of America Savings account. This limit applies to all withdrawal methods—in person at a branch location, online, via ATM, etc. If you go above that, Bank of America will charge you a $10 excessive withdrawal fee for each instance, up to six times per month (a potential total of $60 in penalty fees each month).
How Can I Open a Saving Account With Bank of America?
You can open a savings account online directly on the Bank of America website. If you live near a branch location, you can also apply for an account in person. You’ll need to provide a few bits of information on your application, including your Social Security number, contact information, and the routing and account number for your current bank account.
Are Bank of America Savings Accounts FDIC-Insured?
Yes, Bank of America savings accounts are FDIC-insured up to the standard $250,000. The bank does offer extra bonuses and perks if you deposit more money beyond this level, but because your money isn’t protected in these cases, it’s not recommended practice to do this.
Does Bank of America Have a Free Savings Account?
No, Bank of America does not have a free savings account available for the general public. Certain people may qualify for a waiver based on their demographic characteristics, notably minors under age 18 and students under age 25. You can also qualify for a monthly fee waiver if you meet certain requirements each month, such as becoming a Preferred Rewards member; but if not, you’ll be charged $8 per month.
Your Guide to Savings Accounts
- What Is a Savings Account and How Does It Work?
- What Is a High-Yield Savings Account?
- How to Open a High-Yield Savings Account
- How to Close a Savings Account
- Besides a Savings Account, Where Is the Safest Place to Keep My Money?
- How Many Savings Accounts Should I Have?
- How Savings Account Interest Rates Are Determined
- How Interest Works on Savings Accounts
- How Is a Savings Account Taxed?
- Money Market Fund vs. MMA vs. Savings Account: What’s the Difference?
- Certificates of Deposit (CDs) vs. Savings Accounts: Which Is Better for You?
- 4 Savings Accounts for Investors
- Best High-Yield Savings Accounts
- Best Free Savings Accounts
- Best Savings Accounts for Kids and Teens
