Bank of America savings interest rates in March 2024 (2024)

As the second largest bank in the nation, Bank of America has 69 million customers, 3,800 financial centers and 15,000 ATMs.

The bank mainly operates in the United States and is headquartered in North Carolina. However, it also services over 35 countries around the world.

While Bank of America’s savings account interest rates are relatively low, its Preferred Rewards program can provide many benefits, including a slightly higher annual percentage yield (APY), credit card bonuses and loan discounts. It also offers luxury perks for higher account tiers.

Let’s look closer at the savings account interest rates at Bank of America.

Bank of America savings account interest rates

Bank of America’s personal savings account is called the Bank of America Advantage Savings. While its standard rate is low, you may qualify for a higher APY with Preferred Rewards.

Here are the APYs for the Bank of America Advantage Savings account tiers in Charlotte, North Carolina; however, rates may vary by location.

Increase your interest rate with Preferred Rewards

With Bank of America’s Preferred Reward program, you receive numerous benefits, including a higher interest rate. The APY you receive depends on your account tier, determined by your three-month combined average balance. Here are the balances required for each tier:

• Gold Tier: $20,000 to $49,999.99
• Platinum Tier: $50,000 to $99,999.99
• Platinum Honors Tier: $100,000 to $1,999,999.99
• Diamond Tier: $1,000,000 to $9,999,999.99
• Diamond Honors Tier: $10,000,000 and above

You must have a Bank of America checking account to qualify for preferred rewards.

Along with a higher APY, Preferred Rewards also grants you a 25% to 75% bonus on rewards earned from eligible Bank of America credit cards.

For example, with the Gold tier, earning $180 in cash back from a credit card would get you $225 after the 25% bonus.

Other perks from Preferred Rewards include rate discounts for Bank of America loans, waivers for monthly fees and discounts on foreign currency.

If you qualify for the Diamond or Diamond Honors tiers, you can access premium perks. These include luxury vehicle incentives, luxury vacation discounts and a private advisor to help you build a wine or spirits collection.

How much can you earn with a Bank of America Savings Account

Bank of America compounds and pays interest monthly. Let’s take a look at the returns you could earn on $10,000 with the Bank of America Advantage Savings account:

Other savings options at Bank of America

In addition to its Advantage Savings account, Bank of America offers a few options for certificates of deposit (CDs). There are three types of CDs to choose from:

• Featured CDs
• Fixed CDs
• Flexible CDs

A minimum $1,000 deposit is required to open a Bank of America CD. Terms range anywhere from 28 days to 10 years. IRA versions of the CDs are also available.

The interest rate you’ll receive on CDs depends on the type of CD you select and the term. Rates range from 0.03% APY to 5.15% APY.

If you withdraw funds from a featured or fixed CD before maturity, there will be an early withdrawal penalty. For CDs with terms between 90 days and 12 months, the penalty is equal to 90 days of interest.

For CDs with terms between 12 and 60 months, the penalty equals 180 days of interest. And for CDs with terms longer than 60 months, the penalty equals 365 days of interest.

Flexible CDs do not have an early withdrawal penalty as long as you keep the account open for at least six days.

Bank of America vs. other banks

Bank of America’s savings account interest rates are pretty low compared to other banks — even with the Preferred Rewards rate boost. With APYs ranging from 0.01% to 0.04%, its rates sit well below the national average of 0.46%, according to the FDIC data.

You can find much higher rates if you shop around for high-yield savings accounts.

Is Bank of America a good choice for a savings account?

Bank of America savings account interest rates are low, so it may not be the best option if you’re looking for the best APY.

However, you’ll find most high-interest-earning savings accounts at online banks. Since Bank of America has plenty of brick-and-mortar locations, it may be a solid choice for those who aren’t comfortable with banking entirely online.

Its Preferred Reward program can give you a slight interest rate boost while providing a bonus for rewards earned through the bank’s credit cards, but you’ll need quite a bit of cash with the bank to qualify.

Those with over $1 million in savings may benefit the most from choosing Bank of America. You can unlock many exclusive offers, experiences and events with Preferred Rewards Diamond and Diamond Honors tiers.