A high-yield savings account (HYSA) is a popular option for individuals looking to grow their savings faster than traditional savings accounts.
These accounts typically offer significantly higher interest rates, helping savers earn more over time.
Bank of America, one of the largest financial institutions in the U.S., provides a range of savings account options, but do they include a true high-yield savings account?
In this guide, we’ll examine does Bank of America have a high-yeild savings account offerings, their interest rates for 2025, and how they compare to high-yield alternatives.
We’ll also explore the pros and cons of banking with Bank of America and suggest alternative banks with better savings rates.
What Is a High-Yield Savings Account?
A high-yield savings account is a type of savings account that offers an interest rate significantly higher than the national average.
The primary advantage of these accounts is that they allow your money to grow faster while maintaining easy access to your funds.
Unlike investments, HYSAs are generally low-risk, making them ideal for emergency funds or short-term savings goals.
The national average interest rate for a traditional savings account hovers around 0.45% APY, while high-yield savings accounts typically offer 3.00% to 5.00% APY.
These higher rates are often provided by online banks, as they have lower overhead costs compared to traditional brick-and-mortar institutions.
High-yield savings accounts are particularly beneficial for:
- Individuals looking to earn higher interest without market risks.
- Those who prefer liquidity over long-term investment commitments.
- Customers seeking a low-maintenance way to grow their savings passively.
Now, let’s see if Bank of America offers such an account and how its savings products compare.
Does Bank of America Have a High-Yield Savings Account?
Bank of America does not currently offer a high-yield savings account. The bank’s primary savings product, the Bank of America Advantage Savings Account, has an interest rate that is significantly lower than the rates offered by leading high-yield savings accounts.
While Bank of America provides convenience, security, and nationwide access, its savings account interest rates remain uncompetitive compared to online banks.
The Advantage Savings Account offers a tiered interest rate structure, meaning customers with higher account balances or enrollment in Bank of America’s Preferred Rewards program may earn slightly better rates.
However, even with these incentives, the rates still fall short of what online banks provide.
For individuals prioritizing higher interest earnings, it may be beneficial to consider alternatives such as Ally Bank, Marcus by Goldman Sachs, or Discover Bank, which offer HYSAs with much higher APYs.
What Are the Interest Rates for Bank of America Savings Accounts in 2025?
Bank of America’s savings account interest rates vary based on balance and Preferred Rewards membership status. Below is a breakdown of their current rates:
Bank of America Advantage Savings Account Interest Rates
| Balance Tier | Standard APY | Preferred Rewards APY |
| Less than $2,500 | 0.01% | 0.02% – 0.04% |
| $2,500 – $9,999 | 0.01% | 0.03% – 0.05% |
| $10,000 – $49,999 | 0.02% | 0.04% – 0.06% |
| $50,000+ | 0.02% | 0.05% – 0.06% |
Key Takeaways:
- Standard interest rates are well below the national average.
- Preferred Rewards members can earn slightly better rates, but they remain far lower than high-yield savings accounts.
- Higher balances yield minimal rate improvements.
Compared to online banks offering 3.00% to 5.00% APY, Bank of America’s savings account is not the best option for those seeking high returns on savings.
What Is the Bank of America Advantage Savings Account?
The Bank of America Advantage Savings Account offers a secure place to save with low interest rates, prioritizing accessibility over high returns.
It integrates seamlessly with the bank’s other services, allowing for automatic savings transfers and easy access to branches and ATMs. While convenient, its interest rates are among the lowest in the industry.
Features & Benefits
- Tiered interest rates that offer slightly higher APYs for larger balances.
- Automatic transfers to help build savings over time.
- Access to 4,000+ branches and ATMs nationwide.
- Online and mobile banking tools for easy account management.
Drawbacks
- Extremely low APY compared to online high-yield savings accounts.
- $8 monthly maintenance fee (waived with a $500 balance or Preferred Rewards membership).
- Limited interest growth, making it an unattractive option for those looking to maximize their savings returns.
While the Advantage Savings Account provides reliability and security, it falls short in terms of interest rates, making it less appealing for customers who want to grow their savings efficiently.
How Does Bank of America’s APY Compare to Online High-Yield Savings Accounts?
When comparing Bank of America’s APY to high-yield savings accounts from online banks, the difference is striking.
Online banks consistently offer much higher interest rates, often 40 to 50 times greater than Bank of America’s standard APY.
This discrepancy is due to the operational differences between traditional and online banks, online institutions save on overhead costs and pass these savings to customers in the form of higher interest rates.
Bank of America vs. Online High-Yield Savings Accounts
| Bank | APY Offered | Minimum Balance Required |
| Bank of America | 0.01% – 0.06% | $100+ |
| Ally Bank | 4.25% | No minimum |
| Marcus by Goldman Sachs | 4.40% | No minimum |
| Capital One 360 | 4.30% | No minimum |
| Discover Online Savings | 4.35% | No minimum |
Key Insights:
- Bank of America’s APY is significantly lower than online banks.
- High-yield savings accounts offer 40–50 times more interest than Bank of America’s Advantage Savings Account.
- Most online high-yield savings accounts have no minimum balance requirements, unlike Bank of America.
For customers focused on maximizing savings returns, online high-yield savings accounts are a much better choice.
How Can You Open a Savings Account with Bank of America?
Opening a Bank of America Advantage Savings Account is a straightforward process that can be completed online or in person at a branch.
Customers need to meet the minimum deposit requirement of $100, provide personal details, and verify their identity.
Online applications offer a faster and more convenient experience, while in-branch visits provide personalized customer support.
Online Application Process
- Visit the Bank of America website and navigate to the Advantage Savings Account page.
- Click “Open an Account” and enter your personal details (name, address, Social Security number).
- Link a funding source and deposit at least $100 to activate the account.
- Set up account preferences, including online banking and automatic transfers.
In-Branch Application Process
- Visit a nearby Bank of America branch during business hours.
- Bring required documents such as a government-issued ID and Social Security number.
- Consult a bank representative who will guide you through the process.
- Deposit at least $100 to activate the account.
Online applications provide convenience and quick setup, while in-branch visits allow for in-person assistance and guidance.
What Are the Minimum Balance and Fee Requirements?
Bank of America imposes certain balance and fee requirements on its Advantage Savings Account.
To avoid the $8 monthly maintenance fee, customers must maintain a minimum daily balance of $500 or qualify for the Preferred Rewards program.
Fee Structure and Requirements
| Requirement | Details |
| Minimum Balance | $100 to open |
| Monthly Fee | $8 (waived with $500 balance or Preferred Rewards membership) |
| Overdraft Fee | $10 per transaction |
| Withdrawal Limits | 6 withdrawals per month (standard federal limit) |
Key Considerations
- Customers who fail to meet the $500 balance requirement must pay an $8 monthly fee.
- The Preferred Rewards program offers fee waivers and higher APY, but eligibility depends on total assets with Bank of America.
- Exceeding six withdrawals per month may result in additional penalties.
Compared to high-yield savings accounts with no fees and higher APYs, Bank of America’s Advantage Savings Account is less attractive for those who want to grow their savings without added costs.
What Are the Pros and Cons of a Bank of America Savings Account?
Bank of America’s Advantage Savings Account offers both benefits and drawbacks.
While it provides access to branches and digital banking tools, its low interest rates and fees make it less competitive than online savings options.
Pros of a Bank of America Savings Account
- Access to 4,000+ physical branches and ATMs across the U.S.
- Seamless integration with checking accounts and other Bank of America products.
- Robust online and mobile banking features for easy fund transfers and account management.
- Automatic savings tools to help build savings over time.
Cons of a Bank of America Savings Account
- Extremely low APY, making it one of the least competitive savings accounts.
- $8 monthly maintenance fee, which applies unless balance requirements are met.
- Limited interest growth, making it an unattractive option for maximizing savings.
- Better high-yield alternatives are available from online banks with significantly higher APYs.
For those who value branch access and integration with other Bank of America products, this account might be useful.
However, for maximizing interest earnings, online banks offer far better alternatives.
Are There Better High-Yield Savings Account Alternatives?
Yes, several online banks offer significantly higher APYs than Bank of America.
These banks eliminate monthly fees, require no minimum balance, and provide interest rates 40-50 times higher than Bank of America’s Advantage Savings Account.
Top High-Yield Savings Account Alternatives (2025)
- Ally Bank: 4.25% APY, no minimum balance, no monthly fees.
- Marcus by Goldman Sachs: 4.40% APY, high-yield interest, FDIC-insured.
- Discover Bank: 4.35% APY, no monthly fees, great customer service.
For those looking to maximize their savings, these banks provide far better returns than Bank of America.
Conclusion
Bank of America’s Advantage Savings Account provides stability, security, and convenient branch access.
However, its low interest rates, maintenance fees, and withdrawal limits make it less competitive than online high-yield savings accounts.
If earning a higher return on savings is your goal, exploring online banks like Ally, Marcus, or Discover is a smarter financial decision.
These alternatives offer higher APYs, no monthly fees, and better savings growth potential.
Before choosing a savings account, compare options carefully to ensure you’re making the best choice for your financial future.
Frequently Asked Questions (FAQs)
What is considered a good interest rate for a savings account in 2024?
A good interest rate for a savings account in 2025 is around 3.00% to 5.00% APY. This is significantly higher than Bank of America’s standard rates.
Why do online banks offer higher interest rates than traditional banks?
Online banks have lower overhead costs since they don’t maintain physical branches. They pass these savings to customers by offering higher APYs.
How does Bank of America determine savings account interest rates?
Bank of America’s savings rates depend on factors like the Federal Reserve’s policies, market conditions, and your Preferred Rewards status. However, their APYs remain below industry averages.
What fees should I be aware of when opening a savings account at Bank of America?
Bank of America charges an $8 monthly maintenance fee, which can be waived with a $500 balance. Other fees include overdraft charges and excess withdrawal penalties.
Can you open a high-yield savings account with Bank of America online?
Bank of America does not offer a true high-yield savings account. However, you can open a standard savings account online with a minimum deposit of $100.
Is Bank of America’s savings account FDIC-insured?
Yes, Bank of America savings accounts are FDIC-insured up to $250,000 per depositor. This protects your money in case of bank failure.
What alternatives does Bank of America offer for higher returns on savings?
Bank of America offers CDs and money market accounts, which may provide slightly higher rates. However, online high-yield savings accounts still offer better returns.