Savings account interest rates are finally rising for the first time in years, making them a solid option for safely growing your money. Why are rates rising? The Federal Reserve is hiking interest rates to try to cool runaway inflation, which is indirectly driving up interest rates on financial accounts like credit cards, loans and mortgages, as well as savings accounts.
Some banks are now offering annual percentage yields as high as 2%, making it a more attractive time to park your money in a savings account. (APY is the compounding interest rate you earn on your savings.) The higher the APY, the more you’ll earn in interest over time. Though APYs have been low for the last couple of years, many banks are boosting their APYs. But other large banks haven’t moved an inch… yet.
Bank of America continues to offer relatively low APYs, even if you have tens of thousands of dollars in a savings account. However, if getting a higher interest rate is not as important as having nationwide access to physical branches or bringing all your finances under one roof, Bank of America might make sense for you.
Read on for more information about Bank of America’s savings account, what APY you can earn and how it compares to other banks.
Bank of America savings account options
Bank of America has just one savings account: Advantage Savings. The base APY is 0.01%, but if you’re eligible and enroll for the Preferred Rewards program, you can earn up to 0.04%.
The Preferred Rewards tiers are: Advantage Savings Gold tier, Advantage Savings Platinum tier and Advantage Savings Platinum Honors tier. The only difference among them is the amount of APY you can earn.
Bank of America savings account options, compared
| Account name | APY | Minimum deposit to open the account | Monthly service fee* | Balance required |
|---|---|---|---|---|
| Advantage Savings | 0.01% | $100 | $8 | $0 |
| Advantage Savings, Gold | 0.02% | $100 | $0 | $20,000 to $50,000** |
| Advantage Savings, Platinum Tier | 0.03% | $100 | $0 | $50,000 to $100,000** |
| Advantage Savings, Platinum Honors | 0.04% | $100 | $0 | $100,000 to $1 million** |
*Fees are waivable.
**Three-month combined average daily balance in Bank of America deposit accounts and/or Merrill investment accounts.
Note: Rates as of Aug. 31, 2022. APYs vary by region, and Bank of America’s savings account may not be available everywhere. You’ll need to check your ZIP code on Bank of America’s website to see your options.
Bank of America Advantage Savings
Advantage Savings is Bank of America’s standard savings account. You earn 0.01% APY (well below the national average APY for savings accounts) and interest compounding monthly. You can open this account with an initial deposit of $100. You’ll be charged an $8 monthly maintenance fee, unless you meet one of Bank of America’s listed criteria, such as maintaining a minimum balance of $500 or linking to Bank of America Advantage Relationship Banking®.
For any new account opened, though, Bank of America will waive the fee for the first six months.
Preferred Rewards Bank of America Advantage Savings
If you maintain a higher balance, you may be eligible for Preferred Rewards membership, which can earn a higher APY on the money in your Advantage Savings account.
To get approved for a higher APY account, you’ll need a Bank of America checking account and a a three-month combined daily average in any of your your Bank of America deposit accounts (i.e., checking and savings) and/or a Merrill investment account.
Here’s how much APY you can earn and money you’ll need for each of the upper-tier accounts:
- Gold: 0.02% APY; $20,000 to $50,0000
- Platinum: 0.03% APY; $50,000 to $100,000
- Platinum Honors: 0.04% APY; $100,000 to $1 million
As a Preferred Rewards client, you don’t have to pay the $8 monthly fee.
Enrolling in the Preferred Rewards higher tiers isn’t automatic. Once you reach $20,000 in assets, Erica, Bank of America’s AI-driven financial assistant, will nudge you to enroll in the Preferred Rewards program to get the benefits. Once you enroll, you’ll be automatically bumped into the higher tiers as your assets reach the additional thresholds, according to a Bank of America spokesperson.
If you’ve got a lot of assets stored at Bank of America and/or Merrill investment accounts, Advantage Savings might make sense for you — but you’ll still be earning relatively low APY compared to the national average and competitors offering over 1% APY.
How Bank of America’s APYs compare to other banks
While other brick-and-mortar banks like Chase and Wells Fargo also have monthly fees and similarly low APYs, their standard savings accounts tout some benefits over Bank of America’s. For example, both have cheaper monthly fees — $5 instead of $8 — and the option to waive the fee with just $300 in your savings account — $200 less than what Bank of America requires.
APY comparison
| Account name | APY | First year earnings on $5,000 |
|---|---|---|
| Bank of America Advantage Savings | 0.01% | $0.50 |
| Chase Premier Savings | 0.02% | $1.00 |
| Bread Savings | 2.15% | $107.50 |
| Varo* | 5.00% | $250.00 |
*Varo’s savings account enables you to start earning 1.20% APY and then qualify to earn 5.00% APY.
Opening a standard savings account with Chase and Wells Fargo is also more accessible than Bank of America. Chase doesn’t require a minimum deposit for a savings account, and Wells Fargo requires just $25 for its base savings account — four times less than what Bank of America requires.
Parking your savings in an online bank may make sense if you want to earn more in interest. Online banks can offer high APYs, because they don’t have physical locations to manage, reducing their overhead costs, which they then pass on to customers in the form of reduced fees and higher interest rates.
That noted, there are some banks you can visit in-person that offer high APYs and no account fees, including Capital One’s 360 Performance Savings, which offers a robust 1.75% APY.
For more banks offering higher savings account rates, check out our picks for the best savings accounts.
FAQs
What’s the current situation on savings interest rates?
Savings account interest rates have been extraordinarily low in recent years. However, savings account rates are beginning to rise. When the Fed raises the federal funds rate — as it has several times this year already — it increases the interest rate banks charge each other for borrowing and lending money. To offset the costs, banks increase interest rates on consumer accounts, like credit cards and loans, which makes it more expensive for customers to borrow money. Savings account rates also go up, attracting new customers who want to get higher interest on their savings.
What’s the average savings account interest rate?
For most of early 2022, the average savings account interest rate in the US was 0.06%. Since then, it’s been ticking up, slowly, reaching 0.08% in June and 0.13% in August. Many banks with physical branches, which historically have lower savings account rates than online-only banks, have started increasing APY rates for savings accounts.
Which banks offer the highest savings interest rates?
Interest rates have fluctuated widely throughout June in response to the rapidly evolving economic situation in the US. That said, as of July 25, 2022, here are some banks offering high APYs.
SoFi, an online-only bank, offers savings accounts with an APY as high as 1.50%. Physical banks are jumping in, too, such as Citibank and Capital One, which have high-yield savings accounts with APYs up to 2.0% and 1.75%, respectively. Capital One’s 360 Performance Savings account doesn’t include a fee, but Citibank’s Accelerate Savings account does, at $4.50 per month.
What are high interest alternatives to savings accounts?
I bonds — secure government-backed investments sold directly to the public — offer a considerably more appealing interest rate of 9.62%. This is a good option if you won’t need access to your funds for five years. You can’t draw on your funds for the first year at all, and if you withdraw before the five year holding period is up, you’ll face a three month interest penalty for withdrawing early. After five years, you can take out the money from your I bond without penalty.
A certificate of deposit is another high interest alternative to savings accounts. A CD is similar to a savings account, but it’s a one time investment rather than an account you continue pouring money into. With a CD, you make one lump-sum deposit at a fixed interest rate for a specified period, which could range from a month all the way up to 10 years. Since CD APYs are directly tied to the federal funds rate, CD interest rates are currently rising, reaching over 3% at some banks.
How often can you withdraw money from a Bank of America savings account?
You can withdraw from Advantage Savings six times per month without penalty. After six withdrawals, Bank of America charges you $10. You can incur this additional withdrawal fee six times, for a total penalty of $60. You can waive this fee if you:
- Are under the age of 18
- Qualify as a student
- Maintain a minimum daily balance of $20,000 or more
- Are enrolled in the Preferred Rewards program
This withdrawal limit used to be the standard in the US due to a Federal Reserve rule called Regulation D. In April 2020, the Fed eliminated this rule to allow consumers unfettered access to their savings throughout the pandemic. As a result, some banks have eliminated the withdrawal limit, or increased the number of withdrawals before charging you.
Bank of America’s $10 fee for up to six extra withdrawals is expensive compared to Chase, which charges $5 per extra withdrawal only up to three times (that’s $60 max versus $15 max)
Do all savings accounts have monthly fees?
Brick-and-mortar banks like Bank of America, Chase and Wells Fargo typically charge a monthly fee for a savings account. Monthly fees are usually waived if you maintain a set minimum balance. If you can’t satisfy that requirement, consider a savings account without monthly fees such as Capital One’s 360 Savings account.
Monthly fees can severely cut into your savings. For example, if you save $496 with Bank of America in your first year, you’ll earn just three cents in interest by the end of the year, all while paying a total of $96 in monthly fees. Bank of America’s monthly fee is higher than Chase and Wells Fargo, which costs $5 per month.
All rates are current as of Aug. 31, 2022.
More banking advice
- Chase Savings Account Rates
- Best Checking Accounts
- Best Savings Accounts
- Best High-Yield Savings Accounts
- Best CD Rates
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
FAQs
Does Bank of America savings account earn interest?
Bank of America interest rates 0.01%. The average national rate for savings accounts is 0.13% APY. $8, waived for the first six months. Enroll in the Preferred Rewards Program.
What is the savings account interest rate at Bank of America?
Bank of America savings account rates
| Account name | Interest rate | Minimum deposit |
|---|---|---|
| Advantage Savings | 0.01% | $100 |
| Advantage Savings, Gold | 0.02% | $100 |
| Advantage Savings, Platinum | 0.03% | $100 |
| Advantage Savings, Platinum Honors | 0.04% | $100 |
2 more rows?
Which bank gives 7% interest on savings account?
As a consequence, here are the seven DICGC insured savings accounts now giving the highest interest rate of 7% in the country….Jana Small Finance Bank.
| Savings Account Balance | Interest Rate Per Annum |
|---|---|
| More than 1 lakh and Upto 50 Lakhs | 7.00% |
| More than 50 Lakhs and Upto 50 Crores | 6.50% |
2 more rows?
How do I earn more interest on my Bank of America savings account?
Extra interest Extra interest is earned automatically when an account owner is enrolled in the Preferred Rewards program. The interest rate will increase by at least 5%, 10% or 20% over the standard rate, and is based on the Preferred Rewards tier in which you’re enrolled. We may decide to pay a higher rate.
What is 5.00% APY mean?
If an individual deposits $1,000 into a savings account that pays 5 percent interest annually, he will make $1,050 at the end of year. However, the bank may calculate and pay interest every month, in which case he would end the year with $1,051.16. In the latter case, he would have earned an APY of more than 5 percent.
Open a Bank of America Advantage Savings Account Online
Savings Account – Open a Bank of America Advantage Savings Account OnlineSkip to main contentGet a head start on your futureGet a head start on your futureStart saving todayStart saving todayplease wait while the page loadsHow we can helpOur savings account layer can help boost your financial health and put your goals into focus.What is a savings account?A savings account is a deposit account that generally earns higher interest than an interest-bearing checking account. Savings accounts limit the number of certain types of transfers or withdrawals you can make from the account each monthly statement cycle.Personalized planningBank of America Life Plan® is an easy, flexible way to set and track your short- and long-term goals, get one-on-one advice and adjust when life changes.Learn more about Life PlanA rewarding relationshipQualifying members can enjoy benefits and rewards on everyday banking, from interest rate boosters to waivers on certain services.Learn more about Preferred RewardsEasy ways to saveHave a checking account with us, too? Enroll to round up debit card purchases and transfer the difference to savings automatically.Learn more about Keep the Change®Cash back dealsWant to put more in savings? Search participating merchants and earn up to 10% cash back on everyday purchases.Learn more about BankAmeriDeals®Account details and feesAccount details and fees , openMonthly FeeNo monthly maintenance fee for each statement cycle that you:Maintain a minimum daily balance of at least $XXXXorLink your Bank of America Advantage Savings account to your Bank of America Advantage Relationship Banking® account (waiver applies to first 4 savings accounts)orWhen you are a Bank of America Preferred Rewards client (waiver applies to first 4 checking and savings accounts)orAn account owner is under age 18orAn account owner is under age 25 and qualifies as a Studentor pay $XXXX/monthFor new Bank of America Advantage Savings accounts, we’ll waive this fee for the first 6 monthsRequired Opening Deposit$XXXXWithdrawal Limit FeeMake a total of 6 transfers and withdrawals each monthly statement cycle with no Withdrawal Limit Fee. A $10 fee applies for each withdrawal or transfer exceeding 6 in a monthly statement cycle.Other limits apply to certain types of withdrawals and transfers.Monthly FeeRequired Opening DepositWithdrawal Limit FeeNo monthly maintenance fee for each statement cycle that you:Maintain a minimum daily balance of at least $XXXXorLink your Bank of America Advantage Savings account to your Bank of America Advantage Relationship Banking® account (waiver applies to first 4 savings accounts)orWhen you are a Bank of America Preferred Rewards client (waiver applies to first 4 checking and savings accounts)orAn account owner is under age 18orAn account owner is under age 25 and qualifies as a Studentor pay $XXXX/monthFor new Bank of America Advantage Savings accounts, we’ll waive this fee for the first 6 months$XXXXMake a total of 6 transfers and withdrawals each monthly statement cycle with no Withdrawal Limit Fee. A $10 fee applies for each withdrawal or transfer exceeding 6 in a monthly statement cycle.Other limits apply to certain types of withdrawals and transfers.RatesRates , openToday’s ratesAccount balanceStandard Annual Percentage Yield (APY)Today’s ratesAccount balanceStandard Annual Percentage Yield (APY)Preferred Rewards members can earn even more. How to qualify layerGold Tier APYPlatinum Tier APYPlatinum Honors Tier APYHow to qualifyAll you need to qualify is an eligible Bank of America® personal checking account and a three-month combined average…
Savings Account FAQs: Rates, Fees, Minimums, and More
Savings Account FAQs: Rates, Fees, Minimums, and MoreSavings Accounts FAQsSelect Your StatePlease tell us where you bank so we can give you accurate rate and fee information for your location. | When do I start earning interest on my savings account? Interest begins to accrue on the day the account is processed, not the day the application is submitted. The application will be processed at the interest rate that was effective on the day that the application was submitted.With a Bank of America Advantage Savings account the more you save the more you could earnPlease select your countyEnter your zip codePlease enter the zip code for your home address so we can give you accurate rate and fee information for your location.
Account Interest Rates for Savings, Checking, CDs & IRAs
Account Interest Rates for Savings, Checking, CDs & IRAs Sign inLog inLocationsShow/Hide Menu related links Bank Account InterestRates and APYsplease wait while the page loadsConsumer & Small Business Interest RatesSelect View PDF to access checking, savings, CD and IRA account rates and APYs specific to your area.View PDF Consumer & Business Online Rates View PDF Consumer & Business Online RatesInformation for:ZIP code * Please select your countySelect a countyGoEnter your zip codePlease enter the zip code for your home address so we can give you accurate rate and fee information for your location.ZIP code * GoContact usSchedule an appointmentSchedule an appointmentCall usPhone number:800.432.1000
Bank Account Interest Rates for Savings, Checking & CDs …
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Bank of America Savings Account Rates for September 2022
Bank of America Savings Account Rates for September 2022 Savings account interest rates are finally rising for the first time in years, making them a solid option for safely growing your money. Why are rates rising? The Federal Reserve is hiking interest rates to try to cool runaway inflation, which is indirectly driving up interest rates on financial accounts like credit cards, loans and mortgages, as well as savings accounts.Some banks are now offering annual percentage yields as high as 2%, making it a more attractive time to park your money in a savings account. (APY is the compounding interest rate you earn on your savings.) The higher the APY, the more you’ll earn in interest over time. Though APYs have been low for the last couple of years, many banks are boosting their APYs. But other large banks haven’t moved an inch… yet. Bank of America continues to offer relatively low APYs, even if you have tens of thousands of dollars in a savings account. However, if getting a higher interest rate is not as important as having nationwide access to physical branches or bringing all your finances under one roof, Bank of America might make sense for you.Read on for more information about Bank of America’s savings account, what APY you can earn and how it compares to other banks.Bank of America savings account optionsBank of America has just one savings account: Advantage Savings. The base APY is 0.01%, but if you’re eligible and enroll for the Preferred Rewards program, you can earn up to 0.04%.The Preferred Rewards tiers are: Advantage Savings Gold tier, Advantage Savings Platinum tier and Advantage Savings Platinum Honors tier. The only difference among them is the amount of APY you can earn. Bank of America savings account options, compared Account name APY Minimum deposit to open the account Monthly service fee* Balance required Advantage Savings 0.01% $100 $8 $0 Advantage Savings, Gold 0.02% $100 $0 $20,000 to $50,000** Advantage Savings, Platinum Tier 0.03% $100 $0 $50,000 to $100,000** Advantage Savings, Platinum Honors 0.04% $100 $0 $100,000 to $1 million** *Fees are waivable.**Three-month combined average daily balance in Bank of America deposit accounts and/or Merrill investment accounts.Note: Rates as of Aug. 31, 2022. APYs vary by region, and Bank of America’s savings account may not be available everywhere. You’ll need to check your ZIP code on Bank of America’s website to see your options.Bank of America Advantage SavingsAdvantage Savings is Bank of America’s standard savings account. You earn 0.01% APY (well below the national average APY for savings accounts) and interest compounding monthly. You can open this account with an initial deposit of $100. You’ll be charged an $8 monthly maintenance fee, unless you meet one of Bank of America’s listed criteria, such as maintaining a minimum balance of $500 or linking to Bank of America Advantage Relationship Banking®.For any new account opened, though, Bank of America will waive the fee for the first six months. Preferred Rewards Bank of America Advantage SavingsIf you maintain a higher balance, you may be eligible for Preferred Rewards membership, which can earn a higher APY on the money in your Advantage Savings account.To get approved for a higher APY account, you’ll need a Bank of America checking account and a a three-month combined daily average in any…
Bank of America Savings Account Interest Rates – NerdWallet
Bank of America Savings Account Interest Rates: How They Compare – NerdWalletWhile Bank of America earns 3.5 stars overall in NerdWallet’s Bank of America review, its Advantage Savings account earns 3.0 stars, partly because of its low 0.01% annual percentage yield, or APY. There are slightly better rates available, however, for customers enrolled in the bank’s Preferred Rewards program.Bank of America’s rates are similar to those at other large banks, but are much lower than what many online institutions offer. (The best savings APYs are around 1% and higher.)Bank of America interest ratesInterest rate on balances0.01%.How it comparesThe average national rate for savings accounts is 0.13% APY.Monthly fees$8, waived for the first six months.How to avoid monthly feesMaintain minimum daily balance of at least $500, orLink to a qualifying checking account, orEnroll in the Preferred Rewards Program. (To enroll, you’ll need to have qualifying accounts with a three-month combined average daily balance of at least $20,000. Other perks include loan discounts and no-fee ATM transactions.) Or,No fee if the account owner is under age 18.Minimum opening deposit$100.Interest on balances for premium savings accountsUp to 0.04% APY for customers enrolled in Preferred Rewards. (APYs may vary depending on where you live.)How Bank of America compares to online banksLarge national banks tend to have savings accounts with low interest rates, in part because the institutions spend a lot of money on physical bank branches. You can find higher rates at online banks. They tend to have savings accounts with high yields, often with no monthly fees or minimum balance requirements.Bank of America CDs and other savings optionsBank of America has other savings options, but they don’t earn much interest, either. You can open a standard Bank of America CD with a $1,000 minimum. CD terms range from 28 days to ten years. Rates may vary based on term length and deposit amount. They start at 0.03% APY and don’t increase much from there.Find out how much interest you could be earning with the calculator below. The higher the rate, the faster your money can grow.SoFi Checking and SavingsUFB Rewards SavingsCitizens Online Savings AccountMin. balance for APY$5,000CIT Bank Savings ConnectLendingClub High-Yield Savings
Bank of America Savings Account Rates – Bankrate.com
Bank of America Savings Account Rates | Bankrate GaudiLab/Shutterstock Jan. 26, 2022 / 1 min read Jan. 26, 2022 / 1 min read Bankrate Logo Why you can trust Bankrate Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate Logo Editorial Integrity Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Here is a list of our banking partners. Key Principles We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate Logo How We Make Money You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules…
Best Savings Accounts for September 2022 – Bankrate.com
Best Savings Accounts for September 2022 | Bankrate Great news for savers! Fed rate hikes mean higher APYs on Bankrate. Be sure to get a great return on your investment below. Savings ratesMoney MarketMoney Market IRA ON THIS PAGE How to choose a savings account Best online accounts and rates What is a savings account? How do savings accounts work? Savings account terminology What are the different types of savings accounts? How to find the best savings account Complements and alternatives to savings accounts Savings account FAQs Back to rates How to choose a savings account Savings accounts are a good option for achieving your money-saving goals. You’ll want to choose a savings account that offers a competitive annual percentage yield (APY) on your money. It can pay to choose one that either doesn’t have a monthly service fee or has a minimum balance requirement that you can meet to waive the fee. Here are some steps to follow as you look for the best place to stash your savings: 1. Determine what the money will be used for. 2. Figure out when you’ll need to access the funds. Money to purchase a car in the next year might be best kept in a savings account, for example. 3. Shop around. You’ll want to research banks and credit unions and compare rates. Check to see if there are any minimum balance requirements or monthly maintenance fees that could negatively impact you down the line. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer competitive yields. 4. Determine your risk tolerance. Money that needs to be safe and can’t be lost should usually be in a Federal Deposit Insurance Corp. (FDIC) account that’s within FDIC limits and guidelines. 5. Open the savings account and deposit the funds into your account. 6. Consider setting up a split direct deposit to automatically add to your savings. Bankrate’s experience on financial advice and reporting At Bankrate, we regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of interest rates. All of the savings accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best savings account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility. We strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as APY, minimum balance requirements and broad availability. Best online savings accounts and rates of September 2022 Here are Bankrate’s selections for the best widely available savings account rates from top online banks: Note: Annual percentage yields (APYs) shown are as of Aug. 31, 2022. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings. Best Overall Rate: Bread Savings (formerly Comenity Direct) – 2.15% APY, $100 minimum to open account (no ATM access) Overview Bread Savings (previously known as Comenity Direct) is FDIC insured through Comenity Capital Bank. The Bread Savings high-yield savings account offers a competitive yield, requires just $100 to open and has no monthly service fee. Loan $100 minimum opening deposit High Rate: CIT Bank – 2.10% APY, no minimum balance needed for APY Overview CIT Bank, an online-only bank, is now a division of First Citizens Bank, following the completion of a merger in January 2022. CIT Bank’s Savings Connect account earns the online bank’s highest yield. It also has a Savings Builder account, a checking account, a money market account and CDs. Loan $100 minimum opening deposit High Rate: Citizens – 2.10% APY, $5,000 minimum balance to earn APY (no ATM access) Overview Citizens is the online bank division of Citizens Bank. It offers a…
Bank of America Interest Rates: How To Get the Best Rates
Bank of America Interest Rates: How To Get the Best Rates Jonathan Weiss / Shutterstock.com If you’re looking to set aside funds for a rainy day, Bank of America offers several savings account options. However, due to Bank of America’s size, its savings accounts tend to offer high fees and relatively low interest rates compared to the national average. It’s important to note that Bank of America offers different interest rates depending on customer location, so its rates may vary. To get a better interest rate on your savings accounts, you should compare the different offerings from Bank of America — and try to avoid any fees that might negate your savings. Bank of America Savings Account Rates Bank of America offers three types of savings accounts: Advantage Savings, Minor Savings and Custodial (UTMA) Savings. Here’s a look at the annual percentage yields and minimum opening deposit amounts for each of Bank of America’s savings accounts: Account APY Minimum Opening Deposit Bank of America Advantage Savings 0.01% $100 Minor Savings Account 0.01% $25 Custodial (UTMA) Savings Account 0.01% $100 How Rates at Bank of America and Other Banks Compare While Bank of America’s savings rates tend to be fairly low, so do the rates at other national banks. However, online banks commonly offer much higher rates than their brick-and-mortar counterparts. To get an idea, take a look at this table that compares the interest rates for savings accounts and one-year CD accounts at both national and online banks: Bank Savings Account APY 12-month CD Account APY Bank of America 0.01% 0.03% for all balance tiers Chase 0.01% 0.02% for balances under $10,000, then 0.05% Wells Fargo 0.01% 0.01%-0.02% Ally Bank 2.00% 2.70% Vio Bank 0.75% 2.25% Marcus by Goldman Sachs 0% 0% The rates on savings accounts for Bank of America, Chase and Wells Fargo are identical at 0.01% APY, and they’re nowhere near the rates online banks like Ally and Vio offer at 2.00% APY or better. And while Bank of America dominates in the 12-month CD category among national banks, with a 0.03% APY, the rate is still considered low relative to the top interest rates offered by online banks. How To Make the Most of Your Savings at Bank of America Because its savings rate is 0.01% APY, it’s important to avoid Bank of America’s monthly fees, which can potentially cancel out any interest you may earn. The Minor Savings account does not have a monthly maintenance fee, but both the Advantage Savings and Custodial (UTMA) Savings accounts carry an $8 monthly maintenance fee. As long as you carry a $500 balance each month in either account, however, Bank of America will waive the fee. Customers can also qualify for Preferred Rewards, which provides interest-rate boosters: Preferred Rewards Tier APY Gold 0.05% Platinum 0.10% Platinum Honors 0.20% The booster increases Bank of America’s standard rate by at least 5%, 10% or 20% as you enter each respective Preferred Rewards tier, which can help you make the most of your savings balance. Alexandria Bova contributed to the reporting for this article. This content is not provided by Bank of America. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Bank of America. Rates are subject to change; unless otherwise noted, rates are updated periodically. Savings and CD rates were updated on April 22, 2022 to reflect current rates. All other information on accounts is accurate as of June 10, 2022. Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings…
Bank of America Savings Account Review – MyBankTracker.com
Bank of America Savings Account 2022 Review – Should You Open? Bank of America Savings Account You’re looking for a new savings account and Bank of America is the destination that you’re considering. It’s not surprising, given that it is among the largest U.S. banks that offers a wide range of banking products and services. Bank of America offers one savings banking account option: the Rewards Savings account. But, it is one of a long list of options that may be available to you. In this Bank of America Savings Account review, we’ll break down the fees, rates, and services of this account so that you’ll be able to determine whether it is the right savings account for you. Key Highlights Bank of America is one of the largest financial institutions in the country, and that brand recognition often inspires confidence and a sense of reliability. Here’s a quick overview of the account highlights, which we’ll delve into more below: $8 monthly fee, unless you meet certain criteria for a fee waiver Tiered savings model so as your account balance increases, your interest rate increases as well Potential interest rate boost if you become a Preferred Rewards client Special features include overdraft protection on your Bank of America checking account and enrollment in Bank of America’s Keep the Change savings program Bank of America Savings Account Pros & Cons Pros Cons Automatic savings program available Access to shopping deals program Access to physical branches Mobile apps available Monthly fee Interest rate is much lower compared to online savings accounts Savings Account Interest Rate The interest rate on this Bank of America savings account is very lackluster. The low return makes it undesirable for people interested in earning high interests on their savings. Look: If you’re more concerned with finding an easily accessible savings account than with earning money on it, the Bank of America Rewards Savings account does the job. But, let’s face it… You want to grow your money. The extremely low interest rate on this account won’t help you toward that goal. You might also consider opening an account with an online bank instead. Bank of America Savings Account Maintenance Fee This savings account does have a $8 monthly maintenance fee, which is a bit high compared to some savings accounts that have no monthly maintenance fee. This account bears a $35 overdraft fee and returned item fee, as well as a $12 deposited item returned fee. Here’s a snippet of some of the other fees that come with this account: Bank of America Savings Account Fees Type Fee Monthly Maintenance Fee $8 Withdrawal Limit Fee $10 Minimum Opening Deposit $100 Overdraft Item Fee $35 NSF: Returned Item Fee $35 Overdraft Protection Transfer Fee $12 Non-Bank of America ATMs $2.50 Statement Copies $5 Deposited Item Returned $12 Check-Cashing Fee $8 per check for amounts greater than $50 How to Avoid Monthly Maintenance Fee Although this account comes with an $8 monthly maintenance fee, you can waive it by meeting one of the following requirements: Maintain a minimum daily account balance of at least $500, Link it to your Bank of America Interest Checking account, or Be a Bank of America Preferred Rewards client This monthly maintenance fee is higher than what Wells Fargo and TD Bank charge on their comparable banking products. What is the minimum balance required for Bank of America? The minimum balance required for the Bank of America savings account is $500 per day. It means that the balance posted in the account at the end of every day must be $500 or more in order to waive the monthly fee. Now, the actual balance can dip below that minimum daily balance during the day — it’s the end-of-day account balance that counts. Standard Excess Withdrawal Policy Bank of America allows you to make six total…