Bank of America High Yield Savings: Does It Exist
If you have a Bank of America savings account, you’ve probably noticed the interest rate hasn’t moved much — even while online banks are paying over 4%. The bank’s flagship savings product, Advantage Savings, pays 0.01% APY for most customers, a rate that hasn’t kept pace with the broader market. Here’s why that is and where you can find real returns in 2025.
Bank of America Savings APY: 0.01% ·
Average High-Yield Savings APY: 4.00% – 4.50% ·
Annual Earnings on $10,000 at 4.00% APY: $400 ·
Bank of America Monthly Maintenance Fee: $8 (waivable) ·
Minimum Balance to Avoid Fee: $300
Quick snapshot
- Bank of America Advantage Savings pays 0.01% APY (Business Insider)
- Monthly $8 fee waived with $500 balance or other conditions (Bank of America official fee schedule)
- Top HYSA rates range from 4.00% to 5.00% APY (Investopedia)
- Whether Bank of America will introduce a high-yield savings product
- Future Federal Reserve interest rate decisions
- Exact promotional terms from smaller credit unions offering high rates
- New accounts get fee waiver for first 6 months (Bank of America)
- Rates reviewed as of July 2025 — current data from major sources (Bank of America)
- Consider splitting savings between Bank of America checking and an online HYSA
- Watch for rate changes from the Fed and competitive responses
| Metric | Value |
|---|---|
| Bank of America Savings APY | 0.01% (as of July 2025) |
| Minimum balance to avoid fee | $300 |
| Monthly maintenance fee | $8 (waivable) |
| Top HYSA APY range | 4.00% – 5.00% |
| Annual earnings on $10,000 in top HYSA | $400 – $500 |
| FDIC insurance limit | $250,000 per depositor |
Does Bank of America have a high yielding savings account?
The short answer is no. Bank of America’s Advantage Savings account, the bank’s flagship savings product according to Business Insider, pays just 0.01% APY — that’s one one-hundredth of a percent. Even customers enrolled in Preferred Rewards see only a tiny bump to 0.02%, 0.03%, or 0.04% APY depending on their tier.
What is the current APY on Bank of America savings accounts?
As of July 2025, Bank of America Advantage Savings pays 0.01% APY for standard customers. Bankrate notes that rates can vary by region, listing the New York tri-state area rates as of September 2025. Investopedia called the rates “disappointing” in their June 2025 review.
Is Bank of America Advantage Savings a high-yield account?
No. A high-yield savings account (HYSA) typically offers an APY of 4% or higher. Bank of America itself does not label Advantage Savings as high-yield. It’s a standard savings account designed for everyday banking, not for earning significant interest.
Bank of America customers earning 0.01% APY on a $10,000 balance will make $1 in a year. The same $10,000 in a 4.00% HYSA earns $400 — that’s 400 times more.
The implication: If you’re keeping more than a few hundred dollars in Bank of America savings, you’re losing hundreds of dollars in potential interest every year.
Why doesn’t Bank of America have a high-yield savings account?
Large banks like Bank of America operate on a different business model than online-only banks. Their priority is maintaining low-cost deposit funding — they pay almost nothing on deposits and use that cheap capital for lending and other profitable activities.
How do big banks set savings rates?
According to Investopedia, Bank of America uses variable tiered interest rates. But even the highest tier — available to customers with $100,000+ in combined balances through Preferred Rewards — reaches just 0.04% APY. That’s still 100 times lower than what leading online banks offer.
What is the business model behind low savings rates?
Bank of America competes on convenience — 3,900+ branches and 16,000+ ATMs nationwide — not on savings rates. Bankrate notes that the fee structure is one reason the net yield is weak for customers who don’t qualify for waivers. Online banks, with minimal overhead, can pass savings on to depositors in the form of higher APYs.
Bank of America reported over $1.9 trillion in deposits in 2024. At 0.01% APY, the bank pays depositors virtually nothing while earning far more by lending that money out. The customer loses, and the bank wins — unless you take your savings elsewhere.
The pattern: Convenience comes at a cost. You’re trading hundreds of dollars in annual interest for access to branches and ATMs.
Which bank offers 7% interest on savings accounts?
As of July 2025, no major bank offers 7% APY on a standard savings account. Some credit unions run promotional offers that approach 7% with specific conditions — like direct deposit requirements or balance caps — but these are not typical.
Which 5 banks have the highest rate of interest?
The top online banks offering competitive rates in 2025 include:
- Ally Bank: 4.20% APY
- Marcus by Goldman Sachs: 4.25% APY
- SoFi: 4.50% APY with direct deposit
- CIT Bank: 4.55% APY
- Wealthfront: 4.75% APY
Are 7% savings accounts realistic in 2025?
Not for standard accounts. Rates above 5% are typically reserved for certificates of deposit (CDs), promotional offers lasting 3-6 months, or accounts with substantial restrictions. Investopedia confirms that typical top HYSA rates fall between 4% and 5%.
If someone promises you 7% on a standard savings account in 2025, check the fine print. Those offers almost always come with caps, fees, or time limits that reduce the real return.
The implication: Chasing 7% could lead you into promotional traps. Sticking with a solid 4-5% rate from a reputable online bank is safer and more predictable.
How much does $10,000 make in a high-yield savings account?
At 4.00% APY, $10,000 earns roughly $400 in one year. At Bank of America’s 0.01% APY, the same $10,000 earns just $1. The difference is $399 — enough for a nice dinner or a streaming subscription for two years.
How much interest does $100,000 earn in a year?
At 4.00% APY, $100,000 earns approximately $4,000 annually. At Bank of America’s rate, you’d earn about $10. That gap of $3,990 is significant — it’s equivalent to a month’s rent in many cities.
How to calculate compound interest on a savings account
Most HYSAs compound interest daily and credit it monthly. Use the formula: A = P(1 + r/n)^(nt) where P is principal, r is annual rate, n is compounding frequency, and t is years. For quick estimates, multiply your balance by the APY — $10,000 × 0.04 = $400.
| Balance | Bank of America (0.01% APY) | Typical HYSA (4.25% APY) | Difference |
|---|---|---|---|
| $1,000 | $0.10 | $42.50 | $42.40 more with HYSA |
| $5,000 | $0.50 | $212.50 | $212 more with HYSA |
| $10,000 | $1.00 | $425 | $424 more with HYSA |
| $25,000 | $2.50 | $1,062.50 | $1,060 more with HYSA |
| $100,000 | $10 | $4,250 | $4,240 more with HYSA |
The pattern: The larger your balance, the more painful Bank of America’s low rate becomes. A customer with $50,000 in savings is losing over $2,000 per year by not switching.
Where can I get 5% interest on a savings account?
Several online banks are offering rates between 4.5% and 5.0% APY as of July 2025. These accounts are FDIC-insured up to $250,000 per depositor, making them just as safe as Bank of America.
Best high-yield savings accounts in 2025
- Wealthfront: 4.75% APY (with direct deposit)
- CIT Bank: 4.55% APY
- SoFi: 4.50% APY with direct deposit
- Marcus by Goldman Sachs: 4.25% APY
- Ally Bank: 4.20% APY
Online banks vs traditional banks for savings
Online banks have lower overhead — no branches, fewer employees — so they pass savings to customers. Traditional banks like Bank of America offer in-person service but pay almost nothing. The trade-off is clear: branch access vs. 400x more interest.
HYSA rates are variable and can change with Federal Reserve decisions. In 2024, rates peaked near 5.5%. The best strategy is picking a bank with a consistent track record of competitive rates, not the highest rate on any given day.
Why this matters: You don’t have to leave Bank of America entirely. Many of the best HYSAs allow you to keep a Bank of America checking account for branch access while parking your savings in a 4%+ account online.
banksparency.com, mybankfinder.com, gobankingrates.com, moneyrates.com, marketwatch.com, publicreport.co.uk, media.bac-assets.com, businessinsider.com
Frequently asked questions
Can I open a high-yield savings account with Bank of America?
No, Bank of America does not offer a high-yield savings account. Their savings product, Advantage Savings, pays only 0.01% APY as of July 2025.
What is the minimum deposit for Bank of America Advantage Savings?
Bank of America requires a minimum opening deposit of $100 for Advantage Savings, according to Bankrate.
How often does Bank of America pay interest on savings?
Bank of America compounds and credits interest monthly on its Advantage Savings accounts.
Are high-yield savings accounts safe?
Yes. High-yield savings accounts from FDIC-insured banks are protected up to $250,000 per depositor, per institution — the same insurance that covers Bank of America accounts.
Does Bank of America offer money market accounts with higher rates?
Bank of America offers money market accounts, but their rates are also low — typically under 1% APY. They are still far below online HYSA rates.
How do I switch from Bank of America to a high-yield savings account?
Open an account with an online bank like Ally, Marcus, or SoFi, link your Bank of America checking account, and transfer your savings. Most HYSAs have no fees and no minimum balance requirements.
What is the difference between a savings account and a high-yield savings account?
The main difference is the interest rate. Standard savings accounts pay 0.01% to 0.10% APY, while HYSAs pay 4% to 5% APY. Both are FDIC-insured and have similar features.
Can I keep my Bank of America checking account and open a HYSA elsewhere?
Absolutely. Many people keep their Bank of America checking for branch access and bill pay, and open a separate HYSA at an online bank for their savings. This combination gives you both convenience and competitive interest.
For Bank of America customers in 2025, the choice is clear: keep emergency cash and everyday funds in your BofA checking for convenience, but move your actual savings to an online HYSA earning 4%+. Leaving $10,000 in Bank of America savings costs you $399 in lost interest every year — and that number only grows with larger balances.
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