December 2023 Savings Account Rates at Bank of America

Checking out the savings account angle of Bank of America – one of the largest banks in the US – we noticed that it offers a good range of financial products along with robust online services, including credit and debit cards, loans, and investment services. Also, Bank of America has a wide network of retail locations and ATMs nationwide.
Over the years, there has been a significant decrease in the annual percentage yields (APY) being offered by many banks. However, some banks are now providing an annual percentage yield of over 5%, which is quite an attractive rate to park your money in a savings account.
At the same time, the APY is a compounding interest rate and can lead to much more earnings in interest over time. Even though APYs have been on the lower side for some time now, many banks are making efforts to boost their APYs. Despite that, some large banks like Bank of America haven’t taken any steps to improve their APYs thus far.
Looking closer, it is evident that even if holders have tens of thousands of dollars in a savings account, Bank of America continues to offer APYs that are relatively low. However, if having in-person and nationwide access, or bringing all your finances under one roof is a priority for you, Bank of America might be considered the right choice.
Currently, Bank of America offers a single savings account, known as Advantage Savings, whose basic APY stands at 0.01%. However, by enrolling in the Preferred Rewards program, customers are eligible to earn up to 0.04% APY. The program comes with three tiers, Advantage Savings Gold Tier, Platinum Tier, and Platinum Honors Tier, where the only difference lies in the amount of APY you can earn.
For individuals, opening a standard savings account with Bank of America entails earning a mere 0.01% APY at the outset, which is well below the national average APY for savings accounts. However, individuals who qualify and enroll in the Preferred Rewards program, would have the advantage of earning a higher APY.
To be eligible for enrolling in the Preferred Rewards program, customers will be required to have a checking account and a three-month combined daily average in any Bank of America deposit accounts and/or a Merrill investment account. Moreover, as a Preferred Rewards client, account holders wouldn’t need to pay the $8 monthly fee.
When compared to other brick-and-mortar banks like Chase and Wells Fargo, Bank of America also lags behind when it comes to monthly fees and APYs. Banks like Chase and Wells Fargo have a cheaper monthly fee and are offering low APYs. Rather than that, when it comes to online banks, they offer high APYs and no account fees including Capital One’s 360 Performance Savings, which provides an attractive 4.35% APY.
In conclusion, it can be said that Bank of America would be the best choice for those customers who prefer bank branches with a national presence to conduct business in person and appreciate the vast presence that Bank of America offers. On the flip side, for those more interested in maximizing their savings growth should consider other banks that provide similar services but offer better rates.
Actually opening a savings account with Bank of America is simple. You can do it in person, online, or through the mobile app. All you need to do is complete an application, verify your identity with a government-issued photo ID, and provide your Social Security number. Also, you will need to deposit the required minimum of $100.
For those not satisfied with savings accounts and looking for an alternative, Bank of America also offers fixed-term and featured CDs. The fixed-term CD assures a steady 0.03% APY across all maturity terms. Meanwhile, the featured CDs are forecast to offer marginally more promising APYs than the fixed-term counterpart.