If you’re looking to grow your savings, you’ve likely heard about high-yield savings accounts and their ability to offer significantly higher interest rates than traditional accounts. It’s a smart move to consider where to park your money for the best return. As one of the largest banks in the country, a common question many savers ask is: does bank of america have a high yield savings account?
The straightforward answer is that Bank of America does not typically offer a product specifically branded as a “high-yield savings account.” Instead, their primary savings options are the Advantage Savings account and the Rewards Savings account. While these are solid, reliable accounts, their annual percentage yields (APYs) are generally much lower than the rates you can find with online-only banks or credit unions.
So, what savings options does Bank of America offer?
Bank of America provides the Advantage Savings account as its standard savings solution. The interest rate on this account is often quite low compared to the national average for high-yield accounts. Your rate can sometimes increase if you qualify for their Preferred Rewards program, which tiers benefits based on your combined account balances. Even with this potential boost, the rate usually remains non-competitive with dedicated high-yield options elsewhere.
Where you can find higher savings rates
If your main goal is to maximize your interest earnings, looking beyond traditional brick-and-mortar banks is a wise strategy. Online banks and some credit unions are typically able to offer much more attractive APYs. This is because they have lower overhead costs than large institutions with physical branches. These online accounts are FDIC-insured, just like an account at Bank of America, making them a very safe place for your money while you earn a better return.
Is a Bank of America savings account right for you?
The choice depends on your personal banking style. If you highly value having easy access to physical branches and want all your accounts seamlessly linked in one place, then Bank of America’s Advantage Savings could be a convenient choice. However, if your primary focus is on growing your savings as quickly as possible through interest, you will likely be better served by opening a high-yield savings account with an online bank. Many people choose to do both: maintain a checking account with a traditional bank for daily needs while keeping their emergency fund or savings goals in a separate, high-yield account online.
Ultimately, while Bank of America offers reliable savings accounts, they are not a source for high-yield savings. For the best growth on your money, comparing rates from online institutions is the most effective path forward.
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