What’s the Bank of America Savings account interest rate? When considering where to entrust your savings, understanding the interest rates is vital. Bank of America, a major player in the banking industry, offers the Advantage Savings account with different interest rates according to the specific tiers within its Preferred Rewards program.
This article will explore the interest rate on a Bank of America savings account and explain how your Preferred Rewards program tier can affect the interest you get.
Understanding these interest rate dynamics is essential for making wise savings decisions, regardless of whether you are currently a Bank of America customer or are just looking at financial options. Let’s dive in!
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A brief history of the Bank of America
Table of Contents
Bank of America stands as the second-largest bank in the United States, boasting an extensive network of over 3,900 branches across 38 states.
However, there are inherent operating costs associated with the large number of physical branch sites. Their expansive physical infrastructure also contributes to the bank’s approach of charging relatively lower interest rates and higher fees on its accounts.
Customers can find convenience in the branches’ convenient locations, but this accessibility also highlights the intricate economic variables that affect the costs and fees associated with Bank of America’s banking services and products.
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Bank of America savings account interest rate
According to Investopedia, the Bank of America savings account interest rate is:
| Account | Required Opening Deposit | APY Range(%) | Monthly Fee( |
| Standard: Bank of America Advantage Savings | $100 | 0.01 | 8 |
| Gold Tier: Bank of America Advantage Savings | $100 | 0.02 | 0 |
| Platinum Tier: Bank of America Advantage Savings | $100 | 0.03 | 0 |
| Platinum Honors: Bank of America Advantage Savings | $100 | 0.04 | 0 |
Tiers of American Bank Savings Account
Bank of America stands out in its approach to savings accounts by only offering a single option, the Bank of America Advantage Savings account.
Unlike other banks with different savings account types, Bank of America uses a tier structure and operates through a Preferred Rewards program.
There are three(3) tiers of American Bank Savings Account
1. Gold Tier: Account holders must maintain at least $20,000 in eligible accounts to be eligible for this tier. The Advantage Savings account’s upgraded features and perks are available at this tier.
2. Platinum Tier: To be eligible for the Platinum tier, you must keep at least $50,000 in eligible accounts. Even better terms are available at this tier, such as fee waivers and possibly greater interest rates on the Advantage Savings account.
3. Platinum Honors Tier: Platinum Honors is the highest tier and requires $100,000 in qualified accounts as a minimum balance. The most significant advantages, like higher interest rates and more Advantage Savings account fee waivers, are available to account users in this tier.
These tiers correspond to the Preferred Rewards scheme. Customers who have greater financial assets with Bank of America and Merrill Lynch will be in a higher tier and, as a result, have better savings account terms.
Does the Bank of America have a free savings account
No, Bank of America does not offer a free savings account to the general public. However, certain individuals may qualify for a waiver based on their demographic characteristics. This benefit is particularly for minors under age 18 and students under age 25.
Moreover, if you fulfill specific requirements each month, you may also be eligible for a monthly fee waiver; otherwise, you will be charged $8 monthly.
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How many times can you withdraw money from a Bank of America Savings Account?
An account holder with a Bank of America Savings can withdraw up to six times a month. This limit is valid for withdrawals made online, at an ATM, in person at a branch, etc.
Should you exceed that limit, Bank of America would impose a $10 excessive withdrawal fee on you for each occurrence, up to a maximum of six times a month, potentially amounting to $60 in penalty costs monthly.
How to open a Savings account with Bank of America?
The Bank of America website offers a straight online savings account opening option. You can also apply in person for an account if you reside close to a branch location.
Your Social Security number, contact details, and the routing and account number for your present bank account are among the details you’ll need to supply on your application.
The Bottom Line
To sum up, understanding the influence of Preferred Rewards tiers and the interest rate on your Bank of America savings account is essential for optimizing your savings.
You can match the best interest rates with your financial objectives by knowing the advantages of each tier.
Understanding the relationship between interest earnings and Gold, Platinum, and Platinum Honors status enables customers to get the most out of their Bank of America banking experience.
