Bank of America hardly needs any introduction. They’re the second largest bank in the United States by assets, with over $3.169 trillion in total and they are the third largest bank in the country by branch locations with roughly 3,900 across all 50 states. They also service nearly 67 million consumers and business clients mostly in the United States but also within an additional 35 countries across the globe.

Bank of America’s CD (certificate of deposit) suite currently consists of 5 “Featured CDs” with oddball terms ranging from 7 to 37 months. They also have standard CDs which they refer to as “Fixed Term CDs” that can be customized to the month and range from just 28 days to 10 years.

Their CD rates vary slightly by region. We’ve sampled Bank of America’s CD rates in two locations to complete this review. These are:

• Los Angeles, CA (zip code: 90011)
• New York City, NY (zip code: 11368)

If you’re considering opening a CD account with Bank of America continue reading our review below.

Bank of America CD Rates + Account Details

Bank of America CDs are federally insured by the FDIC up to the applicable limits. These are $250,000 per depositor or $500,000 on joint accounts.

Bank of America’s standard Fixed Term CDs and Featured CDs both require a minimum deposit of $1,000. They used to impose a $10k minimum for their featured CDs but dropped it to the current level in Q1 of 2023.

Featured CD Rates (Los Angeles)

To put these yields in perspective the current national average for a 12 month CD and a 36 month CD sits at 1.54% APY and 1.34%, respectively, according to FDIC data.

That said, some FDIC-insured online banks and nationally available credit unions are now paying over the 5.00% APY mark on short term CDs and ~4.75% APY on longer term CDs.

Featured CD Rates (New York City)

Standard CD Rates (Los Angeles)

Bank of America’s Standard CDs have much more flexible terms ranging from 1 month to 10 years (120 months). Consumers may choose the exact number of months within that range. All terms pay 0.03% APY currently other than 3-5 month terms which pay 4.00% APY.

Standard CD Rates (New York City)

Bank of America’s Standard CDs come with the same terms and yields for NYC residents as they do for L.A. area residents per the time of this writing. See table below.

Deposit Size and Tiers

Although Bank of America’s Featured and Standard Fixed Rate CDs provide the same yield regardless of deposit size, this may change in the future. Bank of America has set up their CD accounts in tiers based on deposit size. Below is the breakdown of their tiers for both Featured and Standard CDs.

Featured CDs:

• Less than $10,000
• $10,000 to $100,000
• $100,000 – $1m
• $1m +

Standard Fixed Term CDs:

• Less than $10,000
• $10,000 to $100,000
• $100,000 +

Compounding and Crediting Interest

Interest is compounded and credited monthly on both Featured and Standard CDs.

Grace Period

The grace period is the brief window of time after your CD matures and before it gets renewed in which you have the ability to add or withdraw funds penalty free.

Bank of America’s grace period is slightly lower than the standard 10 days at just 7 calendar days.

Bank of America’s CDs automatically renew, so if nothing is done within this 7 day period your CD will automatically renew with the same term and the going APY at that time.

Bank of America will send you reminders leading up to the grace period of your deposit but be sure to set up your own notifications as well.

Early Withdrawal Penalties

If you need access to the funds in your Bank of America CD prior to its maturity, you will face an early withdrawal fee. See table below for details.

The interest penalties above are applied to the amount withdrawn.

How Much Can you Earn with a Bank of America CD?

How much you earn on a Bank of America CD is going to depend on 4 variables. These are:

1. Your deposit amount.
2. Your interest rate or APY (annual percentage yield).
3. Your CD’s term.
4. Your Location.

Here is a table breaking down the total dollar amount you would earn on Bank of America’s most competitive Featured CD accounts based on a $100,000 deposit in L.A.

How do Bank of America’s CD Rates Compare?

To get a better idea of how Bank of America’s CD rates stack up against various forms of competition then take a look at the three tables below. The first table compares Bank of America’s best CD rates with those from the other top U.S. banks . The second table compares Wells Fargo’s CD rates with popular FDIC-insured online banks and the third compares them with CD rates found through brokerages such as Fidelity or Vanguard.

Bank of America’s CD Rates vs Other Big Banks

Bank of America’s CD Rates vs Online Banks

Bank of America’s CD Rates vs Brokered CDs

Final Thoughts

While banking with large institutions such as Bank of America has its advantages such as easy in-person branch access, vast network of ATMs, and a wide range of financial products, their Featured CD rates, while on the rise, aren’t quite as competitive as other offers from online banks at this time.

That said, Bank of America’s CD rates are still rising and have already done so multiple times in May following the Fed’s latest rate hike to start the month.