APY GUY: Maximize Your Savings & Earnings

Bank of America

Bank of America CD Rates – Now up to 5.00% APY!

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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 and one “Flexible CD” with a 12 month term. 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 may vary slightly by region, but per the time only their flexible CD rate differs by region.

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

Bank of America CD Rates + Account Details

image credit: bankofamerica.com

Bank of America CDs are federally insured by the FDIC up to the applicable limits.

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.

Bank of America’s CD rates were surveyed on September 14, 2023.

Featured CD Rates

TermAPY
7 months5.00%
10 months0.05%
13 months5.00%
25 months3.20%
37 months0.05%
APY = Annual Percentage Yield

To put these yields in perspective the current national average for a 12 month CD and a 36 month CD sits at 1.76% APY and 1.41%, respectively, according to FDIC data.

That said, some FDIC-insured online banks and nationally available credit unions are now paying over the 5.50% APY mark on short term CDs and ~4.50% APY on longer term CDs.

Standard CD Rates

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.

TermAPY
1 – 2 months0.03%
3 – 5 months4.00%
6 – 12 months0.03%
2 years0.03%
3 years0.03%
4 years0.03%
5 years0.03%
6 years0.03%
7 years0.03%
8 years0.03%
9 years0.03%
10 years0.03%
APY = Annual Percentage Yield

Flexible CD Account

The Flexible CD account is Bank of America’s newest deposit product. It comes with a 12 month term and allows for early withdrawals penalty free. You must, however, keep your funds in the account for at least 6 days after opening it before making your first withdrawal or a penalty of 7 days interest will apply.

This account is available as a CD or IRA CD and requires a minimum deposit of $1,000 to open. Its APY varies by region. See table below.

CD TermCityAPY
12 monthsMiami, FL4.00%
12 monthsLos Angeles, CA3.51%
APY = Annual Percentage Yield

This 12 month Flexible CD will automatically renew into a 9 month Flexible CD if nothing is done during the grace period. Bank of America will send you a maturity notice in case you’d rather redeem the CD than have it auto renewed.

Deposit Size and Tiers

Although Bank of America’s Featured, Flexible 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.

CD TermEarly Withdrawal Fee
90 days or less7 days’ interest
90 days – 12 months90 days’ interest
12 months – 60 months180 day’s interest
60 months +365 days’ interest

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.

CD TermAPYTotal Earnings
7 months5.00%$2,886.98
13 months5.00%$5,427.78
25 months3.20%$6,782.32
Total Earnings = Sum of all interest payments made through maturity.

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

BankMin. DepositBest CD Rate (APY)
Bank of America$1,0005.00%
Chase$100,0005.00%
Citibank$100,0004.90%
U.S. Bank$1,0004.95%
Wells Fargo$5,0005.26%
CD rates surveyed on September 14, 2023.

Bank of America’s CD Rates vs Online Banks

BankMin. DepositBest CD Rate (APY)
Bank of America$100,0005.00%
Citizens Access$5,0005.00%
Discover Bank$2,5005.00%
Marcus by Goldman Sachs$5005.10%
Synchrony Bank$05.40%
CD rates surveyed on September 14, 2023.

Bank of America’s CD Rates vs Brokered CDs

BankMin. DepositBest CD Rate (APY)
Bank of America$100,0005.00%
Charles Schwab$1,0005.65%
Edward Jones$1,0005.45%
Fidelity$1,0005.50%
Vanguard$1,0005.75%
CD rates surveyed on September 14, 2023.

Bank of America Certificate of Deposit FAQs

Still have questions about Bank of America’s CD rates? See what other consumers are asking around the web along with our responses below.

Are Bank of America CDs FDIC Insured?

Yes. Bank of America is member FDIC (FDIC #3510). All consumer deposits are federally insured up to $250,000 per depositor or $500,000 for joint accounts.

Are Bank of America’s CDs Callable?

No. None of Bank of America’s CDs are callable. They will never redeem or close out your CD prior to its maturity.

Are Bank of America’s CD Rates Good?

A handful of Bank of America’s promotional CDs and standard CDs are significantly above the national average for their term, however, better yields can still be found through many FDIC-insured online banks and NCUA-insured credit unions with nationwide acceptance.

Does Bank of America Have CD Specials or Promotional Rates?

Yes. They currently offer 5 “Featured CDs” with oddball terms between 7 and 37 months. Their 7 month and 13 month options are their most competitive offers and both come with an APY of 5.00%.

Does Bank of America Offer Business CD Accounts?

Yes. Bank of America offers business CD accounts with the same terms and yields as their personal CDs. You can locate their business CDs here.

Does Bank of America Offer a Money Market Account?

No. Bank of America does not offer a money market account at this time. They have offered a “Rewards Money Market Savings” account in the past, but it is no longer available.

Does Bank of America Offer a Savings Account?

Bank of America does offer a savings account called “Advantage Savings.” The APY (annual percentage yield) is not competitive at this time and ranges between 0.01% and 0.03% depending on your relationship status with Bank of America (i.e. how many different BofA accounts you hold).

What is Bank of America’s Routing Number?

Bank of America’s routing number is 026009593.

Bank of America $200 Checking Account Bonus!

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promotions.bankofamerica.com

Bank of America is known for throwing around cash bonuses to incentivize new account sign-ups. Today, however, they only have a business checking account promotion running. It’s a $200 bonus for all new Bank of America business checking account holders and it’s available through the last day of the year – December 31, 2023.

To see how to earn the $200 bonus and avoid the monthly service fees that come with both business checking account options from Bank of America then continue reading below.

đź“Ś Please Note: There are no consumer checking account promotions available with Bank of America per the time of this writing. We will update this post once/if a new one is offered. BofA most recently had a $100 sign up bonus that expired earlier this year.

How to Earn the $200 New Checking Bonus

Right now there are 2 Bank of America business checking accounts that provide the $200 sign up bonus. These are:

  1. Business Advantage Fundamentals™ Banking
  2. Business Advantage Relationship Banking

To earn the $200 bonus for either account complete the following 3 steps:

  1. Open a new business checking account by December 31, 2023.
  2. Make $5,000 in qualifying deposits within 30 days of opening.
  3. Maintain an average daily balance of $5,000 for 90 days.

“Qualifying deposits” just means new money to Bank of America. This can not be money that is held (or has previously been held) in another Bank of America account or Merrill investment account.

How to Avoid the Fees

Depending on which business account you select, you’ll have to meet certain monthly requirements to avoid a service fee. The fees are as follows:

  • Business Advantage Fundamentals™ Banking – $16.00 or $0.00
  • Business Advantage Relationship Banking – $29.95 or $0.00

You can avoid the $16.00 fee from the Business Advantage Fundamentals™ Banking account if you do any of the following:

  • Maintain an average daily balance of $5,000.
  • Spend at least $250 in new net purchases with your business debit card.
  • Become a member of Preferred Rewards for Business.

You can avoid the $29.95 fee from the Business Advantage Relationship Banking account if you do any of the following:

  • Maintain an average daily balance of $15,000.
  • Become a member of Preferred Rewards for Business.

How to Apply

To get started, go here and select which checking account you’d like to open. Once the application process begins, you’ll want to have the following information handy to expedite the process:

  • Name of business and physical address
  • Tax ID Number for the business
  • State(s) the business operates in and where it was formed
  • Date the business was established
  • Social security number and date of birth of business owner(s)

You’ll be able to fund your account during the application process. This can be done by transferring money from another bank, writing a check or using a debit card. If transferring money from another bank you’ll need the following:

  • Routing number of current bank or credit union.
  • Bank account number where funds will be withdrawn from.

Once approved you’ll need to send a signature card through traditional mail or take the card to a local Bank of America branch.

Once your account is open you can access online banking. You can also expect your checks and business debit card to arrive within 7-10 business days upon account opening.

Bank of America Advantage Saving Account Review – Rates and Fees

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[đź“Ś Update July 2022 – Despite the FED’s historic rate hike last month and their commitment to future rate hikes throughout the remainder of the year, Bank of America has yet to increase the yield on their Advantage Saving account. This comes as banks and credit unions nationwide are beginning to lift their savings rates. See Bank of America’s current savings account rates and fees below.]

If you’re in the market for an FDIC-insured savings account, then Bank of America may be one of the first places you start your search.

And for good reason.

Bank of America is perhaps the most recognizable name in banking in the US and is the second largest bank by asset size, only behind JP Morgan Chase, with a whopping $2.38 trillion in assets (yes, with a T).

So it’s not surprising that this bank would get your consideration as the home to your future savings account. But before making your final decision, be sure you understand the full scope of their savings accounts’ features, rates and fees.

Bank of America Savings Account Options

Bank of America offers just one variable rate savings account at this time. This is their Advantage Savings account.

They’ve offered kids savings accounts, custodial (UTMA) savings accounts and money market accounts in the past (at times, with great rates) but do not offer these products currently.

Instead for minors, they’re waiving the monthly fee and lowering the minimum balance requirement on the Advantage Savings account. More details below.

Bank of America Advantage Savings Account

The big fee to watch out for with the Bank of America Advantage Savings account is the $8.00 monthly maintenance fee. Most big banks (Chase, Wells Fargo, etc) have monthly “maintenance” or “service” fees which can be avoided by meeting a few criteria, but Bank of America’s is the steepest.

The monthly service fees for Chase Bank and Wells Fargo’s savings accounts sit at just $5.00 for comparison.

Below is a complete list of the fees you may face as a Bank of America Advantage Savings account holder.

Advantage Savings Account Rates

You’ll be less than impressed with the yields provided by Bank of America on their Advantage Saving account at the moment.

They offer a tiered rate structure based on your account balance and your Preferred Rewards Membership status. Regardless of where you sit on this spectrum, the range of rates received is just 0.01% to 0.04% APY so don’t feel like you’re missing out on much in terms of rates if you’re not at the highest membership tier.

Below is a breakdown of the APYs received by balance and membership tier.

Advantage Savings Account Rates

Member LevelAPY with < $2,500APY with > $2,500
Standard0.01%0.01%
Gold Tier0.02%0.02%
Platinum Tier0.03%0.03%
Platinum Honors Tier0.04%0.04%

To put these offers in perspective the current national average for a savings account sits at just 0.08% APY, according to recent FDIC data, while money market accounts and interest checking accounts sit at 0.09% APY and 0.03% APY, respectively.

That said, a small number of FDIC-insured, online banks are now paying over 1.50% APY and feature no minimum balance requirements or monthly maintenance fees.

These rates above are variable and subject to change at any time without notice.

Advantage Savings Fees

TypeFee
Monthly Maintenance Fee$8 (can be avoided, see below)
Withdrawal Limit Fee$10
Minimum Opening Deposit$100
Overdraft Item Fee$35 / each
NSF: Returned Item Fee$35 per returned or declined transaction
Overdraft Protection Transfer Fee$12 per transfer
Non-Bank of America ATMs$2.50 / per cash withdrawal
Statement Copies$5 / each
Deposited Item Returned$12 / each
Check-Cashing Fee$8 per check for amounts greater than $50

How to Waive the Monthly Maintenance Fee

There are five ways to avoid the $8 monthly maintenance fee tied to the Bank of America Advantage Savings account.

You must meet one of the following three to avoid the fee:

  • Maintain a minimum daily account balance of at least $500
  • Link to your Bank of America Advantage Relationship Banking account (waiver applies to first 4 savings accounts)
  • Be a Bank of America Preferred Rewards client (waiver applies to first 4 checking and savings accounts)
  • Account owner is either under the age of 18 – or – under the age of 25 if a student

We should also note that for the brand new Bank of America customers, they will waive the monthly fee for the first 6 months.

Maintaining the minimum daily balance of $500 will likely be the easiest path to avoiding the $8 monthly fee if you’re new to Bank of America.

Remember this is the minimum daily balance requirement, so your account can technically dip below $500 in the day, so long as it ends up at or above $500 by the end of the day.

This is slightly different from say, money market account fees, which generally have an average monthly balance requirement – meaning your balance has to average out at that number (or above) for the entire month to avoid fees.

The average daily balance requirement on the Advantage Savings account, like the fee itself, is steeper than most other large national banks. To put this in perspective both Chase Bank and Wells Fargo let you avoid their $5 service fee by maintaining a daily balance of just $300.

Keep the Change

Keep the Change is the main feature associated with Band of America’s Advantage Savings account.

For those who have a checking account with Bank of America, Keep the Change automatically rounds up debit card purchases to the nearest dollar and deposits the difference into your Advantage Savings account. This makes setting aside money for savings seamless and easy.

As mentioned, to benefit from this program you’ll need to open a checking account with Bank of America, if you don’t already have one, and conduct your everyday purchases with your BofA debit card tied to the account. So you’ll have to weigh this against your current spending method. If you get more rewards out of a credit card or another debit rewards card, it may not be worth the switch at this time – especially given Bank of America’s extremely low savings rates.