APY GUY: Maximize Your Savings & Earnings

Bank of America

Bank of America CD Rates – Are they Worth Opening in 2022?


[Update December 2021: Bank of America has yet to change their CD rates in 2021 as the year comes to a close. The APY remains a flat 0.05% for their “featured CDs” and 0.03% APY for “standard CDs.” This is true for all terms and deposit amounts. We wouldn’t be surprised to see Bank of America’s CD rates tick upwards at some point next year though, as the FED tapers its asset purchases and rates slowly begin to rise.]

image credit: Unsplash, Christin Hume

Bank of America hardly needs any introduction. They’re the second largest bank in the United States by assets, with over $2.61 trillion in total and they are the third largest bank in the country by branch locations with roughly 4,559 across all 50 states.

That said, their savings rates – both fixed and variable – leave much to be desired and lag the current national average(s) for their respective terms by considerable margins.

This isn’t unique to Bank of America though, as all the big banks at the moment offer abysmal rates to savers. Both Citibank and Chase Bank have kept their savings rates significantly under the national averages for all of 2020.

For those considering opening a fixed-rate, certificate of deposit with Bank of America continue reading our full 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 has two sets of certificates of deposit available to consumers currently: “Featured CDs” and “Standard CDs.”

The Featured CDs come with a higher minimum deposit requirement of $10,000 compared to just $1,000 for the Standard CDs. Bank of America’s Featured CDs also offer five oddball terms to choose from. These are:

  • 7 months
  • 10 months
  • 13 months
  • 25 months
  • 37 months

Bank of America Featured CD Rates

TermAPY
7 months0.05%
10 months0.05%
13 months0.05%
25 months0.05%
37 months0.05%

To put these yields in perspective the current national average for a 12 month CD and a 60 month CD sits at 0.22% APY and 0.47% APY, respectively. There are also several nationally available credit unions with CD rates still above the 1.0% APY mark for longer terms.

Their 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. Current rates, however, are flat across the board for all terms.

Bank of America Standard CD Rates

TermAPY
1 month (28 days)0.03%
3 months0.03%
6 months0.03%
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%

Interest is compounded and credited monthly on both featured and standard CDs.

In normal interest rate environments two variables may affect the overall APY (annual percentage yield) applied to your CD from Bank of America. These are:

  1. Your Location
  2. Your Deposit Amount

While these variables do not change your rate at the moment, Bank of America still requires you to select these before disclosing the yields they offer on their website.

Your location is determined by the zip code you reside in and the deposit amount is broken up into four ranges for the Featured CDs and three ranges for Standard CDs. For Featured CDs, the deposit ranges are:

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

For all of Bank of America’s Standard CDs the deposit ranges are:

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

Early Withdrawal Penalties

Bank of America’s early withdrawal penalties vary by length of the term of the deposit. Below is a breakdown of what you can expect to pay if you need to make an early withdrawal to your CD. You should note that for CDs with terms of 60 months (5 years) or greater, fees can potentially add up to more than the overall interest earned if withdrawals happen often enough.

CD TermPenalty
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.

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 days.

Bank of America’s CDs also automatically renew, so if nothing is done within this 7 day period your CD will automatically renew with the same terms and whatever the current APY happens to be 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.

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 current CD rates are simply not competitive at this time.

In normal interest rate environments having both featured CDs with higher APYs and standard CDs with customizable term lengths is a major advantage, however Bank of America’s current yields make these standout features inconsequential today.

If you’re after a high yield CD, a nationally available credit union or online bank is going to be able to provide you with much better rates.

Bank of America Saving Accounts Rates & Fees [January 2021]


[Update January 2021: The APYs on Bank of America’s variable rate savings accounts remain unchanged to start the new year.]

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

While Bank of America has offered lucrative savings accounts in the past, their variable rate savings account offerings today consists of the following:

  • Bank of America Advantage Savings
  • Minor Savings Account
  • Custodial (UTMA) Savings Account for Children

The Bank of America Advantage Savings account is the main savings account that Bank of America offers. They’ve had money market accounts in the past (at times, with great rates) but do not offer these products currently.

All of Bank of America’s savings products, whether a child savings account or Advantage Savings, come with the Keep the Change feature.

The Keep the Change program by Bank of America has been covered by many financial blogs over the years and slight variations of it have been mimicked by other large banks such as the Way2Save program by Wells Fargo.

Keep the Change simply allows you to round up debit card purchases to the nearest dollar and deposit the difference into savings automatically. Making saving money easy and automated.

Of course, to benefit from this program you’ll need to also open a checking account and conduct your everyday purchases with your BofA debit card. 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.

Bank of America Advantage Savings Account Fees

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.

Bank Of America Savings Account 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 three 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)

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 than 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.

Bank of America Advantage Savings Account Rate

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 0.05% 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 Tier0.05%0.05%

To put these offers in perspective the current national average for a savings account sits at just 0.04% APY, according to recent FDIC data, while money market accounts and interest checking accounts sit at 0.07% APY and 0.04% APY, respectively.

That said, a small number of online banks are still paying up to 0.60% 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.

Bank of America Minor Savings Account (Fees and Rates)

Bank of America’s Minor Savings account, and children savings accounts in general, are great ways to get your kid(s) familiarized with money, budgeting and saving.

They have helpful tools like allowance scheduling and automatic transfers as well as the ability to track purchases and monitor the child’s banking activity.

The Minor Savings account must be opened jointly with a parent or guardian, and can be opened with as little as $25. It also comes with zero daily balance requirement and no monthly maintenance fees if the child is under 18 years old.

To open the Minor Saving Account at Bank of America you must first schedule an in-person appointment with a representative. Find a branch and call ahead as rules may have changed due to COVID-19.

Minor 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 Tier0.05%0.05%

The member level status applies to the parent or guardian’s account if the child is under 18. The rates are currently identical to the Advantage Savings account rates. These are variable and subject to change at any time without notice.

Bank of America Minor Savings Account Fees

TypeFee
Monthly Maintenance Fee$0 if child is under 18 years old
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

Bank of America Custodial (UTMA) Savings Account (Fees and Rates)

The UTMA savings account is designed to save for the child throughout their youth and then gifted to them when they reach maturity. The account differs from the Minor Savings account in a few ways:

  1. The UTMA savings account does not provide the child access to funds until he/she is 18 years old.
  2. The UTMA account can be opened online, whereas the Minor Savings account must be opened in branch.
  3. The $8 monthly maintenance fee does apply to the UTMA savings account (but can be avoided the same way as the Advantage Savings can).
  4. The UTMA savings account requires a $100 minimum deposit vs only $25 for the Minor Savings account.

Along with the account differences (above), you’ll want to note that there are state laws that govern Custodial UTMA accounts as well. These laws vary based on which state the account is opened in.

As the parent or guardian, you are the “custodian” of the account. This means that it is your responsibility to manage the account on your child’s behalf even though all funds that enter the account instantly become irrevocably the property of the child.

So even though you are in control, the ownership is not yours at all.

These accounts can be used for a number of things but the most frequent use case is higher education.

The funds will be accessible to the child when they reach either 18 or 21 – determined by state law in which the account was opened.

Funds can be accessed earlier than this but will need good reason. In all cases the reason must be to the sole benefit of the child.

Custodial (UTMA) 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 Tier0.05%0.05%

Remember the $8.00 monthly service fee applies to this account, but can be waived by maintaining a $500 minimum daily balance in the account.

Here is a complete list of fees that may come with ownership of a Custodial UTMA Savings account:

TypeFee
Monthly Maintenance Fee$8 (can be waived, refer to above)
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

Final Thoughts

Bank of America has underwhelming rates on all of their savings products at the moment. The yields lag the national average, which has already set the bar low at 0.07% APY.

The savings products do come with some decent features and tools such as the Keep the Change program, but these hardly make up for what they lack in annual percentage yields.

The kids savings accounts – both the Minor Savings account and the Custodial (UTMA) Savings account come with OK features, but again lackluster rates. We’d suggest looking at the youth-tailored savings accounts offered by some of the large national credit unions. Some have promotional rates as high as 3.50% APY.

Bank of America Checking Account Bonuses $100, $400, $500


Bank of America’s prominent checking account options ^ currently provide cash bonuses for signing up!

Bank of America is known for throwing around cash bonuses to incentivize new account sign-ups. Today, they offer two very noteworthy promotions:

  1. $100 for new checking account customers.
  2. $400, or $500 for existing Bank of America customers who DO NOT currently have a checking account with them. The cash bonus varies from $400 – $500 depending on the amount you set up for a monthly direct deposit. The range is $4,000 (for the $400 bonus) to $10,000 (for the $500 bonus).

In this review, we will first go over the $100 – $500 in bonuses and how to obtain them, then discuss the different types of checking accounts that Bank of America offers.

How to get the $100 Bank Of America checking account bonus

image credit: bankofamerica.com

Valid through June 30, 2020, you don’t want to sleep on this bonus if you’re already planning on joining Bank of America and opening a checking account. 

Here’s what you need to do:

  1. Use this link.
  2. Open one of three Bank of America Advantage checking accounts options (the SafeBalance, Plus, or Relationship),
  3. Set up 2 recurring direct deposits of at least $250 each within 90 days of opening, and
  4. Use offer code PSR100CIS at enrollment.

The three checking accounts have different opening deposit requirements as well as qualifying actions required to waive fees, so please read the terms and conditions on each account to make sure you open the correct account for your situation.

The three Bank of America checking accounts you will be choosing from are as follows:

  1. Bank of America Advantage SafeBalance Banking®
  2. Bank of America Advantage Plus Banking®
  3. Bank of America Advantage Relationship Banking®

We will dive into these three accounts further in this post.

How to get the $400 and $500 Bank Of America checking account bonus

First, as a reminder, this offer is only to Bank of America customers who do not already have a checking account with them.

Second, you will have to receive this offer via direct communication with Bank of America – either via email or digital add.

If you have a credit card, mortgage or auto loan with Bank of America, but conduct checking elsewhere and you’re looking to consolidate accounts under one roof, then you should reach out to them for a link to this offer.

image credit: bankofamerica.com

Here is how to obtain the $400 cash bonus:

  1. Open a Bank of America Advantage Banking account (three options to choose from) by August 31, 2020, and
  2. Set up a qualifying direct deposit totaling $4,000 or more within the first 90 days of opening your account to get the $400 bonus.

The terms will be similar though the dollar amounts may vary based on what they’ve decided to offer you. The latest offer we’ve seen has been for $400 (screenshot provided above), but we know others are only getting a $300 bounty for this.

Can you commit to a larger monthly direct deposit than $4,000? If so, perhaps a $500 cash bonus is in store for you.

image credit: bankofamerica.com

Here is how to obtain the $500 cash bonus:

  1. Open a Bank of America Advantage Banking account (three options to choose from) by August 31, 2020, and
  2. Set up a qualifying direct deposit totaling $10,000 or more within the first 90 days of opening your account to get the $500 bonus.
  3. OR – Make qualifying deposits of $50,000 or more in new money within 30 days of opening your new account and maintain that balance for 90 days.

Keep in mind that all three of these checking accounts eligible for cash bonuses come with monthly maintenance fees ranging from $4.50 up to $25 per month. Don’t worry, these can be waived with qualifying actions, just be sure you can meet these requirements prior to opening an account.

The bonus money and all others will be reported as income as a 1099-MISC.

Bank of America Advantage SafeBalance Banking

The Bank of America Advantage SafeBalance checking account, advertised as the “check-less banking account that helps you stay within your balance,” is good for those that may need help saving and want the accountability of overdraft prevention. A minimum deposit of $25 is required to open this account.

The primary feature here, is that rather than charging you a fee when you overdraw your account, transactions will simply be declined or returned unpaid if you do not have the money available. Because this account doesn’t permit overdrawing, it also doesn’t charge an overdraft fee.

A monthly maintenance fee of $4.95 will be assessed if you do not meet the single criterion for having it waived, which is simply to enroll in the Preferred Rewards program. This is an elite eligibility program offering additional benefits such as interest boosts and fee reductions to clients with an eligible checking account and a 3 month combined average balance of $20,000 or more across all BofA banking and investment accounts.

This fee will also be waived for students enrolled in high school, college, a university, or vocational school that are younger than 24 years old. 

Other fees include to look out for are a $5 paper statement fee, a $15 fee for incoming wire transfers and a $30 fee for outgoing, and a $12 fee for each returned domestic deposit. See the clarity statement for this account for a complete list of fees.

With a SafeBalance Checking account, you will be able to make payments via a debit card, online or mobile transfer (Zelle), or through online/mobile bill payment.

Remember, this basic checking account does not have check-writing capabilities (and if you do try to write a check, it’ll be returned unpaid). There is no fee when you make transactions through a Bank of America ATM, but you will be charged a $2.50 fee for using out-of-network ATMs in the U.S. and $5 for using out-of-network ATMs outside of the U.S.

Keep in mind that though Bank of America won’t charge you for attempting to overdraw this account (because it doesn’t allow overdrafts), third parties might. Set up email or mobile alerts with BofA when your account balance gets low if you’re worried about this.

With this and each checking account to follow, you’ll be able to enroll in fraud protection, make mobile check deposits, and bank digitally online or through the Bank of America mobile app.

Bank of America Advantage Plus Banking

A Bank of America Advantage Plus Banking account is more of a standard checking account option than the SafeBalance account and requires a $100 opening deposit.

It comes with a $12 monthly maintenance fee, but this can be waived in one of three ways:

  1. By linking qualifying direct deposits,
  2. Maintaining the minimum average daily balance requirement of $1,500, or
  3. Enrolling in Preferred Rewards (see above section for details about this program).

If you choose to set up direct deposits into this account, they must be for $250 or more (each).

This account also waives the fee for students under the age of 24.

Unlike the SafeBalance account, you may write checks with the Advantage Plus. Please see the Advantage Plus account clarity statement for more information about check writing.

This checking account does allow overdrafts, unlike the previous option, and you will be charged $35 for each overdraft item. ATM withdrawals will not be permitted when you have an insufficient balance at the time of a transaction.

Overdraft Protection

If you enroll in an Overdraft Protection plan, you can avoid the possibility of withdrawing outside of your means and being charged for it. The 3 Overdraft Protection plan options allow you to withdraw funds from another deposit account, from your credit card, or from your line of credit to prevent you from overdrawing your checking account.

Overdraft Protection from another deposit account will enable BofA to automatically transfer available funds from one of your other accounts when an overdraft is attempted.

Overdraft Protection from your credit card will automatically advance available funds from the linked credit card as long as it is in good standing.

The final option, Overdraft Protection from Your Line of Credit, will automatically advance funds from your linked line of credit as long as this does not cause you to exceed your available credit. Please note that Overdraft Protection transfers incur a fee of $12 each.

Bank of America Advantage Relationship Banking

Finally, there is the Bank of America Advantage Relationship checking account. This option is generally best for higher net worth individuals. This is an interest-bearing checking account that may qualify you for fee waivers on other BofA services, but you’ll need to maintain a high balance of $10,000 to avoid the monthly fee and qualify for the $500 bonus.

Right now, this checking account is currently earning an APY of 0.01% on balances less than $50,000 and 0.02% on balances of $50,000 or more. This rate is not fixed or guaranteed and the minimal interest you earn is credited and compounded monthly.

There is a $25 monthly maintenance fee tied to this account that can be waived by:

  1. Maintaining a combined balance of at least $10,000 or more in eligible linked BofA accounts. Combined balances include average daily balance in BofA checking and savings accounts AND current balances in CDs, IRAs, AND current balances in Merrill investment accounts.
  2. Enrolling in Preferred Rewards (see above section for details about this program).

ATM withdrawals from insufficient funds will not be permitted. The overdraft item fee is $35 as it is with the other two accounts.

You may also choose between a “standard” and “decline all” overdraft setting. The standard setting permits negative balances and charges accordingly and the “decline all” setting declines or returns transactions when you don’t have enough money in your account to pay for them.

This is not the same as Overdraft Protection.

Final Thoughts

Bonus offer aside, these checking accounts are decent and suitable for large segments of the population.

They’re about as flexible overall (with the SafeBalance being the most rigid) as your average checking account from any big bank. Like Chase and Wells Fargo they require average daily balances and will charge monthly maintenance fees if these aren’t met.

That said, if you choose the checking account that makes the most sense for you based on your income, you should be able to avoid these fairly easily.

If you’re still not sold on a checking account with Bank of America, you may want to check out the cash promotions going on at Wells Fargo and Chase Bank to see how they compare.