APY GUY: Maximize Your Savings & Earnings

Bank of America

Bank of America CD Rates – Now up to 3.90% APY!


[📌 Update February, 2023: Bank of America continues to raise the rates on some of their Featured CDs (certificates of deposit) this month. Their 7 month CD and 13 month CD both had their yields lifted following the Fed’s 0.25% rate hike on February 1st. See more details below.]

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 most of the big banks are still offering low yields on deposit accounts.

That said, towards the end of the summer both Citibank and Chase Bank have started to entice consumers with slightly competitive yields on a small handful of CD accounts. These usually come in the form of Promotional CDs or CD Specials.

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

image credit: bankofamerica.com

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

Featured CD Rates

TermAPY
7 months3.25%
10 months0.05%
13 months3.90%
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 60 month CD sits at 1.28% APY and 1.21% APY, respectively, according to FDIC data.

That said, following the Fed’s first rate hike of 2023 and 8th consecutive rate hike since they began lifting prime rates midway through last year, some FDIC-insured online banks and nationally available credit unions are now paying 5.00% APY on short term CDs and ~4.50% APY on longer term CDs.

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

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%
APY = Annual Percentage Yield

All of Bank of America’s standard, fixed-rate CDs have yet to rise with all terms paying the same APY.

There are two variables that normally affect the overall APY applied to your Bank of America CD. 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 +

Compounding and Crediting Interest

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

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 Featured CD rates aren’t as competitive as other offers from online banks at this time.

Most online banks and credit unions have begun to lift their CD and savings rates in a major way as the Fed continues to raise prime rates. However, larger banks like Bank of America, have been slower to provide generous yields to savers but are finally starting to lift some of their rates on select terms.

Why are Bank of America’s CD Rates so Low?

Although many of their Featured CDs are seeing their rates increase regularly, most of Bank of America’s CD rates remain much lower than the yields offered by online banks and some credit unions.

Why is this?

In rising interest rate environments, banks tend to see larger profit margins as the difference between the interest rates they pay out on savings and the loan rates they charge borrowers grows. This is known as the “net interest spread” and it’s why larger banks in particular are more reluctant to increase rates on CDs and savings accounts.

Bank of America $100 Checking Account Bonuses [2022]


[📌 Update August 2022 – Originally set to expire in June of 2022, Bank of America has extended their $100 bonus for new checking account customers through the end of the year. See details below.]

Bank of America is known for throwing around cash bonuses to incentivize new account sign-ups. Today, they offer only one noteworthy promotion: $100 for new checking account customers.

In this review, we will go over which accounts are eligible for the $100 bonus and how to qualify for it as a new customer.

Which Bank of America checking accounts are eligible for a $100 Bonus

Right now, three different Bank of America checking accounts are offering a $100 signup bonus to new customers. These are:

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

The three eligible checking accounts offer different features and have different requirements for waiving monthly fees. We’ll dig into these after covering how to get the bonus for all three.

How to Get the $100 Bonus

The requirements for getting the $100 sign-up bonus are the same for each of the three accounts.

Valid through December 31, 2022, you don’t want to sleep on this bonus if you’re already planning on joining Bank of America and opening a checking account. Remember that you can’t qualify as an existing customer no matter what kind of account you have with Bank of America.

Here’s what you need to do: 

  1. Use this link to access the offer.
  2. Open one of the three Bank of America Advantage Checking accounts (SafeBalance, Plus, or Relationship).
  3. Use the offer code DNL100CIS when opening.
  4. Set up and receive qualifying direct deposits totaling at least $1,000 within 90 days of enrolling.

Bank of America Advantage SafeBalance Banking Account

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 25 years old. 

Other fees to look out for include a $5 paper statement fee, a $15 fee for incoming domestic 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 Account

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 a direct deposit of at least $250,
  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 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 three Overdraft Protection plan options allow you to withdraw funds from another deposit account (Balance Connect), 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.

You can use overdraft protection for up to five accounts.

Bank of America Advantage Relationship Banking Account

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.

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 to enable Balance Connect overdraft protection to connect up to five accounts to help cover transactions that would overdraw available funds for this account. Linking your own checking and savings accounts to cover your overdrafts can help you avoid overdraft fees.

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.

Bank of America Advantage Saving Account Review – Rates and Fees


[📌 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.