Bank of America savings rates are low, but similar to banks like Chase and Wells Fargo

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • Bank of America (Member FDIC) has a regular savings account, minor savings account, and custodial savings account.
  • The bank pays 0.01% APY on all its savings accounts, but you may qualify to earn up to 0.05% APY on a Bank of America Advantage Savings Account if you're a Preferred Rewards member with a large account balance.
  • Some banks compound interest daily, but Bank of America only compounds your interest monthly.
  • Bank of America pays similar rates to other big-name banks, like Chase and Wells Fargo, but you can earn more by opening a high-yield savings account with another institution. 
  • See Business Insider's picks for the best high-yield savings accounts »

Bank of America pays a low rate of 0.01% APY on savings accounts. You may qualify for slightly higher rates on your Bank of America Advantage Savings Account as a Preferred Rewards member, but they're still relatively low.

Bank of America also only compounds interest monthly, whereas many banks compound interest daily, helping you earn more over time.

Bank of America savings rates are comparable to other brick-and-mortar banks, like Chase and Wells Fargo. So if you want to save with a big national bank, then Bank of America is still a worthwhile option.

Bank of America savings rates

 APYMinimum opening deposit
Advantage Savings0.01%$100
Advantage Savings Gold0.02%$100
Advantage Savings Platinum0.03%$100
Advantage Savings Platinum Honors0.05%$100
Minor Savings0.01% $25
Custodial (UTMA) Savings0.01%$100

The Bank of America Advantage Savings Account rates are pretty low, especially considering how much you could earn by opening a high-yield savings account. Even its highest-tier rate falls below the average savings rate of 0.06%.

Bank of America Advantage Savings Account

Bank of America Bank of America Advantage Savings AccountChase Chase Sapphire Preferred® CardCiti Citi® Double Cash CardChase Chase Sapphire Reserve®

Get the latest Bank of America stock price here.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

Source: Read Full Article