Financial institution of America is one in every of the biggest banks within the US, with over 4,000 branches and 16,000 ATMs. Its full suite of economic merchandise — together with checking and financial savings accounts, bank cards, loans and investing companies — are accessible on-line and at 1000’s of retail places throughout the nation.
Nonetheless, its financial savings accounts supply low annual proportion yields, or APYs, that can do little to spice up your financial savings in comparison with many different establishments. However should you worth in-person, nationwide entry or the flexibility to maintain all of your funds underneath one roof, Financial institution of America may make sense for you.
Financial institution of America financial savings account choices in contrast
| Account identify | APY | Minimal deposit to open the account | Month-to-month service price* | Steadiness required |
| Benefit Financial savings | 0.01% | $100 | $8 | $0 |
| Benefit Financial savings, Gold Tier | 0.02% | $100 | $0 | $20,000 to lower than $50,000** |
| Benefit Financial savings, Platinum Tier | 0.03% | $100 | $0 | $50,000 to lower than $100,000** |
| Benefit Financial savings, Platinum Honors | 0.04% | $100 | $0 | $100,000 to lower than $1 million** |
Notice: APYs fluctuate by area, and Financial institution of America’s financial savings account will not be accessible in all places. You’ll have to examine your ZIP code on Financial institution of America’s web site to see your choices.
Financial institution of America financial savings account choices
Financial institution of America has only one financial savings account: Benefit Financial savings. The bottom APY is 0.01%, however should you’re eligible and enroll within the Most well-liked Rewards program, you possibly can earn as much as 0.04%.
The Most well-liked Rewards tiers embrace the Benefit Financial savings Gold Tier, Platinum Tier and Platinum Honors Tier. The one distinction is the APY you possibly can earn.
Financial institution of America Benefit Financial savings
Benefit Financial savings is Financial institution of America’s normal financial savings account. You earn 0.01% APY (effectively under the nationwide common for financial savings accounts) and curiosity compounding month-to-month. You’ll be able to open this account with an preliminary deposit of $100.
You’ll be charged an $8 month-to-month upkeep price, until you meet one in every of Financial institution of America’s listed standards, reminiscent of sustaining a minimal stability of $500 or linking to Financial institution of America Benefit Relationship Banking.
Nonetheless, Financial institution of America will waive the price for the primary six months on new accounts.
Most well-liked Rewards Financial institution of America Benefit Financial savings
In case you preserve the next stability, it’s possible you’ll be eligible for Most well-liked Rewards membership, which might earn the next APY on the cash in your Benefit Financial savings account.
To get permitted for the next APY account, you’ll want a Financial institution of America checking account and a three-month mixed each day common in any of your Financial institution of America deposit accounts (i.e. checking and financial savings) and/or a Merrill funding account.
Right here’s how a lot curiosity you possibly can earn and the minimal quantity you’ll want for every of the upper-tier accounts:
- Gold: 0.02% APY, $20,000 to lower than $50,0000
- Platinum: 0.03% APY, $50,000 to lower than $100,000
- Platinum Honors: 0.04% APY, $100,000 to lower than $1 million
As a Most well-liked Rewards shopper, you don’t should pay the $8 month-to-month price.
Enrolling within the Most well-liked Rewards increased tiers isn’t automated. When you attain $20,000 in belongings, Erica, Financial institution of America’s AI-driven monetary assistant, will nudge you to enroll within the Most well-liked Rewards program to get the advantages. When you enroll, you’ll be routinely ran into the upper tiers as your belongings attain the extra thresholds, in accordance with a Financial institution of America spokesperson.
You probably have a whole lot of belongings saved at Financial institution of America and/or Merrill funding accounts, Benefit Financial savings may make sense for you — however you’ll nonetheless be incomes comparatively low APY in comparison with the nationwide common and opponents providing over 5% APY.
Whereas different brick-and-mortar banks like Chase and Wells Fargo even have month-to-month charges and equally low APYs, their normal financial savings accounts tout some advantages over Financial institution of America’s.
For instance, each have cheaper month-to-month charges — $5 as a substitute of $8 — and the choice to waive the price with simply $300 in your financial savings account ($200 lower than what Financial institution of America requires).
APY comparability
| Account identify | APY | First 12 months’s earnings on $5,000 |
| Financial institution of America Benefit Financial savings | 0.01% | $0.50 |
| Chase Premier Financial savings normal fee | 0.01% | $0.50 |
| Chase Premier relationship fee | 0.02% | $1.00 |
| Wells Fargo | 0.01% | $0.50 |
| My Banking Direct | 5.25% | $262.50 |
| UFB Direct | 5.15% | $257.50 |
Opening a typical financial savings account with Chase and Wells Fargo can be extra accessible than Financial institution of America. Chase doesn’t require a minimal deposit for a financial savings account, and Wells Fargo requires simply $25 for its base financial savings account — 4 instances lower than what Financial institution of America requires.
Parking your financial savings in an on-line financial institution could make sense if you wish to earn extra in curiosity. On-line banks can supply excessive APYs as a result of they don’t have bodily places to handle, decreasing their overhead prices, which they then go on to prospects within the type of diminished charges and better rates of interest.
That famous, there are some banks you possibly can go to in individual that provide excessive APYs and no account charges, together with Capital One’s 360 Efficiency Financial savings, which gives a sturdy 4.35% APY.
For extra banks providing increased financial savings account charges, take a look at our picks for the greatest financial savings accounts.
Who ought to open a Financial institution of America financial savings account?
Prospects preferring a financial institution with branches throughout the nation will admire Financial institution of America’s huge presence. Financial institution of America additionally gives a sturdy cell banking service with state-of-the-art expertise instruments for managing your banking wants remotely.
The financial savings accounts don’t supply aggressive charges. Prospects focused on maximizing their financial savings development ought to contemplate different huge banks that present comparable companies however supply higher charges.
Tips on how to open a Financial institution of America financial savings account
You’ll be able to open a financial savings account at Financial institution of America by visiting one in every of its bodily branches or finishing an utility on-line or by means of the cell app. To open a financial savings account, use the next steps:
1. Full an utility.
2. Confirm your identification with a authorities issued picture ID, reminiscent of your driver’s license.
3. Present your Social Safety quantity or Particular person Taxpayer Identification Quantity.
4. Deposit a minimum of the required minimal of $100.
Different financial savings choices at Financial institution of America
Financial institution of America gives three sorts of CDs: fastened time period, featured and versatile. Its fixed-term CDs vary from 28 days to 10 years, and its featured CDs vary from seven months to 37 months. The versatile CD account solely gives a 12-month time period.
Financial institution of America’s CDs all require a $1,000 deposit to get began and don’t have any annual or transaction charges. Its charges fluctuate relying in your stability and time period. Nonetheless, yow will discover extra aggressive charges on a greater variety of phrases for high-yield CD accounts at different banks.
Versatile CDs allow a full withdrawal of the stability with out penalty after the sixth day the account was opened. Phrases are restricted to 12 months and the speed is 4.25% APY. After a versatile CD matures, it can routinely renew right into a 9-month time period at 0.01% APY until you request a change through the seven-day grace interval.
Financial institution of America featured CD charges
| CD time period | APY |
| 7-month | 4.80% |
| 10-month | 4.70% |
| 13-month | 4.00% |
| 25-month | 3.00% |
| 37-month | 0.05% |
FAQs
In response to the Federal Deposit Insurance coverage Company, the common financial savings account rate of interest within the US is 0.46% as of Aug. 28, 2024. Yow will discover high-yield financial savings accounts with APYs of 5% or extra at many on-line banks, however you’ll have to be comfy managing your banking wants with out entry to in-person help.
Cash market accounts, certificates of deposit and collection I bonds are safe options to financial savings accounts. MMAs supply checking-writing privileges with the interest-earning advantages of a financial savings account however usually require the next preliminary deposit than financial savings accounts. CDs and collection I bonds require an preliminary one-time funding and work greatest when you possibly can go away the cash deposited for a selected interval.
You’ll be able to withdraw from Benefit Financial savings six instances per thirty days with out penalty. After six withdrawals, Financial institution of America expenses you $10. You’ll be able to incur this extra withdrawal price six instances, for a complete penalty of $60. You’ll be able to waive this price should you:
- Qualify as a scholar
- Are underneath the age of 18
- Are enrolled within the Most well-liked Rewards program
- Keep a minimal each day stability of a minimum of $20,000
No. Massive brick-and-mortar banks reminiscent of Financial institution of America, Chase and Wells Fargo sometimes cost a month-to-month price for a financial savings account. In case you can’t fulfill the requirement to waive the month-to-month price, contemplate a financial savings account with out month-to-month charges, reminiscent of Capital One’s 360 Financial savings account.
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The editorial content material on this web page relies solely on goal, unbiased assessments by our writers and isn’t influenced by promoting or partnerships. It has not been offered or commissioned by any third get together. Nonetheless, we could obtain compensation whenever you click on on hyperlinks to services or products provided by our companions.
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