BOA Savings Rates
BOA Savings Rates
Bank of America Savings Rates: A Comprehensive Review
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In the landscape of national banks in the Southwest, Bank of America (Member FDIC) stands out as one of the best. However, its strength lies more in its overall banking services, rather than its savings rates. Similar to other brick-and-mortar financial institutions, Bank of America offers relatively low savings rates.
Delving into Bank of America Savings Rates
Bank of America offers one primary savings account, known as the Bank of America Advantage Savings Account. The interest rates on this account depend on whether you qualify for Preferred Rewards, a rewards program that not only offers higher interest rates on savings accounts but also provides discounts on bank accounts, auto loans, and mortgages.
The savings rates offered by Bank of America generally fall below the average savings account rates. The Bank of America Advantage Savings Account pays an Annual Percentage Yield (APY) of 0.01% to 0.04%.
For most account holders, the savings account earns a meager 0.01% APY. However, by becoming a member of the Preferred Rewards program, you can elevate your earnings to a higher range, with 0.02% to 0.04% APY depending on your account tier.
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To qualify for Preferred Rewards, you must have a Bank of America personal checking account and maintain a certain three-month total average balance across all your Bank of America accounts or Merrill Lynch investments. The Gold tier requires a balance of $20,000, the Platinum tier necessitates $50,000, and the Platinum Honors tier sets the bar at $100,000.
Here are the rates for the Bank of America Advantage Savings Account:
| Preferred Rewards Tier | Savings Rate (APY) |
|---|---|
| Gold | 0.02% – 0.04% |
| Platinum | 0.02% – 0.04% |
| Platinum Honors | 0.03% – 0.04% |
The Pros and Cons of Bank of America Savings Rates
While Bank of America may not boast the highest savings rates, there are still some advantages to consider. On the positive side:
- Preferred Rewards program: By being a part of this program, you can boost your savings rates and enjoy additional benefits on other financial products.
- Brick-and-mortar convenience: Bank of America has a widespread physical presence, making it easily accessible for in-person banking needs.
- Comprehensive banking services: Beyond savings accounts, Bank of America offers a range of banking services, including checking accounts, auto loans, and mortgages.
However, it is important to acknowledge the drawbacks as well:
- Low savings rates for non-Preferred Rewards members: Without qualifying for the Preferred Rewards program, your savings rates will be minimal, rendering it less attractive for those seeking substantial interest earnings.
- Competition from online banks: Several online banks provide significantly higher savings rates compared to traditional brick-and-mortar institutions like Bank of America.
- Monthly fees: Depending on the account type and balance requirements, you may encounter monthly service fees, which can eat into your savings.
Comparing Bank of America Savings Rates with Other National Banks
Let’s take a look at how Bank of America’s savings rates compare to those of other national banks:
Bank of America vs. Wells Fargo Savings Rates
For the Wells Fargo Way2Save® Savings Account, the savings rate is set at 0.15% APY. However, if you opt for the Wells Fargo Platinum Savings Account, the rate becomes more competitive, ranging from 0.25% to 2.51% APY based on your account balance.
One advantage that Wells Fargo holds over Bank of America is its daily compounding of interest, as opposed to monthly compounding. However, it is worth noting that both banks offer low rates in comparison to the best online banks, which could potentially offer better opportunities for earning a higher savings rate.
Bank of America vs. Chase Savings Rates
In terms of savings rates, Chase and Bank of America are quite similar. The standard rate for Chase Savings℠ is 0.01% APY, while the Chase Premier Savings℠ Account provides the potential to earn 0.01% to 0.02% APY, depending on whether you qualify for a relationship rate. To achieve the 0.02% APY, you’ll need to have either Chase Premier Plus Checking℠ or Chase Sapphire℠ Banking, as well as make at least five monthly transactions from your checking account.
Ultimately, if you prefer the convenience of a physical bank, your choice between Bank of America and Chase may be determined by which one has a branch near your home.
The Bottom Line: Bank of America Savings Rates
To summarize, the Bank of America Advantage Savings Account rates fall below the average savings account rates but align with what other national banks offer. If you are primarily searching for a high interest rate on a savings account, exploring options like the best high-yield savings accounts from online banks would be more fruitful.
Why You Should Trust Us: How We Review Bank of America Advantage Savings
Our team rates bank accounts on a scale ranging from zero to five stars. In evaluating Bank of America Savings Rates, we follow a thorough methodology. Our review considers various factors, including interest rates, minimum opening deposits, monthly service fees, customer support availability, mobile app ratings, and the ethical practices of the company. Rest assured that our reviews are unbiased and reliable.
So, while Bank of America may not be the go-to choice for maximizing savings rates, it does offer a wide range of comprehensive banking services through its nationwide network. As you navigate the world of banking, it’s important to weigh the pros and cons and choose the option that aligns with your financial goals and preferences.
