Is Your Money Stuck in a Bank of America Savings Account? Time to Switch Banks (and Get 5% APY)

If you keep your savings at a big bank, you might be missing out on big opportunities for your money. Bank of America is one of America's largest banks, but -- like most other major banks -- it pays near-zero interest on savings accounts. Right now, the Bank of America Advantage Savings account only offers 0.01% APY for non Preferred Rewards members.

Savings accounts are supposed to be a place where your money goes to work for you. But when big banks pay near-zero yields on your savings, they are essentially forcing your money to work without pay. You wouldn't keep working at a job for a company that refused to pay you, so why should you let your savings go unpaid?

Fortunately, it's not too late to change banks and earn a higher yield on your savings. Let's look at a few ideas for better savings accounts to keep your cash.

Why Bank of America savings account APYs are so low

Have you noticed how so many of the best savings accounts are from smaller banks, regional banks, or online banks? Smaller, scrappier banks are often trying harder to grow -- to get new customers and more deposits. Big banks are already big; they don't have to pay big APYs on savings accounts. Banks will pay the smallest APYs that customers will allow them to get away with.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of June 27, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of June 27, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

So why are so many customers allowing big banks to pay 0.01% APY? You don't have to do this. There are many other banks in America that offer better APYs than Bank of America.

How much can you earn with a Bank of America savings account?

Let's see just how little you can earn with a Bank of America 0.01% APY savings account, compared to some other better options. Rates as of May 29, 2024; assuming $10,000 of cash in the bank.

The takeaway: $10,000 in Bank of America Advantage Savings account with standard 0.01% APY would earn $1 per year. (You can get a slightly higher APY based on having a higher Preferred Rewards relationship tier, but it's a miniscule difference -- an extra 0.01% for each higher tier.)

After five years, your savings would be "underpaid" by about $3,000 compared to the best savings accounts. Even the best checking accounts pay higher interest than Bank of America Advantage Savings.

Where to put your cash instead of a 0.01% Bank of America savings account

Here are a few ideas for where to keep your savings.

Best savings accounts

Here are the current three highest APYs from The Ascent's list of best savings accounts:

1. 5.36% APY: Western Alliance Bank High-Yield Savings Premier
2. 5.26% APY: NexBank High-Yield Savings Account from Raisin
3. 5.05% APY: EverBank Performance℠ Savings

Best money market accounts

The best money market accounts give an added level of flexibility -- you can often use these accounts with debit card access, or check-writing privileges to pay bills directly from your savings. Money market accounts also offer high APYs that are sometimes better than the best savings accounts.

Here are the highest-yield APYs from The Ascent's list of best money market accounts:

1. 5.30% APY: Vio Bank Cornerstone Money Market Savings
2. 5.20% APY: American First Credit Union Money Market Deposit Account from Raisin
3. 4.65% APY: Sallie Mae Money Market

Better APYs from big banks

If you want to keep banking with a big national bank, you can still get higher yields on your savings. Here are three high-yield savings accounts from major banks:

1. 4.30% APY: Citi® Accelerate High-Yield Savings
2. 4.25% APY: Capital One 360 Performance Savings
3. up to 4.25% APY: U.S. Bank Elite Money Market Account (minimum deposit of $25,000 for max. APY)

Rates shown as of May 29, 2024; rates might not be available in all markets.

Bottom line

You (and your savings) deserve better than 0.01% APY from a Bank of America savings account. With the best savings accounts and money market accounts, you can earn 5.00% or more.