Bank of America Advantage Savings earns 0.01% APY — approximately $1 per year on a $10,000 balance. It’s FDIC-insured, convenient alongside a BofA checking account, and has a fee that’s easy to waive. But the rate is one of the lowest of any major US bank, making it a poor vehicle for building emergency savings or longer-term goals.
The direct answer: BofA Savings is useful for fee-free overdraft protection on your checking account. For actual savings growth, move funds to a high-yield savings account at an online bank.
Bank of America Advantage Savings Details
| Feature | Details |
|---|---|
| APY | 0.01% |
| Monthly fee | $8 |
| Fee waiver | $500 balance OR linked checking OR Preferred Rewards OR age under 18 |
| Minimum to open | $100 |
| FDIC insured | Yes |
| Transfers to BofA checking | Instant |
| Zelle | No (savings accounts) |
| Online/mobile access | Yes |
What 0.01% APY Actually Means
On different savings balances, here’s what Bank of America Advantage Savings earns per year:
| Balance | BofA at 0.01% | Ally at 4.20% | Difference |
|---|---|---|---|
| $5,000 | $0.50 | $210 | $209.50 |
| $10,000 | $1.00 | $420 | $419 |
| $20,000 | $2.00 | $840 | $838 |
| $50,000 | $5.00 | $2,100 | $2,095 |
On a $20,000 emergency fund, choosing BofA Savings over an online HYSA costs you approximately $838 per year in forgone interest.
How to Waive the $8 Monthly Fee
Easiest: link to your BofA checking account When you have an open Bank of America checking account linked to your Advantage Savings account, the $8 fee is waived automatically. This is the most common scenario for BofA customers.
Alternative: maintain $500 minimum daily balance If your savings account balance stays at or above $500 every day of the statement cycle, the fee is waived. One dip below $500 triggers the fee.
Preferred Rewards: fee waived at all tiers Any Preferred Rewards member (Gold, Platinum, Platinum Honors, Diamond) has the $8 monthly savings fee waived as part of their program benefits.
Age under 18: Minor savings accounts have the fee waived automatically.
Preferred Rewards and Savings Rates
Preferred Rewards members may qualify for modestly better savings rates through the Bank of America Relationship Savings account or as part of the program’s interest rate boost benefits. However, even at Platinum Honors tier ($100,000+), BofA’s savings rates do not come close to online bank rates.
The Preferred Rewards program’s real value is the credit card rewards boost (25%–75%) and waived fees — not improved savings rates.
The Correct Strategy for BofA Savings Customers
Step 1: Keep your BofA Advantage Savings account open with a $500 balance — this waives the fee even without linked checking.
Step 2: Set up BofA Savings as overdraft protection for your BofA checking account. This gives you a free safety net if you accidentally overdraft.
Step 3: Open a high-yield savings account at an online bank for your actual savings goals (emergency fund, vacation fund, down payment fund).
Step 4: Move the bulk of your savings to the HYSA. Maintain only $500–$1,000 in BofA Savings for the overdraft protection function.
This approach gives you BofA’s branch convenience and overdraft protection while earning 4%+ on your actual savings elsewhere.
Better Alternatives to BofA Savings
| Bank | APY | Monthly Fee | Minimum Balance |
|---|---|---|---|
| Ally Bank | 4.20% | $0 | $0 |
| Marcus by Goldman Sachs | 4.25% | $0 | $0 |
| Capital One 360 Performance | 4.00% | $0 | $0 |
| Discover Online Savings | 4.25% | $0 | $0 |
| SoFi Savings | 4.50% | $0 | $0 (requires DD for top rate) |
All are FDIC-insured. All are accessible via mobile app. Transfers to your BofA checking typically take 1–3 business days (set up once, transfer as needed).
Bank of America Savings vs. Other BofA Accounts
BofA also offers Certificate of Deposits (CDs) with higher rates than savings — typically 4.00%–5.00% for 12-month terms with Preferred Rewards pricing. If you have funds you won’t need for 6–24 months, BofA CDs are more competitive than BofA savings.
See also: BofA checking account guide | Bank of America review | BofA minimum balance requirements | Best high-yield savings accounts 2026
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy