She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more. We use a CD methodology that looks at interest rates, minimum opening deposits, early withdrawal penalties, variety of CD terms, ethics, customer support, and mobile apps. For traditional CDs, Wells Fargo CD rates are higher on 3-month and 1-year terms. Meanwhile, Bank of America notably offers great rates for terms between 90 days and 179 days. Bank of America (Member FDIC) is one of the best national banks, but its CD rates are still short of the best ones available at online banks.
Certificate of Deposit (CD) Accounts
Liliana Hall is a writer for CNET Money covering banking, credit cards and mortgages. Previously, she wrote about personal credit for Bankrate and CreditCards.com. She is passionate about providing accessible content to enhance financial literacy. She graduated from the University of Texas at Austin with a bachelor’s degree in journalism, and has worked in the newsrooms of KUT and the Austin Chronicle.
- Read on to learn more about Bank of America CD rates, how they compare to other banks, and whether they are right for you below.
- Doing so will help you find the best possible rate for your desired term.
- The highest Bank of America CD rate is a 5.00% APY, which is for its 13 months featured term.
- This is roughly in the middle compared to other financial institutions, as some have higher minimum deposit amounts and some don’t have this requirement at all.
Savings or CDs –
Bank of America doesn’t disclose a maximum deposit amount for its CDs. Its minimum deposit amount is $1,000, and if you’d like to deposit more than $250,000 you may need to open an account in person. There are plenty of other banks and credit unions offering high-yield CDs worth looking into. If you take your money out of the CD before the term ends, you’ll have to pay a penalty for early withdrawal. For CD terms of 90 days to 12 months, the early withdrawal penalty is 90 days’ worth of interest on the amount withdrawn.
Standard CDs
The rates on some of Bank of America’s featured CDs are well above the Federal Deposit Insurance Corp.’s national average. For example, you can earn between 3% and 5% with a seven-month, 13-month or 25-month CD. You’ll need to keep your money in the CD for the entire term to avoid an early withdrawal penalty. Bank of America offers a one-year term for its flexible CD account.
Instead of putting all your eggs in one basket with one CD and one fixed rate, a CD ladder can help you take advantage of higher yields and avoid early withdrawal penalties. To build a CD ladder, do your research to find the best rates, terms and minimum deposits. If you’re comfortable banking online, consider CDs at an online bank, which tend to have lower minimum deposit requirements and higher rates.
Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. In English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor. The Bank of America Featured CD rate is 0.05% to 5.00% (vary by location) APY. If you’re ready to get started with a Bank of America CD account, you can open one online, by phone or in person by following the steps below. We’ll automatically reinvest your funds at the end of the term.
Notably, Bank of America’s Featured CDs come in odd terms, generally one month longer than what is standard. For example, the bank offers a seven-month CD rather than a six-month term, which is more common. This article focuses on Bank of America’s Featured CDs, which offer a higher APY. The rates in this review are for the New York ZIP code of and are accurate as of July 1, 2024. The numbers below reflect what your final account balance would be at the end of each CD term, according to your initial deposit.
He also writes for The Ascent (a Motley Fool service), where he covers insurance, credit cards, personal finance and investing. Ben has over 10 years of experience as a freelance content writer for regional banks, tech startups, and financial services companies like LendingTree and Prudential. He also works as a ghostwriter for business executives, with bylines in publications such as Fast Company, Entrepreneur and TechCrunch.
Interest on Bank of America CDs is compounded and credited monthly. Here you can see that Chase offers incredibly low standard rates. Chase does, however, offer the chance to earn better relationship rates when you link your CD to a Chase checking account and have higher balances. If you don’t want to lock your money in a CD, Bank of America offers an Advantage Savings account – but its APY is well below the national average. The standard APY is 0.01%, but if you qualify for the Preferred Rewards program, you can earn up to 0.04%. Bank of America’s featured and fixed-rate CDs have early withdrawal penalties if you take money out before the CD’s maturity date.
Depending on the bank, the APY on no-penalty CDs may be lower than a standard CD—you may have to agree to accept a lower yield in exchange for more liquidity. Bank of America CD rates depend on the type of CD, term and the amount of money deposited. Rates range from 0.05% to 5.00% APY for the Featured CDs, 0.03% to 4.00% for Fixed Term CDs and 3.51% for the Flexible CD. The best Bank of America CD rates are on Featured CDs with seven-month and 13-month terms.
CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site. Bank of America is one of the biggest banks in the US, with nearly 4,000 branches and 15,000 ATMs.
The total penalty you’ll incur will depend on your overall CD term. CDs with longer terms may have larger early withdrawal penalties—in some cases, you may forfeit one year’s worth of interest on the total amount withdrawn. Bank of America’s CD rates may vary by location, and the rates listed below may not be available in all ZIP codes. Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit. We believe everyone should be able to make financial decisions with confidence.
As with the Featured CD, the early withdrawal penalty depends on the CD term. For terms over five years, for example, you’ll pay one year of interest on the amount you withdraw early. The Bank of America Fixed CD offers flexible terms you won’t see with many competitors. You can choose from terms as short as one month or as long as 10 years.
Not every bank or credit union offers this type of account, but competitive ones are not hard to find. Reaching your savings goals may require a higher return on your money than you can get given many banks’ low rates on traditional savings accounts. Other products, like a high-yield savings account or certificate of deposit (CD), can ramp up your savings and help you reach your goals faster. CD rates at Bank of America are underwhelming compared to rates from competing online-only banks and credit unions. Many banks on CNET’s best CD list offer competitive rates well above the FDIC’s national average.
You will have to meet a minimum deposit requirement for both accounts, with the Featured CD having a much higher requirement. Luckily, you won’t have to worry about a monthly or annual service fee with these Bank of America CDs. Another savings account option that can provide high yields, FDIC insurance and the flexibility to withdraw your cash anytime is a money market account.
But those higher rates still don’t usually match the best CD rates available. Interest on the bank’s CDs is compounded monthly and credited to your account monthly. You can also choose to have interest disbursed at maturity or certain intervals. Once you’ve chosen a term and made your deposit, your rate is fixed for the length of your term. Like most banks, Banks of America doesn’t charge any maintenance fees on CD accounts.
For example, the national average rate on a 12-month CD is 1.85% as of July 2024, according to the FDIC. For comparison, a 12-month Fixed Term CD at Bank of America only earns 0.03% APY. However, a few of Bank of America’s Featured CDs offer APYs that are competitive with the best CDs on the market. Bank of America’s Featured CDs require a minimum opening balance of $1,000, which is relatively high, but could be worth it if you choose a term that gets a higher APY. Many other banks pay higher APYs while requiring a lower minimum deposit or no minimum at all. Bank of America CDs are right for people who are more interested in having a wide range of term-length options than earning high-yield interest rates.
Since individual banks set their own rates for deposit accounts, it’s impossible to tell how often rates will change. That said, when you open a new CD you’ll generally get the benefit of a fixed rate for its term. So even if rates decrease, your CD account’s rate won’t go down during your term. The total penalty you’ll incur for early withdrawal depends upon your CD term. For instance, with a 7- or 10-month CD, you’ll pay three months of interest if you withdraw your funds early. But with a 13-, 25-, or 37-month CD, you’ll pay 180 days of interest if you withdraw your money before your term ends.