Have a Bank of America Savings Account in May 2025? You're Probably Missing Out on $300-Plus a Year

If you're keeping your cash in a Bank of America savings account, chances are you're missing out on hundreds of dollars in passive income. That's because right now, the base annual percentage yield (APY) on Bank of America Advantage Savings account is just 0.01%.

That means if you've got $8,000 in that account -- the median account balance as of 2022, per the Federal Reserve -- it'll earn you just $0.80 in interest over the course of the year.

Even if you qualify for Bank of America's Preferred Rewards program -- which bumps up your APY based on how much money you keep with them -- the highest rate you can earn is only 0.04%.

Compare that to our favorite high-yield savings accounts (HYSAs), which can earn you as much as 4.40% APY in May 2025 -- that same $8,000 could be earning you $352 a year.

What you're getting with Bank of America Advantage Savings

Bank of America keeps things simple by offering just one savings account: Bank of America Advantage Savings. The problem? The APY is painfully low.

Here's what you'll earn:

• 0.01% APY base rate for most customers
• Up to 0.04% APY if you're enrolled in the Preferred Rewards program and hit a qualifying tier

Preferred Rewards has a number of different tiers, and the only real difference is the interest rate. But even the best tier only gives you a 0.04% APY -- more than 100 times lower than the best HYSAs offering up to 4.40% APY. Check out this list of our favorites and switch accounts today.

Why an HYSA is a better place for your cash

The perks of an HYSA include:

• Higher APY -- You could earn hundreds of dollars more per year.
• FDIC insured -- Like traditional banks, your money is still protected.
• Low or no fees -- Most HYSAs don't charge monthly fees.
• Same flexibility -- You can withdraw money anytime.

It takes just a few minutes to open an HYSA online, and you can usually transfer funds straight from your current bank. Once you've done so, you can start earning hundreds of times more interest per year with no additional effort.

What you can do today

If your savings are earning a low APY, it's time to take action. Here's what you can do right now:

1. Check your current APY -- Log into your Bank of America account and see what you're actually earning.
2. Compare HYSA rates -- Look for options offering at least 3.60% or more.
3. Move some or all of your savings -- Even moving just $5,000 to an HYSA could mean an extra $200 a year.

Switching doesn't mean closing your Bank of America account completely if you don't want to. You can keep it as a checking account for day-to-day use while letting your savings grow somewhere else.

What are you waiting for?

Saving money is hard enough without your bank holding you back. If you're still earning 0.01% APY, you're missing out on easy money. An HYSA offers a simple way to earn more without taking on any risk.

Ready to give it a try? Don't wait -- apply for a Barclays Tiered Savings account today and earn 4.00% APY with no account minimums.