Review
Updated
Fact Checked
Ashley Maready
Bottom line: Navy Federal Credit Union has better APYs and more free deposit accounts, while Bank of America has a larger branch network.
Navy Federal Credit Union vs. Bank of America: Account options
Savings accounts
Navy Federal Credit Union has a much better savings account offer than Bank of America.
The Bank of America Advantage Savings has an $8 monthly account fee (waivable), $100 initial deposit requirement, and rock-bottom APY of up to 0.04%. While Preferred Members can earn rates slightly above the standard 0.01% for this account, rates are still much lower than other savings accounts.
For its part, the Navy Federal Share Savings Account is free ($5 minimum opening deposit required) and has a 0.25% savings rate. While it beats Bank of America, it's still not very competitive in comparison with high-yield savings accounts.
Rates as
of May 03, 2024
| Offer |
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|---|---|---|
| Account | ||
| Rating |
Rating image, 2.50 out of 5 stars.
2.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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= Fair = Poor |
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| APY | up to 0.04% | 0.25% |
| Min. to earn APY | — | $5 to open and maintain account |
| Next Steps |
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Money market accounts
Bank of America does not offer a money market account at this time (it once did offer the Rewards Money Market Account, but no longer appears to be taking new applications). Meanwhile, Navy Federal Credit Union offers the Navy Federal Money Market Savings Account (MMSA), which earns an APY of up to 2.25%, depending on your account balance. While the account has no minimum opening deposit requirement, you must have a balance of at least $2,500 to earn interest from its Standard MMSA, while balances of $0 to $99,999 are eligible to earn some APY (albeit minimal) from the Jumbo version of the account.
Ratings Methodology
Rates as
of May 03, 2024
Federally insured by NCUA.
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Monthly Fee
$0
Min. Balance
$0
APY
up to 2.25%
Rate info
APYs are tiered based on MMA type (Standard vs. Jumbo) and deposit amount. The highest 2.25% APY is earned by Jumbo MMA holders with a $1,000,000 and over deposit.
Min. To Earn APY
$0
- No monthly fees
- ATM access
- No minimum deposit required
- Low APYs
- High balance required to earn top-tier rates
- Need to join credit union for eligibility
The Navy Federal Credit Union requires an uber-high balance to get its best APY, which isn't even close to competing with the best money market accounts. It might be right for those who already bank at Navy Federal Credit Union and want to keep all their money at one institution. Otherwise, there are better options available.
Checking accounts
Once again, Navy Federal Credit Union has generally better checking account offers than Bank of America.
Bank of America offers three checking accounts, each with monthly fees of varying amounts. Bank of America Advantage SafeBalance Banking is a basic checking account, with a $4.95 monthly fee that's waivable, while Bank of America Advantage Plus Banking is also basic but comes with a $12 monthly fee (waivable). Advantage Relationship Banking earns interest, but comes with a $25 monthly fee (waivable).
Navy Federal Credit Union has four free checking accounts, two of which require direct deposit to open, while the other two do not. These accounts earn a small percentage of interest and reimburse ATM fees up to $120 per year. Its Flagship Checking account has a $10 monthly fee (waivable) and earns slightly more interest.
Rates as
of May 03, 2024
| Offer |
|
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|---|---|---|
| Account | ||
| Rating |
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 3.00 out of 5 stars.
3.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| APY | 0% | N/A |
| Min. to earn APY | N/A | N/A |
| Next Steps |
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CDs
The CD rates for Bank of America and Navy Federal Credit Union are vastly different for standard CD terms.
Bank of America Standard CDs range from 28 days to 10 years with a minimum deposit of $1,000. While it does have some decent rates on certain special short-term CDs (like 7-months and 13-month terms, check the bank's website for details), most of its standard APYs don't stack up against the best CDs.
Navy Federal Credit Union CDs (called Savings Certificates) come in seven terms ranging from three months to seven years. Its APYs are decent for most terms, though still not surpassing the best CD rates. The credit union requires a $1,000 minimum deposit for its Standard Certificates, but members can also get an EasyShare Certificate or Special EasyStart Certificate with a deposit as low as $50.
Rates as of May 1, 2024
APY = Annual Percentage Yield
| Offer |
|
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|---|---|---|
| Account | Navy Federal Credit Union Standard Certificate | Bank of America Standard CD |
| 3 Mo. | 2.75% | -- |
| 6 Mo. | -- | 0.03% |
| 1 Yr. | 4.80% | 0.03% |
| 1.5 Yr. | 4.50% | 0.03% |
| 2 Yr. | 4.20% | 0.03% |
| 3 Yr. | 4.00% | 0.03% |
| 4 Yr. | -- | 0.03% |
| 5 Yr. | 3.80% | 0.03% |
| 7 Yr. | 3.80% | -- |
| Min. Deposit | $1,000 | $1,000 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
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Navy Federal Credit Union vs. Bank of America: APYs
Navy Federal Credit Union has a higher annual percentage yield (APY) on its basic savings account and more favorable rates on long-term CDs. All of its basic checking accounts are interest-bearing, while Bank of America only pays interest on its premium checking account. That said, Bank of America may offer higher APYs on some special short-term CDs featured on its website.
Navy Federal Credit Union vs. Bank of America: Customer service
Navy Federal Credit Union excels at customer service. On Trustpilot, it has a super high rating of 4.5 out of 5 stars, one of the highest ratings for a credit union on that particular site. Bank of America, for its part, has 1.3 out of 5 stars, which is typically for a large national bank.
That said, Bank of America did rank first in the J.D. Power 2023 U.S. Retail Banking Advice Satisfaction Study, beating out multiple big banks. On the contrary, it also scored below the study average in the U.S. Retail Banking Satisfaction Study.
Members of Navy Federal Credit Union can get stateside phone support 24/7, plus a free financial consultation over the phone Monday through Friday 9 a.m. to 6 p.m. Meanwhile, Bank of America clients can get phone support Monday-Friday from 8 a.m. to 9 p.m. ET, Saturdays 8 a.m. to 8 p.m. ET, and Sunday 8 a.m. to 5 p.m. ET.
Navy Federal Credit Union vs. Bank of America: Mobile apps
Navy Federal Credit Union's banking app is pretty basic, allowing you to deposit checks, pay bills, transfer money, and manage your accounts in one place. Bank of America's app, however, is a little more robust. Not only does it offer the basics, but it also has an AI financial assistant, Erica, who can monitor your finances and give you personalized advice.
As far as ratings go, Navy Federal Credit Union's app has 4.3 out of 5 stars on Google Play and 4.9 out of 5 stars on the App Store. For its part, Bank of America's app has a rating of 4.6 on Google Play and 4.8 stars on the App Store.
Navy Federal Credit Union vs. Bank of America: Which is right for you?
Navy Federal Credit Union could be right for you if you want to combine the customer service of a credit union with the national presence of a big bank. It could also be ideal if you want a free checking or savings account, especially if you don't want to bother with worrying about waiving fees. On the other hand, if you want a larger network of branches within the U.S, Bank of America might suit you better. It doesn't have high APYs, but it has thousands of branches, whereas Navy Federal Credit Union only has 350.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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First off, to join Navy Federal Credit Union, you must be a service member (active duty or retired); Department of Defense employee, contractor, or retiree; or a family member of an active-duty or veteran service member. If you fit those criteria, Navy Federal Credit Union might be ideal if you want to avoid monthly fees on deposit accounts.
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Bank of America is right for those who want a large national bank with plenty of branches and ATMs. It might also be ideal for those who are already using Bank of America for other services (like credit cards) and want to keep all their accounts in one place.
Our Banking Experts
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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