Bank of America Advantage Savings earns 0.01% APY — approximately $1 per year on a $10,000 balance. It is FDIC-insured, convenient if you already bank with BofA, and the $8 monthly fee is easy to waive. But its rate is one of the lowest of any major US bank, making it a poor vehicle for building an emergency fund or working toward a savings goal. As part of the full Bank of America product lineup, this account plays a specific supporting role — not a lead one.
The direct answer: BofA Savings is useful as a fee-free overdraft protection link 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 at a Glance
| Feature | Details |
|---|---|
| APY | 0.01% |
| Monthly fee | $8 |
| Fee waiver | $500 min daily balance OR linked BofA checking OR Preferred Rewards OR under 18 |
| Minimum to open | $100 |
| FDIC insured | Yes (certificate 3510) |
| Transfers to BofA checking | Instant |
| Zelle | No (savings accounts are not Zelle-eligible) |
| Online/mobile access | Full |
For the complete schedule of BofA account fees, see the Bank of America fees guide.
What 0.01% APY Actually Means in Dollars
On different savings balances, here is what Bank of America Advantage Savings earns per year compared to a competitive online bank:
| Balance | BofA at 0.01% | Online HYSA at 4.25% | Difference |
|---|---|---|---|
| $5,000 | $0.50 | $212.50 | $212.00 |
| $10,000 | $1.00 | $425 | $424.00 |
| $20,000 | $2.00 | $850 | $848.00 |
| $50,000 | $5.00 | $2,125 | $2,120.00 |
On a $20,000 emergency fund, choosing BofA Savings over an online HYSA costs approximately $848 per year in foregone interest. That is $70.67/month — real money that compounds every year you leave it behind.
How to Waive the $8 Monthly Fee
The $8 fee ($96/year) is avoidable through any one of these:
Easiest: link to your BofA checking account. If you have an open Bank of America Advantage checking account linked to your savings, the $8 fee is waived automatically. Most BofA customers pair checking and savings this way — you don’t have to do anything once the accounts are linked. For details on minimum balance requirements across all BofA accounts, see that guide.
Alternative: maintain $500 minimum daily balance. Your balance must stay at or above $500 every single day of the statement period. One day below $500 triggers the fee for that month.
Preferred Rewards: fee waived at all tiers. Any Preferred Rewards member (Gold, Platinum, Platinum Honors, Diamond) has the savings fee waived as part of program benefits.
Under 18: Minor savings accounts have the fee waived automatically.
How to Set Up BofA Savings as Overdraft Protection
This is the highest-value use of Bank of America Advantage Savings for most customers. Here is how to link it:
- Log in to Bank of America Online Banking or the mobile app
- Go to Help & Support → Overdraft Settings, or search “overdraft protection”
- Select your checking account and then choose your savings account as the backup funding source
- Confirm the link — changes take effect immediately
Once linked, if your checking account balance would go negative, BofA automatically transfers the exact amount needed from your savings to cover the transaction. There is no fee for this transfer. Each automatic transfer counts as one withdrawal from savings.
Why this matters: Without overdraft protection, BofA charges up to $10 per overdraft item. If you overdraft three times a month, that is $30/month in fees — more than the cost of the savings account itself.
Preferred Rewards and Savings Rates
Preferred Rewards members may qualify for modestly better savings rates through the Relationship Savings account. However, even at Platinum Honors tier ($100,000+ combined balance), BofA savings rates do not approach online bank levels. The table below illustrates the gap:
| BofA Tier | Approx. Savings APY | Online HYSA APY |
|---|---|---|
| Standard | 0.01% | 4.00%–4.90% |
| Preferred Rewards Gold | 0.02–0.03% | 4.00%–4.90% |
| Preferred Rewards Platinum | 0.03–0.05% | 4.00%–4.90% |
| Preferred Rewards Platinum Honors | 0.05–0.08% | 4.00%–4.90% |
The Preferred Rewards program’s real value is its credit card rewards boost (25%–75%) and waived banking fees — not improved savings rates.
BofA Savings vs. BofA CDs
If you have money you will not need for 6–24 months, BofA’s Featured CDs are significantly more competitive than the savings account:
| Product | APY | Minimum | Liquidity |
|---|---|---|---|
| Advantage Savings | 0.01% | $100 | Full (anytime) |
| BofA CD — 7 months (Featured) | ~4.00–4.50% | $1,000 | None (penalty to break) |
| BofA CD — 13 months (Featured) | ~4.00–4.50% | $1,000 | None (penalty to break) |
BofA periodically promotes “Featured CDs” with rates that rival online banks. Check availability at your branch or in the app. Early withdrawal penalty is 90–180 days of interest depending on term. If you need the funds before maturity, you forfeit some interest — plan accordingly.
Is BofA Savings Safe?
Yes. Bank of America is FDIC insured and one of the most financially stable institutions in the US. Your Advantage Savings deposits are protected up to $250,000 per depositor. Joint accounts are insured up to $500,000. The bank’s deposits have never suffered an uninsured loss in its modern form.
The Right Strategy for BofA Savings Customers
Step 1: Keep BofA Advantage Savings open — link it to your BofA checking account as overdraft protection.
Step 2: Maintain only $500–$1,000 in the BofA account (enough to satisfy the fee waiver and cover occasional overdraft events).
Step 3: Open a high-yield savings account at an online bank for your actual savings goals — emergency fund, vacation, down payment. Online transfers from your HYSA back to BofA checking take 1–3 business days (see BofA transfer limits for caps).
Step 4: Move the bulk of your savings to the HYSA and let it compound at 4%+.
This approach gives you BofA’s branch convenience and overdraft safety net while earning meaningful interest on your real savings.
Better Alternatives to BofA Advantage Savings
All accounts below are FDIC-insured with no monthly fees and no minimum balance:
| Bank | APY | Monthly Fee | Min Balance |
|---|---|---|---|
| Ally Bank | 4.20% | $0 | $0 |
| Marcus by Goldman Sachs | 4.25% | $0 | $0 |
| Discover Online Savings | 4.25% | $0 | $0 |
| Capital One 360 Performance | 4.00% | $0 | $0 |
| SoFi Savings | 4.50% | $0 | $0 (requires direct deposit for top rate) |
Transfers from any of these to your BofA checking account typically clear within 1–3 business days. Set up the link once, and you can move funds anytime through either bank’s app.
Related Guides
- Bank of America checking account 2026 — Advantage SafePass, Plus, and Relationship compared
- Bank of America minimum balance 2026 — all fee waivers and Preferred Rewards tiers explained
- Bank of America fees 2026 — complete fee schedule including overdraft, monthly, and ATM charges
- Bank of America transfer limits 2026 — ACH, Zelle, and wire caps for moving money in and out
- Bank of America ATM limit 2026 — daily cash withdrawal caps and how to increase them
- Bank of America hub — routing number, hours, account reviews, and more
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