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The Bank of America Featured Certificates of Deposit come in five CD terms, ranging from seven months to 37 months. The bank’s CD rates tend to be much lower than the best CD rates from online banks: BofA offers rates as low as 0.05% annual percentage yield (APY) for some terms on its Featured CDs, with a minimum opening deposit of $1,000. However, depending on the term you choose, some Bank of America Featured CDs offer APYs as high as 4.75%.
Bank of America also offers Fixed Term CDs, which allow you to choose any term from one month to 10 years. Bank of America Fixed Term Certificates of Deposit have a minimum deposit of $1,000 and offer APYs ranging from 0.03% to 4.00% depending on term and balance. Another option is the Bank of America Flexible Certificate of Deposit, available with a term of 12 months and a rate of 3.51% APY for a minimum deposit of $1,000.
Here’s an overview of Bank of America’s CD rates. This article focuses on Bank of America’s Featured CDs, which offer a higher APY. Rates are accurate as of May 16, 2024.
| CD Term | APY | Minimum Deposit |
|---|---|---|
| 7 Months | 4.75% | $1,000 |
| 10 Months | 0.05% | $1,000 |
| 13 Months | 4.75% | $1,000 |
| 25 Months | 3.00% | $1,000 |
| 37 Months | 0.05% | $1,000 |
Overview of Bank of America CDs
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.
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. And instead of a 12-month CD, it offers a 13-month CD.
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.
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 For CD terms of 90 days to 12 months, the early withdrawal penalty is 90 days’ worth of interest on the amount withdrawn. For CD terms of 12 to 60 months, the early withdrawal penalty is 180 days of interest on the amount withdrawn.
| Overview of Bank of America CDs | ||
|---|---|---|
| Minimum Deposit | $1,000 | |
| Term Lengths | 7, 10, 13, 25 and 37 months | |
| Compounding Schedule | Monthly | |
| Early Withdrawal Penalty | Terms of 90 days to 12 months: 90 days’ interest Terms of 12 months to 60 months: 180 days’ interest | |
| Grace Period for Penalty-Free Withdrawals After Maturity | 7 days | |
How Much Can You Earn With Bank of America’s CD Rates?
Because Bank of America’s CD rates are relatively low across terms, don’t expect much of a return. Find out what you can earn with Bank of America’s CDs by plugging the numbers into our CD calculator:
How Bank of America’s CDs Compare
Most of Bank of America’s CD yields are much lower than those of the best CD rates. This bank’s lowest CD rates are also significantly lower than the national average CD rates, according to the FDIC. However, a few of Bank of America’s Featured CDs offer APYs that are competitive with the best CDs on the market.
This is an excellent reminder to shop around and do your research on CD rates. Your bank or banks in your immediate geographic area may not have the best CD rates, so consider online options as well. Compare rates from several banks and credit unions and see who can offer you the best deal so you can get the highest possible return on your investment.
How To Open a CD Account With Bank of America
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.
Online:
- Go to the Bank of America CDs page.
- Choose the “Get started” button under the type of CD you want to get.
- Select your desired term and opening deposit amount.
- Complete the online application.
By phone:
- Contact Bank of America by phone at 844-375-7027.
In-person:
- Go to a Bank of America branch near you to open an account in person.
About Bank of America
Bank of America is a full-service national bank with 240 years of history, and it’s the second-largest U.S. bank by assets. It offers 3,900 branch locations, an online banking platform and a highly rated mobile app. Bank of America provides personal, business and commercial banking products and services.
Alternatives to Bank of America CDs
There are plenty of other banks and credit unions offering high-yield CDs worth looking into. You may also want to consider other types of accounts.
Other CD Options
Bank of America’s best Featured CDs have above-average rates, but they don’t quite match the best CD rates in the country. You can find CDs at online banks and credit unions offering rates of 5.00% APY or higher for comparable terms.
If you’re comfortable banking online, consider CDs at an online bank, which tend to have lower minimum deposit requirements and higher rates. If you prefer to bank in person but still want the highest rates, look into CDs offered by your local credit unions.
High-Yield Savings Accounts
One drawback to CDs is that they require you to lock up your money for a certain period of time. If you need to take out cash before your CD term ends, you’ll likely have to pay an early withdrawal penalty. If you want more flexible access to your cash while still getting FDIC insurance and earning a competitive APY, consider a high-yield savings account.
The best high-yield savings accounts offer rates that surpass 5.00% APY, earning a better yield and providing more flexibility than Bank of America CDs.
Money Market Accounts
Another savings account option that can provide high yields, FDIC insurance and the flexibility to withdraw your cash anytime is a money market account. Not every bank or credit union offers this type of account, but competitive ones are not hard to find.
Money market accounts work the same way as savings accounts—they earn interest, they’re covered by FDIC insurance and you can withdraw your cash without an early withdrawal penalty. In addition, some money market accounts also offer check-writing and debit card access, so you can use them for making occasional payments.
The best money market accounts pay rates above 5.00% APY. If you want to maximize your savings yield without the limitations of a CD, money market accounts could be your best choice.
Frequently Asked Questions (FAQs)
What is the current CD rate for Bank of America?
Bank of America CD rates depend on the type of CD, term and the amount of money deposited. Rates range from 0.05% to 4.75% 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.
What are some alternatives to saving with CDs?
If you want a safe place to keep your savings, one option is a savings account. Savings accounts are FDIC-insured, but these demand deposit accounts do not have early withdrawal penalties. And if you choose one of the best online savings accounts, you may get a better APY than you could from a CD.
Do all CDs charge an early withdrawal penalty?
It depends on the type of CD and financial institution. Some banks offer no-penalty CDs, which are a type of CD that doesn’t charge an early withdrawal penalty. 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.
What is a CD ladder strategy?
A CD ladder is a savings strategy to help maximize your yield—and provide more liquidity—by opening multiple CDs with different terms and maturity dates. The goal is to take advantage of higher interest rates and lock in a variety of CDs that give you a range of yields over time. 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.
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