Bank of America CD Rates (July 2024)

Bank of America has three types of CDs: featured, which offer promotional rates, fixed term and flexible, which is a no-penalty CD. They all share certain features, including a $1,000 minimum deposit, but they differ in term length, annual percentage yield and early withdrawal penalties.

Let’s look at each CD more in depth.

Bank of America Featured CD

These CDs include Bank of America’s highest earners. Terms range from seven to 37 months. After the term ends, these CDs automatically renew into fixed-term CDs. Interest rates for the 10- and 37-month CDs are low, while the seven- and 13-month terms earn the highest APYs Bank of America offers for CDs.

Bank of America Fixed-Term CD

These are Bank of America’s standard CDs. Each has a fixed term ranging from one month to 10 years. APYs for these CDs are generally lower than those for featured CDs.

Bank of America Flexible CD

Bank of America offers a one-year term for its flexible CD account. This type of CD lets you withdraw your principal balance and any interest before the maturity date as long as you do so at least seven days after opening your account or making a withdrawal. Like the featured CDs, it tends to have a higher interest rate than the bank’s fixed-term CDs.

Bank of America CD Rates vs. Other Top Banks

>> Related: Learn more about the types of CDs

>> Related: Learn more about the best CD rates

We spoke to Mary Hines Droesch, head of Consumer and Small Business Products at Bank of America, for additional insights into CDs.

“If you’re considering opening a CD, it’s important to continue maintaining a savings account so you have easy access to funds when you need them. A good indicator that you’re ready to open a CD account is when you have a sizable financial savings cushion – outside of your CD funds – to rely on in case of unexpected expenses. This can be anywhere from three to six months’ worth of living expenses.”

While Bank of America has numerous CD term lengths and APYs to choose from, you should also consider early withdrawal penalties, required deposits and compounding schedules. We broke down these details for Bank of America CDs below.

Bank of America CD Early Withdrawal Penalty

Bank of America’s featured and fixed-rate CDs have early withdrawal penalties if you take money out before the CD’s maturity date. The amount of interest you’ll have to pay depends on the term length of your CD.

• CDs with terms of less than 90 days: You pay the greater of seven days’ worth of interest or all interest earned on the amount withdrawn.
• CDs with terms of 90 days to one year: You pay 90 days’ worth of interest on the amount withdrawn.
• CDs with terms of one to five years: You pay 180 days’ worth of interest on the amount withdrawn.
• CDs with terms of more than five years: You pay 365 days’ worth of interest on the amount withdrawn.

If you open a flexible CD through Bank of America, there are no early withdrawal penalties unless you make a withdrawal within six days of opening the account or taking money out.

Bank of America CD Minimum Deposit

All of Bank of America’s CDs require a $1,000 minimum opening deposit. 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.

Compounding Schedule

Bank of America has two compounding schedules. If you have a CD with a term of 27 days or less, interest is added at maturity. For CDs with terms of 28 days or more, interest is compounded monthly and credited to your account at the end of each month or on the schedule you choose.

>> Related: Learn more about how CDs work

Bank of America doesn’t offer money market accounts, but it does offer its Advantage Savings account. This isn’t a high-yield savings account, but if you link a Bank of America personal checking account, you’ll get a higher APY through the Preferred Rewards program.

You must also maintain three-month combined minimum balances across your investment and deposit accounts. The higher the combined balance, the higher the APY on your Advantage Savings account.

• Gold tier: Combined average daily balance of $20,000 to less than $50,000
• Platinum tier: Combined average daily balance of $50,000 to less than $100,000
• Platinum Honors tier: Combined average daily balance of $100,000 to less than $1 million
• Diamond tier: Combined average daily balance of $1 million to less than $10 million

Bank of America’s Advantage Savings account has an $8 monthly fee after the first six months. The fee can be waived if you meet one of these requirements:

• Maintain a $500 minimum daily balance
• Link the account to your Advantage Relationship Banking account
• Have a Preferred Rewards membership
• Have an account owner under the age of 18
• Have an account owner who is a student under the age of 25

>> Related: Learn more about the best savings accounts of 2024.

With Bank of America CD rates for some terms exceeding competitors’ rates, a featured or flexible CD could be well worth it. However, many of the bank’s fixed-term CDs have APYs below 1%.

“If you’re looking for a stable investment that can provide guaranteed returns, CDs can be a great addition to other assets you have in your investment portfolio, such as stocks and bonds,” Droesch said. “They can be a smart way to save for longer-term goals without the risk of market downturns, especially for those with riskier assets in their portfolio.”

>> Related: Learn more about the bank in our Bank of America review

**Rates accurate as of June 19, 2024. Rates may vary by location.

**Data accurate at time of publication

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.