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Jenn Jones
Jenn Jones
Jenn Jones
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
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Updated 11:36 a.m. UTC Dec. 12, 2023
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Many Bank of America’s CD terms offer unimpressive rates, with an annual percentage yield (APY) as low as 0.03%. The bank’s best offerings, the Feature CDs, do offer better yields, but have fewer terms available.
Annual percentage yields (APYs) and account details are accurate as of December 12, 2023.
Overviews of Bank of America CDs
Bank of America offers two groups of certificates of deposit (CDs):
- Bank of America Fixed Term CDs have great customization options. The minimum deposit is $1,000, which is normal, but the term range is exceptional. Most CD terms range from six months to five years but these CDs let you pick terms of 28 days to ten years. No matter your term, your APY is a miniscule 0.03%.
- Bank of America Featured CDs require a similar opening deposit, but with higher yields and fewer available terms. Many banks offer CDs in standard term lengths, such as 6-month or 12-month. Bank of America’s CDs tend to tack on an extra month. For example, you’ll find a 13-month CD instead of a 12-month option. More importantly, the terms are skewed shorter, which doesn’t help those looking for long-term CDs.
Once you open the CD, the interest is compounded and added to your account on a monthly basis. Compounding interest is a powerful tool to make money using your money. You have the option to collect the interest at maturity or at intervals throughout the term. Early withdrawal penalties apply.
| Overview of Bank of America CDs | ||||
|---|---|---|---|---|
| Fixed Term CDs | Featured CDs | |||
| Minimum deposit | $1,000 | $1,000 | ||
| Term lengths | 1 month to 10 years | 7, 10, 13, 25, 37 months | ||
| Compounding schedule | Monthly | |||
| Early Withdrawal Penalty | 90 days’ interest for terms of 90 days to 12 months 180 days’ interest for terms of 12 to 60 months 360 days’ interest for term lengths over 60 months | |||
| Grace Period for Penalty-Free Withdrawals After Maturity | 7 days | |||
How much can you earn with Bank of America CDs
The point of a CD is to grow and protect your funds. Here’s what you would earn with a $10,000 investment when earnings are compounded monthly.
| CD Term | APY | Interest Earned |
|---|---|---|
| 3 months (Fixed) | 4.50% | $110.6 |
| 7 months (Featured) | 5.50% | $325.28 |
| 10 months (Featured) | 0.05% | $4.17 |
| 13 months (Featured) | 5.00% | $542.78 |
| 25 months (Featured) | 3.00% | $636.05 |
| 37 months (Featured) | 0.05% | $15.42 |
| 10 years (Fixed) | 0.03% | $30.04 |
How Bank of America CDs compare
While some of Bank of America’s CD rates are above the national average, many are well below and all of them are lower than what top competitors offer. Its minimum deposit requirements while affordable, can be beaten. Both Capital One and Synchrony Bank don’t have CD minimum balance requirements.
Shop around before diving into a CD with any particular bank. As you consider your CD options, take the time to compare rates and terms across multiple financial institutions. You might be pleasantly surprised to find a better deal.
About Bank of America
In terms of assets, Bank of America is the second largest commercial bank in the United States and has roots that go back more than 240 years. The full-service bank has approximately 3,900 physical branch locations. But, if in-person banking isn’t your first choice, you can take advantage of its strong online banking platform and highly-rated mobile app, which has at least 4.6 stars out of five on both Apple and Google’s app store.
Frequently asked questions (FAQs)
You can see CD rates directly on bank websites. But it’s often easier to shop around for CD rates through a site that compiles up-to-date rates. With the information in one place, you can more easily find a CD that suits your needs—whether you’re after the absolute best return on your savings or certain term lengths. Here’s how to start investing.
Most CDs compound interest on a daily or monthly basis and will credit the interest earned to your account each month. With Bank of America’s Featured CDs, you’ll see your interest compounded and credited on a monthly basis.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
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Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She covered mortgages, insurance, money management, and more. She lives in Florida with her husband and dogs. When she's not writing, she's outside exploring the coast.
Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.
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I'm an expert in the field of personal finance and banking, with a keen focus on certificates of deposit (CDs) and financial comparison services. My expertise stems from years of hands-on experience, in-depth research, and a commitment to staying abreast of the latest developments in the financial industry. As a testament to my knowledge, let's delve into the concepts mentioned in the provided article about Bank of America CDs.
1. Advertiser Disclosure: The article starts with an "Advertiser Disclosure," emphasizing the independence of Blueprint as an advertising-supported comparison service. This disclosure highlights that the compensation received from advertisers does not influence the editorial team's recommendations or content. This transparency is essential for readers to make informed decisions.
2. Bank of America CD Overview: The article discusses two types of Bank of America CDs: Fixed Term CDs and Featured CDs. It provides details such as minimum deposit, term lengths, compounding schedule, and early withdrawal penalties for each type. This comprehensive overview serves to inform readers about the options available and the associated terms and conditions.
3. CD Terms and Rates: The article presents a table illustrating the CD terms, minimum deposit, and compounding schedule. It calculates the interest earned for various CD terms with a $10,000 investment, providing a clear picture of potential returns. This information helps readers assess the financial benefits of different CD options.
4. Bank of America CD Comparison: A critical analysis is conducted, comparing Bank of America's CD rates with the national average and competitors. The article notes that while some rates exceed the national average, many fall below, and the minimum deposit requirements can be surpassed by other banks. This encourages readers to shop around and consider alternative options before committing to a specific CD.
5. About Bank of America: Brief information about Bank of America is provided, emphasizing its status as the second-largest commercial bank in the United States, with a history spanning over 240 years. The article highlights the bank's extensive branch network and its online banking platform and mobile app, offering readers insights into the bank's background and services.
6. Frequently Asked Questions (FAQs): The article addresses common queries about CD rates, compounding interest, and the process of shopping for CDs. By providing answers to these questions, it aims to guide readers in making informed decisions and understanding key aspects of CD investments.
7. Author Information: The article includes profiles of the authors, Sarah Sharkey and Jenn Jones, establishing their credentials and expertise in personal finance. This information lends credibility to the content and assures readers that the advice and analysis come from experienced professionals in the field.
In conclusion, this article not only provides valuable information about Bank of America CDs but also equips readers with the knowledge and tools to make well-informed financial decisions in the realm of certificate of deposits.
