Bank of America CD Rates: June 2024 (2024)

Vault’s Viewpoint on Bank of America’s CD Rates

• A couple of Bank of America’s CDs have competitive rates, but not all.
• CD terms range from one month to as long as 10 years.
• For all Bank of America CDs, you need at least $1,000 to open your account.

Overview of Bank of America CDs

With Bank of America, you can choose between fixed, featured and flexible CD accounts. All of its CDs offer no annual fees, no transfer fees and charge an early withdrawal penalty (with the exception of the flexible 12-month CD) if you take money out before the maturity date

Interest is compounded monthly and credited every month. After your maturity date, your CD will automatically renew after a seven-day grace period, but you’ll get a notice of when you can remove your funds, start another CD or stay with the current CD setup you have now.

The terms for CD options below are based on an opening deposit of less than $10,000.

Fixed CDs

Featured CDs

Flexible CD

The Flexible CD option is the only CD from Bank of America that waives the early withdrawal penalty in some cases, but stipulations still apply. You’ll get charged a fee if you request a withdrawal within the first six days of account opening or within six days from your last partial withdrawal from your account.

Pros and Cons of a Bank of America CD

Pros

Bank of America has some strong upsides, including:

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• Wide range of terms available
• Some terms have competitive APYs
• No monthly, annual or transfer fees

Cons

There are also some drawbacks to consider:

• Most term options offer low yields
• Minimum opening deposit of $1,000 is on the higher end compared to options from other institutions
• Even for flexible CDs, an early withdrawal penalty can still apply

How Much Can You Earn With a Bank of America CD

Bank of America compounds interest monthly and makes monthly deposits into your account. Not all banks do this; some compound daily and deposit monthly. Keep this in mind as you explore your CD options.

Here’s what you could earn with a Bank of America CD at different term lengths and APYs based on an initial $25,000 deposit.

How to Open a CD With Bank of America

You can open a Bank of America CD in person, online or over the phone. If you plan on making an initial deposit of $250,000 or more, you’ll need to visit a branch in person to open your account. You can deposit up to $1 million across Bank of America CDs, though you may be able to exceed that amount.

If you have less than $250,000, you can open your account online. It takes about 10 minutes to complete your application, but if you’re a Bank of America customer, you can use your existing login to help you complete your application faster.

If you’re completing your application online, you’ll need to add some important details, including:

• Your address
• Phone number
• Residency and citizenship status
• Employer
• Income

You’ll also need to provide this information if you’re applying with a co-applicant. If you’re unsure of any information and need to come back, you have the option of saving your application.

After supplying your personal details, you’ll add account information. For current customers, this will be linked to your already established Bank of America account. For new customers, you’ll need to complete a site registration with a username and password.

Once your application is complete and you’ve been approved, you can link a bank account and make an initial deposit.

Alternatives to a CD With Bank of America

Marcus by Goldman Sachs

Marcus by Goldman Sachs is an online-only bank offering savings and investment options, including high-yield CDs. Marcus offers yields as high as 5.10% APY with its 6-month CD. Terms range from six months to six years. Rates don’t go lower than 3.90% APY—and that’s only for its 6-year CD term. The same term at Bank of America earns a 0.03% APY.

You only need $500 to open and start your account at Marcus—half of what it would cost at Bank of America. Marcus also offers 7-, 11- and 13-month no-penalty CDs at a 4.70% APY. This type of CD won’t charge you a penalty if you make an early withdrawal.

It also offers a 20-month rate-bump CD with a 4.40% APY. If the APY goes up during your term, you can switch to the higher rate without facing any fees or penalties. All of Marcus CDs compound interest daily.

EverBank

EverBank offers rates up to a 5.05% APY with its 9-month CD. Even its 5-year term will get you a 3.90% APY. Just like at Bank of America, you need at least $1,000 to open a CD, but you can enjoy a higher APY for longer terms.

You can also take advantage of high yields for shorter terms. For instance, a 3-month CD has a 3.95% APY. Terms range from three months to five years.

Synchrony

Synchrony offers high APYs without a minimum opening balance requirement. That means whatever you start with will earn interest. Its 9-month CD offers a 5.10% APY—the same term at Bank of America earns a 0.03% APY.

Terms range from three months to five years, and you can choose between high-yield CDs, a bump-up 24-month CD or a no-penalty 11-month CD.