Bank of America CD Rates: January 2024 (2024)

Fixed CD Key Features
APY Range	Varies
Minimum Deposit	$1,000
Term Range	1–120 months
Early Withdrawal Penalty	7–365 days' worth of interest, depending on term

The Bank of America Fixed CD offers flexible terms you won’t see with many competitors. You can choose from terms as short as one month or as long as 10 years. Unlike the Featured CD, the APY is very low in most cases, though some term lengths are competitive.

Minimum deposit requirements and early withdrawal penalties can also be fairly high. As with the Featured CD, the early withdrawal penalty depends on the CD term. For terms over five years, for example, you’ll pay one year of interest on the amount you withdraw early.

About Bank of America

Bank of America is the second-largest bank in the U.S., with approximately 3,900 branches and 15,000 ATMs. It serves around 68 million customers, offering a full suite of financial products, including deposit accounts, credit cards, mortgages, auto loans, and investment services through Merrill Edge.

Overall, Bank of America offers competitive rates on certain CD terms and poor rates on others. So if you have a specific term in mind, it’s essential to compare Bank of America’s CD offerings with those of competitors. Doing so will help you find the best possible rate for your desired term.

Bank of America ranks below the national average rating for customer satisfaction, according to J.D. Power’s 2022 U.S. National Banking Satisfaction Study. Its Trustpilot reviews are also poor overall, with the bank receiving an average rating of just 1.4 out of 5 stars from over 1,600 customers.

Compare Savings Account Rates

Bank of America's CD rates aren't bad, but they have a minimum deposit and you may find better terms elsewhere. Check out the savings accounts below for a wider selection.

In the News

Today’s CD rates are higher than we’ve seen in 16 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame inflation. With another increase announced July 27, 2023, the Fed has hiked the federal funds rate to 5.25%-5.50%. Since CD rates closely follow the fed funds rate, rates may continue to trend slightly higher. It’s currently unknown if the Fed will implement any further increases this year, but if it does, that could nudge CD rates higher still.

Pros and Cons of Bank of America CDs

Pros

CDs can be opened online or in person
See Also
What is a CD? Certificate of Deposit Basics
Flexible “no-penalty” CD option available
Strongratings for financial advice

Cons

Can usually find higher rates elsewhere
High minimum deposit requirement
Higher rates reserved for certain deposit amounts and terms
Costly early withdrawal penalties apply

Pros Explained

CDs can be opened online or in person: Customers can open CDs entirely online—as long as they're depositing less than $250,000—but Bank of America also operates branches nationwide with over 3,900 financial centers available for customers who prefer in-person banking help.
Flexible “no-penalty” CD option available: With most CDs, your money is locked into the account for the designated term. If you withdraw funds early, the bank will charge a costly early withdrawal penalty. But with Bank of America's flexible no-penalty CD option, your money is more accessible. You cannot make a withdrawal for the first six days after account opening, but after that, you can withdraw the principal and interest with no penalty.
Strong ratings for financial advice: Bank of America was the top-rated bank based on the personalized financial advice it provided to customers in the 2023 J.D. Power U.S. Retail Banking Advice Satisfaction Study, beating out 13 other major banks. The study evaluated customers' satisfaction with the financial advice they were given about banks' products and services.

Cons Explained

Can usually find higher rates elsewhere: Although some of BofA’s CD terms are relatively competitive, they usually don’t match the best available APYs. See the best CD rates here to compare what you could earn.
High minimum deposit requirement: Some banks allow you to open a CD with as little as $1, but Bank of America's minimum deposit requirement is much higher; you must have at least $1,000 to open an account. That high deposit minimum may be a barrier for those without a lot of cash on hand.
Higher rates only on some deposit amounts and terms: Although Bank of America advertises higher-than-average rates on its CDs, the higher rates only apply to select terms and deposit amounts (this is true for many banks, but not all). On all other terms and amounts, the rates tend to be lower than the national average.
Costly early withdrawal penalties apply: Early withdrawal penalties are typical for CDs, but Bank of America's penalties are on the higher end of the industry norm. Aside from the no-penalty CD, depending on the type of account and term, the penalty ranges from 7 to 365 days of interest.

When a CD reaches its maturity date, you have a grace period—a period where you can decide to withdraw funds or open a new CD. If you don't make a decision, the bank will usually automatically renew your CD, locking your money in for the same term length as the initial CD.

Alternatives to Bank of America CDs

Other CDs

There are many nationwide providers of CDs, and although some of Bank of America’s rates are decent, you can likely find better. There are many online banks and credit unions offering excellent APYs for a wide variety of terms, giving you more investing flexibility; browse the best CD rates to find the best home for your money.

High-Yield Savings Accounts

If you don't want to commit to locking your money in an account for months or years, another option is a high-yield savings account (HYSA). HYSAs offered by banks and credit unions have rates similar to those of top CDs, yet they provide more flexibility since your money is easily accessible.

Money Market Accounts

Money market accounts (MMAs) are another common investment tool; they’re like savings accounts, but they allow you to write checks and sometimes they come with ATM and/or debit cards. The best MMAs have rates similar to those of the best CDs and savings accounts.

Series I Bonds

CDs have locked-in APYs for their term duration, but if you're worried about how fluctuating interest rates will affect your overall CD strategy, consider opening a Series I bond instead. These bonds are designed to protect you against inflation. They earn both a fixed rate of interest and a rate that changes every six months to adjust for inflation.

How Often Does Bank of America Change Its CD Rates?

Since individual banks set their own rates for deposit accounts, it’s impossible to tell how often rates will change. That said, when you open a new CD you’ll generally get the benefit of a fixed rate for its term. So even if rates decrease, your CD account’s rate won’t go down during your term.

Is There a Maximum Deposit for Bank of America CDs?

Bank of America doesn’t disclose a maximum deposit amount for its CDs. Its minimum deposit amount is $1,000, and if you’d like to deposit more than $250,000 you may need to open an account in person. Also note that deposits worth $250,000 or more at any one financial institutions are not covered by the Federal Deposit Insurance Corp., which protects your money in the case of bank failure.

Does Bank of America Charge an Early Withdrawal Penalty for CDs?

Yes, Bank of America charges early withdrawal penalties for some of its CDs. The total penalty you’ll incur will depend on your overall CD term. CDs with longer terms may have larger early withdrawal penalties—in some cases, you may forfeit one year’s worth of interest on the total amount withdrawn.

Are CDs at Bank of America FDIC-Insured?

Yes, CD accounts at Bank of America are FDIC-insured up to the maximum of $250,000. Learn more about FDIC insurance and why it’s important.

Who Are Bank of America CDs Best For?

Bank of America's CDs are best for those looking for a flexible option from a traditional bank. With most CDs, you can't touch your money for the length of the CD term without incurring expensive penalties. But with Bank of America's flexible CD, you only have to leave the money alone for six days after opening the account. After meeting that requirement, you can make a withdrawal against the principal and interest at any time without penalty.

That feature makes the flexible CD a good compromise between traditional CDs and savings accounts; you lock in the CD's higher APY for the duration of its term, but you can still tap into the account if an unexpected expense pops up and you need cash quickly.

How Much Does Bank of America Charge for CDs?

Bank of America doesn't charge annual fees or account setup fees. However, you do need to deposit at least $1,000 to open a CD. And depending on the CD account and term, you may pay an early withdrawal penalty fee of 7 to 365 days’ worth of interest.

As an expert in banking and financial products, I bring a wealth of knowledge and experience to help you navigate the intricate landscape of fixed Certificate of Deposit (CD) options. My expertise is grounded in a deep understanding of various banks, their offerings, and the broader financial market.

Now, let's delve into the specifics of the article on Bank of America Fixed CDs:

APY Range and Minimum Deposit:
- The APY (Annual Percentage Yield) for Bank of America Fixed CDs varies, and the rates are generally low, with some term lengths offering more competitive rates.
- The minimum deposit requirement for opening a Bank of America Fixed CD is $1,000.
Term Range and Early Withdrawal Penalty:
- Bank of America Fixed CDs offers flexible terms ranging from 1 to 120 months (1 month to 10 years).
- Early withdrawal penalties depend on the term of the CD and can range from 7 to 365 days' worth of interest. For terms over five years, the penalty is one year of interest for early withdrawal.
Bank Overview:
- Bank of America is the second-largest bank in the U.S., with an extensive network of approximately 3,900 branches and 15,000 ATMs.
- It serves around 68 million customers, providing a comprehensive suite of financial products, including deposit accounts, credit cards, mortgages, auto loans, and investment services through Merrill Edge.
Competitive Rates and Customer Satisfaction:
- Bank of America offers competitive rates on certain CD terms but may have less favorable rates on others. Comparison with competitors is recommended.
- According to J.D. Power’s 2022 U.S. National Banking Satisfaction Study, Bank of America ranks below the national average for customer satisfaction. Trustpilot reviews also indicate poor overall satisfaction.
Pros and Cons of Bank of America CDs:
- Pros:
  - CDs can be opened online or in person.
  - Flexible "no-penalty" CD option available.
  - Strong ratings for financial advice.
- Cons:
  - Higher rates can often be found elsewhere.
  - Minimum deposit requirement is relatively high ($1,000).
  - Higher rates are reserved for specific deposit amounts and terms.
  - Costly early withdrawal penalties apply.
Alternatives to Bank of America CDs:
- Explore other nationwide providers for potentially better rates.
- Consider High-Yield Savings Accounts (HYSA) for more flexibility.
- Money Market Accounts (MMAs) are another option with similar rates to CDs.
- Series I Bonds provide protection against inflation with variable rates.
Current Market Conditions:
- Today's CD rates are influenced by the Federal Reserve's rate-hike campaign, resulting in higher rates.
- CD rates closely follow the fed funds rate, and further increases could impact CD rates.
Bank of America CD Specifics:
- Bank of America CDs can be opened online or in person.
- A flexible "no-penalty" CD option is available, allowing withdrawals after the first six days with no penalty.
- Bank of America received top ratings for financial advice in the 2023 J.D. Power U.S. Retail Banking Advice Satisfaction Study.
How Often Does Bank of America Change Its CD Rates:
- Individual banks set their own rates, and the frequency of rate changes varies.
- New CD accounts generally benefit from a fixed rate for the specified term.
Miscellaneous Information:
- Bank of America CDs are FDIC-insured up to $250,000.
- There is no disclosed maximum deposit amount, but deposits over $250,000 may require an in-person visit.
- Early withdrawal penalties apply, ranging from 7 to 365 days' worth of interest.

In summary, Bank of America's Fixed CDs offer flexibility with various term options, but potential customers should be aware of the trade-offs, such as early withdrawal penalties and varying APYs based on term length. It's essential to compare these offerings with those of competitors to find the most suitable option for your financial goals.