Bank of America CD Rates: March 2024

Bank of America CDs are flexible, with competitive rates in some terms
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Bank of America CD Rates

Bank of America certificate of deposit (CD) accounts stand out from other big bank offerings, with rates on promotional Featured CDs that reach 4.80%. But note that you can do better at certain smaller institutions (that, like BofA, are FDIC-insured) where APYs are over 4.80%; see the best CD rates here to explore those options. If you're set on going with a major player, here's what you need to know.

Bank of America's CD rates may vary by location, and the rates listed below may not be available in all ZIP codes. The APYs listed below use NYC ZIP code 10001 and are up to date as of the date of publication of this article. We review CD rates every two weeks and update the information below accordingly.
Featured CD Account Overview
CD Term APY Deposit
7 months 4.75% $1,000+
10 months 0.05% $1,000+
13 months 4.30% $1,000+
25 months 3.00% $1,000+
37 months 0.05% $1,000+
Fixed Term CD Account Overview
CD Term APY Deposit
1–120 months Varies $1,000+

See the best CD rates today before choosing the CD that is best for you.

Bank of America CDs: Key Features

Featured CD Key Features
APY Range 0.05%–4.75%
Minimum Deposit $1,000
Term Range 7–37 months
Early Withdrawal Penalty 7–365 days' worth of interest, depending on term

Bank of America’s Featured CDs are just like its standard Fixed CDs, but they come with higher rates for certain deposit amounts, and they may only be offered for a limited time. Higher APYs and short term options are great, but you’ll need to meet a minimum deposit of $1,000 and the early withdrawal penalties can get fairly high. 

The total penalty you’ll incur for early withdrawal depends upon your CD term. For instance, with a 7- or 10-month CD, you’ll pay three months of interest if you withdraw your funds early. But with a 13-, 25-, or 37-month CD, you’ll pay 180 days of interest if you withdraw your money before your term ends. 

Consumers interested in a Bank of America promotional Featured CD or a standard Fixed CD can open one online or in person. But if you’re depositing more than $250,000 into a CD account, you may not be able to open it online. Instead, you may need to visit a local branch to get started (and note that deposits over $250,000 are typically not FDIC-insured). 

Bank of America's CD rates are similar to many other big banks, like U.S. Bank, Chase, and Citibank. Rates for most CD terms are quite low, while certain terms and deposit amounts (like those in BofA's Featured CDs) are much higher. But those higher rates still don't usually match the best CD rates available.

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 CD 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 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

  • CDs can be opened online or in person 
  • Flexible “no-penalty” CD option available
  • Strong ratings for financial advice
  • 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 , 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.

Your Guide to CDs

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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