Bank of America -- which occupies the number two spot on CNET's list of largest US banks -- is a financial powerhouse with consolidated assets of more than $2.5 trillion. The Charlotte, North Carolina-based bank provides a full suite of banking and financial products and services to its nearly 70 million retail banking customers and small business clients.
Bank of America has a massive physical presence with more than 3,900 retail banking locations across the country. It's also a dominant player in online banking as it employs cutting-edge digital technology with Erica, the bank's artificial intelligence virtual assistant. Erica uses predictive analysis to offer financial tips based on customer habits.
Although Bank of America is a large presence in the banking industry, the same can't be said for its line of deposit accounts, specifically its certificates of deposit. Savers looking to maximize their returns can find more competitive CD rates at smaller banks.
Bank of America: At a glance
Bank of America offers two types of CD accounts: Featured and Fixed-Term. Both CD types can be purchased in terms ranging from one to 120 months (10 years). The Featured CD requires $10,000 minimum deposit. The Fixed-Term CD can be opened with a minimum of $1,000.
| CD type | Featured CD | Fixed-Term CD |
|---|---|---|
| Minimum deposit | $10,000 | $1,000 |
| Term | Seven to 37 months | One to 120 months (10 years) |
| Compounding schedule | Monthly | Monthly |
| Early withdrawal penalty | 90 to 365 days of interest | 90 to 365 days of interest |
| Grace period | One or seven days, depending on term length. | One or seven days, depending on term length. |
Bank of America's CD rates
Bank of America's Featured CD rates are higher than average rates, but the minimum deposit is larger than other banks with higher annual percentage yields, or APYs. The Fixed-Term CD rates, however, are well below national average APYs. To see a list of more competitive rates, check out CNET's list of best CD rates.
Featured CDs
| CD term | APY | Minimum deposit |
|---|---|---|
| Seven months | 2.25% | $10,000 |
| 10 months | 0.05% | $10,000 |
| 13 months | 3.00% | $10,000 |
| 25 months | 3.00% | $10,000 |
| 37 months | 0.05% | $10,000 |
Fixed-Term CDs
| CD terms | APY | Minimum deposit |
|---|---|---|
| One to 120 months | 0.03% | $1,000 |
Note: APYs shown are as of Nov. 30, 2022. CNET's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
How much can you earn with Bank of America CDs?
The following table illustrates how much your money will grow if you had $10,000 in a Bank of America CD with a term of 13 months, with interest compounded daily.
Interest earned on a $10,000 CD
| Term | APY | Interest earned |
|---|---|---|
| Featured CD | 3.00% | $325 |
| Fixed-Term CD | 0.03% | $3.25 |
How does Bank of America's CD rates compare?
CD rates at Bank of America are underwhelming compared with rates available from competing banks. The nationwide average APY for a 1-year CD of 0.90% isn't hard to top from many of Bank of America's competitors. Capital One, another bank on CNET's list of largest US banks, consistently offers competitive rates. Its 24-month CD offers an APY of 4.10% compared with Bank of America's 25-month CD at 3.00% APY. Online banks generally offer more competitive rates for CDs with a larger variety of terms.
Additional savings options at Bank of America
Bank of America's Advantage Savings account earns only 0.01% APY. Account holders may be charged an $8 monthly maintenance fee without waivers such as maintaining a $500 balance. The account requires a $100 minimum deposit to open.