Business Insider's personal finance team compared Bank of America CDs to the best CDs and found them to be a standard offering. Bank of America CD rates are decent for a brick-and-mortar bank, but its rates are still lower than what you could find at online banks and credit unions.
The bank's CD rates will largely vary depending on the type of CD and term you get. Learn more about current Bank of America CD rates below.
Current Bank of America CD Rates
Bank of America (Member FDIC) is a well-known national bank, but Bank of America CD interest rates are still short of the best ones available at online banks.
Select short-term CDs pay better rates than average CDs. In particular, the 7-month, 10-month, and 13-month Featured CDs might be worthwhile if you prioritize getting a CD from a brick-and-mortar bank that's under 18 months. Most of Bank of America CDs long-term CDs are less competitive than other brick-and-mortar banks, though.
Bank of America Fixed Term CD Rates
The current rates for Bank of America Fixed Term CDs are 0.03% to 3.75% APY (annual percentage yield).
The Bank of America Fixed Term CD is the national bank's traditional CD. These CDs come in a wide range of terms, from 28 days to 120 months. Bank of America pays low CD rates on most term fixed-term CD lengths, with the exception of terms between 90 days and 179 days.
Bank of America CD rates are the same in many areas, but they can vary depending on where you live. We used the zip code from New York City, New York, for the following Bank of America CD rates:
| CD Terms | APY |
| 28 days to 89 days | 0.03% on all account balances |
| 90 days to 179 days | 3.75% on all account balances |
| 6 months to 120 months | 0.03% on all account balances |
Bank of America Featured CD Rates
The Bank of America Featured CD rates are 0.11% to 3.80% (vary by location) APY.
Bank of America Featured CDs are the bank's promotional terms, which means their rates may only be offered for a specific timeframe. Once a Featured CD matures, it renews into a Fixed Term CD with a similar term.
The Bank of America Featured CD only comes with five terms: 7 months, 10 months, 13 months, 25 months, and 37 months. The 7-month, 10-month, and 13-month terms pay the highest rates. The 25-month CD rate is decent, while the 37-month CD rate is low.
We used the zip code from Los Angeles, California, for the following Bank of America CD rates:
| CD Terms | APY |
| 7 months | 3.80% on all account balances |
| 10 months | 3.45% on all account balances |
| 13 months | 2.75% on all account balances |
| 25 months | 2.00% on all account balances |
| 37 months | 0.11% on all account balances |
Bank of America Flexible CD Rates
The Bank of America Flexible CD pays 3.25% APY, which is a good rate compared to other banks with no-penalty CDs. It's only available in a 12-month term, and once it matures, it will renew into a 9-month term.
The Bank of America Flexible CD is a type of no-penalty CD. You won't have to pay for any withdrawals after the first six days of opening an account. No-penalty CDs aren't always offered by banks, so Bank of America's CD is a solid choice overall.
Overview of Bank of America CDs
Bank of America has three types of CDs: Featured, Fixed Term, and Flexible accounts. Featured CDs are the bank's promotional CDs, while the Fixed Term CDs are the bank's standard term options. The Bank of America Flexible CD is a no-penalty CD.
Bank of America offers more variety than you'd get typically at banks. Not only does it offer more CD term options, but it also has a no-penalty CD, which isn't common. Still, you can find a few other places that still have even more CD options. For example, at a few institutions, like Ally or Marcus, you might be able to get a step-up CD or bump-up CD, too.
Bank of America CD Rates Pros and Cons
Bank of America CD Rate Pros
- High interest rates on select terms (7-month, 10-month, and 13-month Featured CDs; Fixed Term CDs between 90 days and 179 days)
- No-penalty CD option with a good interest rate
- Variety of CD terms, so you could build a CD ladder to maximize returns
Bank of America CD Rate Cons
- Low interest rates on most Fixed Term CD lengths
- The best online banks and credit unions for CDs may still pay even higher rates regardless of the term
- Other banks may let you open an account with less money upfront
- Standard-to-high early withdrawal penalties
Bank of America CD Alternatives
Bank of America CDs vs. Chase CDs
Bank of America and Chase each have CD terms of up to 10 years. Both banks pay relatively low rates overall, with higher rates on select terms.
Bank of America may be more appealing than Chase CDs if you like the 7-month, 10-month, and 13-month promotional CDs.
Chase CD interest rates range between 0.01% to 4.00% (vary by location) APY and may be a better option than a Bank of America CD but only if you qualify for a relationship rate. To get a relationship rate at Chase, you must have Chase Premier Plus Checking℠ or Chase Sapphire℠ Banking, and make at least five transactions from your checking account.
Bank of America CDs vs. Wells Fargo CDs
If you want to open a CD with less than $2,500, Bank of America will have to be your default option. Wells Fargo traditional CDs require at least $2,500, and promotional CDs require a minimum of $5,000.
If your goal is to strictly find the most competitive CD rate, deciding between these two banks depends on the term.
For traditional CDs, Bank of America notably offers great rates for terms between 90 days and 179 days. Wells Fargo CD rates are decent for 3-month, 6-month, and 1-year terms, but they're not as high as the terms mentioned prior by Bank of America.
Meanwhile, for promotional CDs, Bank of America's strongest options are its 7-month, 10-month, and 13-month terms. At Wells Fargo, the 4-month and 7-month Wells Fargo Special Fixed Rate CD offers the best rates overall out of all Wells Fargo CDs with rates ranging from 3.50% to 4.26% (varies by location) APY. Wells Fargo's top rates are higher than Bank of America's top rates, but Bank of America has better options for longer-term CDs.
How to Open a Bank of America CD
To get a Bank of America CD, you can apply online. Bank of America also lets you schedule an appointment online with a banker if you'd rather open an account in person.
The CD application will ask you to provide basic information, like your social security number, email address, and home address. People who aren't U.S. citizens or U.S. permanent residents can provide their individual taxpayer identification number and foreign ID to open Bank of America accounts.
Opening a Bank of America CD will require a minimum of $1,000. To deposit money into a Bank of America CD, you can transfer money from another Bank of America account or link an external bank account.
Should You Open a Bank of America CD?
Bank of America CD rates are low overall, with the exception of select short-term options. The 7-month, 10-month, and 13-month Featured CDs, as well as Fixed Term CDs between 90 days and 179 days, are decent options compared to other brick-and-mortar banks. You'll still find the best CD rates at online financial institutions, though, regardless of which term you'd like to get.
Bank of America has standard minimum opening requirements for CDs, but its early withdrawal penalties are steep for certain terms. You might prefer a different bank if you prefer more lenient early withdrawal penalties.
If you're interested in a specialty CD, Bank of America does have a no-penalty with a good interest rate. However, other financial institutions may let you open an account with less money upfront.
In general, CDs may be worth considering if you are looking for a low-risk place to keep your money. CDs are FDIC-insured for up to $250,000 per person. The FDIC protects consumers if a bank failure occurs. They'll still have access to their money if a bank is shut down; it will be either moved to an FDIC-insured bank that acquires the failed bank's assets or sent to the person's home as a check.
Why You Should Trust Us: How We Reviewed Bank of America CDs
At Business Insider, we use our bank rating methodology for each banking product we review. For CDs, we consider a bank's interest rates, minimum opening deposits, early withdrawal penalties, CD terms, ethics, security, miscellaneous features customer support, and mobile app ratings. We give each of these categories a rating from 0 to 5, then average these scores together to get a CD's total score which can be anywhere from one to five stars.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Bank of America CD FAQs
Bank of America Fixed Term CDs pay 0.03% to 3.75% APY, and Featured CDs range from 0.11% to 3.80% (vary by location) APY. The exact APY depends on the term you select. Bank of America has a 12-month Flexible CD that pays 3.25% APY.
Bank of America CDs can be opened online or at a branch. You'll need to include your Social Security number, email address, and home address in the CD application. You can open a CD if you aren't a U.S. citizen or permanent resident — you'll use an individual taxpayer identification number and foreign ID to verify your identity.
All Bank of America CDs have a $1,000 minimum deposit requirement.
You can take money from a Bank of America Flexible CD before it matures, and you will only pay a penalty if you withdraw money during the first 6 days of account opening or within 6 days of making a partial withdrawal. If you take out money from a Bank of America Fixed Term CD or Featured CD before it matures, there will be a penalty. The penalties vary depending on the term you choose — it can be anywhere from the equivalent of 90 days of interest to all interest earned.
Overall, Bank of America CD rates aren't the most competitive available — the highest can be found at online banks or credit unions. Bank of America has some solid short-term options if you're mainly interested in CDs from brick-and-mortar banks. However, most of the terms above 18 months are pretty low.
