Bank of America CD Rates

While the Bank of America CD rates is not the highest in the industry, preferred customers holding higher balances may be able to get more competitive rates.

Savings APY
J.D. Power Rating
1Y CD Rate
3 / 5.0
SimpleScore Bank of America 3
Savings APY 2
Customer Satisfaction 2
Mobile App 4
Product Variety 5

Bank of America, headquartered in Charlotte, North Carolina, was founded in 1998 and is now one of the nation’s largest banks servicing over 66 million customers. Consumers looking to find all of their banking and lending needs to be met under one roof will enjoy the immense list of banking products offered through Bank of America.

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In this article

    Bank of America at a glance

    BankMinimum Deposit1-Year APY 3-Year APYPenalty
    Bank of America$1,0000.03%0.03%90 days of interest on 12-month CDs; 180 days of interest on 36-month CDs

    What we like about it

    Through Bank of America, CDs are FDIC insured and come backed by one of the largest banks in the country. Investors looking for a fixed-rate investment through a trusted banking partner will like what the bank has to offer. Additionally, investors with over $10,000 to put into a CD can take advantage of featured CD products offering a higher interest rate than is available through the standard CD investments.

    Things to consider

    Comparatively to many other traditional banks, the rates on Bank of America’s CDs are somewhat lower. Compared to fully online banks, the rates are much lower. For customers willing to utilize a fully online bank, you can get much higher CD rates, although you will lose the ability to walk into a branch location to speak with a representative if you need face-to-face assistance.

    What you need to know

    On Bank of America’s term lengths are available from as short as one month all the way out to 10 years. The highest APY rates start at the three-year mark and stay constant all the way out to the maximum term length.

    Compared to other brick and mortar banks, the rates are either comparable or a bit lower. For example, a one-year CD at Wells Fargo is available with an APY around 0.01%, whereas you’ll only get 0.03% APY at Bank of America. When you stack a Bank of America CD up against online banks, the rate disparity is even higher. For example, a 1-year CD at Capital One is also available for 0.20% APY.

    There are no penalties or fees outside of early withdrawal fees on a Bank of America CD. You do not need to be an existing bank customer to open a CD investment through the bank.

    Early withdrawal penalties

    As is standard with all CD products, Bank of America will charge interest penalties for any early withdrawals from a CD account. For CDs under a year, the penalty will be up to 90 days of interest. If you withdraw before you have the CD for 90 days, it will be all the interest you have earned. For CDs that are equal to or over the year mark but less than five years, the early withdrawal penalty is 180 days of interest. And for any CD over five years, the early withdrawal penalty is up to 365 days of interest. You will never lose any of your principal with a Bank of America CD.

    Here’s what that might look like: Let’s say that you take out a three-year Bank of America CD for $1,000. You plan to leave the money untouched, but an emergency arises at the six-month mark, and you need access to your money. At the end of six months, you would have earned 75 cents in interest. According to the penalty schedule, you will need to return up to 180 days of interest. Since you have only had the account for 180 days, the 75 cents goes back to the bank.

    If you held the CD for an additional month (as an example), you would get to keep that additional interest, as the maximum penalty is 180 days of interest. Still, in this worst-case scenario, you are leaving with 100% of your principal, which is always safe.

    Other CD products

    Bank of America also offers a featured CD product for investors willing to deposit at least $10,000. Terms for these specialty CD products are available in term lengths of 7, 10, 13, 25 and 37 months.

    Rate guarantees

    Bank of America does not offer any rate guarantees on any of its CD products. However, when you invest in a CD, you will lock in the rate you receive for the entire term of the CD. The bank cannot change it for any reason.

    How do I pick the best CD?

    Picking out the best CD for you requires a look at more than just the APY rate. While that is the most important factor, it needs to be weighed alongside several other important items. The first area you need to check with a CD is if it is FDIC or NCUA insured. If the federal government does not protect the account, you shouldn’t use it.

    Once you check that box, look at the CD for features like the term lengths offered, the minimum required deposit and any penalties you might be assessed should you need to make an early withdrawal. Ultimately, the APY rate is the most important, but only if all the other boxes line up correctly.

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    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best CDs of 2020.

    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s possible for brands to have multiple SimpleScores. For instance, if we compare CDs offered by Discover, it scores a 3.75 out of 5 SimpleScore according to our metrics and rating system. But if we review Discover’s savings account according to our SimpleScore, it scores a 4.5 out of 5. We adjust our rating system to account for different products and industry standards.

    Questions about our methodology?

    Email Hayley Armstrong at

    12-month APY

    We awarded brands that offered higher APYs on 12-month certificates of deposit — the higher the APY, the higher the score.

    3-year APY

    We awarded brands that offered higher APYs on 3-year CDs — the higher the APY, the higher the score.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Retail Banking Satisfaction Study and 2020 U.S. Direct Banking Satisfaction Study to rate each brand for customer satisfaction. The higher the satisfaction score, the higher the SimpleScore.

    Minimum deposit

    Some providers require a minimum deposit to open a CD. We rated and rewarded brands that required low minimum deposits with higher scores.

    Customer support

    Providers with multiple channels of customer support were rewarded with higher scores in this aspect. We considered social media, mobile app support, in-branch support, phone and email as channels of support for customers.

    Jason Lee

    Contributing Writer

    Jason Lee is a U.S.-based freelance writer with a passion for writing about dating, banking, tech, personal growth, food and personal finance. As a business owner, relationship strategist, and officer in the U.S. military, Jason enjoys sharing his unique knowledge base and skill sets with the rest of the world. Follow Jason on Facebook here