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Review of Bank of America Certificate of Deposit Account 

Conor Keenan Author Bio By: Conor Keenan  Last updated on October 22, 2023
Conor Keenan is's co-founder. His work in personal finance has been featured by MSN, CNN, AOL, Fox News, Yahoo News & many more.

Editorial Freedom: The opinions, recommendations or reviews expressed in any article by our team are not endorsed by any financial institution or partner. Compareaccounts is free thanks to commissions we receive from our partner offers below. Our team's content is not commissioned by our advertising partners or any financial institution herein.

Read our review & open a new​ certificate of deposit with confidence.  Bank of America and other CD offers on this page are FDIC insured up to $250,000 per depositor.  Fund your new account & take advantage of the power of compound interest today!

 Compare With

Bank of America Logo

 Not Recommended 

0.03% APY


Not Recommended. Shown For Comparison Purposes Only.

Term: 12 Months

Bank of America, another large bank that offers nearly nothing on their CDs.

They currently offer a regretful 0.03% APY on their 12 Month CD.

Bank of America requires a minimum opening deposit of $10,000 to earn this low APY.

Because of there are better options on this page to earn a higher APY from trusted banks, we don't recommend you opening a CD with Bank of America.

Main Benefits You Get with Bank of America’s Certificate of Deposit Accounts

Bank of America’s CD accounts guarantee a fixed rate of return, ensuring that your interest rate remains constant throughout your CD term, shielding you from the unpredictability of the financial markets.

They offer a diverse range of term lengths, from as short as 28 days to as long as 10 years, catering to a wide array of short-term and long-term investment strategies.

Furthermore, the assurance of FDIC insurance means your investment is secure, giving you peace of mind that your money is protected.

However, given the low interest rates from Bank of America, you may be better off with an account from one of our partners below.

Customers Also Viewed These High-Yield Certificate of Deposit Accounts From Our Partners

Western Alliance Bank Powered by Raisin

5.05% APY


On Raisin's Secure Site
for Western Alliance Bank,
FDIC Insured


Best For: High APY From a Top Performing Bank

Term: 12 Months

Western Alliance Bank offers 5.05% APY exclusively through the Raisin Platform on their 12 month CD.

Interest compounds daily and is posted to your account monthly.

This APY is substantially higher than what you’ll find at most brick-and-mortar banks and even most online banks.

In addition to this high APY, Western Alliance offers $0 monthly maintenance fees and is insured by the FDIC for up to $250,000 per depositor.

Customer service is located in New York, they are available via phone or email. You'll also have 24/7 access to your account and funds.

Western Alliance Bank was founded in 1994 and is consistenly ranked among the top banks. They were ranked #1 top-performing large bank with assets greater than $50 billion in 2021 by both American Banker and Bank Director. Serving clients across the country wherever business happens.

See Raisin's Secure Site for Western Alliance Bank to Get More Details.

 Limited Time Offer 

Discover Bank Logo

4.00% APY


On Discover Bank's Secure Site,
Member FDIC

Best For: Longer Term + Customer Service

Term: 24 Months

Discover Bank offers 4.00% APY with no monthly fees and $2,500 initial deposit on their 24 Month CD.

Discover Bank is one of the first online focused banks to offer no monthly fees and what they call "No. Fees. Period."

Deposits are insured through the FDIC for up to $250,000 per depositor and if you have any questions Discover offers 100% U.S.-based Customer Service Available 24/7.

Interest compounds daily so lock in your 24 Month CD rate today & start earning guaranteed interest now.

See Discover Bank's Secure Site For More Details.

To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

American Express® Certificate of Deposit Account: 5.25% APY as of April 18, 2024 - 11 Month Term

Western Alliance Bank® High-Yield CD: 5.05% APY - 12 Month Term

To See All of Our Recommended Certificate of Deposit Accounts Go To Our Best CD Rates Page.

Brief History of Bank of America:

Early Foundations and Commitment to the Everyday American: Bank of America’s story begins with the establishment of the Bank of Italy by Amadeo Pietro Giannini in San Francisco in 1904. Giannini started the bank in a converted saloon to serve working-class citizens of the community, especially immigrants and those whom traditional banks would often overlook. The bank was founded on the principle of providing financial services to the broader population, not just the wealthy.

Surviving The San Francisco Earthquake: In 1906, the San Francisco earthquake and subsequent fires devastated the city, but Giannini was able to rescue all deposits from the bank’s vaults. He set up a temporary bank, continuing to serve the people and providing loans to individuals to rebuild their lives, contributing significantly to the city’s recovery.

Expansion and Formation of Bank of America: The Bank of Italy expanded rapidly and opened several other branches in California. In 1928, Giannini merged his bank with Bank of America, Los Angeles. In 1930, the bank changed its name to Bank of America, which was a strategic move to signify its presence as a national bank. During the Great Depression, while other banks were failing, Giannini’s bank was robust, continuing to lend money and indirectly stimulating economic recovery.

Innovation and Modern Banking: Bank of America has been a pioneer in many aspects of modern banking. It was one of the first banks to widely offer checking accounts and introduced the first general-use credit card, known as the “BankAmericard” in 1958, which eventually evolved into Visa. It also pioneered the development of the ATM.

Global Expansion: Throughout the 20th century, Bank of America became known not just as a retail bank but also as a global leader in corporate and investment banking. It established its presence worldwide, serving clients in all parts of the globe and expanding its services to multinational corporations, governments, and institutions.

Acquisitions and Growth: The late 20th and early 21st centuries were marked by significant mergers and acquisitions. Notably, in 1998, Bank of America merged with NationsBank Corporation, which was at the time one of the biggest mergers in the history of the U.S. banking industry. In 2008, during the global financial crisis, Bank of America acquired Merrill Lynch, making it a major player in wealth management and investment banking.

Navigating the Financial Crisis: The 2008 financial crisis posed significant challenges, and Bank of America was among the banks that received federal assistance. However, it has since repaid the government funds in full. Post-crisis, the bank underwent a period of restructuring, focusing on core growth areas and risk reduction.

Recent Developments and Digital Transformation: In recent years, Bank of America has focused on digital innovation, investing in technology to enhance the customer experience. It has launched digital platforms for both personal and business banking. The introduction of Erica, an AI-driven virtual assistant, underscores its commitment to digital transformation.

Corporate Responsibility and Environmental Initiatives: Bank of America has also been active in corporate social responsibility, with initiatives to address economic mobility, environmental sustainability, and support for arts and culture. It has committed to environmental sustainability by pledging to achieve net-zero greenhouse gas emissions in its financing activities by 2050.

From its humble beginnings as a small bank serving immigrants and the working class, Bank of America has grown into one of the world’s leading financial institutions, with a presence in all continents. Its history is marked by service to the community, resilience in the face of challenges, and constant innovation in banking.

Bank of America CD Account Pros:


  • Variety of Term Options: Bank of America has a wide range of CD terms, accommodating various savings goals and timelines. Whether you’re planning for a short-term goal or investing in your future, there’s a term option suitable for you.
  • Stability: The interest rate for your chosen term is locked in, offering a predictable and stable return. This stability is particularly beneficial in an economic climate where interest rates can fluctuate.
  • Security: With FDIC insurance up to the maximum amount permitted by law, your investment is protected against bank failure, ensuring the safety of your deposit.

    Bank of America CD Cons:


    • Minimum Deposit Requirement: Bank of America requires a minimum deposit to open a CD account, which may be a barrier for individuals with limited savings. This initial requirement can be higher than what’s demanded by other banks or credit unions.
    • Early Withdrawal Penalties: If you need to access your funds before the maturity date, you’ll face early withdrawal penalties. These penalties can eat into your earned interest, potentially reducing your overall return.
    • Lower Rates Compared to Most Online Banks: While Bank of America is a reputable institution, many online banks offer higher interest rates on CDs. These competitive rates are often due to lower overhead costs from not maintaining physical branches.

      Who Should Open a Certificate of Deposit Account from Bank of America

      A Bank of America CD is suitable for investors who prefer a low-risk, stable investment avenue. It’s an excellent option if you’re already a Bank of America customer, as it allows for easier management of your accounts under a single institution. Additionally, those looking to diversify their investment portfolio with fixed-income assets can benefit from the security and predictable returns a CD offers.

        How to Open a Certificate of Deposit Account with Bank of America

        The process of opening a CD with Bank of America is user-friendly. You have the option to apply online via their secure website, visit one of their many local branches for a more personal interaction, or call their dedicated customer service team.

        Be prepared to provide necessary identification, your Social Security number, and the initial deposit amount. The bank’s representatives are available to guide you through the process and answer any questions you may have.

        Bank of America Publicly Traded Company:

        Bank of America Corporation, trading under the ticker symbol “BAC,” is one of the largest financial institutions in the world and is a prominent component of the S&P 500 Index. Its stock is publicly traded on the New York Stock Exchange (NYSE).

        As a multinational banking and financial services corporation, Bank of America’s offerings span a wide range of financial products and services, both for individual consumers and for businesses. These include consumer banking, wealth management services through Merrill Lynch, investment banking, and trading across a broad range of asset classes.

        Investors often monitor Bank of America’s financial health as an indicator of the broader economy, given its substantial consumer banking business and its role in commercial and investment banking sectors. The bank’s performance is often tied to factors like interest rate changes by the Federal Reserve, economic policies, unemployment rates, housing market conditions, and consumer confidence, among others.

        Bank of America has millions of shareholders and is widely held by both institutional investors like mutual funds, pension funds, and insurance companies, as well as by individual retail investors. It has historically paid dividends to its shareholders, though the amounts can vary based on the company’s earnings and board of directors’ decisions.

        Controversies and Scandals:

        Like many large corporations, Bank of America has faced legal challenges and controversies, some of which have garnered significant public attention and media coverage.

        1. 2008 Financial Crisis and Merrill Lynch Acquisition: One of the most notable controversies was during the 2008 financial crisis when Bank of America acquired Merrill Lynch. The deal came under scrutiny due to the speed of the transaction and concerns over Merrill’s financial health. Bank of America faced accusations of misleading investors about the extent of Merrill’s losses prior to the merger and was fined by the U.S. Securities and Exchange Commission (SEC).

        2. Mortgage-Related Settlements: Post-financial crisis, Bank of America faced a series of legal challenges related to its mortgage practices, particularly those of Countrywide Financial, which it had acquired in 2008. Countrywide was heavily involved in the subprime mortgage market, and its practices were a significant factor in the mortgage crisis. Bank of America was subject to numerous lawsuits and investigations regarding fraudulent practices in the mortgage and foreclosure processes. It resulted in Bank of America agreeing to a historic $16.65 billion settlement with the U.S. Department of Justice in 2014, the largest civil settlement with a single entity in American history at that time, covering penalties and consumer relief.

        3. Consumer Practices: Bank of America has faced several fines and controversies related to its consumer practices. This includes issues like improper maintenance of credit card accounts, misleading marketing practices for credit card add-on products, and charging excessive fees. These issues have led to investigations and settlements with various regulatory bodies.

        4. “Robo-Signing” Scandal: Bank of America was one of the major banks involved in the “robo-signing” scandal, where bank employees signed foreclosure documents without properly reviewing them. This practice led to numerous homeowners being wrongfully foreclosed. The scandal resulted in a $25 billion settlement with multiple states in 2012.

        5. Employee Practices: There have also been controversies related to the bank’s treatment of employees, ranging from wage and hour violations to whistleblower retaliation claims.

        While Bank of America has faced significant legal challenges and public relations issues due to these controversies, it has also taken steps to resolve past issues, often in the form of settlements, fines, and changes to its internal practices. The bank has implemented various measures aimed at improving compliance, transparency, and consumer protection in the years following these incidents. However, like all investments, potential investors should conduct thorough research and consider all facets of the company when evaluating it as a potential investment.

        Other Products Bank of America Offers:

        Bank of America offers a comprehensive suite of financial products and services beyond CDs.

        1. Checking Accounts: Bank of America offers several checking account options, each designed to meet different customer needs. These include accounts tailored for students, seniors, and those interested in premium banking services. Features can include online and mobile banking, debit cards, overdraft protection, and more.

        2. Savings Accounts: There are various savings products available, including the Rewards Savings account and the Minor Savings Account, designed to encourage the savings habit in young individuals. These accounts often feature competitive interest rates, mobile check deposit, and safety features.

        3. Credit Cards: Bank of America has a diverse range of credit cards, including rewards cards, travel and cashback cards, lower interest rate cards, and cards designed to help build or repair credit. Their lineup includes the popular Bank of America Cash Rewards card and the premium Bank of America Premium Rewards card.

        4. Mortgages: Whether you’re a first-time homebuyer, looking to refinance, or interested in home equity, Bank of America offers a variety of mortgage products. These include fixed and adjustable-rate mortgages, affordable home loan solutions, and government-insured loans like FHA and VA loans.

        5. Auto Loans: Bank of America provides auto loans for new and used cars, as well as lease buyouts and private party purchases. They offer competitive rates, a wide range of loan amounts, and an easy online application process.

        6. Investment Services: Through Merrill, its wealth management division, Bank of America offers a wide array of investment services. This includes self-directed online trading, managed portfolios, and personalized wealth management advice. Clients can invest in stocks, bonds, mutual funds, ETFs, and more.

        7. Small Business Banking: Bank of America supports small businesses with products like business checking and savings accounts, business credit cards, merchant services, and business loans and lines of credit. They also offer payroll services and help with managing cash flow.

        8. Private Banking: Through Bank of America Private Bank, high-net-worth individuals can access personalized financial strategies. Services include investment management, specialty asset management, estate planning, and philanthropic strategies.

        9. Student Banking: Bank of America offers student banking services, including checking accounts with no monthly maintenance fee for eligible students, credit cards designed for students, and education savings accounts.

        10. Digital Banking: With a strong emphasis on technology, Bank of America provides digital banking services that include mobile banking apps, online account management, digital payments, and electronic statements. Their award-winning app also features Erica, a virtual financial assistant.

        11. Insurance: Through third parties, Bank of America customers can access a variety of insurance products, including life, disability, long-term care, and property and casualty insurance.

        12. Foreign Currency Exchange: For those traveling or doing business internationally, Bank of America offers foreign currency exchange services, including foreign currency cash delivery to your home or local branch.

        This extensive range of products and services makes Bank of America a comprehensive financial institution capable of meeting a wide variety of customer needs. However, it’s always important to do your research or consult with a financial advisor to determine which products are right for your specific financial situation.

        Bank of America Near You:

        Bank of America reported having over 4,000 retail financial centers (branches) across the United States. However, it’s important to note that the number of branches can change over time due to various factors such as mergers, acquisitions, or strategic decisions to close or open branches.

        For the most current information about the number of branches, please visit bank of america’s branch locator or contacting their customer service directly.

        Bank of America Contact Information:

        For further details, you can visit the Bank of America website or reach their customer service at 1-800-432-1000. They’re also responsive on their social media platforms, and their numerous local branches offer in-person assistance.

        See More CD Rates by Term & Type

        Compare the best rates for various CD terms and types:

        Best overall CD rates

        Best 1 Year CD rates

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        Best CD Rate Calculator

        Home » Certificate of Deposit » CD Bank Reviews » CD- Bank of America Review

        Bank of America Certificate of Deposit FAQ

        Are CDs at Bank of America FDIC-Insured?

        Yes, deposits in Bank of America’s certificate of deposit accounts are FDIC Insured up to $250,000 per depositor.

        How does Bank of America’s CD rates compare?

        Bank of America’s CD rates are much lower than other banks like American Express and others mentioned on this page.

        Who Might Want To Pass on Bank of America’s CD Options?

        People looking for higher APYs should pass on Bank of America’s CDs.

        Who Are Bank of America CDs Best For?

        They are best for current Bank of America customers who want to manage their money with one bank rather than earning a higher APY somewhere else.

        Conclusion of Bank of America CD Rates:

        While Bank of America’s CD rates might not be the highest on the market, the institution’s longstanding reputation for reliability, the diverse term options, and the security provided by FDIC insurance contribute to the attractiveness of these CDs for those seeking a safe, long-term place to grow their savings.

        However, it’s essential to weigh these benefits against your personal financial situation and goals, and consulting with a financial advisor is always recommended before making any investment decisions.

        *National Savings Rate Average as published by FDIC