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Bank of America CD Rates for December 2022

Online banks offer higher rate CDs than Bank of America CD Rates.

Certificate of deposits (CDs) are an attractive savings tool because they FDIC-insured up to $250,000.

Unlike the stock market, you can earn interest on your money with low-risk. CDs generally allow your savings to grow at a faster rate than they would in a savings account.

Bank of America’s CD Rates

The 10-Month and 27-Month CD Bank of America CD rates are significantly lower than the national average CD rates, according to the FDIC.

7-Month CD Rate: 2.25% APY

10-Month CD Rate: 0.05% APY

13-Month CD Rate: 3.20% APY

25-Month CD Rate: 3.20% APY

37-Month CD Rate: 0.05% APY


CD Rates Higher Than Bank of America CD Rates

Bank of America CD Rates are much lower than those of the best CD rates. For example:

CIT Bank, N.A. is part of First Citizens and operates online in all 50 states. CIT Bank offers a variety of terms for certificates of deposit, all of which require a $1,000 minimum deposit to open. You can access your CD account via CIT Bank’s website or mobile app.

CD TermsStandard Rate
18 Month CD 4.25% APY
13 Month CD 4.15% APY
11 Month No Penalty CD 3.30% APY
6 Month CD 2.75% APY

Quontic Bank operates online in all 50 states and is headquartered in New York. Quontic Bank offers a variety of terms for certificates of deposit, all of which require a $500 minimum deposit to open. CD account holders earn interest on day one the account is opened.

CD TermStandard Rate
1 Year CD 4.00% APY
2 Year CD 4.15% APY
3 Year CD 4.30% APY
5 Year CD 4.45% APY

Choosing A CD

A certificate of deposit (CD) is a relatively low-risk investment that is insured up to $250,000 by the FDIC. However, in exchange for that low-risk you must agree to specific term periods when investing in a CD.

CD Terms. Typical terms can range from several months up to 5 years. Once a CD reaches maturity you generally have three options:

  1. Withdraw your money and put it in another account.
  2. Withdraw your money and open a different CD.
  3. Allow your CD to renew.

What term should you choose. Choosing a CD depends on when you need the money. If you need your money soon, consider a CD with a shorter term. But if you’re saving for retirement or a future purchase, a longer term CD may be more beneficial.

You lose interest if you withdraw early. The economic environment must be taken into consideration when choosing a CD. If it seems that interest rates may be on the rise you don't want to get locked into a CD that charges a penalty to withdraw funds early which means losing some or all the interest you earned.

Why Bank of America CD Rates Are So Low

Larger banks like Bank of America really don't have to compete for new customers;  they already have a large share of the consumer market with approximately 67 million customers.

Another reason Bank of America CD rates are so low is that financial institutions profit when the rate on the money they lend out is higher than the rate they pay customers who deposit money into savings vehicles like CDs.

You can find a better deal on CD rates than what Bank of America offers with online banks that are actively competing for new customers.

Plus, online banks can offer higher rates because they don't incur the daily operating costs of running branch locations. That savings is passed onto customers in the form of high-yield savings accounts and totally free checking accounts.

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