Bank Of America Review 3.5-star brokerage firm rating

Bank of America IRA Reviews. Bank savings FDIC-insured retirement accounts: money market IRA accounts and CD IRA accounts. Current rates, fees and minimums, advantages and disadvantages.

 

Bank Of America IRA Accounts Review

Bank of America, one of the largest financial institutions in the country, offers retirement savings accounts in two ways - bank savings IRAs and investment IRAs offered through Merrill Edge, an investment division for self-directed investors. Below is a review of Bank of America savings IRAs. Please refer to Merrill Edge IRA review » to learn more about Bank of America investment retirement accounts.

Bank of America currently offers an FDIC-insured money market IRA account and two CD IRAs. Let us take a look at each account.

 

Bank Of America Money Market IRA Review

Bank of America Money Market IRA account is a flexible plan with a slightly higher interest rate than a regular savings account. The bank does not disclose a current APY for the money market account and provides a phone number on its official website to address inquiries about current rates and/or opening the account. The bank's current interest on the regular savings account is 0.01% as of 11/21/16. Expect the rate for the money market IRA account to be a few points higher. The rate is significantly lower than the the rate of the best interest rate money market account out there.

A low initial deposit requirement comes with a low interest rate. The account can be opened with only $100 deposit with additional deposits that can be made at any time thereafter.

  • $100 to open an account
  • Additional deposits any time
  • APR - Call 855.450.8724

The Bank of America money market IRA account can only be opened at local branches or by calling at 855.450.8724.

 

Bank Of America CD IRAs Review

In contrast to the money market account, no additional money can be additionally deposited to any of the two Bank of America CD IRAs - Featured CD IRA and Standard Term CD IRA. Higher investment requirements come with interest rates.

USAA Free Checking Account Review

Bank of America Featured CD IRA, a 12-month term CD account, requires a $2,000 minimum investment and offers a 0.07% interest rate. The account comes with an automatic renewal feature. The rate can be changed at any time without prior notice as it is stated in a disclosure. The rate as well as account features will be automatically updated at maturity. Customers will be notified about upcoming rates and term changes prior to maturity. It is important to carefully acknowledge new terms.

  • $2,000 to minimum
  • 0.07% APR
  • No additional deposits until maturity
  • Automatic renewal

Bank of America Standard Term CD IRA offers tiered rates with 6-month to 10-year terms. Like any other high-yield FDIC-insured CDs, the Standard Term CD offers higher rates with higher balances. A minimum $1,000 deposit is required to open an account. Once the account is opened, the yield is fixed for the term and no additional deposits can be made until maturity. An account holder can choose to change terms at the time of renewal or terms will be renewed automatically unless the account will be closed.

As of 11/21/2016, Bank of America Standard Term CD IRA has the following rates:

Term Less than $10,000 $10,000 - $99,000 $100,000 +
6-11 months 0.03% APY
12-17 months 0.05% APY
18-23 months 0.07% APY
24-35 months 0.10% APY
36-47 months 0.15% APY
48-59 months 0.15% APY
60-119 months 0.15% APY
120 months 0.15% APY

 

Bank of America IRA Accounts Review Summary

Bank of America FDIC-insured money market account and certificates of deposit accounts are simple and risk-free savings accounts with all tax advantages of an IRA.

Its most attractive features are the absence of annual IRA fees and low investment requirements. However, there are some aspects a potential customer should consider before opening any of Bank of America retirement accounts.

Bank of America provides lower interest rates on both money market and CD accounts compared with major online banks. It is a big drawback for the majority of investors who plan to not only save money for retirement but also to earn a decent profit in their investment.

Bank of America risk-free IRA accounts are lacking in flexibility. For instance, the promotional rate on Featured CD IRA is offered only for the initial term and can be changed without prior notice. If the same term is no longer offered, the account will be automatically renewed to a standard IRA, which carries a lower rate (currently only 0.03% APY) compared with the rate (0.07% APY) of Featured CD IRA on the same term.

All Bank of America IRA accounts come with tax benefits of an IRA and with all responsibilities of a retirement account. So, if a customer chooses to withdraw money and close the account, a penalty fee for early withdrawal will be applied in addition to a 10% federal tax and a possible state tax for withdrawals from IRA before the age of 59 1/2.

Current Bank of America clients can find it very convenient to have an IRA account under one roof with all other bank accounts. However, they are less likely to stay satisfied with the current rates when the bank's rivals offer higher interest rates on both money market and CD accounts. The best brokerage IRA accounts have no IRA annual fees and offer access to brokered CDs with higher rates, making them a great alternative to retirement accounts offered by Bank of America.

 

 

 

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