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Bank of America IRA Review, Rates, and Fees For 2023

Is BofA IRA good? Review of Bank of America ROTH\Rollover\Traditional IRA, Simple\SEP IRA fees, MMA\CDs\savings rates, cons and pros.

Bank of America IRA Overview

Bank of America is one of the largest banks in the United States. As such, the list of banking services the bank offers is extensive. Among its many financial products is a range of Savings IRAs designed to give investors a secure way to save for the future.

Are Bank of America’s IRAs right for you? Keep reading to find out.

Bank of America IRA Availability

Bank of America offers several retirement account options focused on long-term saving strategies. If you are looking for an IRA built for active investing, that is also available at Bank of America’s brokerage.

Retirement accounts with Bank of America are savings IRAs, which use CDs and money market funds as the primary investment vehicle. Savings IRAs come with a few distinct benefits, such as FDIC insurance and a near-guaranteed return on your investment.

Retirement accounts from Merrill Edge, the popular broker owned by Bank of America, are investment IRAs and are not FDIC insured. However, they are covered by SIPC. The main benefits of using Merrill Edge for your IRA include actively managing your portfolio and access to a broader range of securities.

Bank of America IRA Review

Here are the available IRAs at Bank of America and Merrill Edge.

Bank of America IRAs

All of Bank of America’s IRAs are available in Traditional and Roth formats.

Money Market IRA – The low initial deposit of $100 makes money market IRAs great for investors just starting out, but these accounts aren’t just for beginners. Depending on the underlying funds you choose, the APY can be more attractive than the other savings IRA options at Bank of America. Rates are decided on a per-account basis and are announced after an appointment.

Featured CD IRA – This type of account automatically renews with the same terms, making it a good option for investors who don’t want to reconfigure their investment strategy often. Rates range from 0.05 to 4% and are decided through a combination of term choice and account balance size. This account does not allow you to add funds until the CDs mature.

Fixed Term CD IRA – If you are looking for a CD account with a fixed term, this account option may be appropriate for you. Bank of America uses the ‘Platinum level’ from its ‘Preferred Rewards’ program. It sounds nice, but in this case, ‘Platinum’ isn’t quite as impressive as it sounds. No matter which of the available terms you choose (6 months to 10 years), your APY is set at 0.03%. Additional deposits can be made when the CDs have reached maturity.

Variable Rate CD IRA – Variable Rate CD IRAs are similar to Fixed-term IRAs in many ways. They differ regarding the initial deposit requirement ($100 instead of $1,000) and the rate terms (variable instead of fixed). Another difference is that you may make additional deposits at any time, unlike the other account types.

Merrill Edge IRAs

Investment IRAs – Depending on your tax situation, you can open an investing IRA at Merrill Edge in either a Traditional or Roth format. Both allow for tax-advantaged account growth and adhere to Merrill Edge’s no-commission trading schedule.

Small Business IRAs (Employer) – Simple IRAs, Small Business 401(k) plans, and SEP IRAs. Each option has specific characteristics that help employers meet their employees’ needs as they see fit.

Bank of America IRA Review

Small Business (Self-Employed) – If you are self-employed, you can take advantage of the increased contribution limits that the Individual 401(k) and SEP IRA provide. Employer (you) contributions are tax-deductible, and you can contribute up to $66,000 annually (2023).

Bank of America IRA Review

Retirement Account Eligibility

Many account types are available at Bank of America, but the eligibility requirements are straightforward.

For Roth IRAs, single filers must make less than $153,000 to be eligible. Joint filers must make less than $228,000.

For Traditional IRAs, everyone is eligible as long as earned income matches the IRA contribution amount.

Traditional Vs. Roth

If you are unsure about which type of IRA to choose, there are a few key differences between the account types to consider.

The primary difference comes down to the tax treatment. Roth IRAs use after-tax funds, and Traditional IRAs use pre-tax funds. The account that offers the best tax advantages depends on whether your future tax bracket will be higher or lower than it is now. If you expect to be in a higher tax bracket in retirement, Roth provides more significant tax advantages.


Investing in IRAs at Bank of America has more pros than cons, but whether that is true for you depends on what you are looking for.

- Low fees and deposit requirements.
- A good selection of savings IRAs to meet various needs and investor profiles.
- Money market accounts and CDs are safer than other investment vehicles.
- Access to Bank of America’s suite of financial services.
- Access to additional IRA options via Merrill Edge.


- Low APY rates compared to the competition.
- Interest earned will not likely outpace inflation.


Bank of America's rates on IRAs are below average comparing to most competitors. CIT Bank, for example, pays 4.20% APY on a completely liquid account and 4.60% APY on an 18-month CD.


Investors that want a ‘set and forget’ style of retirement savings will do very well with one of Bank of America’s Savings IRA accounts. Interest rates are not as high as some of the other IRA options within the industry, but the underlying securities are quite secure and reliable. Having easy access to Merrill Edge IRAs is also nice if being more active is your preferred approach.

CIT Bank 18 Month CD

Updated on 3/15/2023.

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