Bank of America vs. Betterment
Comparing Bank of America and Betterment for savings: Bank of America's Advantage Savings pays 0.01% APY while Betterment's Cash Reserve pays 3.25% APY.
See how they compare on rate stability, mobile app ratings, and more below.
The Bottom Line
Who pays more interest on $10,000? Betterment pays $324 more than Bank of America annually ($325 vs $1).
Choose Bank of America if you want Zelle for quick transfers. Choose Betterment if getting the best rate matters most.
| Metric | Bank of AmericaAdvantage Savings Feb 6, 2026 | BettermentCash Reserve Feb 6, 2026 |
|---|---|---|
| APY | 0.01% | 3.25% |
Est. Earnings | $5,000+$1 $10,000+$1 $25,000+$3 | $5,000+$163 $10,000+$325 $25,000+$813 |
Min Deposit | $100 | $10 |
Snapshot view. Rates subject to change. | ||
Terms | APY may vary by market. The monthly fee may be waived under some circumstances, such as if you maintain a minimum balance of $500, or are below the age of 25, etc. | - |
| Features | FDIC InsuredLow MinimumsGreat iOS AppGreat Android AppIn-Person AccessZelle® SupportedRate Changes Often | FDIC InsuredLow MinimumsGreat iOS AppGreat Android AppRate Changes Often |
Market Reality Check
Both of these banks offer rates below the current top tier. The best rates we track are currently above 4.15% APY.
Comparison Analysis
Comparing Bank of America vs. Betterment
Executive Summary
Betterment offers a clear advantage with its Cash Reserve product, boasting a competitive APY of 3.25%, significantly higher than Bank of America's Advantage Savings, which yields only 0.01%. Betterment's account requires a minimum deposit of just $10 and has no maintenance fees, making it accessible and cost-effective. In contrast, Bank of America requires a minimum deposit of $100 and charges an $8 monthly fee, although this can be waived under certain conditions. While both accounts do not mandate direct deposit, Betterment's online-only Cash Reserve stands out for its simplicity and higher returns.
The analysis is based on current Banksparency database records
* This content is provided for informational purposes only; always verify details with the provider.
Why Bank of America?
- ✓Fast transfers via Zelle® (up to $3,500 a day)
Why Betterment?
- ✓Higher potential APY (3.25% vs 0.01%) on all balances
- ✓No checking account or direct deposit required
— Key Feature Differences —
Better Returns at $10,000
BettermentBetterment's Cash Reserve earns more on smaller deposits (approx. $325 vs $1/yr).
Better Returns at $25,000
BettermentBetterment's Cash Reserve pulls ahead with larger amounts (approx. $813 vs $3/yr).
Best for Simplicity
BettermentBetterment's Cash Reserve offers 3.25% APY with no bundling, direct deposit requirement or caps.
Shared Benefits
Over a 1-year period, Betterment's Cash Reserve pays $324 more interest on a $10,000 balance than Bank of America's Advantage Savings.
*This calculation assumes current rates remain consistent for 1 year and does not include temporary bonuses.
Non-sponsored link to official site
Non-sponsored link to official site
Top Market Contenders
Bank of America vs. Betterment Savings Calculator
You earn $324 more with Betterment than Bank of America on a $10,000 initial deposit for 1 year*.
*This calculation assumes that APYs remain unchanged for 1 year, and takes into account known promo rate periods, but does not factor in bonuses. You can see how often these banks have changed their rates in the Compare Savings Rates Over Time section below.
Bank of America
Advantage Savings
Savings Breakdown
- Interest Earned+$1.00(0.0%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,001.00
Betterment
Cash Reserve
Savings Breakdown
- Interest Earned+$325.00(3.1%)
- Total Contributions$0
- Initial Deposit$10,000
Projected Balance
$10,325.00
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
| Feature | Bank of America | Betterment |
|---|---|---|
| APY | 0.01% Verified: 2/6/2026 Stable (90d) | 3.25% Verified: 2/6/2026 ↘︎ 0.25%90d Change |
| Product Name | Advantage Savings | Cash Reserve |
| Minimum Deposit | $100 | $10 |
| Min. Balance for APY | N/A | $0 |
| Monthly Fee | $8 | $0 |
| Compound Frequency | Monthly | N/A |
| Branch Access | Yes | None |
| Account Type | Online & Branches | Online Only |
| Physical Branches | N/A | None |
| Direct Deposit Req. | None | None |
| Checking Bundle | No | No |
| Mobile Apps | ||
| FDIC Insured | YesVerify FDIC | Yes |
| Zelle® Support | Available Limit: $3,500/dayFounding member; highest limits for established users. | Not Supported |
| BBB Rating | A+ | A- |
| Important Notes | APY may vary by market. The monthly fee may be waived under some circumstances, such as if you maintain a minimum balance of $500, or are below the age of 25, etc. | - |
| Next Steps | Visit SiteVerify at Bank of America Non-sponsored link to official site | Visit SiteVerify at Betterment Non-sponsored link to official site |
📈 Compare Savings Rates Over Time
Historical Performance
| Metric | Bank of America | Betterment |
|---|---|---|
| Advantage Savings | Cash Reserve | |
Current APY | 0.01% | 3.25% |
Trend | Stable | Stable |
Velocity (bps/mo) | 0.0 | -7.3 |
Days Since Change | 52 | 55 |
12-Month High | 0.03% | 4.00% |
12-Month Low | 0.01% | 3.25% |
Adjustments / Mo | 0.16 | 0.25 |
Volatility Score | 0.117 | 0.081 |
How to read these metrics(Click to expand)
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More Comparisons
Compare Bank of America's APY of 0.01% with other banks
Compare Betterment's APY of 3.25% with other banks
| Bank Pair | Competitor APY | Min Deposit |
|---|---|---|
| Betterment vs Ally Bank | 3.30% | $0 |
| Betterment vs American Express | 3.30% | $0 |
| Betterment vs Axos Bank | 4.21% | $0 |
| Betterment vs Barclays | 4.00% | $0 |
| Betterment vs Capital One | 3.30% | $0 |
| Betterment vs Chase Bank | 0.01% | $0 |
| Betterment vs Chime | 3.00% | $0 |
| Betterment vs CIT Bank | 3.75% | $100 |
| Betterment vs Citibank | 3.20% | $0 |
| Betterment vs Discover Bank | 3.30% | $0 |
| Betterment vs EverBank | 3.90% | $0 |
| Betterment vs Marcus by Goldman Sachs | 3.65% | $0 |
| Betterment vs Newtek Bank | 4.20% | $0.01 |
| Betterment vs Openbank | 4.09% | $500 |
| Betterment vs Pibank | 4.60% | $0 |
| Betterment vs SoFi Bank | 4.00% | $0 |
| Betterment vs Synchrony Bank | 3.50% | $0 |
| Betterment vs Varo Bank | 5.00% | $0 |
| Betterment vs Wealthfront | 3.95% | $0 |
| Betterment vs Wells Fargo | 0.05% | $25 |