Bank of America vs. Betterment
Compare rates, requirements, and features side-by-side to find the best option for you.
Bank of America
Advantage Savings
0.01%APYDec 10, 2025FDIC InsuredLow MinimumsGreat iOS AppGreat Android AppIn-Person AccessShow Fine Print & Trends Hide Details
Bank of America
Advantage Savings
Betterment
Cash Reserve
3.50%APYDec 10, 2025FDIC InsuredLow MinimumsGreat iOS AppGreat Android AppShow Fine Print & Trends Hide Details
Betterment
Cash Reserve
Market Reality Check
Both of these banks offer rates below the current top tier. The best rates we track are currently above 4.25% APY.
Bank of America vs. Betterment Savings Calculator
Betterment earns $2,108.4 more than Bank of America.
Bank of America
Advantage Savings
Savings Breakdown
- Interest Earned+$5.70(0.0%)
- Total Contributions$13,000
- Initial Deposit$5,000
Projected Balance
$18,005.70
Betterment
Cash Reserve
Savings Breakdown
- Interest Earned+$2,114.10(10.5%)
- Total Contributions$13,000
- Initial Deposit$5,000
Projected Balance
$20,114.10
The Banksparency Savings Calculator provides estimated savings growth based on user input and our latest data.
Comparison Analysis
Comparing Bank of America vs. Betterment
Why Bank of America?
No distinct advantages found vs Betterment.
Why Betterment?
- ✓Higher potential APY (3.50% 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. $350 vs $1/yr).
Better Returns at $25,000
BettermentBetterment's Cash Reserve pulls ahead with larger amounts (approx. $875 vs $3/yr).
Best for Simplicity
BettermentBetterment's Cash Reserve offers 3.50% APY with no bundling, direct deposit requirement or caps.
Shared Benefits
Over a 1-year period, Betterment's Cash Reserve pays $349 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.
Executive Summary
Betterment offers a significantly higher APY of 3.50% on its Cash Reserve account, making it the clear winner over 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, while Bank of America charges an $8 monthly fee unless certain conditions are met. Additionally, Betterment's Cash Reserve is an online-only product, providing a straightforward option without the need for direct deposit or account bundling. In contrast, Bank of America's account may vary in APY by market and is accessible through traditional banking channels.
Analysis generated based on current Banksparency database records
* AI-generated content provided for informational purposes only. Accuracy is not guaranteed; always verify details with the provider.
Stop Losing Interest
See who beats both Bank of America and Betterment.
| Feature | Bank of America | Betterment |
|---|---|---|
| APY | 0.01% Verified: 12/10/2025 Stable (90d) | 3.50% Verified: 12/10/2025 ↘︎ 0.50%90d Change |
| Product Name | Advantage Savings | Cash Reserve |
| Minimum Deposit | $100 | $10 |
| Min. Balance for APY | N/A | $0 |
| Monthly Fee | $8 | $0 |
| Branch Access | Yes | None |
| Account Type | Online & Branches | Online Only |
| Direct Deposit Req. | None | None |
| Checking Bundle | No | No |
| Mobile Apps | iOS4.8 Android4.6 | iOS4.8 Android4.7 |
| 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 |
📈 Compare Savings Rates Over Time
Historical Performance
| Metric | Bank of America | Betterment |
|---|---|---|
| Advantage Savings | Cash Reserve | |
Current APY | 0.01% | 3.50% |
Trend | Stable | Stable |
Velocity (bps/mo) | -0.0 | -4.7 |
Days Since Change | 315 | 39 |
10-Month High | 0.01% | 4.00% |
10-Month Low | 0.01% | 3.50% |
Adjustments / Mo | 0.00 | 0.19 |
Volatility Score | 0.000 | 0.049 |
How to read these metrics(Click to expand)
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