Navy Federal Credit Union vs. Bank of America: Which Bank Is Right for You?
Review
Updated
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Bottom line: Navy Federal Credit Union has better APYs and more free deposit accounts, while Bank of America has a larger branch network.
Navy Federal Credit Union has a much better savings account offer than Bank of America.
The Bank of America Advantage Savings has an $8 monthly account fee (waivable), $100 initial deposit requirement, and rock-bottom APY of 0.01%. While Preferred Members can earn rates slightly above the standard 0.01% for this account, rates are still much lower than other savings accounts.
For its part, the Navy Federal Share Savings Account is free ($5 minimum opening deposit required) and has a 0.25% savings rate. While it beats Bank of America, it's still not very competitive in comparison with high-yield savings accounts.
| Offer |
|
|
|---|---|---|
| Account | ||
| Rating |
Rating image, 2.50 out of 5 stars.
2.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
|
| APY | 0.01% Rate info Preferred Rewards members are eligible for higher APY. Gold tier earns 0.02%, Platinum earns 0.03%, and Platinum Honors earns 0.04%. | 0.25% |
| Min. to earn APY | — | $5 to open and maintain account |
| Next Steps |
|
|
Bank of America does not offer a money market account at this time (it once did offer the Rewards Money Market Account, but no longer appears to be taking new applications). Meanwhile, Navy Federal Credit Union offers the Navy Federal Money Market Savings Account (MMSA), which earns an APY of up to 2.25%, depending on your account balance. While the account has no minimum opening deposit requirement, you must have a balance of at least $2,500 to earn interest from its Standard MMSA, while balances of $0 to $99,999 are eligible to earn some APY (albeit minimal) from the Jumbo version of the account.
Once again, Navy Federal Credit Union has generally better checking account offers than Bank of America.
Bank of America offers three checking accounts, each with monthly fees of varying amounts. Bank of America Advantage SafeBalance Banking is a basic checking account, with a $4.95 monthly fee that's waivable, while Bank of America Advantage Plus Banking is also basic but comes with a $12 monthly fee (waivable). Advantage Relationship Banking earns interest, but comes with a $25 monthly fee (waivable).
Navy Federal Credit Union has four free checking accounts, two of which require direct deposit to open, while the other two do not. These accounts earn a small percentage of interest and reimburse ATM fees up to $120 per year. Its Flagship Checking account has a $10 monthly fee (waivable) and earns slightly more interest.
| Offer |
|
|
|---|---|---|
| Account | ||
| Rating |
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 3.00 out of 5 stars.
3.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| APY | 0% | N/A |
| Min. to earn APY | N/A | N/A |
| Next Steps |
|
|
The CD rates for Bank of America and Navy Federal Credit Union are vastly different for standard CD terms.
Bank of America Standard CDs range from 28 days to 10 years with a minimum deposit of $1,000. While it does have some decent rates on certain special short-term CDs (like 7-months and 13-month terms, check the bank's website for details), most of its standard APYs don't stack up against the best CDs.
Navy Federal Credit Union CDs (called Savings Certificates) come in seven terms ranging from three months to seven years. Its APYs are decent for most terms, though still not surpassing the best CD rates. The credit union requires a $1,000 minimum deposit for its Standard Certificates, but members can also get an EasyShare Certificate or Special EasyStart Certificate with a deposit as low as $50.
APY = Annual Percentage Yield
| Offer |
|
|
|---|---|---|
| Account | Navy Federal Credit Union Standard Certificate | Bank of America Standard CD |
| 3 Mo. | up to 1.55% | -- |
| 6 Mo. | -- | 0.03% |
| 1 Yr. | up to 4.05% | 0.03% |
| 1.5 Yr. | up to 3.85% | 0.03% |
| 2 Yr. | up to 3.66% | 0.03% |
| 3 Yr. | up to 3.75% | 0.03% |
| 4 Yr. | -- | 0.03% |
| 5 Yr. | up to 3.55% | 0.03% |
| 7 Yr. | up to 3.55% | -- |
| Min. Deposit | $1,000 | $1,000 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
|
|
Navy Federal Credit Union has a higher annual percentage yield (APY) on its basic savings account and more favorable rates on long-term CDs. All of its basic checking accounts are interest-bearing, while Bank of America only pays interest on its premium checking account. That said, Bank of America may offer higher APYs on some special short-term CDs featured on its website.
Navy Federal Credit Union excels at customer service. On Trustpilot, it has a super high rating of 4.5 out of 5 stars, one of the highest ratings for a credit union on that particular site. Bank of America, for its part, has 1.3 out of 5 stars, which is typically for a large national bank.
That said, Bank of America did rank first in the J.D. Power 2023 U.S. Retail Banking Advice Satisfaction Study, beating out multiple big banks. On the contrary, it also scored below the study average in the U.S. Retail Banking Satisfaction Study.
Members of Navy Federal Credit Union can get stateside phone support 24/7, plus a free financial consultation over the phone Monday through Friday 9 a.m. to 6 p.m. Meanwhile, Bank of America clients can get phone support Monday-Friday from 8 a.m. to 9 p.m. ET, Saturdays 8 a.m. to 8 p.m. ET, and Sunday 8 a.m. to 5 p.m. ET.
Navy Federal Credit Union's banking app is pretty basic, allowing you to deposit checks, pay bills, transfer money, and manage your accounts in one place. Bank of America's app, however, is a little more robust. Not only does it offer the basics, but it also has an AI financial assistant, Erica, who can monitor your finances and give you personalized advice.
As far as ratings go, Navy Federal Credit Union's app has 4.3 out of 5 stars on Google Play and 4.9 out of 5 stars on the App Store. For its part, Bank of America's app has a rating of 4.6 on Google Play and 4.8 stars on the App Store.
Navy Federal Credit Union could be right for you if you want to combine the customer service of a credit union with the national presence of a big bank. It could also be ideal if you want a free checking or savings account, especially if you don't want to bother with worrying about waiving fees.
On the other hand, if you want a larger network of branches within the U.S, Bank of America might suit you better. It doesn't have high APYs, but it has thousands of branches, whereas Navy Federal Credit Union only has 350.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 3.80%²
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
|
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for American Express® High Yield Savings
On American Express's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
3.70%
Rate info
3.70% annual percentage yield as of April 11, 2025. Terms apply.
Min. to earn: $0
|
N/A
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how Motley Fool Money rates bank accounts.
First off, to join Navy Federal Credit Union, you must be a service member (active duty or retired); Department of Defense employee, contractor, or retiree; or a family member of an active-duty or veteran service member. If you fit those criteria, Navy Federal Credit Union might be ideal if you want to avoid monthly fees on deposit accounts.
Bank of America is right for those who want a large national bank with plenty of branches and ATMs. It might also be ideal for those who are already using Bank of America for other services (like credit cards) and want to keep all their accounts in one place.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
