A Growth Cash Maximizer account is one type of savings account offered by Bank of America. At the end of 2010, bank rates on money market types of accounts were, on average, earning less than 1 percent. The cash maximizer account is an adjustable rate account, so the interest earned increases if rates start to rise.
Bank of America
Bank of America, headquartered in Charlotte, North Carolina, is the second largest bank in the United States, with branches and ATM access nationwide. The Growth Cash Maximizer account is Bank of America's name for a money market-type savings account. Along with the cash maximizer account, Bank of America offers regular savings accounts and certificates of deposit -- or CDs -- for saving money and earning interest. These accounts provide FDIC insurance for up to $250,000.
Cash Maximizer Features
The Bank of America money market account features tiered interest rates -- the larger the balance, the higher the interest earnings rate. Accounts set up with an automatic monthly deposit earn a bonus rate. As of December 2010, higher tiered rates started at balances of $10,000. Money can be accessed from a cash maximizer account with an ATM card. Bank of America allows unlimited deposits, withdrawals and transfers from a cash maximizer account, as of 2010.
Fees and Restrictions
A Growth Cash Maximizer account can be opened with a deposit of $25. Accounts with balances below $2,500 or not linked to tiered interest checking account have a $12 monthly service charge, as of 2010. The bonus interest rate requires an automatic monthly deposit of $250 or more. The cash maximizer account compounds interest daily and the interest is added to the account monthly.
Rates and Competition
In December 2010, the Growth Cash Maximizer account had tiered interest rates from 0.10 percent up to 0.40 percent. Accounts that qualified for the automatic monthly investment bonus earned an extra 0.10 percent. The first tier for higher rates was at $10,000. The maximum rate required a balance of $500,000. In comparison, for the same time period, Bankrate.com reported a national average money market account interest rate of 0.65 percent.
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