Mr Moynihan, who is currently president of consumer and small business banking at the firm, will replace outgoing CEO Kenneth Lewis on January 1st 2010.
He expressed his determination to make his tenure a success following news of his promotion.
"I am honoured to have the opportunity to lead this important company," he said.
"We have everything we need at Bank of America to be the best financial services company in the world."
Mr Lewis welcomed the appointment and said that, after working alongside Mr Moynihan for six years, he believed he was the right man for the job.
Earlier this week, sources close to Robert Kelly, Bank of New York Mellon chairman and CEO, told Bloomberg he had dropped out of the race to take over at Bank of America due to a split on the board between those who wanted an internal candidate and those who favored an external appointment.
By Asim Shah