Bank of America's flagship savings account still pays a 0.01% annual percentage yield, a rate that has barely budged even as the Federal Reserve kept interest rates elevated for much of the past two years.
On a $10,000 balance, that works out to about $1 a year before taxes.
The same money parked in a high-yield savings account paying roughly 4% would earn close to $400.
It is one of the widest spreads between big-bank legacy accounts and online alternatives in recent memory, and it is costing loyal customers real money every month they leave cash sitting there.
Bank of America does offer higher-yielding options, but they come with conditions.
Preferred Rewards members can earn more through a linked money market savings account, with tiers based on how much they hold across Bank of America and Merrill accounts.
The top tier requires a combined balance of $100,000 or more.
Below that, the bump is modest, and customers outside the program see nothing extra at all.
The catch is that many savers never switch because moving money feels like a hassle.
That inertia is exactly what the big banks count on.
Branch convenience, a familiar app, and automatic payroll deposits keep billions parked in accounts that pay next to nothing.
Meanwhile, online banks with no branch network use those same deposits to fund higher rates, often with no minimum balance and no monthly fee.
If you want to check whether you're affected, look at the APY printed on your most recent statement.
If it reads 0.01%, you're in the standard account.
A one-time transfer to a high-yield account takes minutes and can be reversed if you change your mind.
Just confirm the new bank is FDIC-insured and that the advertised rate applies to all balances, not a promotional tier that expires after a few months.
Online banks generally lack physical branches, so cash deposits and in-person help are limited.
Transfers between institutions can take one to three business days.
Some people keep a small cushion at their main bank for bill pay and move only the surplus.
That hybrid approach captures most of the interest without disrupting day-to-day banking.
One more thing to watch: high-yield rates are not locked in forever.
They move with the Fed, and several online banks have already trimmed their APYs as rate-cut expectations shifted.
A 4% account today could be a 3.5% account by next quarter.
That still beats 0.01% by a wide margin, but it is a reminder to review the rate periodically rather than set it and forget it.
For anyone carrying credit card debt at Bank of America, the math gets more complicated.
Paying down a balance charging 20%-plus interest usually beats chasing an extra point of savings yield.
Run both numbers before deciding where the next dollar goes.
The bottom line is that loyalty to a legacy savings account is expensive, and the fix does not require closing your checking account or changing your direct deposit.
Final Thoughts
It requires about fifteen minutes and a willingness to move money that is currently doing almost nothing.