Bank of America customers hoping to earn serious interest on their savings are in for a letdown.
The bank's flagship savings account currently pays a fraction of what online competitors offer, and the gap has widened dramatically over the past two years.
The standard Bank of America savings rate sits around 0.01% annual percentage yield, according to the bank's published rates.
On a $10,000 balance, that works out to about $1 per year.
The same money parked in a high-yield online savings account could earn $400 or more at today's top rates.
That spread has become one of the most lopsided deals in American banking.
Big brick-and-mortar institutions like Bank of America, Chase, and Wells Fargo have barely budged on deposit rates, while online-only banks and credit unions keep pushing yields higher to attract customers.
Big banks already have millions of depositors who keep money there out of habit, so they don't need to pay up to keep those balances.
Online banks have no branches and no legacy customer base, so they compete almost entirely on rate.
Bank of America does offer a higher-yield option tied to its rewards program, but the requirements are steep.
Customers typically need to hit certain balance tiers or maintain specific account relationships to qualify for anything meaningfully above the baseline rate.
Even then, the payout usually lands well below the top online accounts.
For savers, the practical takeaway is that loyalty to a big-name bank is expensive right now.
Someone with $20,000 sitting in a standard Bank of America savings account is effectively leaving hundreds of dollars a year on the table compared with what's available elsewhere.
Most online accounts can be opened in under 15 minutes with a Social Security number and a funding source.
Transfers between banks typically clear in one to three business days, and there's no rule saying you can't keep your checking account where it is while moving savings somewhere else.
A few things to check before jumping ship.
Confirm the account is FDIC insured, watch for monthly maintenance fees, and read the fine print on any promotional rate that might expire after a few months.
Some high-yield accounts require a minimum deposit or a linked checking account to unlock the best rate.
Also keep an eye on how often the rate can change.
High-yield savings rates are variable, meaning they can drop if the Federal Reserve cuts interest rates.
Locking in a certificate of deposit is one way to guarantee a rate for a set period, though it means giving up access to the money until the term ends.
The bottom line is that where you keep your cash matters more than most people realize.
A single afternoon spent comparing rates can be worth hundreds of dollars a year, and that gap tends to compound the longer you leave it alone.
Our take: loyalty to a legacy bank is a choice, not an obligation.
If your savings account is paying pennies while competitors pay real money, the polite thing to do is move the balance and let the statement speak for itself.
Final Thoughts
Just confirm the details before you commit, because not every flashy rate is built to last.