Bank of America customers who keep their emergency fund parked in a standard savings account are earning an annual percentage yield of just 0.01%.
On a $10,000 balance, that works out to about $1 a year in interest.
Meanwhile, a wave of online banks and credit unions have been advertising yields in the 4% range for federally insured savings accounts.
The gap between the two is one of the widest in recent memory, and it has more people than ever asking why their money is barely moving.
Big banks do not need to compete for deposits the way online-only institutions do.
Bank of America's advantage is its branch network, its app, and the fact that millions of customers never bother to check what their savings is actually paying.
A saver with $20,000 sitting in a 0.01% account earns roughly $2 a year.
Move the same money into a 4% account and you are looking at close to $800 annually, before taxes.
The catch is that most of those headline yields require a little homework.
Many high-yield accounts have no monthly fee and no minimum, but the rate can change at any time.
Some promotional rates apply only to new customers or only for a limited period.
Bank of America does offer a higher-tier option through its Preferred Rewards program, where rates can climb meaningfully if you keep a larger combined balance across checking, savings, and investments.
For most everyday savers, though, the standard account rate stays near the floor.
Interest earned in any savings account is taxable income, reported on a 1099-INT.
A higher yield means a bigger tax bill, but you still come out well ahead after taxes in most brackets.
If you are thinking about switching, the mechanics are simpler than they used to be.
Most online banks let you open an account in minutes, link your existing checking, and transfer money electronically.
Keeping your checking at Bank of America while moving savings elsewhere is a common setup.
A few practical guardrails before you move anything.
Confirm the account is FDIC insured, check whether there is a minimum balance to earn the advertised rate, and read the fine print on any teaser period.
Watch for monthly maintenance fees that can quietly eat into your yield.
It also pays to keep one to two months of expenses at your everyday bank for instant access, and move the rest to wherever it earns more.
Splitting your cash this way preserves convenience without leaving the bulk of your savings earning next to nothing.
Rates on savings accounts are not locked in forever.
If the Federal Reserve cuts rates, those 4% offers can drift lower over time.
That is a reason to review your accounts every few months rather than setting it and forgetting it.
The bottom line is that 0.01% is a choice, not a rule.
Loyalty to a big bank is fine, but it should not cost you hundreds of dollars a year in interest you never see.
Our take: checking your savings rate takes about five minutes and could be the highest-paid five minutes of your financial year.
Just do not chase the single highest number without checking fees, minimums, and insurance first.
Final Thoughts
A slightly lower rate at a solid, insured institution usually beats a flashy one with strings attached.