Bank of America's flagship savings account still pays a fraction of what online banks offer, and the gap is getting harder for depositors to ignore.
The bank's Advantage Savings account carries a standard annual percentage yield of 0.01%, according to its published rate sheet.
That's the same rate it paid when the Federal Reserve's benchmark rate sat near zero.
A customer with $10,000 parked in that account earns about $1 a year.
The same balance in a top-yielding online savings account at roughly 4% would generate around $400, before any rate changes.
Big banks have long argued that branch networks, mobile apps, and customer service justify lower yields.
But regional and online competitors have spent the past two years proving you can offer both.
Names like Marcus, Ally, and Synchrony have kept yields in the 3.5% to 4.5% range, even as the Fed has signaled a slower path for rate cuts in 2025.
Preferred Rewards members who meet balance tiers can qualify for higher savings yields, but the top tier requires $100,000 or more across BofA and Merrill accounts.
For most households, that's out of reach.
The practical takeaway is simple: loyalty to a checking account doesn't require loyalty to its savings product.
Moving cash to a higher-yield account takes minutes online and doesn't close your checking relationship.
Many savers keep BofA for direct deposit and bill pay while parking emergency funds elsewhere.
Watch for two things in the coming months.
First, whether the Fed's next moves push online yields down faster than big-bank rates, narrowing the gap.
Second, whether Bank of America adjusts its standard savings rate at all, or continues relying on customer inertia.
Deposit data suggests inertia is powerful.
Roughly half of Americans still hold savings at their primary checking bank, according to multiple consumer surveys.
That habit costs the average household hundreds of dollars a year in forgone interest.
If you're a BofA customer, pull up your statement this week and check the APY on your savings line.
Then check what a competing online account pays.
The comparison takes five minutes and could be the highest-paid five minutes of your financial year.
Our take: big banks are banking on you not checking.
The rate gap isn't a secret, it's a business model.
Final Thoughts
Savers who move even part of their cash aren't being disloyal, they're being paid for basic attention.