Bank of America customers who parked cash in a standard savings account are earning a fraction of what the money could fetch elsewhere.
The bank's flagship savings rate has hovered around 0.01% annual percentage yield, a figure that has barely budged even as the Federal Reserve spent years pushing benchmark rates higher.
That gap matters more now than it did five years ago.
When the Fed held rates near zero, earning almost nothing on savings felt normal.
Today, top online banks and money market funds are still paying north of 4% APY on federally insured deposits, which means a $20,000 balance sitting at 0.01% earns about $2 a year instead of roughly $800.
It's a real transfer of wealth from depositors to bank shareholders, and it happens quietly because most customers never check the number.
Bank of America isn't doing anything illegal.
Large banks have long relied on the fact that switching accounts takes effort, and that a branch on every corner and a familiar app feel safer than an unfamiliar online institution.
That convenience has a price, and the price is measured in basis points.
The good news is that the fix takes about fifteen minutes.
Several federally insured online banks and credit unions consistently publish rates well above the national average, and many have no monthly fees or minimum balance requirements.
Treasury bills and money market funds are another route, though they come with their own rules and tax treatment.
One caution: don't chase the single highest advertised rate without checking the details.
Some accounts require direct deposit, cap the balance that earns the top rate, or tie the yield to a debit card spending requirement.
If you'd rather stay at Bank of America, there are still options.
The bank's higher-tier savings products and certificates of deposit often pay more than the basic account, and a short conversation with a banker can sometimes unlock a better rate.
It won't match the best online offers, but it beats 0.01%.
The broader lesson extends beyond one bank.
Loyalty to a single financial institution rarely pays in cash, and the gap between the best and worst savings rates is wider than it's been in years.
A quick rate check once or twice a year is one of the highest-return habits in personal finance.
Our take: leaving money at 0.01% is a choice, not a fate, and it's one most people never consciously make.
Rates change constantly, so the smart move is to check what you're earning today rather than assuming it's fine.
Final Thoughts
A few minutes of comparison shopping can quietly add hundreds of dollars a year to your household bottom line.