If you have money sitting in a standard Bank of America savings account, it is barely earning anything.
The bank's baseline savings rate sits around 0.01% annual percentage yield, a number that has hardly 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.
Meanwhile, a growing list of online banks and smaller institutions have been offering APYs north of 4% on the same money, which would turn that same $10,000 into roughly $400 over a year.
The gap is not a secret, but it keeps catching people off guard.
Big banks like Bank of America count on customers staying put out of habit, convenience, or simply not noticing what their statement says.
Branches, ATMs, and a familiar app are worth something, but they are not worth hundreds of dollars in lost interest for most households.
Bank of America does have higher-yielding options, but they usually come with strings.
Its Rewards Savings account can pay a better rate if you qualify for its Preferred Rewards program, which typically requires maintaining a combined balance across BofA and Merrill accounts.
Tiers start around $20,000 and climb from there.
If you are not in that club, you are likely stuck with the standard rate.
That structure is common across the industry.
The best rates tend to go to customers who already have a lot of money parked at the bank, while everyone else gets the leftovers.
It is a quiet reminder that loyalty rarely pays in banking.
Log into your account or look at your most recent statement.
If it says 0.01%, you are in the baseline group.
Then compare that number to what is available elsewhere.
Sites that track savings rates update daily, and a quick search will show you what online banks, credit unions, and some regional banks are paying right now.
Moving money does not have to be all-or-nothing.
Many people keep a checking account at their main bank for bills and direct deposit, then shift their emergency fund or longer-term savings to a high-yield account at a different institution.
Transfers between banks typically take one to three business days, and federal insurance still covers your deposits up to $250,000 per depositor, per bank, at FDIC-member institutions.
Some high-yield accounts have minimum balance requirements or monthly fees.
Some are savings accounts with withdrawal limits, though those rules have loosened in recent years.
And a promotional rate can drop later, so it pays to check in every few months rather than assuming the number stays put.
For anyone carrying credit card debt at Bank of America or elsewhere, the math flips.
Paying down a balance charging 20% or more in interest will save you far more than chasing an extra point of savings yield.
Emergency savings still matter, but high-interest debt usually comes first.
The bigger point is that leaving money in a near-zero account is a choice, even if it does not feel like one.
Banks are not required to pay competitive rates, and most will not unless customers push back by moving their cash.
A few minutes of comparison shopping can be the highest-paid hour of your financial year.
Our take: loyalty to a big bank's logo is not a financial strategy.
If your savings rate starts with a zero and a decimal point, it is worth an afternoon to see what else is out there.
Final Thoughts
Just read the fine print before you move, because the best headline rate is not always the best fit.