Bank of America is paying some savings customers as little as 0.01% interest, a rate that has barely budged even after the Federal Reserve spent two years pushing benchmark rates to their highest level in decades.
On a $10,000 balance, that works out to about $1 a year — before taxes.
The gap between what big banks pay and what online banks offer has rarely been wider.
While national averages for traditional savings accounts sit near 0.4%, a long list of online-only institutions has been paying in the 4% to 5% range for much of the past two years.
That's roughly $400 to $500 annually on the same $10,000, versus pocket change at the branch down the street.
Branches aren't free, and that's the standard defense.
Bank of America operates roughly 3,700 locations, thousands of ATMs, and a massive staff — costs that get baked into deposit pricing.
The bank has argued it competes on convenience, rewards programs, and relationship perks rather than headline yields.
Preferred Rewards members, for instance, can earn better rates on some products, but the base savings tier stays stubbornly low.
Here's the part that stings: the same bank can charge 20% or more on a credit card while paying a penny per $100 in savings.
That spread is the business model, and it's legal.
The question for customers is whether it's still worth it.
Most online banks let you open an account in under 15 minutes with a Social Security number and a funding source.
Transfers between banks typically take one to three business days, and you can keep your Bank of America checking account for bills and ATM access while parking emergency savings somewhere that pays more.
Confirm the account is FDIC-insured, check whether the rate is promotional or ongoing, and look for minimum balance requirements or monthly fees that eat into the yield.
Some high-yield accounts require direct deposit or a set number of debit card transactions.
Others, like many online banks, have no minimums at all.
Closing a checking account too soon after opening it can trigger fees.
Leaving a savings balance below a threshold can cost you a monthly maintenance charge.
And if you use Bank of America's overdraft protection linked to savings, moving that money elsewhere changes how your buffer works.
The broader point is that loyalty to a single institution rarely pays anymore.
Rates move, and the bank counting on you not to notice is counting correctly.
A five-minute rate check twice a year is one of the highest-return habits in personal finance. **Our take:** Big-bank savings accounts are convenience products, not savings products.
Final Thoughts
If you're earning 0.01% because switching feels like a hassle, you're paying for that hassle with real money every single month.