Bank of America customers who keep their cash in a standard savings account are earning 0.01% APY.
On $10,000, that works out to about a dollar a year in interest — roughly the price of a single candy bar, paid out over 12 months.
Meanwhile, the same bank has been paying around 4% or more on some promotional certificates of deposit, and online-only competitors like Ally, Marcus, and Synchrony have spent the past two years advertising savings rates in the 4% to 5% range.
The gap between what Bank of America pays its most loyal depositors and what the market offers is one of the widest in American banking.
This is not a Bank of America problem alone.
Chase, Wells Fargo, and Citibank all pay similarly stingy rates on basic savings accounts.
The difference is that Bank of America is the second-largest US bank by deposits, with roughly 3.5 million customers holding standard savings accounts, according to industry estimates.
A lot of people are leaving real money on the table without realizing it.
Park $10,000 in a Bank of America standard savings account for a year and you earn about $1.
Move that same $10,000 to a high-yield online savings account paying 4.25% and you earn roughly $425.
That is a difference of more than $400 — enough to cover a month of groceries for a family of four, or a couple of utility bills.
The account is attached to their checking, their direct deposit, their debit card, their Zelle.
Bank of America also waives monthly maintenance fees if you meet certain balance or direct-deposit requirements, which gives customers a reason to keep a cushion parked there.
There is a middle path that does not require closing your Bank of America account.
Many customers keep just enough in checking to avoid fees and cover automatic payments, then move the rest of their emergency fund to a high-yield savings account at a different institution.
Transfers between banks take one to three business days, which is fine for money you are not touching week to week.
A few things to check before you move anything.
First, confirm the online bank is FDIC-insured.
Second, read the fine print on promotional rates — some "high-yield" accounts are actually CDs with early withdrawal penalties, and some savings rates are teaser rates that drop after a few months.
Third, watch for monthly fees or minimum balance requirements at the new bank.
Bank of America declined to comment on specific rate comparisons for this story, but the bank has previously said its rates reflect a full relationship model that includes branches, ATMs, and customer service.
But a dollar a year on $10,000 is not a relationship — it is a rounding error. **Our take:** Loyalty to a big bank is expensive, and most people never see the bill because it arrives as interest they did not earn.
If you have more than a couple thousand dollars sitting in a standard savings account at any major bank, spend 20 minutes this week checking what a high-yield account would pay you.
Final Thoughts
The switch is not complicated, and the difference is real money.