Bank of America's savings account pays a fraction of what rivals are offering right now, and that gap is becoming harder to miss.
The bank's standard savings rate sits near 0.01% annual percentage yield, according to its published disclosures.
On $10,000, that works out to about a dollar a year — before taxes, and before inflation takes its own cut.
Meanwhile, the Federal Reserve's benchmark rate has stayed elevated through much of the past two years, though it has eased recently.
Many online banks and credit unions have responded with savings yields in the 3.5% to 4.5% range, depending on the institution and account type.
The same $10,000 parked at 4% would earn roughly $400 over a year, a difference of about $399.
That spread is why personal finance writers keep hammering the same point: the biggest banks rarely compete on savings rates.
Bank of America serves tens of millions of households, and many customers keep their checking and savings together out of habit, convenience, or the pull of branch access and a familiar app.
Its Preferred Rewards program boosts savings rates for customers who park larger balances across Bank of America and Merrill accounts.
But the top tier requires $100,000 in combined balances, and even then the savings yield generally trails what you'd find at an online-only bank with no minimum.
For most everyday savers, the loyalty perks don't close the gap.
Some banks advertise headline yields that apply only to new money, only for a few months, or only in specific states.
A "4.75% APY" banner often comes with a tiered structure where the full rate applies only to the first few thousand dollars.
Most online banks let you open an account in under 15 minutes, and transfers between linked accounts typically settle in one to three business days.
The main trade-off is losing in-person branches for cash deposits and notary-style services.
If you rarely visit a teller, that's a small price.
One caution: keep your checking account where your direct deposits and bill pay live, at least until everything transfers cleanly.
Moving your savings alone is usually the simplest first step.
And remember that savings yields are variable — they can fall if the Fed cuts rates again.
For anyone with a cushion sitting in a big-bank savings account, this is one of the easiest money moves available.
It won't make you rich, but it's close to free money compared to letting it idle.
Banks count on it, and the 0.01% crowd keeps proving the point.
Final Thoughts
Check your current APY today — it takes two minutes, and the number might annoy you enough to act.