Bank of America customers are earning 0.01% on their savings accounts, a rate that has barely budged even as online banks and money market funds offer yields above 4%.
On a $10,000 balance, that penny-level rate works out to about one dollar a year in interest.
It's the standard business model at the biggest U.S. banks, which count on customer inertia to keep deposits cheap.
Bank of America's Advantage Savings account carries that 0.01% base rate, with a higher tier available only if you jump through hoops.
To earn anything meaningful, customers must join the Preferred Rewards program, which requires a three-month average balance of at least $20,000 across BofA and Merrill accounts.
Even then, the top tier pays roughly 0.04%, according to the bank's published rates — still a fraction of what competitors offer.
Meanwhile, the federal funds rate has stayed elevated, and that money has flowed to savers at online institutions.
Names like Ally, Marcus, and Synchrony have regularly posted rates in the 4% range on plain savings accounts with no minimum balance and no monthly fee.
Park $20,000 at 4% and you'd earn about $800 over a year.
Leave the same amount in a standard BofA savings account at 0.01% and you'd collect around $2.
That's a difference of nearly $800 — real money for most households.
Branches and apps are convenient, and that convenience has a price.
Big banks argue their customers value the full relationship: ATMs, in-person help, and bundled products.
But convenience rarely costs $800 a year for a savings account, and that's the trade-off sitting in millions of statements.
There are a few ways to close the gap without leaving your bank entirely.
You can keep checking at BofA for bills and direct deposit, then move emergency savings to a high-yield account elsewhere.
Transfers between banks typically take one to three business days, so plan for that lag.
Watch for the catches that eat into yields.
Some high-yield accounts require a minimum deposit or balance to earn the advertised rate.
Others are promotional and drop after a few months.
Always check the current rate and any monthly fees before moving money.
Also confirm your bank is FDIC insured, which covers deposits up to $250,000 per depositor, per institution.
Online banks with no branches still carry the same federal protection as the one on the corner.
If you're set on staying with Bank of America, at least ask.
Calling and requesting a better rate occasionally works, especially for customers with larger balances or multiple accounts.
It costs nothing but a phone call, and the worst answer is no.
The bigger point is that loyalty to a single institution can quietly cost you hundreds each year.
Rates are public, switching is easier than most people assume, and the difference between 0.01% and 4% compounds over time. **Our take:** Big-bank savings accounts are built for the bank's bottom line, not yours.
If your emergency fund is parked at 0.01%, moving even part of it to a federally insured high-yield account is one of the simplest money moves available right now.
Final Thoughts
Just verify the current rate and any conditions before you commit.