Bank of America's flagship savings account still pays a 0.01% annual percentage yield, a rate that has barely budged through the entire Federal Reserve rate cycle.
On a $10,000 balance, that works out to about $1 a year in interest.
Meanwhile, a long list of online banks and money market funds are advertising APYs in the 4% to 5% range, depending on the account and the day.
It is the difference between earning a dollar and earning $400 to $500 on the same money over twelve months.
For households already squeezed by grocery bills, rent, and credit card interest near record highs, leaving cash parked at 0.01% is one of the most expensive habits in personal finance right now.
Why does the country's second-largest bank pay so little?
The short answer is that it does not have to compete for deposits the way it once did.
Bank of America serves roughly 35 million consumer checking customers, and many of them keep savings at the same institution out of convenience.
Switching feels like a hassle, so the low rate persists.
Banks call this "deposit beta" — the share of rate hikes they pass along to savers.
At the biggest institutions, that share has been small.
The result is a quiet transfer of wealth.
When the Fed raised rates, borrowers felt it fast through higher mortgage and card costs.
Customers who moved their cash to high-yield savings accounts, certificates of deposit, or Treasury bills captured the difference.
Those who stayed put effectively subsidized the bank's cheaper funding.
There are signs this is starting to pinch.
Industry data shows customers shifting billions into higher-yielding accounts and products, and some large banks have begun nudging savings rates up — though usually to fractions of a percent, not 4%.
Bank of America has periodically offered promotional rates on certain balances or through its Preferred Rewards tiers, but the standard rate on the everyday savings account remains near zero.
Terms vary by balance, relationship status, and region, so it is worth checking your own statement rather than assuming.
If you bank at a major institution, here is the practical playbook.
First, find out your actual APY — it is printed on your statement or available in the app, and many people are surprised by how low it is.
Second, compare against a short list of FDIC-insured online banks and money market funds; the spread is easy to verify in minutes.
Third, decide how much cash you need instant access to.
Emergency funds can usually sit in a linked high-yield account and still transfer within a day or two.
Keep only your day-to-day buffer in the low-rate account.
One caution: chasing the single highest advertised rate is not the goal.
Promotional APYs can expire, and some accounts carry minimum balances, withdrawal limits, or monthly fees that eat the advantage.
Read the fine print, confirm FDIC insurance, and prioritize a rate that is consistently competitive over one that is temporarily flashy.
The takeaway is uncomfortable but simple.
Loyalty to a big bank's savings account has a price, and right now that price is measured in hundreds of dollars a year for many households.
The money is not hidden — it is just sitting in the wrong account.
Final Thoughts
A fifteen-minute comparison could be one of the highest-paid quarter hours available to an American saver this year, and unlike most financial advice, this one requires no market timing and no risk.