Bank of America customers holding cash in a standard savings account are earning an annual percentage yield of 0.01%, according to the bank's published rate schedule.
That means $10,000 parked there for a full year generates about $1 in interest.
Meanwhile, a stack of online banks and money market funds have spent the past two years advertising yields in the 3.5% to 4.5% range.
At 4%, that same $10,000 earns roughly $400 a year.
Same deposit insurance limits, same dollars, roughly 400 times the payout.
So why do millions of Americans leave money in the low-yield account?
The big-bank savings account is often the one attached to a checking account, a debit card, and a decade of automatic payments.
Moving money feels like rewiring your financial life.
There is also a rate illusion worth understanding.
When the Federal Reserve pushed its benchmark rate to a two-decade high, big banks were slow to raise savings yields but quick to raise credit card APRs.
Card rates climbed past 20% on average, while deposit rates at the largest institutions stayed near zero.
That spread is how the math works in the bank's favor.
You pay 22% to carry a balance and earn 0.01% on your cushion.
The same institution profits on both sides.
With food costs still elevated and rent eating a record share of income, households have less slack to chase yield.
Every dollar sitting idle in a near-zero account is quietly losing ground to inflation, even as the headline inflation rate cools.
If you want to close the gap, the playbook is boring but effective.
First, check the actual APY on your statement, not the marketing page.
Second, keep only what you need for monthly bills in the low-yield account.
Third, move the emergency fund to a high-yield savings account or a money market fund, and confirm the FDIC or NCUA insurance limit applies.
Transfers between banks can take one to three business days, so leave a buffer.
Some high-yield accounts have minimum balances or monthly limits on withdrawals.
And if you are carrying credit card debt, paying that down usually beats any savings yield you can find.
Yields move with Fed policy, and promotional rates expire.
A ten-minute check every few months can keep thousands of dollars from sitting in the wrong place.
The bigger point is that loyalty to a single bank rarely pays.
Banks compete for new deposits, not for the ones they already have.
The customers who notice the difference are the ones who get paid for it.
Our take: earning 0.01% on your savings while the same bank charges you 20%-plus on a card is a bad deal in plain sight.
The fix takes an afternoon, not a financial advisor.
Final Thoughts
Check your APY, move the cushion, and let the interest work for you instead of the bank.