Bank of America customers are earning almost nothing on their savings right now.
The bank's standard savings account pays an annual percentage yield of roughly 0.01%, a rate that has barely budged even as the Federal Reserve has held its benchmark rate at elevated levels for months.
That microscopic yield means $10,000 parked in a BofA savings account earns about one dollar over a full year.
Meanwhile, a growing list of online banks and money market accounts are offering APYs north of 4%, a gap that adds up to real money for households already squeezed by high prices.
The reason for the split comes down to how banks make money.
Big institutions like Bank of America fund themselves partly through cheap deposits, so they have little incentive to raise savings rates when customers rarely switch.
Online-only banks, which compete for every dollar, pass more of the Fed's rate back to savers.
The spread matters more than ever because inflation has quietly eaten into household budgets.
Grocery bills remain well above pre-pandemic levels, rent keeps climbing in most metros, and credit card rates are hovering near record highs.
Every dollar of interest a family fails to earn is a dollar that doesn't offset those rising costs.
The Fed's rate decisions ripple through this entire picture.
When the central bank keeps rates high, borrowing gets more expensive for mortgages, auto loans, and card balances, but savers at competitive institutions benefit.
The catch is that most of those benefits skip customers who leave their cash sitting at a big brick-and-mortar bank.
Many Americans keep a checking account at their main bank for bills and direct deposit, then move emergency savings to a high-yield account elsewhere.
That split approach preserves convenience while capturing a much larger return.
Worth noting: high-yield savings rates are variable and can fall if the Fed cuts rates later.
They are not locked in, so it pays to check the current APY rather than assume a rate lasts.
Some promotional rates also come with balance caps, minimum deposit requirements, or monthly activity rules.
Before moving money, confirm the account is FDIC-insured, which protects deposits up to $250,000 per depositor at each bank.
Also check transfer times between institutions, since moving funds between banks can take a few business days.
For anyone carrying credit card debt, the math flips.
Paying down a balance charging 20%-plus interest delivers a guaranteed return far bigger than any savings account can offer.
In that case, attacking the debt first usually beats chasing a higher APY.
The takeaway is simple: where you keep your cash is a choice, and that choice has a price.
Loyalty to a familiar branch is costing many households hundreds of dollars a year in interest they could be earning somewhere else.
Final Thoughts
It's worth a look at the statement, even if the answer is just a phone call to ask what rate you're actually getting.