Bank of America's standard savings account pays just 0.01% APY, a number that has barely budged even as the Federal Reserve spent two years holding its benchmark rate at elevated levels.
On a $5,000 balance, that works out to about 50 cents a year.
Customers who assume their bank is rewarding them for loyalty are finding the math says otherwise.
The gap between what big banks pay and what online banks pay has rarely been wider.
Many federally insured online savings accounts currently sit in the 4% to 5% range, though those yields move with the Fed and can change at any time.
The difference on $10,000 is roughly $400 to $500 a year, money that simply stays in the bank's pocket at a traditional branch rate.
Big banks like Bank of America lean on their branch networks, ATMs, and brand recognition to attract deposits, so they don't have to compete on price.
Customers often keep money there out of habit, because their checking account is linked, or because switching feels like a hassle.
Bank of America does offer higher-yield options, but they usually come with strings.
Its Rewards Savings account can pay a better rate if you're in the Preferred Rewards program, which typically requires maintaining a combined balance across Bank of America and Merrill accounts — often $20,000 or more for the first tier.
Promotional rates for new money also tend to expire after a few months.
If you're not moving that kind of money, the practical move is simple: leave enough in checking to cover bills and keep the rest somewhere that pays more.
Online banks and money market accounts are FDIC-insured up to $250,000 per depositor, per bank, so the safety is the same.
The tradeoff is usually no branch access and a one- to three-day transfer window.
Confirm whether the account has a minimum balance or monthly fee.
Look at whether the advertised rate is a promotional teaser or the ongoing rate.
And read the fine print on transfer limits, since some savings accounts still cap withdrawals per month.
One more note: savings rates are not locked in.
When the Fed cuts rates, online yields tend to fall within weeks.
Chasing the single highest rate can mean moving money every few months, which isn't worth it for everyone.
A solid, consistently competitive account often beats a rotating cast of teaser offers.
For anyone with a cushion sitting in a big-bank savings account, the honest question isn't whether 0.01% is bad.
It's whether staying is worth several hundred dollars a year in forgone interest.
Final Thoughts
For most households, that answer is no — but the right account depends on how much you keep in savings and how often you need to touch it.