Bank of America, the second-largest bank in the country, is paying 0.01% on its standard savings account.
A customer with $10,000 parked there earns roughly one dollar a year in interest, before any monthly fees eat into it.
This is the same bank that reported billions in quarterly profit and raised its prime rate alongside the Federal Reserve.
When the Fed hikes, borrowers feel it within weeks.
Savers with a basic account feel almost nothing, and that gap is the whole story.
BofA's 0.01% is the advertised baseline, but the bank quietly offers a higher-yield tier called Preferred Rewards, which can push savings rates toward 0.03% or 0.04% for customers with sizable balances across checking, savings, and investment accounts.
In other words, the better rate exists, but it's gated behind having more money with the bank already.
Meanwhile, high-yield savings accounts at online banks and credit unions have been sitting in the 4% to 5% range for much of the past two years, though those rates have started drifting down as the Fed signals cuts.
On a $10,000 balance, the difference between 0.01% and 4% is about $400 a year.
That's real grocery money, a car insurance payment, or several months of a streaming bundle.
The branch on the corner, the ATM network, the app that's already linked to their direct deposit and autopay.
Switching feels like a hassle, and banks count on that inertia.
The monthly maintenance fee, often $8 to $12 unless you meet a balance or direct-deposit requirement, adds another nudge that keeps people from leaving.
There's also a psychological trick at work.
Customers see "savings account" and assume it's all roughly the same.
The gap between the best and worst savings rates in America is wider right now than it's been in decades, and the banks paying the least tend to be the ones with the most customers.
Start by checking the rate on your current savings account, not the marketing page, but the actual statement.
If it's under 1%, you're likely subsidizing the bank's overhead.
Moving even part of your emergency fund to a high-yield account takes about 15 minutes online and doesn't require closing your checking account.
High-yield rates are variable and can fall, so don't lock yourself into anything with penalties.
Make sure the new account is FDIC or NCUA insured.
And watch for teaser rates that drop after a few months, along with minimum balance requirements that trigger fees if you dip below them.
If you're carrying credit card debt with BofA at 20%-plus APR while your savings earns 0.01%, the math is brutal in the wrong direction.
Paying down that balance is usually a better return than any savings account can offer.
The bank profits on both sides of that equation, and it's not hiding it.
The uncomfortable truth is that low savings rates aren't an accident or a rounding error.
Banks pay depositors as little as they can get away with, then lend that money out at much higher rates.
The customers who notice and move their cash get rewarded.
Final Thoughts
The ones who don't fund the difference for everyone else.