Bank of America customers are earning 0.01% on their savings accounts.
That's not a typo — it's one cent for every $100 saved.
Meanwhile, a growing list of online banks and even some traditional competitors are paying north of 4% APY, and the gap has quietly turned into one of the most expensive loyalty taxes in American banking.
Park $10,000 in a standard BofA savings account and you'll earn about $1 over a full year.
Move that same $10,000 to a high-yield savings account paying 4.25% and you're looking at roughly $425.
That's a $424 difference for doing nothing more than filling out an online application.
BofA's preferred rewards program does improve things — but only slightly.
Customers with higher combined balances can qualify for bumped-up rates, and some tiers push savings yields into the 0.03% to 0.04% range.
Even at the top tier, that's a rounding error compared to what competitors offer.
Roughly half of Americans say they've never switched banks, according to multiple consumer surveys, and switching feels like a hassle involving direct deposits, autopay updates, and new debit cards.
It's the engine behind the entire business model.
The hybrid move is the one financial planners keep recommending: keep your checking account where your bills and paycheck live, then open a high-yield savings account elsewhere for your emergency fund.
You don't have to break up with your bank.
You just stop letting it hold the money you're trying to grow.
Watch the fine print on those 4%+ offers.
Some accounts require minimum balances, cap the rate after a promotional period, or hide the yield behind direct deposit requirements.
Others are offered by fintech apps that partner with an FDIC-insured bank — make sure you can find the actual bank's name and confirm your deposits are covered.
Also check whether your current bank offers a separate high-yield product you've never opened.
Several big banks quietly launched online-only savings tiers specifically to compete with the digital upstarts, and existing customers often qualify without realizing it.
For anyone sitting on a cushioned emergency fund in a near-zero account, the cost of doing nothing is now measured in hundreds of dollars a year.
Rates on the best accounts move with the Fed, so they won't stay at 4% forever — but 0.01% has been the floor through every rate environment for years. **Our take:** Loyalty to a big bank is a one-way street, and the toll gets charged to your savings balance every single month.
Final Thoughts
Five minutes of comparison shopping won't make anyone rich, but leaving six figures parked at 0.01% is a choice, not a fate.