Bank of America's flagship savings account still pays a 0.01% annual percentage yield, a rate that has barely budged even as the Federal Reserve kept interest rates elevated for most of the past two years.
On a $10,000 balance, that works out to about $1 a year in interest.
Meanwhile, a growing list of online banks and brokerages are offering between 4% and 5% on comparable FDIC-insured savings accounts.
The gap between the two has become one of the widest in modern banking history, and it's costing loyal customers real money every month.
Bank of America, like Chase, Wells Fargo, and Citibank, funds most of its lending through cheap deposits from its massive branch network.
Customers who keep their checking and savings at the same bank tend to leave money parked there out of habit, not because the rate is competitive. **What the math actually looks like** Move $15,000 from a 0.01% account into a 4.25% high-yield savings account and you'd earn roughly $637 more in a year.
That's a car insurance payment, a month of groceries for a family of four, or a chunk of an emergency fund.
Some Bank of America customers earn more through the bank's Preferred Rewards program, which ties savings bonuses to your combined balance across checking, savings, and Merrill investment accounts.
But even the top tier generally adds only a fraction of a percentage point, and it requires parking tens of thousands of dollars at the bank to qualify. **Why the big banks get away with it** Switching feels inconvenient, and that's the point.
Automatic bill pay, direct deposit, Zelle contacts, and years of saved payees create friction.
Big banks also lean on the fact that most customers don't know what their savings rate is.
Surveys have repeatedly shown that a large share of Americans assume their bank pays something "reasonable" without ever checking.
The Consumer Financial Protection Bureau has flagged this pattern, noting that deposit pricing at large institutions tends to lag far behind market rates.
There's no rule forcing a bank to pay more, and the account terms allow the rate to change at any time. **How to close the gap without leaving your bank** You don't have to abandon Bank of America to stop earning 0.01%.
Many people keep their checking account for bills and direct deposit, then open a high-yield savings account elsewhere for their emergency fund and short-term goals.
Transfers between banks typically take one to two business days, and both accounts remain FDIC-insured.
A few things to check before you move: minimum balance requirements, monthly fees, whether the advertised rate is a promotional teaser that drops after a few months, and whether the account limits withdrawals.
Some of the highest rates come from banks with no branches and thin customer service, which is fine for savings but worth knowing upfront.
Also confirm that the new account is FDIC-insured and that the rate is applied to the full balance, not just a portion.
A handful of accounts advertise a headline rate that only applies to the first $500 or $1,000. **The bottom line** Loyalty to a big bank is a one-way street.
They'll happily hold your money at a rate that hasn't moved in years while advertising mortgages and credit cards on the same app.
Final Thoughts
Checking your current APY takes about two minutes, and the difference between 0.01% and 4% is one of the easiest wins available to the average American household right now.