Bank of America's flagship savings account still pays a fraction of what online banks offer, and the gap is widening.
The bank's standard savings rate sits at 0.01% APY, according to its published rate sheet — effectively zero for anyone keeping real money there.
On a $10,000 balance, that's about a dollar a year.
Meanwhile, a cluster of online banks and money market funds have held rates near or above 4% APY for months.
The result is a quiet transfer of wealth from loyal customers to bank shareholders, and it shows up in the fine print of millions of statements.
Move $10,000 from a 0.01% account to a 4% account, and you're looking at roughly $400 a year instead of $1.
Banks count on inertia: switching requires opening a new account, linking transfers, and updating autopay.
Bank of America does offer a higher-yield option — the Preferred Rewards program — but it comes with strings.
You generally need $20,000 or more in combined balances across BofA and Merrill accounts to unlock better tiers, and even then the top savings rate remains well below what online competitors advertise.
In other words, you have to park a lot of money at the bank to earn a little extra on it.
The four biggest U.S. banks collectively hold trillions in deposits, and most pay similarly tiny rates on basic savings.
Regional banks and credit unions often sit somewhere in between.
The pattern is consistent: branch convenience and brand trust carry a price, and that price is measured in foregone interest.
For households already stretched by grocery bills, rent, and elevated borrowing costs, that spread matters.
Every dollar not earned in interest is a dollar that has to come out of somewhere else.
Savers who moved cash into higher-yield accounts over the past two years have effectively given themselves a raise without changing jobs.
Online banks typically lack branches, and some have slower customer service or clunkier apps.
Money market funds aren't FDIC-insured the same way bank deposits are, though many hold government-backed securities.
Treasury bills offer another route, with interest exempt from state taxes.
A practical middle path: keep a month of expenses at BofA for convenience, and move the rest to a higher-yield account.
You keep the ATM network and the direct deposit setup while capturing most of the rate difference.
It takes an afternoon to set up and requires almost no maintenance afterward.
Watch for promotional rates that expire after a few months, and check whether an account charges monthly fees unless you meet a balance or direct-deposit threshold.
A 4% headline means little if a $12 monthly fee eats $144 a year.
The bigger point is that loyalty to a big bank is not a financial strategy.
Rates change, but the structural gap between branch banks and online competitors has persisted for years.
Customers who review their savings rate once or twice a year tend to come out ahead of those who don't. **Our take:** Bank of America isn't doing anything illegal — it's doing what dominant banks have always done when depositors stop paying attention.
The real risk isn't the 0.01% rate itself; it's the assumption that your bank is looking out for your savings.
Final Thoughts
A 30-minute rate check is one of the highest-paid hours available to the average American household right now.