Bank of America customers checking their savings account statements this month will notice something that has become increasingly common across the banking industry: a yield that barely moves while the rest of the market shifts beneath it.
The Charlotte-based banking giant continues to offer a standard savings rate of just 0.01% APY on its everyday accounts, according to the bank's published rate sheet.
That means a customer with $10,000 parked in a standard savings account earns roughly $1 per year in interest.
Meanwhile, the Federal Reserve's benchmark rate has hovered in a range that has allowed online-only competitors to advertise yields north of 4% for much of the past two years.
As the Fed held rates elevated through 2024 and into 2025, digital banks like Marcus, Ally and Synchrony kept pace with competitive yields.
Bank of America's flagship savings product did not.
Where the money actually sits matters here.
Bank of America's Preferred Rewards program gives customers tiered bonuses based on total balances across checking, savings and investment accounts.
At the Platinum Honors tier, which requires $100,000 in combined balances, customers can access higher savings yields and boosted credit card rewards.
But those rates still trail what a standalone high-yield savings account offers, and the tier requirements lock up significant deposits that could otherwise earn more elsewhere.
Moving $20,000 from a 0.01% account to a 4% high-yield savings account generates about $800 in annual interest, versus $2 at the big bank.
Over five years, that difference compounds into thousands of dollars — money that functions as a de facto pay cut for customers who leave cash sitting in low-yield accounts.
Branch access, integrated mobile banking, ATM networks and the convenience of having checking and savings under one roof carry real value for millions of households.
For some, avoiding the friction of managing multiple accounts is worth the forgone interest.
But the cost of that convenience has grown harder to justify as the rate gap persists.
The broader picture reflects a structural reality in American banking.
Large institutions rely on deposits as a cheap funding source, and they have little incentive to raise rates when customers rarely switch.
Regional banks and credit unions have faced similar pressure, though many have adjusted more aggressively to retain depositors.
The result is a two-tier system: savers who shop around earn meaningfully more than those who don't.
For households watching grocery bills and rent climb, the interest earned on emergency savings can offset real expenses.
A $10,000 emergency fund earning 4% generates about $400 annually — enough to cover a month of groceries for many families.
The same fund at Bank of America's standard rate generates pocket change.
The takeaway for consumers is straightforward.
Checking the APY on any savings account takes minutes.
Comparing it against current high-yield options takes a few more.
The gap between the two has become one of the most reliable — and most overlooked — ways American households lose money without noticing. **Our take:** Big banks count on inertia, and it works.
But with rates this far apart, loyalty to a single institution is increasingly a financial decision, not just a convenience one.
Final Thoughts
Shopping your savings rate isn't aggressive — it's basic math.