Bank of America is the second-largest bank in the country, with roughly $1.9 trillion in deposits.
It is also paying many of its savings customers 0.01% annual percentage yield.
On a $10,000 balance, that works out to about $1 a year.
Meanwhile, the same $10,000 in a competitive online high-yield savings account at around 4% would earn roughly $400.
Big banks know most people pick a checking account in their twenties, set up direct deposit, and then never move.
Switching feels like a hassle — new account numbers, new debit card, re-linking autopay for the electric bill.
So the bank keeps your money, lends it out at today's higher rates, and pays you a token amount for the privilege.
Bank of America reported net interest income of about $14 billion in a single quarter last year, a chunk of which comes from the spread between what it earns on loans and what it pays depositors.
Your $1 check is subsidizing that spread.
To be fair to BofA, its 0.01% is the standard rate on the basic savings account, and the bank does offer a higher-yield tier — Preferred Rewards — that pays more if you park serious money across BofA and Merrill accounts.
But the entry requirements are steep, often tens of thousands in combined balances.
The customer with $2,000 in savings gets the penny rate.
This is not a Bank of America-only story.
Chase, Wells Fargo, and Citibank all run variations of the same playbook, and none of them are hiding it.
The rates are published on their websites.
The question is whether anyone bothers to look.
The bank's shareholders, its loan book, and the branch network you theoretically pay for.
Anyone who treats loyalty to a big bank as a virtue.
A 2023 Bankrate survey found that a majority of Americans were earning less than 4% on their savings even when top accounts were paying well above that.
That's billions in foregone interest, transferred quietly every month.
Online banks often lack branches, cash deposits can be slower, and customer service is a phone tree.
If you need to walk into a building to deposit a check or talk to a human, that convenience has value.
The point is not that everyone should flee to an online-only account.
The point is that staying should be a decision, not a default.
A middle path exists: keep a checking account at BofA for bills and ATM access, and move the emergency fund to a high-yield account elsewhere.
Federal deposit insurance covers up to $250,000 per depositor per bank, so splitting institutions does not reduce your protection.
The transfer takes about ten minutes online.
One caveat worth stating plainly: rates move.
The 4%-plus yields of recent years are not promised forever, and they will fall if the Fed cuts.
But 0.01% is not a rate that rises or falls with the market.
Banks count on the fact that switching costs are emotional and administrative, not financial.
Every month you don't check your savings APY is a month the spread runs in their favor.
Final Thoughts
Look at your statement, compare the number to what's available, and decide if the gap is worth a ten-minute phone call.