Bank of America's savings account pays one of the lowest rates at any big U.S. bank, and customers are noticing.
While online banks are paying north of 4% APY, the bank's flagship savings account often sits near 0.01%.
On a $10,000 balance, that's about a dollar a year.
At 4%, the same money would earn roughly $400.
The gap isn't hidden in fine print somewhere.
What keeps it from being a bigger story is that most people never look, because switching banks feels like a hassle — until they see the math. **Why The Big Banks Get Away With It** Bank of America doesn't need to compete on savings rates.
Its checking accounts, branches, ATMs, and credit cards keep millions of customers locked in.
A savings account is often opened alongside checking at the same time, and then left alone for years.
Customers assume all savings accounts pay roughly the same.
Today, the spread between a mega-bank and a top online bank can be more than 4 percentage points.
Some Bank of America customers do earn more — but usually only through promotional offers, relationship tiers, or linked products like Merrill Edge accounts.
Those come with their own conditions, and the boost is often temporary. **The Real Cost Of Staying Put** Run the numbers on a $5,000 emergency fund.
At 0.01%, you earn about 50 cents a year.
Over five years, that difference compounds into real money — enough to cover a car repair or a couple of months of groceries.
When prices rise 3% a year and your savings earn 0.01%, your money loses purchasing power every single month.
It's a slow leak most people never see on a statement. **What To Do If You Want To Switch** You don't have to close your Bank of America checking account to earn more on savings.
Many people keep checking where their direct deposit and bills live, then move only the savings balance to a high-yield account at an online bank.
A few things to check before you move: - Confirm the account is FDIC-insured and has no monthly fee. - Look at whether the rate is a promotional teaser or the standard rate. - Check transfer times.
Most online banks take one to two business days to move money back to checking. - Keep enough in your main checking account to avoid overdraft fees.
For people who want everything in one place, some regional banks and credit unions offer better savings rates than the national mega-banks, though usually not as high as the top online options. **The Bottom Line** Bank of America's savings rate isn't a scam — it's a business decision.
The bank is counting on inertia, and for a lot of customers, that bet pays off.
But for anyone with a few thousand dollars sitting in savings, the cost of that inertia is now measurable in hundreds of dollars a year.
It's worth ten minutes to check what your bank is actually paying you.
Final Thoughts
If the answer is close to nothing, the fix is usually easier than people expect — and it doesn't require leaving the bank you've used for years.