Bank of America's flagship savings account still pays a fraction of what competitors offer, and most customers haven't noticed.
The bank's standard savings rate has hovered at 0.01% annual percentage yield, according to the bank's published rate sheet.
That means $10,000 parked in that account earns roughly $1 a year.
Meanwhile, online banks and money market accounts have been paying in the 4% range for much of the past two years.
On a $10,000 balance, the difference between 0.01% and 4% is about $399 a year.
On $50,000, it's nearly $2,000 — money that simply doesn't show up.
Big banks don't have to compete on savings rates because most customers never move their money.
Switching feels annoying, and branch access feels safe.
Bank of America does offer higher-yield options, but they come with hoops.
Its Preferred Rewards program tiers rates based on combined balances across checking, savings, and investment accounts, and the top tier requires $100,000 or more.
Some promotional CDs also beat the base savings rate, but they lock your cash up for months.
The practical move for most people is simple: keep only what you need for monthly bills at the big bank, and move the rest to a high-yield savings account.
These are FDIC-insured up to $250,000 per depositor, per bank, just like Bank of America.
You can open most online in under 15 minutes.
Confirm the account has no monthly fee, no minimum balance, and no cap on withdrawals beyond the federal limit.
Read the fine print on promotional rates, which often expire after a few months.
And keep a small cushion at your regular bank so you're not transferring money every time a bill hits.
Call and request a better rate or ask about a CD.
It rarely works at the base tier, but it costs you ten minutes.
The bigger point is that the 0.01% isn't a secret.
What's unusual is how many people leave six figures sitting in it for years. **Our take:** Loyalty to a big bank is a one-way street — they get cheap deposits, you get a token penny.
If you haven't checked your savings APY in the last year, do it today.
Final Thoughts
Moving money is free, fast, and probably the highest-paid hour of work you'll do all month.