Bank of America customers who keep their cash in a standard savings account are earning 0.01% APY.
On a $10,000 balance, that works out to about a dollar a year — less than the cost of a single coffee.
Meanwhile, the same bank is paying new customers $200 or more in cash bonuses just to open an account.
The gap between what big banks pay loyal depositors and what they dangle in front of new ones has rarely been wider.
The Federal Reserve has held its benchmark rate in a range of 4.25% to 4.50% after cutting three times since September.
Big banks have been slow to pass any of that down to savers, and even slower to pass it up.
Bank of America's standard savings rate has sat near zero for years, surviving an entire rate-hiking cycle without budging.
Several online banks and money market funds are still paying between 3.7% and 4.3% APY.
On a $10,000 balance, the difference between 0.01% and 4% is roughly $400 a year — real money for a household watching grocery bills and rent.
The average American savings account balance sits around $8,000, according to widely cited banking data.
At Bank of America's standard rate, that earns about 80 cents annually.
Same money, same FDIC insurance, wildly different outcome.
Bank of America does offer a higher-yield option: the Preferred Rewards program, which pays up to 0.04% APY for top-tier members.
That is still a rounding error compared with what is available elsewhere.
The program also requires holding substantial balances across BofA and Merrill accounts, which means the customers getting the best deal are the ones who need it least.
Big banks compete on branches, apps, and convenience, not on deposit rates.
Many customers stay because switching feels like a hassle — updating direct deposits, autopay links, and billers.
Banks count on that inertia, and it has worked for decades.
The catch is that inflation has made idle cash expensive.
With consumer prices still rising, money sitting at 0.01% loses purchasing power every month.
The Fed's cuts have lowered the ceiling on what savers can earn, but the floor at big banks has not moved.
For households, the practical move is straightforward.
Keep a checking buffer for bills at the big bank if the branch network matters.
Move the emergency fund to a high-yield savings account or a money market fund, ideally one insured through the FDIC or NCUA.
One caution: yields on high-yield accounts are variable and will likely drift lower if the Fed keeps cutting.
Locking in a certificate of deposit is one way to hold a rate, though it means giving up access to the money for the term.
Read the fine print on withdrawal penalties before committing.
Also watch for promotional rates that expire after a few months.
Some accounts advertise a headline APY that drops sharply once the intro period ends.
The steady 3.7% to 4.3% offers are usually more reliable than the flashy ones.
None of this is a prediction about where rates go next.
It is simply an observation about where they sit right now — and who is benefiting. **The takeaway:** Big-bank loyalty is costing savers hundreds of dollars a year, and most of them will never notice because the statement shows a penny instead of a problem.
Final Thoughts
The smartest financial move for many households this month is not a trade or a side hustle — it is a 15-minute transfer.