Bank of America customers with standard savings accounts are earning 0.01% APY, a rate that has barely moved through two years of Federal Reserve drama.
On a $10,000 balance, that's about one dollar a year.
Meanwhile, the Fed's benchmark rate spent much of 2023 and 2024 above 5%, and online banks passed along most of that to savers.
The gap between the big four banks and their online rivals is now roughly 400 to 450 basis points.
It is the cost of keeping your cash at the same bank where you have a checking account, a debit card, and a branch you can walk into.
When the Fed raises rates, banks earn more on reserves and loans.
The largest banks have historically been slow to raise savings yields because deposits stay put.
Customers rarely switch for a few dollars a month.
That stickiness is worth billions to Bank of America, which reported tens of billions in net interest income in recent quarters.
The Fed began lowering rates in late 2024 and continued into 2025, trimming its target range toward the mid-3% area.
Online savings yields followed, sliding from peaks near 5% down toward 4% and below at some institutions.
Bank of America's 0.01% did not budge in any meaningful way in either direction.
A family with $15,000 parked in a big-bank savings account is giving up roughly $600 to $700 a year compared with a competitive online account.
That is a month of groceries for many households, or a chunk of a rent payment, or the difference between carrying a credit card balance and paying it off.
Bank of America's typical card APR sits above 20%, and some cards run higher.
If you are earning 0.01% on savings while paying 22% on a revolving balance, the math is brutal.
Every dollar kept in the low-yield account is a dollar not shrinking the expensive debt.
First, check your current APY on your statement or app.
Second, compare it with a short list of FDIC-insured online savings accounts and money market accounts.
Third, decide how much you need in instant-access checking versus what can sit in a higher-yield account with a one- or two-day transfer window.
Many people keep one month of expenses at the big bank and move the rest.
Some high-yield offers come with minimum balances, direct deposit requirements, or promotional periods that expire.
Some fintech accounts are not banks themselves and rely on partner institutions for insurance.
Confirm FDIC coverage and read the rate tiers before moving money.
If the Fed cuts again, online yields will drift lower too.
The relative gap may narrow, but the direction of your money still matters more than the headline rate cycle.
Our take: loyalty to a legacy bank is not a financial strategy, it is a convenience fee you pay in invisible dollars.
Five minutes comparing rates can be worth several hundred dollars a year for a typical household.
Final Thoughts
Park your emergency fund where it earns something, and keep only what you need for daily spending at the branch.