If you keep your emergency fund parked in a standard Bank of America savings account, you might want to sit down before you check the interest rate.
The bank's basic savings account has long paid a rate that barely registers, and that gap has turned into one of the widest in the banking world.
As of this spring, Bank of America's standard savings account pays just 0.01% APY.
On a $10,000 balance, that's about $1 a year.
Meanwhile, dozens of federally insured online banks and credit unions have been paying in the 4% to 5% range on comparable accounts.
The difference on that same $10,000 is roughly $400 to $500 annually.
Bank of America does have a higher-yielding option called the Preferred Rewards tier, but there's a catch.
You generally need at least $20,000 in combined balances across checking, savings, and investment accounts to qualify for the top tier, which still pays far less than many online competitors.
It's a loyalty program dressed up as a savings rate.
Branches, ATMs, a familiar app, and the comfort of a name you've trusted for decades all carry real value.
But that comfort has a price tag, and for savers it's measured in hundreds of dollars a year that quietly vanish.
The fix doesn't require leaving your bank.
Many households keep a checking account at a big bank for bills and direct deposit, then move savings to a high-yield account elsewhere.
Transfers between banks typically take a day or two, and federal deposit insurance covers both institutions up to $250,000 per depositor.
A few practical steps to consider this week: check your current APY on your statement or app, compare it against a handful of online banks, and decide how much you're comfortable moving.
Even shifting half of a $10,000 balance could mean a couple hundred extra dollars a year for about fifteen minutes of work.
Watch for minimum balance requirements and monthly fees at online banks too.
Some charge nothing, while others waive fees if you set up direct deposit.
One more thing worth knowing: rates on savings accounts are variable.
They can rise when the Federal Reserve raises rates and fall when it cuts.
The 4% to 5% yields available today aren't locked in forever, so it pays to revisit your accounts a couple of times a year rather than setting it and forgetting it.
The bottom line is that where you keep your cash matters more than most people realize.
Loyalty to a big brand is fine, but it shouldn't cost you hundreds of dollars a year in interest you never see.
Final Thoughts
A little comparison shopping goes a long way.