Bank of America customers hoping for a little relief on their savings just got the same old news.
The bank's standard savings account still pays just 0.01% APY, a rate that has barely budged even as the Federal Reserve has kept its benchmark rate elevated for months.
On a $10,000 balance, that works out to about one dollar a year in interest.
Most big national banks — Bank of America, Chase, Wells Fargo — have kept their basic savings rates parked near zero for years.
They can do this because millions of customers never move their money, and the banks know it.
Meanwhile, plenty of online-only banks and credit unions are paying north of 4% APY on the same deposits.
Move $10,000 from a 0.01% account to one paying 4.25%, and you're looking at roughly $425 a year instead of a buck.
That's not a guarantee of future returns — rates change and can fall — but it's real money sitting on the table right now for anyone who leaves cash at a mega-bank out of habit.
Bank of America does have higher-yielding options, but you have to hunt for them.
Its Rewards Savings account pays more if you're part of the Preferred Rewards program, which generally requires a combined balance of $20,000 or more across BofA and Merrill accounts.
Below that threshold, you're stuck with the standard rate.
The bank also pushes customers toward CDs and Merrill investment accounts, which lock up your money or carry market risk.
Here's the catch that traps a lot of people: switching isn't instant.
Opening a new savings account online usually takes minutes, but moving money between banks can take one to three business days.
If you have automatic bill payments or direct deposit tied to your old account, update those first so nothing bounces.
Keep a small cushion at the big bank if you like having a branch nearby for cash deposits and notary services.
Some high-yield accounts require a minimum balance or a monthly direct deposit to avoid a maintenance charge.
Read the fine print before you commit, and check whether the rate is promotional and drops after a few months.
A savings account is still the right home for your emergency fund — just not one paying a penny on the dollar.
One more thing worth checking: Bank of America's savings rate isn't the only number that matters.
Look at your checking account too, since many big-bank checking accounts pay nothing and charge monthly fees unless you meet balance requirements.
Sometimes the simplest fix is moving your emergency fund, keeping checking where it is, and setting up an automatic transfer each payday so the balance actually grows.
The takeaway is simple: loyalty to a big bank's savings account is expensive.
Spend twenty minutes comparing rates, and you could pocket hundreds more this year without taking on any new risk.
The big banks are counting on you never checking.
Final Thoughts
Don't prove them right — a few clicks could turn a dollar a year into real interest, and that's the easiest raise most people will get all year.