Bank of America is paying 0.01% on its standard savings account, a number so small it barely registers as interest.
Meanwhile, the same bank will happily charge you double-digit rates on a credit card balance.
The Federal Reserve has kept its benchmark rate elevated compared with the near-zero years of the early 2020s, and many online banks responded by paying savers 4% or more.
Bank of America's flagship savings account stayed parked near the floor.
That spread — what the bank earns on your deposits versus what it pays you — is a major profit center.
When you leave money sitting there, you're essentially lending it to the bank for free.
Chase, Wells Fargo, and most big brick-and-mortar banks run the same play.
Switching accounts feels like a hassle, so most people don't.
The banks know this, and the pricing reflects it.
Convenience and a familiar app have a cost, and it shows up as forgone interest you never see on a statement.
If you keep $15,000 in a big-bank savings account at 0.01%, you earn about $1.50 over a year.
Move the same balance to an FDIC-insured account paying 4%, and you'd earn roughly $600.
That's a car repair, a few months of groceries, or a chunk of an emergency fund.
The catch is that high-yield rates move with the Fed and can fall, so the gap isn't permanent — but it's been wide for a while.
Some need the branch, the teller, or the ATM network.
Some have checking and savings bundled in a way that makes splitting feel risky.
The fix doesn't require closing your checking account.
You can keep Bank of America for daily banking and move only your savings to a higher-yield option.
Transfers between banks typically take a day or two, and both accounts stay insured up to the standard limits.
Before you switch, read the fine print on the new account.
Some high-yield offers come with minimum balances, direct-deposit requirements, or promotional rates that expire.
Watch for monthly fees and withdrawal limits.
And be skeptical of anyone promising a specific return — rates change, and no one controls the Fed.
It's that the default option is usually the most expensive one, and nobody's going to move your money for you.
Our take: big banks are betting you won't bother to check what your savings actually earns.
That bet pays off for them and costs you real dollars every month.
Final Thoughts
It takes about twenty minutes to compare rates and open a better account — a decent return on your time.