Bank of America customers are earning next to nothing on their savings, and the bank is counting on most of them not to notice.
The megabank's standard savings account currently pays about 0.01% annual percentage yield, according to Bankrate and the bank's own disclosures.
That means $10,000 parked in that account earns roughly one dollar a year — before inflation eats it alive.
Meanwhile, the same bank happily charges interest rates north of 20% on many credit cards.
The gap between what you earn and what you pay is not an accident.
With inflation running historically above that 0.01% figure, money sitting in a legacy BofA savings account loses purchasing power every single month.
A gallon of milk, a dozen eggs, a tank of gas — all of it gets more expensive while your balance technically grows by pennies.
Here's the part that stings: high-yield savings accounts at online banks have spent much of the past two years paying in the 4% to 5% range, though those rates move with the Federal Reserve and have been sliding.
On $10,000, the difference between 0.01% and even 4% is about $400 a year.
Switching feels like a chore, and banks know that inertia is worth billions.
BofA and its peers have reported consistently strong net interest income in recent years, a chunk of which comes from paying depositors far less than the market rate.
There's also a tiered structure worth understanding.
Bank of America's Preferred Rewards program boosts savings yields for customers who keep large combined balances across checking, savings, and investments.
Reach the top tiers and the rate improves — but it still tends to trail what you'd get from a standalone online savings account.
The message is subtle but clear: the bank rewards you for bringing more money in the door, not for being a regular customer.
None of this is illegal, and it isn't hidden in fine print — the rate is published.
A rate this low survives because it's boring.
No headlines, no outrage, just a slow leak.
If you're holding cash at a big traditional bank, the practical move is simple: check your current APY, compare it to what online banks and credit unions are offering, and decide whether the convenience is worth the difference.
For many people, keeping a checking account at a branch and moving savings elsewhere is the best of both worlds.
Just watch for transfer limits, minimum balance requirements, and any account-closing fees before you jump. **The bottom line:** a 0.01% yield isn't a savings plan, it's a storage fee disguised as interest.
The banks are betting you won't bother to move your money — and for millions of Americans, that bet keeps paying off.
Final Thoughts
Do the math on your own balance, because nobody at the branch will do it for you.