Bank of America's savings account pays a fraction of what you'll find elsewhere, and with the Fed holding rates elevated, that gap has turned into real money for anyone paying attention.
The bank's standard savings yield sits around 0.01% to 0.04% annual percentage yield depending on the balance tier and account type.
On $10,000, that's roughly a dollar to four dollars a year.
Meanwhile, a growing list of online banks and money market funds are paying north of 4%.
A $10,000 balance earning 4.25% APY generates about $425 over a year.
The same balance in a typical big-bank savings account earns less than a fast-food combo meal.
That's not a rounding error — it's a gap of over $400, and it compounds if you leave the money parked for several years.
Big banks don't have to compete on savings rates because their customers rarely switch.
Branches, ATMs, direct deposit, and years of habit keep deposits sticky.
The result is a business model where the bank pays you almost nothing and lends that money out at much higher rates.
It's legal, it's disclosed in the fine print, and it quietly drains household interest income.
There are exceptions inside Bank of America worth knowing.
The bank's Preferred Rewards program boosts rates for customers who hit certain balance tiers across checking, savings, and investment accounts.
At the Platinum Honors tier, for example, savings yields rise meaningfully — but still often land below what a plain online savings account offers with no relationship requirements.
Bank of America also offers CDs and money market accounts with higher rates, though those typically lock your money up or require larger minimums.
If you're staying put, a few moves can soften the damage.
First, check your current APY in the app — many customers assume they're earning more than they are.
Second, ask a banker what tier you qualify for and whether moving funds from checking to savings actually helps.
Third, look at whether a portion of your cash could sit in a CD ladder or Treasury bills, which are easy to buy and often pay more.
The bigger question is whether loyalty to a big bank is worth the cost.
Switching doesn't require closing your checking account.
Many people keep their direct deposit and bill pay where they are and simply move emergency savings to a higher-yield account elsewhere.
Transfers between banks typically take one to three business days, and there's usually no fee.
Some high-yield accounts are promotional and drop after a few months.
Some have minimum balances or monthly requirements.
And a few institutions have shaky reputations — check FDIC insurance and read recent customer complaints before handing over your savings. **Our take:** Earning 0.01% while inflation runs higher than that means your savings quietly lose ground every single month.
Final Thoughts
If your emergency fund is sitting at Bank of America and you haven't checked the rate this year, that's the five-minute task worth doing today — the difference could cover a car payment or a month of groceries.