Bank of America customers holding money in a standard savings account are earning 0.01% APY, according to the bank's current published rates.
That means a $10,000 balance generates roughly one dollar in interest over a full year.
Meanwhile, the best online savings accounts are paying north of 4% APY, a gap that has widened dramatically since the Fed began raising rates in 2022.
Park $25,000 at Bank of America for a year and you earn about $2.50.
Move that same balance to a top-yielding online account at 4.25% and you'd collect more than $1,000.
Same money, same FDIC insurance on the receiving end, a four-figure difference in outcome.
So why do millions of Americans keep the bulk of their cash sitting in big-bank savings?
Habit, branch access, and the convenience of seeing every account in one app.
There's also a psychological pull: switching institutions feels like a chore, even when a transfer takes under ten minutes to set up.
Bank of America's flagship Advantage Savings carries a $8 monthly fee unless you meet balance or relationship requirements.
Many online banks charge no monthly fee at all and don't require a minimum to open.
The fee structure quietly erodes returns before interest even enters the picture.
There's a counterargument worth weighing.
Big banks offer branch networks, in-person help, and bundled perks for customers with multiple accounts or investment relationships.
If you value walking into a branch, that convenience has a price, and it shows up in your APY.
A practical middle path is catching on: keep your checking account where your direct deposit and bill pay live, then move only your emergency fund and short-term savings to a higher-yield account.
Your money stays accessible within a day or two, and you stop leaving four figures on the table every year.
First, confirm the advertised APY applies to your balance tier, since some rates only kick in above certain thresholds.
Second, verify FDIC insurance applies to the specific account, which it does at virtually all legitimate banks but not at every fintech app that merely partners with one.
Some institutions dangle a high APY for a few months, then quietly reset it.
A rate that looks competitive today can drift toward the national average by next year.
Set a calendar reminder to review your yield every six months.
If the central bank cuts rates, online savings yields will fall as well.
But the spread between big-bank and online rates has historically stayed wide even in falling-rate environments, which means the relative penalty for staying put tends to persist.
The takeaway for households is straightforward: your savings account is a product, not a loyalty program, and it's worth shopping like one. **The bottom line:** Earning 0.01% while inflation runs near 3% means your purchasing power shrinks every month you wait.
Final Thoughts
A single afternoon of account comparison can be one of the highest-paid hours of your financial year, and unlike most money moves, this one carries almost no downside if you stick with an FDIC-insured institution.