If you keep your emergency fund at Bank of America, you might want to sit down before checking the interest you earned last month.
The bank's standard savings account still pays a national average rate hovering around 0.01% APY, according to recent deposit data.
That means $10,000 parked there for a full year earns roughly one dollar.
The gap between that and what online banks offer has never been wider.
Many high-yield savings accounts from digital-first institutions are paying in the 4% range, which works out to about $400 on the same $10,000.
Same deposit insurance, same dollars, very different outcome.
Big banks like Bank of America don't need to compete for deposits the way smaller online institutions do.
They have millions of checking customers who keep savings balances out of habit, convenience, or because their direct deposit lands there.
There's little pressure to raise rates when customers aren't leaving.
The Federal Reserve's recent decisions matter here too.
After a long stretch of rate hikes, the Fed has held its benchmark rate steady, and that pause has started to pull high-yield savings rates down slightly from their peaks.
Even so, the floor hasn't moved at the big banks.
A 4% account might slip to 3.8% or 3.9%, while a 0.01% account stays exactly where it is.
Bank of America does offer a higher-tier option through its Preferred Rewards program.
Customers with larger combined balances across checking, savings, and investment accounts can qualify for a bump, though the top tier rates still lag what you'd find at many online banks.
It rewards loyalty with a nudge, not a leap.
Here's the practical math for a household with $5,000 set aside.
At 0.01%, you'd earn about 50 cents a year.
Move that same $5,000 to a 4% account and you'd see roughly $200.
That's a car payment, a few weeks of groceries, or a decent chunk of a utility bill, just for filling out an online application.
Most online banks let you open an account in minutes with a photo ID and a routing number.
You can keep your Bank of America checking for bills and transfers, then link the new savings account for automatic deposits.
Many people set up a small recurring transfer each payday and let it sit.
Confirm the account is FDIC insured, check for monthly fees or minimum balance requirements, and read the fine print on promotional rates that expire after a few months.
Some accounts tie the best rate to direct deposit or a minimum number of debit card transactions.
Online banks typically don't have branches, so if you rely on in-person help for cashier's checks or notary services, keep a small cushion at your current bank.
The goal isn't to abandon your main bank, it's to stop letting your savings earn nothing.
If the Fed cuts later this year, high-yield accounts will likely drift lower, though probably not to 0.01%.
The window to capture a meaningful return on cash is open now, and it rarely stays open indefinitely.
The takeaway is simple: loyalty to a big bank's savings account is costing you real money every month.
Final Thoughts
A few minutes of comparison shopping could put hundreds of dollars back in your pocket this year.