Bank of America is one of the most trusted names in American banking, with branches on nearly every corner and an app millions of people open every day.
But that convenience comes with a price that rarely shows up on a statement: one of the lowest savings rates in the country.
While the Federal Reserve has kept its benchmark rate elevated for months, most big banks have been slow to pass those gains to everyday savers.
Bank of America's standard savings account has hovered around 0.01% annual percentage yield, according to the bank's published rate disclosures.
On a $10,000 balance, that works out to roughly one dollar a year.
Meanwhile, the same money parked in a high-yield savings account at an online bank can earn 4% or more.
That gap means a saver with $10,000 is potentially leaving $400 or more on the table annually — not because of market risk, but simply because of where the account sits.
The mechanics behind the gap are not complicated.
Big banks with massive branch networks, legacy systems, and millions of customers don't need to compete on deposit rates the way online-only institutions do.
People open a checking account in college, keep it for decades, and never shop the rate.
A 0.01% yield sounds like nothing, so many savers stop thinking of the account as an investment at all.
It becomes a parking lot for emergency funds, where the real return is slowly eaten by inflation.
If prices rise 3% a year and your savings earn 0.01%, you are losing purchasing power every single month, even though the balance never drops.
The good news is that switching or splitting your savings takes about 15 minutes online.
You don't need to leave Bank of America for checking, direct deposit, or bill pay.
You can keep those conveniences and simply move the savings cushion to an account that actually pays.
A few practical steps worth considering: check the APY on your current savings account, compare it against at least two FDIC-insured high-yield options, and confirm there are no monthly fees or minimum balance requirements.
Many online banks have no minimums and let you transfer money back to your checking account in one to two business days.
One caution: don't chase a promotional rate that expires in three months.
Look for accounts that have held a competitive yield for at least a year.
And keep your emergency fund somewhere you can reach quickly, not locked in a long-term product.
For households already squeezed by grocery bills, rent, and credit card interest, the money sitting in a near-zero savings account is often the easiest fix available.
It doesn't require a raise, a side hustle, or a budget overhaul.
The bottom line: loyalty to a big bank brand is not a savings strategy.
Final Thoughts
A few minutes comparing rates can put hundreds of dollars back in your pocket this year, and that's a return no grocery run or coupon app can match.