Bank of America customers are earning 0.01% APY on a standard savings account, a rate that has barely budged even as the Federal Reserve kept its benchmark rate elevated for much of the past two years.
On a $10,000 balance, that works out to about $1 a year in interest.
Meanwhile, dozens of online banks and credit unions are still advertising yields between 4% and 5% on comparable FDIC-insured savings accounts.
It is the single biggest reason millions of American savers feel like their money is standing still while prices at the grocery store and the gas pump keep climbing.
Big national banks rely on their branch networks and brand recognition to hold deposits, so they have little incentive to pay up.
Online-only banks have no branches to staff, which lets them pass most of their interest margin back to customers.
The result is a two-tier system: savers who shop around earn hundreds of dollars a year, and savers who stay put earn almost nothing.
Moving $15,000 from a 0.01% account to a 4.25% account generates roughly $636 in annual interest versus $1.50.
That is real money, enough to cover several months of groceries or a chunk of a car insurance premium.
Automatic bill pay, direct deposit, and years of habit keep people anchored.
Some worry about losing access to a branch or a familiar app.
Others assume switching is a hassle involving paperwork and waiting periods.
In reality, opening a new savings account online typically takes under 15 minutes, and transfers between banks usually settle in one to three business days.
There are a few things worth checking before making a move.
Confirm the account is FDIC-insured, which protects deposits up to $250,000 per depositor per bank.
Read the fine print on promotional rates, since some accounts advertise a high yield only for the first few months or require a minimum balance.
And watch for monthly maintenance fees, which can quietly erase the interest you earn.
If you would rather not close your Bank of America account entirely, you don't have to.
Many households keep a checking account for bills and direct deposit while parking emergency savings at a higher-yield institution.
That setup keeps day-to-day banking convenient without sacrificing the return on money you don't touch.
The broader lesson is that loyalty to a big bank rarely pays interest.
Rates are published, comparable, and change often, which means the cost of not checking is now higher than it has been in years. **The bottom line:** leaving cash in a near-zero savings account is a choice, not a requirement.
Final Thoughts
A single afternoon of comparison shopping can be worth several hundred dollars a year, and in a economy where every dollar of household budget counts, that is one of the easiest wins available.