Bank of America customers checking their savings statements this month are seeing something that barely qualifies as news: an annual percentage yield that has sat near 0.01% for years.
On a $10,000 balance, that pencils out to about a dollar a year.
Meanwhile, the Federal Reserve has kept its benchmark rate in a range of 4.25% to 4.50% after cutting through late 2024.
Big banks don't have to compete for deposits because customers rarely move their money, so they simply don't.
The gap between what the Fed pays banks and what banks pay you is, for many households, the single largest invisible expense in their budget.
The math gets ugly fast when inflation enters the room.
Grocery prices are still running above 2021 levels, rent has climbed in most metros, and credit card APRs are sitting near record highs above 20%.
A savings account earning 0.01% isn't just treading water.
It's losing ground every single month, and the loss compounds quietly in the background.
Plenty of online banks and money market funds are paying roughly 4% or more right now, though those rates move with the Fed and can fall.
On $10,000, the difference between 0.01% and 4% is roughly $400 a year.
That's a month of groceries for a family of four, or a decent chunk of a car payment.
No risk-free promise here, just arithmetic.
The catch is that moving money takes an afternoon.
You'll need to open an account, link it, and transfer funds, which can take a few business days.
Some people keep a small cushion at their main bank for bills and branch access, then park the rest where it actually earns something.
That hybrid approach is common for a reason.
A few things worth watching before you switch.
Some high-yield accounts require minimum balances or direct deposits to earn the advertised rate.
Others are promotional and quietly drop after a few months.
And if you're carrying credit card debt at 22%, paying that down beats chasing yield every time, because no savings account is paying anywhere close to that.
When your money sits in the same account as your checking, it's easy to spend.
A separate savings account at a different institution adds just enough friction to make you think twice.
That behavioral nudge can be worth more than the interest itself for some households.
None of this is a knock on Bank of America specifically.
Chase, Wells Fargo, and most brick-and-mortar giants run the same playbook, because it works.
The question isn't whether they'll change.
Our take: loyalty to a bank that pays you a dollar a year on ten grand isn't loyalty, it's inertia.
Rates won't stay high forever, so if you've been meaning to move your savings, the window is open now.
Final Thoughts
Spend twenty minutes this week comparing yields, and let the numbers make the decision for you.