If you keep your emergency fund parked at Bank of America, there's a decent chance it's earning almost nothing.
The bank's standard savings account has paid a 0.01% annual percentage yield for years, and that number hasn't budged even as the Federal Reserve kept interest rates elevated through much of the past two years.
Here's what that looks like in real money.
A $10,000 balance at 0.01% earns about $1 over a full year.
The same $10,000 in a competitive high-yield savings account paying roughly 4% earns close to $400.
That's not a rounding error — it's a car payment, a month of groceries, or a chunk of an emergency fund that compounds if you leave it alone.
Bank of America does offer better rates, but you have to know where to look.
Its Rewards Savings account pays a higher yield, though the top tier generally requires you to be a Preferred Rewards member, which means holding serious balances across BofA and Merrill accounts — often $20,000 to $100,000 or more.
In other words, the best rates go to customers who need them least.
Most people open a savings account at the same bank where they have checking, set up a direct deposit, and never revisit the rate.
The national average savings rate sits well under 1%, dragged down by the big branch-based institutions, while many online banks and credit unions pay several times more with no minimums and no monthly fees.
You can keep your checking account, direct deposit, and bill pay exactly where they are and simply move your savings to an online bank.
Transfers between institutions typically take one to two business days, and you can link accounts for free.
Many people start by moving half their savings, watch how it feels for a month, then move the rest.
Confirm the new account is FDIC-insured (or NCUA-insured for credit unions).
Read the fine print on promotional rates, since some "teaser" APYs drop after a few months.
And check whether the bank requires a minimum balance to avoid fees — a 4% rate means nothing if a $15 monthly fee eats it.
Also worth noting: rates on savings accounts aren't locked in.
They move with the Fed, so a 4% account today could pay 3% next year.
That's still dramatically better than 0.01%, and unlike a CD, high-yield savings keeps your money accessible.
If you've been meaning to look at this for months, the math makes the case for you.
Moving $5,000 from 0.01% to 4% is roughly $200 a year for about 20 minutes of paperwork.
That's a better hourly wage than most side hustles.
The takeaway is simple: loyalty to a big bank's savings account is expensive, and it's one of the easiest financial leaks to plug.
You don't need to be a rate chaser or a finance nerd — you just need to check what your bank is actually paying you and compare it to what's available.
Final Thoughts
If the gap is 0.01% versus 4%, the answer picks itself.