Bank of America's standard savings account is still paying an annual percentage yield of just 0.01%, a figure that has barely moved even after years of Federal Reserve rate hikes.
That means $10,000 parked in a basic BofA savings account earns about $1 over a full year.
Meanwhile, dozens of online banks and credit unions have spent the past two years advertising yields in the 4% to 5% range.
The gap is not a secret, but it is easy to miss.
Big banks count on customers leaving money in place out of habit, convenience, or a shared branch and app with their checking account.
The result is one of the widest spreads between what banks pay savers and what they earn on that same money in years.
Where the difference shows up Run the math on a $10,000 balance.
At 0.01%, you collect roughly $1 annually.
That is a difference of $449, enough to cover a month of groceries for many households or a decent chunk of a car insurance payment.
On $25,000, the gap widens to more than $1,100 a year.
For anyone holding an emergency fund, a down payment stash, or savings for a home repair, that is real money quietly disappearing.
BofA does offer higher-yielding options, including promotional rates on some savings products and certificates of deposit, but those often come with balance requirements, relationship tiers, or limited-time terms.
The default account most customers open is the one paying next to nothing.
Why so many people stay Switching feels like a hassle.
Direct deposits, automatic transfers, and linked bill payments all run through one login.
Some customers also qualify for fee waivers or credit card perks tied to keeping a certain balance at the bank.
That convenience has a price, and it is measured in foregone interest.
A common middle path is to keep checking at a big bank for bills and move savings to a high-yield account at an online bank, where transfers typically take one to two business days.
What to check before you move Confirm the advertised yield is on the account you are actually opening, not a promotional tier that drops after a few months.
Look for monthly fees, minimum balance rules, and whether the rate is variable.
Make sure the institution is FDIC insured, which covers deposits up to $250,000 per depositor, per bank.
Also check whether your current bank will match or beat a competing offer if you call and ask.
It does not always work, but retention offers exist, especially for customers with larger balances.
Interest rates on savings accounts tend to move with the Fed's policy decisions, and yields have already started drifting lower at some online banks as rate-cut expectations build.
That makes the current spread between big-bank and online savings rates a moving target rather than a permanent one.
Our take: leaving a full emergency fund in a 0.01% account is one of the easiest money leaks to fix, and it takes about 20 minutes to open a better-paying account.
Loyalty to a branch is fine for checking, but savings should earn what the market is paying.
Final Thoughts
Check your current rate today, because most people guess wrong when asked.