Bank of America customers are earning far less on their savings than they could be getting almost anywhere else.
The Charlotte-based giant is currently paying just 0.01% APY on its 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.
Park $10,000 in a standard Bank of America savings account for a full year, and you'll earn about $1.
That same $10,000 in a high-yield savings account paying 4% or more would earn roughly $400 — money that many households are leaving on the table without realizing it.
The gap exists because the biggest banks don't have to compete for deposits.
With millions of customers already locked into checking accounts, direct deposit, and branch relationships, there's little pressure to raise savings rates.
Smaller online banks and credit unions, by contrast, use attractive yields to pull in new customers, and they pass along more of what they earn on your money.
Bank of America does offer a workaround: its Preferred Rewards program boosts savings yields for customers who keep larger combined balances across the bank.
You generally need at least $20,000 in qualifying balances just to reach the first tier, and even the top tier pays only a fraction of what online competitors offer.
For most everyday savers, the program doesn't move the needle much.
One important detail: Bank of America's rates sit in the same low range as Chase, Wells Fargo, and Citibank.
This isn't a Bank of America problem so much as a big-bank problem.
If your savings live at any of the four largest US banks, you're likely earning a token amount.
Switching doesn't have to mean closing your checking account.
Many savers keep their everyday banking where it is and simply move their emergency fund or short-term savings to a high-yield account at an online bank.
Transfers typically take one to two business days, and federal deposit insurance still covers you up to $250,000 per depositor, per bank.
Before you move anything, check two things.
First, confirm the advertised APY is current — rates can change and some promotional offers come with balance caps or expiration dates.
Second, read the fine print on monthly fees and minimum balance requirements, since those can wipe out your gains.
There's no single right answer for everyone.
If you value having a branch around the corner and you keep a small cushion in savings, the convenience may be worth more to you than a few extra dollars.
But if you're sitting on thousands of dollars earning next to nothing, the math is hard to ignore. **Our take:** Big-bank savings accounts are built for convenience, not for growth, and Bank of America's 0.01% is a textbook example.
Final Thoughts
Loyalty to a brand won't pay your bills — but a few minutes comparing rates might.