Bank of America is one of the largest banks in the country, with tens of millions of consumer accounts.
It is also, for savers, one of the least generous places to keep cash right now.
The bank's standard savings account has long carried an annual percentage yield of roughly 0.01%, a rate that has barely budged even as the Federal Reserve held its benchmark rate at elevated levels for much of the past two years.
On $10,000, a 0.01% yield earns about $1 over a full year.
The same balance in a top-yielding online savings account paying around 4% would earn roughly $400.
That gap isn't a rounding error — it's the difference between a tank of gas and a car payment.
Bank of America does offer a higher-yield option, Preferred Rewards, but it comes with strings.
You generally need a combined balance of at least $20,000 across eligible Bank of America and Merrill accounts to reach the tier where savings yields become meaningfully better.
Even then, the top tier pays a fraction of what many online banks advertise with no balance requirement at all.
The structure rewards customers who already have substantial money parked at the bank, which is precisely the group least in need of the bump.
Big banks count on the fact that switching feels like a hassle, and for years it was.
But opening an online savings account now takes about ten minutes and usually requires no minimum deposit.
Transfers between banks typically clear in one to three business days.
There's no penalty for keeping your checking account where it is and moving only your savings.
That split approach — local branch for bills, high-yield account for reserves — has become the default move for people who bother to check the math.
Just confirm the online bank is FDIC-insured before you fund anything, and watch for promotional rates that drop after a few months.
One caveat: if you're chasing the absolute top rate, some of those offers come from institutions with thinner track records or requirements like direct deposit.
A rate in the 4% range from a well-established online bank is usually the smarter trade than 4.5% from a name you've never heard of.
The bigger point is that the gap between the best and worst savings rates is wider than it has been in years, and it costs nothing to look.
A five-minute comparison could be worth several hundred dollars annually on a modest balance. **Our take:** Loyalty to a big bank's savings product is one of the most expensive habits in personal finance, and it's one of the easiest to break.
Final Thoughts
If your money is earning 0.01%, you're not being rewarded for staying — you're being counted on to not notice.