Bank of America customers are earning next to nothing on their savings.
The bank's standard savings account currently pays an annual percentage yield of about 0.01%, a rate that has barely budged even as the Federal Reserve kept interest rates elevated for much of the past two years.
That means $10,000 parked in a BofA savings account earns roughly $1 a year.
The same balance in a competitive online savings account paying around 4% would earn close to $400.
The gap is one of the widest in consumer banking, and it is quietly costing millions of households real money.
Bank of America does offer a higher-yield option, but there's a catch.
Its Preferred Rewards program pays better rates only if you hold substantial balances across the bank, often $20,000 or more in combined deposits and investments.
Customers who qualify can see yields climb into the 3% to 4% range.
Those who don't stay stuck at the bottom tier.
Chase, Wells Fargo, and Citibank all pay similarly low rates on basic savings.
The difference is what customers do about it.
Switching to an online bank takes about 15 minutes and can be done without closing your checking account or leaving your current bank entirely.
Here's the practical move many savers are making: keep your direct deposit and bill pay where they are, then open a high-yield savings account at an online institution and transfer your emergency fund there.
These accounts are FDIC-insured up to $250,000 per depositor, just like the big banks.
Popular options include Marcus by Goldman Sachs, Ally, and Synchrony, though rates shift constantly, so it pays to compare before committing.
Some online banks limit withdrawals or charge fees for excessive transfers, though federal rules on monthly withdrawal limits were relaxed in 2020.
Others require a minimum opening deposit.
Read the fine print and confirm the current APY before you move money, since promotional rates can drop after a few months.
Also worth noting: if you bank with BofA and rely on your savings account for overdraft protection or automatic transfers, moving the balance could trigger fees on your checking account.
Check your account terms first, or ask a banker to walk you through the impact.
The bigger picture is that loyalty to a big-name bank rarely pays.
Branch networks and mobile apps are convenient, but they come at a cost when your savings earn almost nothing.
For anyone with a few thousand dollars set aside, the difference between 0.01% and 4% is hundreds of dollars a year, money that could cover groceries, a car repair, or a chunk of credit card debt.
Our take: parking your emergency fund at a mega-bank is one of the easiest money leaks to fix, and most people never bother.
Spend 20 minutes comparing rates this week.
Final Thoughts
Your future self will thank you, and your bank won't even notice you left.