If your emergency fund is sitting in a standard Bank of America savings account, you might be earning less interest in a year than you'd spend on a single takeout dinner.
The bank's everyday savings rate has hovered around 0.01% APY, a figure that hasn't budged much even as the Federal Reserve kept its benchmark rate elevated for months.
At 0.01%, you'd earn about one dollar over a full year.
The same balance parked in a competitive online savings account paying roughly 4% would bring in around $400.
That gap is real money, and it's quietly widening for anyone who leaves cash parked out of habit.
The reason big banks can get away with this comes down to inertia.
Customers tend to keep their checking and savings at the same institution for convenience, and switching feels like a hassle.
Bank of America does offer a higher-yield option through its Preferred Rewards program, but the top tiers generally require sizable combined balances across accounts — often tens of thousands of dollars.
If you don't qualify, you're stuck near the bottom.
Where the money actually goes Big national banks make a chunk of their profit on the spread between what they pay depositors and what they earn lending that money out or parking it in safe securities.
When deposit rates stay low, that spread widens.
It's not a scandal; it's just how the business works.
But it means loyalty to a big brand can carry a hidden cost.
Worth noting: Bank of America's rate isn't a typo or an oversight.
It's a deliberate pricing decision, and plenty of other large brick-and-mortar banks do the same thing.
Chase and Wells Fargo have run similarly low standard savings yields.
What you can do about it You don't have to close your checking account to fix this.
Many households keep everyday spending at their main bank and move savings to a high-yield account elsewhere.
Transfers between banks usually take a day or two, and there's typically no fee.
Some online banks have no minimums and no monthly fees, while others require a certain balance to earn the top rate.
Also look at whether the rate is promotional and could drop after a few months.
And confirm the account is FDIC-insured, which most legitimate banks are.
If you'd rather stay put, ask a banker about relationship rates or a CD ladder.
Certificates of deposit often pay more than standard savings, though your money is locked up for a set term.
That trade-off is worth weighing if you won't need the cash soon.
One more thing: watch for monthly maintenance fees on the savings side.
Some accounts charge $5 or more unless you meet a balance threshold or set up direct deposit.
A fee can wipe out whatever tiny interest you earn.
Our take: parking long-term savings at a big bank paying 0.01% is one of the easiest money leaks to plug, and fixing it takes about 20 minutes.
Rates change constantly, so compare current offers before you commit rather than assuming last year's headline rate still applies.
Final Thoughts
Your bank isn't going to call and tell you you're leaving money on the table — that part is on you.