Bank of America customers are earning 0.01% on their standard savings accounts, a rate that has barely budged even as the Federal Reserve spent two years holding its benchmark rate at elevated levels.
On a $10,000 balance, that works out to roughly $1 a year in interest.
The same money parked at an online bank paying 4% or more would earn about $400.
It's the difference between your cash keeping pace with inflation and quietly losing ground to it.
And it's entirely legal, because big banks aren't required to pass along rate hikes to depositors.
This isn't a Bank of America problem alone.
Wells Fargo, Chase and Citibank all run the same playbook.
Their business model depends on paying customers as little as possible for deposits while lending that money out at much higher rates.
As long as customers don't move their money, there's little incentive to change.
What makes this moment different is how easy switching has become.
High-yield savings accounts from online banks, many with federal insurance up to $250,000 per depositor, can be opened in minutes.
Transfers between banks typically clear in one to three business days.
The friction that once kept people loyal to a familiar logo has mostly disappeared.
Bank of America does offer a higher-yield option through its Preferred Rewards program, but the best rates are reserved for customers with substantial balances across their accounts, often $100,000 or more.
For everyone else, the standard account pays next to nothing.
Some promotional rates also come with strings attached, like minimum deposit requirements or balance caps that limit how much actually earns the higher rate.
The practical move for most households is simple: keep your checking account where it is if you rely on branches, ATMs and direct deposit, but move your emergency fund and any cash you won't touch for a few months into a high-yield account.
You just need the money sitting somewhere that pays you.
First, confirm the account is FDIC-insured and the rate isn't a temporary teaser that drops after a few months.
Second, look for monthly fees or minimum balance requirements that eat into the yield.
Third, read the fine print on withdrawal limits, since some accounts restrict how often you can pull money out.
One more consideration: interest rates on savings accounts are variable.
If the Fed cuts rates, those 4% yields will likely drift lower too.
That's not a reason to stay put earning 0.01%, but it is a reason to avoid locking money into a product you can't access without a penalty.
The bigger takeaway is that loyalty to a big bank rarely pays.
Banks count on inertia, and the numbers show it works.
A 2023 Bankrate survey found that a majority of Americans earning less than 4% on their savings hadn't bothered to shop around.
Moving your savings isn't a get-rich scheme.
It won't fix a tight budget or replace an emergency plan.
But it's one of the few financial decisions that takes an afternoon and pays you every month for as long as you leave it alone.
The rate on your savings account is a choice, not a fact of life.
Final Thoughts
Checking takes ten minutes, and the payoff compounds.