Bank of America customers holding cash in a standard savings account are earning 0.01% APY.
On a $10,000 balance, that works out to about one dollar a year in interest, while the same money parked in a top-yielding online account could earn several hundred dollars instead.
The gap has widened as the Fed holds rates in a range that still leaves plenty of room for competitive offers.
Many online banks and credit unions are paying north of 4% APY on savings, and some promotional accounts push higher with no monthly fee and no minimum balance.
Bank of America's headline savings rate has barely moved.
Where the bank does compete is in CDs and promotional offers tied to new money.
Those deals often require a minimum deposit, a specific term, and sometimes a linked checking account.
Read the fine print, because the top advertised rate can apply only to a limited balance tier or a short introductory window before it resets much lower.
The bigger issue for households is what economists call the "loyalty penalty." Customers who have banked at the same institution for years tend to leave cash in place out of habit, even when the yield is close to zero.
Switching does not require closing your checking account.
You can keep your direct deposit and bill pay where they are and simply move savings to a higher-yield account.
A few practical moves to consider this month: check your current APY on your last statement, compare it against at least three online savings accounts, and move only the portion of your emergency fund you will not need for immediate bills.
Transfers between banks typically take one to three business days, so plan around any automatic payments.
Some high-yield accounts are actually money market accounts with check-writing features and variable rates that can drop without much notice.
Others are promotional rates that expire after a few months.
And if you are chasing a sign-up bonus, note the required direct deposit amount and how long the funds must stay put.
For anyone carrying credit card debt at Bank of America, the math flips.
Paying down a balance charging 20% or more APR beats earning 4% on savings every time.
Run the numbers on both sides before deciding where the next dollar goes.
One more thing worth checking: whether your savings is linked to a checking account that waives its monthly maintenance fee based on your combined balances.
Moving savings out could trigger a fee you were not paying before, so confirm the requirements first.
Loyalty to a big bank's savings product is expensive right now, and the fix takes about twenty minutes.
Final Thoughts
Rates will not stay this favorable forever, so the cost of waiting is measured in real dollars you could be earning today.