If your emergency fund is sitting in a standard Bank of America savings account, you're earning $1 a year on every $10,000 you keep there.
The bank's basic savings rate has hovered around 0.01% for years, even as the Fed kept interest rates elevated through most of 2024 and 2025.
Meanwhile, a wave of online banks and money market funds have been paying in the 4% range for the same money, with the same federal insurance backing it.
On a $10,000 balance, that's the difference between about $1 and roughly $400 a year.
So why do millions of Americans stay put?
The checking account, the ATM network, the app you already know — it's all in one place.
Switching feels like a chore, and big banks count on that feeling.
The gap isn't a secret, and it isn't illegal.
Banks pay what the market lets them get away with, and legacy institutions with millions of customers have little incentive to hand out more interest than they have to.
The Federal Reserve's own data shows the average savings account rate at big banks sits far below the rates offered by their online-only competitors.
The fix doesn't require closing your Bank of America checking account.
Most people keep their everyday bank for bills and direct deposit, then park their savings somewhere that actually pays.
An online savings account or a money market fund — from a federally insured institution — can be opened in about 15 minutes with a Social Security number and a routing number.
A few practical steps: check what your current savings account actually pays (it's usually buried in your statement or account details page).
Move the emergency fund first, since that's money you won't touch.
Keep one month of expenses at the big bank for instant access if that helps you sleep at night.
Some promotional rates are "teaser" rates that drop after a few months.
Some accounts charge monthly fees unless you keep a minimum balance.
And transfers between banks can take a day or two, so don't drain your checking account down to zero during the move.
Also worth knowing: the interest you earn is taxable, reported on a 1099-INT if it tops $10 for the year.
That's still a good problem to have compared to earning almost nothing.
If you've been with the same bank for a decade, this is a five-minute check that could be worth hundreds of dollars.
Rates move, so it's worth re-checking once or twice a year.
The uncomfortable truth is that loyalty to a big bank's savings account is one of the most expensive habits in personal finance, and it costs you quietly every single month.
Final Thoughts
A little paperwork now beats another year of pennies on your balance.