Bank of America is one of the largest banks in the country, with roughly 35 million consumer and small business customers.
If your paycheck lands there every two weeks, you probably assume your savings account is doing its job.
The bank's standard savings rate has sat near 0.01% for years, and that number barely moves even when the Federal Reserve pushes rates higher.
At 0.01%, you earn about a dollar a year.
Same money, same risk profile, same federal insurance protection up to $250,000 per depositor.
The only difference is which bank holds the cash.
It's a mortgage payment, a car repair, or a month of groceries quietly disappearing.
Branches on every corner, a familiar app, and the assumption that big banks pay competitive rates.
That assumption was reasonable thirty years ago.
Deposits are cheap funding for Bank of America, and the spread between what it pays you and what it earns lending that money out is a core part of its business model.
It just doesn't show up as a line item on your statement.
The counterargument you'll hear is that relationship banking has perks: waived fees, credit card rewards, mortgage discounts, and perks like the Preferred Rewards tiers.
If you keep $20,000 or more parked at the bank, you can unlock better credit card cash-back rates and other benefits.
Earning an extra 1% on credit card spending is worth maybe $150 a year for a typical household.
Giving up 4% on $20,000 in savings costs you roughly $800.
The perks don't cover the gap unless you're carrying very large balances and spending heavily.
Some of the best savings rates come from online banks and smaller institutions, which means moving money out of your checking account.
That's the friction the big banks count on.
Switching feels like a hassle, so people don't.
But opening a high-yield savings account online takes about fifteen minutes, and transfers between banks typically settle in one to three business days.
You can keep your checking account where it is and still move the savings.
Rates change, so verify the current yield before you move anything.
Watch for promotional rates that expire after a few months, and check whether the account has a minimum balance requirement or a monthly fee that eats the difference.
Also confirm the institution is FDIC insured.
That protection is the whole point of a savings account, and it applies whether you're at a mega-bank or a startup with a clean app.
If you're holding a large emergency fund at 0.01% out of habit, you're not being loyal.
The bank is counting on inertia, and inertia is expensive right now.
The takeaway: loyalty to a bank logo has a price, and it's printed in the fine print nobody reads.
Keep your checking where it's convenient, but treat your savings like the financial asset it is.
Final Thoughts
A few minutes of comparison shopping can be worth more than a year of brand loyalty.