Bank of America customers keep learning the same lesson the hard way: the money sitting in their savings account is barely growing.
The bank's standard savings rate has hovered around 0.01% for years, a figure that has barely budged even as the Federal Reserve spent much of the past two years holding rates at elevated levels.
On a $10,000 balance, that works out to roughly one dollar a year in interest.
Meanwhile, a wave of online banks and even some traditional competitors have been advertising savings yields in the 4% to 5% range.
That same $10,000 could earn $400 or more annually elsewhere.
The gap isn't a rounding error — it's the cost of staying loyal to a big-name bank out of habit.
Big banks don't need your savings deposits the way they once did.
They have plenty of funding, and their customers tend to stay put.
Switching banks feels like a hassle, and branch networks, mobile apps, and brand trust keep people anchored.
That inertia is worth billions to Bank of America and its peers.
The bank reports net interest income in the tens of billions each quarter, and a chunk of that comes from paying depositors far less than what their money earns elsewhere.
When the Fed raised rates, big banks were quick to charge more on credit cards and loans.
Those increases hit borrowers within weeks.
The spread between what banks earn on your money and what they pay you is called the net interest margin, and it's been a quiet profit engine for years.
To be fair, Bank of America does offer higher-yield products.
Its Rewards Savings account, tied to its Preferred Rewards program, pays more — but typically only if you park serious money at the bank or hit certain balance tiers.
The advertised top tier still often lands below what a no-frills online savings account pays with no strings attached.
You shouldn't have to jump through hoops to earn a competitive return on your own cash.
If you're a Bank of America customer, the practical move is simple: check your current savings rate right now.
Log in, find the interest rate on your statement, and do the math on what you're actually earning.
Then compare it to what's available at FDIC-insured online banks.
You don't have to close your checking account or abandon the branch.
Many people keep a local account for bills and ATMs while moving their savings to a higher-yield account.
It takes about 15 minutes to open one, and transfers between banks are usually free.
Some high-yield accounts have minimum balances or monthly requirements.
Some promotional rates are teasers that drop after a few months.
And rates aren't locked in — they move with the Fed, so a 4.5% account today might pay less next year.
But even a rate that drifts down is likely to beat 0.01% by a wide margin.
Every month you leave a large balance in a near-zero account is a month you're effectively paying your bank for the privilege of holding your money.
That's not a scam in the legal sense — it's just a business model that rewards passivity. **The takeaway:** Big banks are not charities, and loyalty to a brand name doesn't pay interest.
Do the five-minute rate check, and if your bank is paying you pennies, let your feet do the talking.
Final Thoughts
The only vote that counts with a bank is where you keep your cash.