Bank of America is one of the largest banks in the country, and its flagship savings account pays one of the smallest yields you can find.
As of this month, the bank's standard savings rate sits at 0.01% APY, a figure that has barely budged even as the Federal Reserve spent years pushing interest rates higher.
On a $10,000 balance, 0.01% earns you about one dollar over a full year.
The same $10,000 in a competitive online savings account paying roughly 4% would earn close to $400, a gap that adds up fast for anyone building an emergency fund.
The reason big banks get away with it comes down to inertia.
Customers tend to keep their checking and savings at the same institution out of habit, and moving money feels like a hassle.
Bank of America also waives monthly maintenance fees on some accounts when you keep a minimum balance or set up direct deposit, which quietly encourages people to leave cash parked where it earns next to nothing.
There is a catch worth knowing about, too.
The bank offers a higher-yield savings option, but it is typically tied to being a Preferred Rewards member, which generally requires holding a certain combined balance across Bank of America and Merrill accounts.
In other words, the better rate is reserved for customers who already have significant money with the bank, not the average saver.
Meanwhile, the Fed's recent rate cuts have started pulling yields down across the board.
Online banks that were paying above 5% a couple of years ago are now closer to the 3.5% to 4% range.
That is still far ahead of 0.01%, but it means the window to lock in the highest rates may be narrowing.
For anyone who wants to keep banking with Bank of America for convenience, there is a middle path.
Many savers keep a small cushion in their regular account for bills and move the bulk of their savings to a high-yield account elsewhere, linking the two for easy transfers.
It takes about fifteen minutes to set up and requires no closing of your existing accounts.
It also helps to check whether your balance is triggering a monthly fee.
Bank of America's basic savings account can charge a maintenance fee unless you meet certain conditions, and that charge can wipe out whatever tiny interest you earn.
Reading the fine print on your statement is worth the five minutes.
Before moving anything, compare the actual APY, not the marketing language.
Some accounts advertise attractive rates that only apply to the first few thousand dollars, or that require a minimum number of debit card transactions each month.
A genuinely competitive account keeps its rate simple and does not punish you for saving more.
Finally, keep an eye on how often the rate changes.
Some institutions adjust yields quietly after an introductory period.
Setting a calendar reminder to review your savings rate every few months is a low-effort habit that can keep hundreds of dollars in your pocket over time.
Loyalty to a big-name bank rarely pays in the savings department, and the gap between the worst and best accounts is wider than most people assume.
Final Thoughts
A short afternoon of comparison shopping will not make you rich, but it will stop your money from sitting still.