Bank of America's flagship savings account still pays a fraction of what online competitors offer, and the gap is costing loyal customers real money every month.
The bank's Advantage Savings account currently pays a national rate so low that many depositors earn just pennies on balances that could generate hundreds elsewhere.
The math is brutal in an era when inflation has already squeezed household budgets thin.
A customer parking $10,000 at Bank of America for a year earns a few dollars in interest at the standard tier.
The same $10,000 at a top-yielding online savings account earns several hundred dollars, often with zero monthly fees and no minimum balance gymnastics.
Bank of America customers get tellers, ATMs, and a familiar app, and for some people that convenience justifies the cost.
But the cost is bigger than most realize.
The difference between a big-bank rate and a competitive online rate can cover a month of groceries for a family of four, or a couple of car payments, depending on the balance.
Bank of America does offer promotional rates, but they typically come with strings attached.
Some tiers require linking to a rewards credit card, maintaining minimum balances, or holding specific account relationships.
Those conditions quietly exclude plenty of everyday savers who don't meet the fine print.
Most Americans open a savings account at the bank where they already have checking and never revisit the decision.
That loyalty has a price, and banks count on it.
Deposit rates at the largest institutions have historically lagged behind online banks and credit unions, partly because big banks don't need to compete as hard for deposits.
Many financial planners suggest keeping checking at a familiar brick-and-mortar bank for bills and direct deposit, then moving emergency savings to a higher-yield account elsewhere.
Transfers between institutions typically take one to two business days, which is fine for money you don't need instantly.
Before switching, check a few things: whether the new account has monthly fees, minimum balance requirements, FDIC insurance, and how quickly transfers clear.
Also confirm the promotional rate isn't a teaser that drops after a few months.
A rate that looks great in January can look ordinary by summer.
One more caution: be skeptical of anyone promising a specific return or pushing you into products you don't understand.
Savings rates move with the Federal Reserve's decisions, and no one can promise where they'll be next year.
The goal isn't chasing the absolute highest number, it's making sure your money isn't sitting idle at a rate that barely registers.
Bank loyalty isn't a virtue when it works against your balance.
Final Thoughts
The smartest move for most savers is simple: keep the convenience you need, but stop paying for it with your own interest.