Bank of America customers holding cash in a standard savings account are earning just 0.01% APY, a rate that has barely budged even as the Federal Reserve kept interest rates elevated for much of the past two years.
On a $10,000 balance, that works out to about $1 a year in interest.
Meanwhile, a growing list of online banks and credit unions are paying north of 4% on the same money.
At 4.20% APY, that same $10,000 would earn roughly $420 annually.
The difference between the two accounts can exceed $400 a year for a single saver, and far more for households sitting on larger emergency funds.
Bank of America's headline savings rate applies to its standard account, which has no minimum balance requirement and comes with branch access and mobile banking.
The bank does offer a premium tier, but it requires customers to park serious money across Bank of America and Merrill accounts before the rate becomes competitive.
Chase, Wells Fargo, and Citibank run similar playbooks, paying near-zero on legacy savings products while advertising higher yields elsewhere.
Switching accounts takes effort, and millions of customers never bother.
That loyalty costs them real money every month.
The math has shifted because the Fed's rate hikes pushed up what banks can earn on deposits.
Online-only institutions like Ally, Marcus, and Synchrony pass more of that back to customers because they don't carry the cost of thousands of branches.
For consumers, the practical move is simple but requires a decision.
Compare the APY on your current savings account against what's available nationally.
If the number starts with a zero, you are almost certainly leaving money on the table.
Moving an emergency fund to a high-yield account takes minutes online and does not lock up your cash.
One caveat: high-yield savings rates are variable and can fall if the Fed cuts rates.
They are not a substitute for long-term investing, and they are not guaranteed to stay at current levels.
But for money you need liquid, the spread between 0.01% and 4% is hard to justify ignoring.
Some offers apply only to new customers or expire after a few months, then quietly drop.
Read the fine print before moving your balance.
The takeaway for anyone with cash parked at a major bank: check your statement this week.
The rate you are earning is a choice, and for many Americans, it is the wrong one. *The opinions expressed here are the author's and do not constitute financial advice.
Final Thoughts
Rates change frequently, so verify current offers directly with any bank before making a decision.*