Bank of America customers holding money in a standard savings account are earning 0.01% APY, according to the bank's published rate schedule.
That's one dollar in interest per year on a $10,000 balance.
Meanwhile, the effective federal funds rate has hovered around 4.33% for months, which is what banks can earn parking their own reserves at the Federal Reserve.
The gap between those two numbers is not a rounding error.
When the Fed raises rates, banks earn more on reserves and loans almost immediately.
What they pay depositors tends to lag, sometimes by years, and only moves when customers start leaving.
To see how lopsided this has gotten, look at what the same money could do elsewhere.
Top-yield online savings accounts are paying north of 4% APY as of this writing.
On a $10,000 balance, that's roughly $400 a year versus $1.
That difference alone can cover two months of groceries for a family of four, or a decent chunk of a car insurance premium.
The bigger sting is what inflation does to money sitting still.
Even at a tamer 3% annual inflation rate, $10,000 in a 0.01% account loses about $300 in purchasing power every year.
Grocery bills, rent, and utilities don't care where your cash is parked.
Switching banks feels like a hassle, and plenty of customers keep savings at the same institution as their checking account out of habit.
A 2023 Bankrate survey found that a majority of savers weren't earning more than 3% on their savings, even as rates peaked.
Big banks offer thousands of branches, ATMs on every corner, and apps that work well.
You're paying for them in foregone interest, whether you notice or not.
The credit card side makes the picture worse.
If you're carrying a balance while your savings earns 0.01%, you're on both ends of the spread.
Typical credit card APRs at major banks have been running above 20%, so you're paying handsomely to borrow while being paid almost nothing to save.
A practical move: keep your checking account where it is if you like the branches and direct deposit setup, and move only your savings.
High-yield savings accounts and money market accounts are typically FDIC-insured up to $250,000 per depositor, per bank, same as your current account.
You can open one online in about 15 minutes.
Before switching, check for minimum balance requirements, monthly fees, and transfer limits.
Some high-yield accounts require a minimum opening deposit or charge a fee if your balance drops below a threshold.
Also confirm how long transfers take between your old bank and the new one, since moving money usually takes one to three business days.
If you'd rather not open a new account at all, ask your current bank what it can do.
Loyalty sometimes unlocks a promotional rate, though those often expire after a few months and quietly reset to the standard 0.01%.
Read the fine print on any bump you're offered.
One more thing worth doing: check whether your bank offers a higher-yield tier you already qualify for.
Some institutions pay more if you meet certain balance or direct deposit requirements, and plenty of customers never ask.
The bottom line: your bank is not obligated to pay you a competitive rate, and it won't unless enough customers push back.
A few minutes of paperwork can be worth several hundred dollars a year, and the money you move keeps earning wherever it lands.
None of this is a prediction about where rates go next.
The Fed can cut, hold, or hike, and savings rates will follow with a lag either way.
Final Thoughts
What won't change is the arithmetic: 0.01% is not a savings strategy, it's a donation.