Big Banks’ Minimal Savings Yields Push Consumers Toward Alternative Options

Major financial institutions like Chase, Bank of America, and Wells Fargo offer near-zero returns on savings accounts—just 0.01% APY on $10,000 deposits yields a mere $1 annually. This exploitative practice persists as most customers remain unaware of superior alternatives.

Smaller banks and digital platforms provide federally insured high-yield accounts paying hundreds of times more. The disparity highlights how legacy banks leverage customer inertia, despite identical FDIC protections up to $250,000 across all qualifying institutions.

Shifting savings requires minimal effort—modern account openings often complete online within minutes. Yet the trillion-dollar banking oligopoly continues profiting from outdated consumer habits, creating fertile ground for decentralized finance alternatives.