Still Banking with BofA? You’re Losing $1,000+ Annually to Inflation

Traditional savings accounts hemorrhage value while digital assets surge

The Hidden Cost of Legacy Banking

That 0.01% APY from Bank of America isn't just underwhelming—it's actively destroying your wealth. While traditional banks offer returns that barely register, cryptocurrency markets consistently outperform conventional savings by orders of magnitude.

Digital Assets Don't Sleep

Unlike bank branches with their 9-to-5 limitations, blockchain networks process transactions 24/7. Your money works constantly in decentralized finance, generating yields that make traditional savings accounts look like financial relics.

The $1,000 Reality Check

That's not hypothetical money—it's actual purchasing power evaporating from accounts tied to legacy banking systems. Meanwhile, savvy investors park assets in protocols offering real returns that actually beat inflation.

Bankers hate this one trick: actually letting your money grow. Maybe that's why they're still charging $35 for overdrafts while offering pennies in interest.

Key Takeaways

• Stashing your savings at Bank of America means earning almost nothing—far less than the 4%–5% available at many smaller banks.
• Moving your money to a top high-yield savings account could earn you hundreds—or even over $1,000 more each year—without closing your Bank of America accounts.
  
• All FDIC-insured banks protect deposits up to $250,000 per depositor, so smaller banks are just as safe as the largest ones.
  

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Think Bank of America Is the Safer Choice? All FDIC Banks Offer the Same Protection—And Many Pay 4%–5%.

The Federal Reserve may have trimmed rates last month, with additional cuts possible this fall. But for many savers, the real issue isn’t what the Fed does—it’s how little Bank of America pays on savings.

Millions of Americans keep their money at Bank of America simply because that’s where they’ve always banked or where their checking account lives. But that convenience comes at a steep cost. The bank’s standard savings rate is a near-zero 0.01%, meaning even a $10,000 balance WOULD earn barely a dollar in interest over an entire year.

Warning

If you think you’re better off at Chase or Wells Fargo, think again. Their standard savings accounts also pay just 0.01%.

In contrast, dozens of smaller banks are paying 4% or more on high-yield savings accounts today, with the most competitive options reaching 5.00% APY. And you don’t have to leave Bank of America—you can easily keep your checking or credit cards there while moving savings into a high-yield account elsewhere.

If safety is your concern, remember this: FDIC insurance protects deposits up to $250,000 per account holder, per bank—no matter the institution’s size. Credit unions carry the same protection through the NCUA. That means your money is just as SAFE at smaller banks as it is at Bank of America.

Why This Matters to You

Parking your savings at Bank of America may feel convenient, but it could quietly shrink your wealth. Instead, a high-yield savings account can help your money grow—rather than losing ground to inflation.

Related Education

Here’s How Much Interest You’re Losing Out on at Bank of America

So what is it truly costing you to keep your savings at Bank of America with its 0.01% interest rate? Even on a modest balance, the gap compared with today's top high-yield accounts is eye-opening. And on larger balances, the difference is downright staggering.

For instance, a saver with $25,000 at Bank of America would earn barely a few dollars a year, while the same balance in a high-yield account could generate more than $1,000 annually—without changing banks or taking on extra risk.

The table below shows how much you’d earn in a year with Bank of America's 0.01% versus a high-yield savings account, across balances from $1,000 to $100,000. We made our calculations assuming a 4.25% interest rate, the 15th-highest APY in our daily ranking of the best savings account rates. But you could earn even more with an account higher up the list.

Important

If your savings earns less than the inflation rate—currently 2.9%—your money is quietly losing purchasing power. Moving funds to a high-yield savings account that beats inflation means you’re not just boosting income—you’re protecting your money from falling behind year after year.

With FDIC insurance protecting deposits equally across all banks, there’s no reason to settle for meager returns at Bank of America or other big banks. Whether you have $1,000 or $100,000, moving your savings to a high-yield account means your money finally works for you—rather than sitting idle.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

• Best High-Yield Savings Accounts - Up to 5.00%
• Best Money Market Accounts - Up to 4.40%
• Best High-Yield Checking Accounts - Up to 6.00%
• Best Overall CD Rates - Up to 4.45%
• Best 3-Month CD Rates - Up to 4.36%
• Best 6-Month CD Rates - Up to 4.45%
• Best 1-Year CD Rates - Up to 4.32%
• Best 18-Month CD Rates - Up to 4.20%
• Best 2-Year CD Rates - Up to 4.25%
• Best 3-Year CD Rates - Up to 4.25%
• Best 4-Year CD Rates - Up to 4.00%
• Best 5-Year CD Rates - Up to 4.07%

Important

Note that the "top rates" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that's below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.