Warning: These Popular Banks Pay Ultra-Low Interest Rates

I still can’t believe how many people consistently overlook how much money they lose by keeping their cash in the wrong place.

If your savings are sitting in a big-name bank because it feels convenient and safe, you might be earning just 0.01% APY on your savings, while other banks pay 4.00% or more with the same FDIC insurance and easy access to your money.

Here’s what Wells Fargo, Bank of America, and Chase are really paying, and why it might be time to move your money.

Wells Fargo: “Convenient” but costing you

Wells Fargo is one of the biggest banks in the country, with more than 4,000 branches nationwide. But its Wells Fargo Way2Save Savings account typically pays just 0.01% APY, which is 400 times lower than what some high-yield savings accounts offer, unless you qualify for relationship rates.

Here’s the thing: A $10,000 balance earning 0.01% APY will give you just $1 in interest per year. Even if you like Wells Fargo for its widespread ATM network and mobile app, it’s worth asking if you’re willing to trade hundreds or thousands of dollars in potential interest for convenience you may not even use daily.

Bank of America: A big name, small returns

The Bank of America Advantage Savings account also offers just 0.01% APY for most customers, and while there are “Preferred Rewards” tiers that can bump your rate just a smidgen, you’d need a combined balance of at least $20,000 or more across eligible accounts just to access these higher, but still incredibly low, rates.

Many customers stick with BofA because they already have a checking account there, but that decision can cost you. In a high-yield savings account paying 4.00%, your $10,000 would earn around $400 a year, while the same money in Bank of America would give you about $1 to $4 annually.

That difference adds up quickly, especially if you’re working on building an emergency fund. Right now, the CIT Platinum Savings account is paying 4.00% APY for balances of $5,000 or more, with the same FDIC insurance as the big banks — open a new account today.

Chase: Popular, but your cash sits idle

Chase is the largest U.S. bank by assets and serves millions of customers who trust it with their money. But its Chase Savings℠ account usually pays 0.01% APY unless you have a Premier relationship or meet other conditions to qualify for a slightly higher, but still insultingly-low rate.

Even then, the rates are nowhere near what online high-yield savings accounts offer. If you’re keeping your emergency fund at Chase because it’s easy to transfer to your checking account, know that you’re giving up hundreds of dollars in lost interest every year for the sake of convenience.

Why big banks pay so little

Large banks often rely on brand recognition, branch access, and customers’ inertia to keep deposits flowing in. They don’t need to pay higher rates to attract customers because many people don’t compare savings rates regularly.

Meanwhile, online banks and credit unions have lower overhead and use higher interest rates to compete for deposits. Visit our best high-yield savings account page today to start earning up to 400 times what some of the big banks offer.

You have better options for your savings

You don’t need to settle for 0.01% interest anymore. Many high-yield savings accounts are paying 4.00% or more, are FDIC insured, and let you manage your money from your phone, just like the big banks.

If you’re keeping $10,000 in a traditional savings account earning 0.01%, you’re missing out on around $400 a year in lost interest. Over five years, that’s $2,000 you could have earned without doing anything except moving your money.