Your Money Deserves Better Than Trillion-Dollar Banks Paying 0.01% APY

Some of America's banks are worth more than $1 trillion dollars -- but they pay near-zero interest rates on savings accounts. How do such huge banks get away with paying such tiny APYs?

Now that the best savings accounts are offering 5.00% (or higher) APYs, you don't have to settle for lackluster earnings from a big bank's savings account. Let's look at how your cash can earn higher yields.

America's trillion-dollar banks -- and their low savings APYs

According to Federal Reserve data, as of March 31, 2024, the four largest banks in America each have more than $1 trillion of total assets:

1. Chase (JPMorgan Chase): $3.50 trillion of total assets
2. Bank of America: $2.55 trillion
3. Wells Fargo: $1.74 trillion
4. Citibank: $1.69 trillion

There are many good reasons to do your banking with a major national bank -- convenience, an extensive ATM network, local branches in your city, and easy access to rewards credit cards. But unfortunately, America's biggest banks often pay some of the lowest interest rates on savings accounts.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of June 30, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of June 30, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

Here are a few of the lowest APYs we've seen from big bank savings accounts (rates as of June 13, 2024):

• Bank of America Advantage Savings: 0.01% APY
• Chase Savings℠: 0.01% APY
• Wells Fargo Way2Save Savings: 0.01% APY

Meanwhile, the national average savings account is offering 0.45% APY (as of May 20, 2024) -- which is not great, but is still 15- to 45-times better than these big bank savings accounts.

Want the best APY? Choose one of the best savings accounts

If your money is sitting in a big bank savings account that only pays 0.01% APY, you're technically losing money every month. Your savings isn't growing, your money is not keeping up with inflation, and you might even be getting charged monthly account maintenance fees that eat up any interest that you gain.

The best savings accounts (like CIT Platinum Savings) are offering 5.00% APY (or higher). Here are five of The Ascent's picks for best savings accounts that offer much better APYs than those trillion-dollar banks -- with details on minimum deposits and more.

How to keep your savings with a big bank -- and earn decent APY

Sometimes people are hesitant to move their money to a new bank, especially if it's an online bank, a small bank, or a bank that's located in a different part of the country. If you like the convenience and reliable brand-name aspects of a big national bank, it's OK to keep your savings with a trillion-dollar bank.

But not every trillion-dollar bank is paying pennies on savings accounts. Citibank is offering the Citi® Accelerate High-Yield Savings, with 4.30% APY (as of June 13, 2024; may not be available in all locations). This APY isn't quite as good as those offered by the best savings accounts, but it's in range -- and it's much better than the three other trillion-dollar banks.

Capital One is another big bank that's paying sizable yields on its savings accounts. The Capital One 360 Performance Savings made our list of the best savings accounts, with no minimum balance requirement and a 4.25% APY as of June 13, 2024.

Bottom line

If your money is sitting in a big bank savings account, you might actually be losing money on the deal. Don't assume that a big bank is the only game in town. You can get significantly better yield by moving your money to one of the best savings accounts -- at online banks, smaller banks, or even some big banks like Citibank and Capital One.