> Bank of America pays essentially zero interest on deposits. <
So does my bank. I get around 0.02% on my bank accounts. That’s why I don’t keep much money there. Any excess goes to a mutual fund money market account. It pays much more.
Anyway, I used to be very upset about my bank’s low interest rate. Those scoundrels! Then I read an article that said banks really don’t any need more deposits. They are okay with what they’ve already got. So there is no real need to attract new money.
That makes perfect sense. Supply and demand, and all that.
Like you, I keep the minimum amount in the checking account with insulting interest rate of 0.01%. I closed my savings accounts and moved them to an online bank paying 4.5% for savings, 5% for CD, and buying T-bills since September.