Households are earning so little from their bank accounts that Bank of America, the largest U.S. lender, has pocketed about twice as much cash this year parking money at the Federal Reserve than it has paid to savings-account holders.
The North Carolina-based bank paid U.S. depositors a 0.43 percent interest rate last quarter, according to earnings documents the company released last week. Savings-account holders took home even less, with total interest on their accounts reaching just $32 million for the three-month period ending in March.
Meanwhile, Bank of America raked in $63 million simply by stashing cash at the Fed. The nation’s central bank only recently began compensating commercial banks for storing their money at the Fed as part of its response to the financial crisis.