Big-bank median
0.38%
Top rate today (avg of top 3)
4.37%
Gap on $50k
$1,993/yr
Rates updated · Based on 94 tracked banks
Bank Loyalty Tax Calculator
At the big-bank median of 0.38%, $50,000 in savings loses about $1,993 a year versus the top available rate of 4.37% — the bank loyalty tax: money forgone for no reason but inertia. Enter your bank below for your own number. (Rates updated July 2, 2026.)
This is the personal, on-demand version of our Bank Gap Index — enter your own bank below to see your exact number instead of the national average.
Worked example: on $50,000 at the big-bank median of 0.38% versus the top available rate of 4.37%, you lose about $1,993 a year. Double the balance and you double the loss.
Recommended move amount
$12,500
Keep about $12,500 liquid based on your answers. Confidence: medium.
Tax handling uses broad estimates and is not tax advice. Exact account eligibility, fees, transfer limits, and rates can change.
Your loyalty tax
$267/ year
That's roughly the cost of a roundtrip domestic flight — forgone each year by staying put.
Rate comparison (top rate = avg of top 3)
5-year picture
Left for 5 years, that's $1,550 of compounding you skip.
Compound growth widens the gap every year. See the full 5-year projection →
Shareable receipt
Bank loyalty tax receipt
SwitchWize
Bank loyalty tax receipt
Last verified 2026-07-02
Annual loyalty tax
$268
On $25,000, your current bank earns 3.30% while a top tracked savings rate earns 4.37%.
Estimate only. No account numbers, email, or login data are included. Methodology: switchwize.com/bank-gap-index/methodology
Proof of math
Why this is the next best move
Your current rate
3.30% APY at Your bank
Best available
4.37% top tracked savings APY
You could earn more
$267
per year · $22/mo
How we calculated this
$25,000 × (4.37% − 3.30%) ÷ 100
Assumptions
- •APYs are point-in-time estimates and may change.
- •Interest is estimated using simple annual interest unless otherwise stated.
- •Tax estimates are illustrative and not tax advice.
- •Current APY came from the selected or entered value.
Safety & friction
Deposit insurance limits are per depositor, per insured institution, per ownership category.
$12,500 kept liquid by this estimate.
Why ranked here: Ranked first because it combines a quantified annual dollar gap with a relatively simple next action.
Freshness: SwitchWize tracked savings rates across 94 banks
SwitchWize may earn compensation from some partners, but this calculation is based on rate gap math and stated assumptions.
This is an educational estimate, not financial or tax advice.
Your loyalty tax
$267/yr
Top rate today
4.37%
Avg of top 3 · APY
Big-bank median
0.38%
APY
Annual gap on $50k
$1,993
bank loyalty tax
Frequently asked questions
How much am I losing by keeping my savings at a big bank?▾
At the big-bank median of 0.38% versus a top rate of 4.37%, a $50,000 balance loses about $1,993 per year — money forgone for no reason but inertia. The loss scales directly with your balance. (Based on 94 banks tracked by SwitchWize as of July 2026.)
How is the bank loyalty tax calculated?▾
The bank loyalty tax is your balance multiplied by the difference between the top available APY and your bank's APY: balance × (topAPY − yourAPY) ÷ 100. At the current spread (4.37% top rate vs 0.38% big-bank median), the tax on $50,000 is about $1,993 per year. "Top available" is the average of the three highest rates among the 94 banks SwitchWize actively tracks.
Does the calculator store my balance?▾
No. The calculation runs entirely in your browser. SwitchWize never stores or transmits the balance you enter.
Is the top rate FDIC-insured?▾
Yes — every bank in SwitchWize's tracked set is FDIC-insured unless explicitly marked otherwise. You can verify any institution's coverage status at https://www.switchwize.com/fdic-check before moving money.
How the bank loyalty tax is calculated
Annual gap: balance × (topAPY − yourAPY) ÷ 100. The five-year figure uses compound interest: balance × ((1 + topAPY/100)^5 − (1 + yourAPY/100)^5).
topAvailableAPY is the average of the top-3 rates across the 94 savings accounts SwitchWize actively tracks — the same figure shown on the Bank Gap Index. bigBankMedianAPY is the FDIC national average savings deposit rate, which reflects what a typical big-bank customer earns by doing nothing.
The interactive scan also ranks the safest next action using liquidity need, FDIC preference, emergency-fund status, complexity preference, and a broad tax estimate. If liquidity is needed soon or the user selects FDIC-only, the primary recommendation favors insured high-yield savings or money market deposit accounts over CDs, Treasury money funds, or T-bills. If the estimated annual gain is under $50, the result is intentionally downgraded to a low-priority "monitor or stay put" state.
Confidence is reduced when key inputs are unknown, including current APY, emergency-fund coverage, safety preference, or tax bracket estimate. Tax handling is illustrative only: bank interest is modeled as taxable at federal plus state rates, while Treasury-heavy products are modeled as exempt from state income tax.
What to do next
See every account paying 4.37% or more
SwitchWize tracks 94 banks. Find which one offers the top rate — no sign-up required.
Compare savings rates →