⚠ Primary by the Bank's Own CountLow threat

Bank of America (BAC) — threat to the moat

The best number in the deposit franchise, 92% primary, is a definition the bank sets itself.

The figure that best supports the deposit moat, that 92% of consumer checking accounts are primary1, is one the bank measures and defines itself. There is no audited definition of a primary account in the filings, and no competitor publishes a comparable number against which to test it.

Consumer rate paid on deposits (%)0.58%Q2 20250.51%Q1 20260.48%Q2 2026Bank of America Q2 2026 results presentation
Loyalty shows up as a low rate paid.

That does not make it wrong. It means the evidence for loyalty is partly Bank of America's own reading of its customers' behaviour. The harder evidence sits elsewhere: the rate paid on consumer deposits was 0.48% in the second quarter of 20262, which is what a bank can pay when customers are not shopping for yield.

The same accounts also bring credit risk. The consumer credit card charge-off rate was 3.55% in the second quarter of 2026, against 3.82% a year earlier3, and the bank calls the lower end of the credit spectrum a watch item especially if the labour market softens4.

The bank's revenue from these accounts includes fees as well as spread. Service charges were $6,457 million in 2025, up from $6,055 million5. Rising fee income from checking accounts is consistent with customers using them as their main account, since secondary accounts generate little activity to charge for.

The 92% will be reported again every quarter. The number that tests it is the consumer rate paid: if loyal primary customers are really that loyal, it should stay well below the rates the bank pays elsewhere, and a sharp rise toward market rates would say the loyalty was thinner than the statistic.

References
  1. ReportedThe figure that best supports the deposit moat, that 92% of consumer checking accounts are primary, is one the bank measures and defines itself.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consumer and digital highlights: checking accounts, Zelle, Erica, BofA Rewards, financial centers. — Q2 2026 · publ. 14 July 2026 · source ↗
  2. ReportedThe harder evidence sits elsewhere: the rate paid on consumer deposits was 0.48% in the second quarter of 2026, which is what a bank can pay when customers are not shopping for yield.
    Bank of America second-quarter 2026 earnings presentation, Form 8-K exhibit 99.2 - Consumer Banking rate paid and cost of deposits. — Q2 2026 · publ. 14 July 2026 · source ↗
  3. ReportedThe consumer credit card charge-off rate was 3.55% in the second quarter of 2026, against 3.82% a year earlier, and the bank calls the lower end of the credit spectrum a watch item especially if the labour market softens.
    Bank of America second-quarter 2026 earnings release, Form 8-K exhibit 99.1 - consolidated results, credit quality, capital and forward-looking risks. — Q2 2026 · publ. 14 July 2026 · source ↗
  4. Third-party estimateThe consumer credit card charge-off rate was 3.55% in the second quarter of 2026, against 3.82% a year earlier, and the bank calls the lower end of the credit spectrum a watch item especially if the labour market softens.
    Kitco (Reuters), Bank of America raises return target at its investor day - ROTCE 16-18%, trading share 7.6% against a 9% target, six new markets. — November 2025 · publ. 5 November 2025 · source ↗
  5. ReportedService charges were $6,457 million in 2025, up from $6,055 million.
    Bank of America Form 10-K for fiscal 2025 - financial highlights, income statement, capital and shareholders' equity. — FY2025 · publ. 25 February 2026 · source ↗
Sources
Generated September 25, 2026