Some people are afraid to invest and they have to put their cash somewhere. They are probably losing money, but it is a common phenomenon.
https://abnormalreturns.com/2013/02/04/cash-is-a-drug/
e: some other people might have so much saved/invested that 250k is a minority of their investments sitting in cash. I agree with your general premise, though, and have switched from Citigold to BofA. Chase is trying to win my business away from BofA but that is a subject for a different time.