Wells Fargo is one of the largest banks in the United States, offering customers a variety of products — from checking accounts to mortgages — that cover your financial life.
The San Francisco-based financial institution, like many of its brick-and-mortar ilk, doesn’t offer particularly high interest rates on savings accounts, and should therefore be considered only by those with another reason for keeping their money at the bank.
Rates also vary by location. (These rates reflect the zip code 78620.) Annual percentage yields (APYs) and account details are accurate as of May 8, 2023.
Wells Fargo savings account interest rates
Wells Fargo offers two savings accounts: Way2Save Savings and Platinum Savings.
Wells Fargo savings accounts offer variable interest rates, meaning all rates are subject to change.
Overview of Wells Fargo savings account interest rates
Both Wells Fargo savings accounts offer their standard APYs without conditions; you just need at least $25 to open the account.
On a Way2Save Savings account, you earn an APY of 0.15%.
On the Platinum Savings account, the base APY is 0.25%, although that rate increases when you meet certain criteria:
- If your balance is between $100,000 and a penny less than $500,000, the APY goes up to 1.01%.
- Between $500,000 and a penny less than $1 million, you’ll receive a 2.00% APY.
- Anything $1 million or higher earns 2.50%.
- If you link your savings account to an eligible Wells Fargo checking account, you can qualify for the Relationship APY, which adds a 0.01 percentage point to whatever your APY is.
Both accounts come with a monthly service fee that you can avoid by meeting certain criteria.
Learn more: the best high-yield savings accounts have no fees and low to no minimums.
The Way2Save Savings account monthly service fee is $5 unless you meet one of the following criteria each month:
- $300 minimum daily balance.
- One automatic transfer of $25 or more from a linked Wells Fargo checking account.
- One automatic transfer each business day of $1 or more from a linked Wells Fargo checking account.
- One or more Save As You Go transfers from a linked Wells Fargo checking account. (In this feature, Wells Fargo transfers $1 from your linked checking account when you use your debit card for a one-time purchase, or make a Bill Pay transaction via online banking.)
- The primary account holder is 24 years old or younger. (Joint ownership is available for minors.)
The Platinum Savings account monthly service fee is $12 unless you keep a $3,500 minimum daily balance.
How much can you earn?
The amount you can earn in interest in a Wells Fargo savings account depends mostly on how much you contribute and how long you have to wait before you withdraw funds. Interest compounds daily and is paid monthly on the money you deposit, so the longer your money sits in an account, the more it will earn.
The amount you can earn in interest on a standard savings account with Wells Fargo is relatively insignificant compared with other savings and investment options, and will likely pale in comparison to inflation.
How does Wells Fargo compare to other banks?
The national average deposit rate for a savings account is 0.39% as of April 2023, according to the FDIC’s official record. That puts Wells Fargo’s Platinum Savings account right in line with an average savings account, though the Way2Save Savings account falls short.
Even the Platinum Savings account from Wells Fargo is a relatively low-yield way to save compared with high-yield savings accounts, which can reach around 1.00% to 2.00% APY on any balance with no fees or balance minimums.
For a high savings balance, like the $100,000 you need to earn the account’s highest APY, a CD or investment account can offer a much higher return on investment than a standard savings account.
Other savings options at Wells Fargo
In addition to its savings accounts, Wells Fargo offers certificates of deposit (CDs), also known as Time Accounts. These accounts come with a fixed interest rate for the duration of their renewal term and they also offer a bump to a Relationship APY if you connect the account to an eligible Wells Fargo checking account.
You can open a Special Fixed Rate CD with a minimum deposit of $5,000 with base rates of:
- 4.25% APY for a five-month CD.
You can open a Standard Fixed Rate CD with a minimum deposit of $2,500 with rates of:
- 0.50% APY for a three-month CD (1.01% for a balance of $100,000 or more).
- 2.50% APY for a six-month CD.
- 1.50% for a 12-month CD (2.00% for a balance of $100,000 or more).
About Wells Fargo
Wells Fargo is a San Francisco-based, multinational financial institution and one of the largest banks in the country. The company was founded in 1852 to transport gold and express mail delivery from the eastern United States to fast-growing California during the Gold Rush. Through growth and acquisitions in its almost 200-year history, it’s become one of the “Big Four” banks in the country.
Frequently asked questions (FAQs)
Yes, both types of Wells Fargo savings accounts charge a monthly maintenance fee. The Way2Save Savings charges $5 and the Platinum Savings account costs $12. Both allow you to waive the fee by meeting select criteria. For example, in the Way2Save account, you can waive the fee by automating one monthly transfer of at least $25 from a linked Wells Fargo checking account.
If you don’t want to risk having to pay a fee, check out the best no-fee savings accounts.
You need a minimum balance of $25 to open a Wells Fargo savings account. You don’t need a minimum balance to keep the account open, but you can qualify for a monthly fee waiver by maintaining a minimum balance of $300 for the Way2Save Savings and $3,500 for the Platinum Savings account.
Your money is safe in a savings account as long as it’s FDIC-insured, which is standard for U.S. bank accounts (or NCUA-insured, which is standard for credit unions). FDIC insurance covers deposits up to $250,000 per depositor in case of a bank failure. Savings accounts aren’t at risk of losing money (as investment accounts are), so you’re guaranteed to maintain access to your money as long as it’s no more than the insured amount.
Most financial institutions let you open a savings account online with a deposit from a connected bank account. Some accounts require a minimum opening deposit, an amount that varies significantly from account to account. If the institution has brick-and-mortar locations, you can also open an account in person at a branch with cash or a check for your opening deposit. Banks are required by law to verify your identity when you open an account, so you have to provide proof of identity and address, such as a passport, driver’s license, utility bill or ID card.
Source: usatoday.com
