Wells Fargo's savings accounts have low interest rates and high minimum balances, which makes them a poor choice if you want your money to earn more or if you have less than $500 to deposit.
Wells Fargo offers three main savings products: the Way2Save Savings Account, the Preferred Savings Account, and the Wealth Management Savings Account. The Way2Save account has no minimum balance requirement but pays 0.01% annual percentage yield (APY) on balances under $25,000. The Preferred Savings Account requires $500 minimum and pays 0.01% APY. The Wealth Management account requires $25,000 minimum and pays a higher rate, but that rate still lags behind what online banks and credit unions offer.
If you keep $10,000 in a Wells Fargo Way2Save account for one year, you earn about $1 in interest. The same $10,000 in an online savings account paying 4% to 5% APY earns $400 to $500 in the same period. That difference compounds over time and matters more the longer your money sits.
Key Takeaways
- Wells Fargo savings accounts pay 0.01% APY on most balances, which is roughly 100 times lower than rates at online banks and many credit unions.
- The Preferred Savings Account requires a $500 minimum balance, and the Wealth Management account requires $25,000, which locks out small savers or penalizes those who fall below the threshold.
- Wells Fargo charges a $5 monthly maintenance fee on the Preferred Savings Account unless you meet specific conditions like direct deposit or maintaining a linked checking account.
- If you already bank with Wells Fargo for checking, a savings account there offers convenience but costs you hundreds of dollars per year in lost interest compared to alternatives.
- Online banks, credit unions, and some regional banks offer savings rates 50 to 500 times higher than Wells Fargo with no monthly fees and no minimum balance.
How Wells Fargo's interest rates compare to other banks
Wells Fargo's 0.01% APY is not a typo. That rate has remained unchanged for years while the broader interest rate environment shifted. When the Federal Reserve raised rates starting in 2022, most banks increased their savings rates. Wells Fargo did not.
Online banks like Marcus, Ally, and Discover currently offer rates between 4% and 5% APY on savings accounts with no minimum balance and no monthly fees. Credit unions often offer rates between 2% and 4% APY, depending on the union and your membership status. Even some regional banks and community banks now offer 3% to 4% on savings accounts.
The gap exists because Wells Fargo is a large retail bank with physical branches. Branch networks cost money to maintain, and Wells Fargo passes that cost to customers through low rates and monthly fees. Online banks have no branches, so they can offer higher rates and lower fees. If you do not use Wells Fargo's branches regularly, you are paying for infrastructure you do not need.
Monthly fees and minimum balance requirements
The Way2Save Savings Account has no minimum balance and no monthly fee, which makes it the only Wells Fargo savings account that does not charge you to hold money there. However, the 0.01% rate means you are still losing money to inflation.
The Preferred Savings Account requires a $500 minimum balance and charges a $5 monthly maintenance fee unless you meet one of these conditions: maintain a linked Wells Fargo checking account, set up direct deposit of at least $500 per month, or keep a balance of $25,000 or more. Most people who open this account do so because they already have a Wells Fargo checking account, which waives the fee. But that convenience comes at the cost of the interest rate.
The Wealth Management Savings Account requires $25,000 minimum and is designed for customers with substantial assets. Even at this tier, the rate is lower than what you can find elsewhere.
When a Wells Fargo savings account makes practical sense
A Wells Fargo savings account is most useful if you already have a Wells Fargo checking account and you use the bank's branches or mobile app regularly. The convenience of managing both accounts in one place and depositing checks at a physical branch has real value for some people. If you value that convenience enough to accept a lower interest rate, the Way2Save account (with no fee) is the least expensive option.
A Wells Fargo savings account also makes sense if you are saving for a short-term goal—a few weeks or months—and you prioritize safety and accessibility over interest earnings. The money is FDIC insured up to $250,000, and you can withdraw it instantly through the app or at a branch.
If you are saving for anything longer than six months, or if you do not use Wells Fargo's branches, the interest rate difference becomes too large to ignore. A $10,000 balance earning 0.01% versus 4.5% costs you roughly $450 per year in foregone interest.
Alternatives that pay significantly more
Online savings accounts at Marcus, Ally, Discover, and American Express currently offer rates between 4% and 5.35% APY with no minimum balance, no monthly fees, and FDIC insurance. You can open an account online in minutes and transfer money via ACH (which takes one to two business days) or by mailing a check.
Credit unions often offer competitive rates and may have lower fees. If you are a member of a credit union, check their savings rate before opening a Wells Fargo account. Credit union rates vary widely, so comparison matters.
High-yield money market accounts at online banks offer similar rates to savings accounts and may include check-writing privileges, which can be useful if you want to access your money quickly without transferring to a checking account first.
If you want to keep your money at a bank with physical branches, some regional banks and community banks now offer 3% to 4% on savings accounts. These banks are FDIC insured and may have branches in your area. Search for "high-yield savings account near me" or check Bankrate and DepositAccounts.com for current rates at banks in your region.
The cost of staying with Wells Fargo for savings
The real question is not whether Wells Fargo is a "good" bank—it is whether the convenience is worth the cost. Here is what that cost looks like over time:
| Balance | Wells Fargo (0.01% APY) | Online Bank (4.5% APY) | Annual Difference |
|---|---|---|---|
| $5,000 | $0.50 | $225 | $224.50 |
| $10,000 | $1.00 | $450 | $449.00 |
| $25,000 | $2.50 | $1,125 | $1,122.50 |
| $50,000 | $5.00 | $2,250 | $2,245.00 |
These numbers assume you keep the money in the account for a full year and do not add or withdraw. The difference grows larger the longer you save and the more you deposit.
How to move your money if you decide to switch
If you have a Wells Fargo savings account and want to move to a higher-rate option, the process is straightforward. Open a new account at your chosen bank (online or in person). Provide your new account number to Wells Fargo and request an ACH transfer, or withdraw the money and deposit it into the new account. ACH transfers take one to two business days. You can close the Wells Fargo account once the transfer clears.
If you have automatic transfers set up to your Wells Fargo savings account (like paycheck deposits or bill payments), update those to point to your new account before you close the old one. If you have a debit card linked to the savings account, that card will stop working once you close the account.
Keep the Wells Fargo checking account if you use it. Switching only your savings account costs nothing and takes less than an hour.
Frequently Asked Questions
Does Wells Fargo ever raise its savings rates?
Wells Fargo has not raised its savings rates meaningfully since 2020, even as the Federal Reserve raised rates and other banks increased their offerings. There is no indication the bank plans to raise rates soon. If you are waiting for Wells Fargo to become competitive, you are losing money every month you wait.
Is my money safe in a Wells Fargo savings account?
Yes. Wells Fargo is FDIC insured, which means deposits up to $250,000 per account type are protected if the bank fails. This protection is the same at every FDIC-insured bank, so safety is not a reason to choose Wells Fargo over an online bank.
What if I need to access my money quickly?
You can withdraw from a Wells Fargo savings account instantly at a branch or through the app. Online banks allow instant transfers to a linked checking account (at any bank) or to an external account via ACH, which takes one to two business days. If you need cash immediately, a Wells Fargo branch is faster, but this matters only if you withdraw frequently.
Can I keep both a Wells Fargo checking and savings account?
Yes. Many people do this because the checking account waives the $5 monthly fee on the Preferred Savings Account. However, you still earn 0.01% on the savings balance, which is the core problem. If you keep the checking account for its features (no overdraft fees, good mobile app, branch access), that is a valid reason to stay. But do not keep the savings account for the interest rate.
What if I have a large balance—does Wells Fargo offer better rates?
The Wealth Management Savings Account requires $25,000 minimum and offers a higher rate than the other accounts, but that rate is still far below what online banks and credit unions offer. If you have $25,000 or more to save, an online bank or credit union is still the better choice financially.