Wells Fargo savings accounts have low interest rates and high minimum balances, making them a poor choice if you want your money to earn anything
Wells Fargo offers several savings products, but none of them pay competitive interest. As of early 2024, their standard savings account earns around 0.01% annual percentage yield (APY) on balances under $25,000—meaning $10,000 sitting there for a year earns roughly $1. Their higher-tier accounts pay slightly more, but still lag far behind online banks and credit unions, which routinely offer 4% to 5% APY on savings.
Wells Fargo also charges a monthly maintenance fee ($5 to $10 depending on account type) unless you meet a minimum balance requirement—usually $500 to $2,500. If you fall below that threshold, the fee hits automatically. For someone using a savings account to build an emergency fund or set money aside, these fees and low rates work against you.
The main reason to choose Wells Fargo for savings is convenience: if you already bank there and use their branches regularly, keeping savings in the same place simplifies transfers and deposits. But that convenience costs you money compared to alternatives.
Key Takeaways
- Wells Fargo savings accounts earn 0.01% to 0.05% APY depending on the account type, which is roughly one-tenth the rate offered by online banks.
- Monthly maintenance fees of $5 to $10 apply unless you maintain a minimum balance between $500 and $2,500.
- Online banks and credit unions typically offer higher interest rates with no monthly fees and no minimum balance requirements.
- Wells Fargo savings makes sense only if branch access and account consolidation outweigh the cost of lower earnings.
How Wells Fargo's interest rates compare to other banks
The gap between Wells Fargo and competitors is substantial. A high-yield savings account at an online bank like Marcus, Ally, or American Express currently pays 4% to 5% APY with no monthly fees. On $10,000, that difference means $400 to $500 per year versus $1 at Wells Fargo—a gap that widens the longer your money sits there.
Credit unions often match or beat online bank rates and may offer additional perks like lower loan rates for members. If you have access to a credit union through your employer or community, comparing their savings rate to Wells Fargo's is worth 10 minutes of your time.
Wells Fargo's rates do not change based on how much you deposit. Whether you have $500 or $500,000 in their savings account, the APY stays the same until you move to a different account tier—and even then, the improvement is marginal.
Monthly fees and minimum balance requirements
Wells Fargo charges a monthly maintenance fee on most savings accounts unless you meet one of these conditions: maintain a minimum daily balance, set up direct deposit, or link a Wells Fargo checking account. The specific requirements vary by account type.
Their standard Savings account charges $5 per month if your balance drops below $500. Their Premier Savings account charges $25 per month unless you maintain $25,000 or keep an active Wells Fargo checking account. These minimums are higher than what most online banks require—many charge no monthly fee at all, regardless of balance.
If you carry a low balance and do not meet the minimum, the monthly fee erases any interest you earn. On a $1,000 balance earning 0.01% APY, you make roughly 8 cents per month while paying $5 in fees—a net loss of $4.92.
When a Wells Fargo savings account makes sense
Wells Fargo savings works best for people who already have a checking account there and want to keep everything in one place. Transferring money between your checking and savings takes seconds through their app or online banking, and you can deposit checks at any of their 4,600+ branches nationwide.
If you live or work near a Wells Fargo branch and regularly need to deposit cash or speak to a banker in person, that access has real value. Some people prioritize this convenience over earning a higher interest rate, and that is a legitimate choice—just go in knowing what it costs.
Wells Fargo savings also works if you are using it as a temporary holding place for money you plan to move or spend within weeks, not months. The interest rate does not matter much if the money is not sitting there long enough to earn anything anyway.
Better alternatives for building savings
Online banks like Marcus, Ally, Discover, and American Express offer savings accounts with no monthly fees, no minimum balance, and interest rates 50 to 100 times higher than Wells Fargo. Opening an account takes 10 to 15 minutes online, and transfers between your Wells Fargo checking and an online savings account happen within one to three business days.
Credit unions are another strong option if you have access. Many offer savings rates competitive with online banks, plus the ability to borrow against your savings at lower rates than traditional banks charge. You can find credit unions through your employer, your state, or your profession.
Money market accounts at online banks often pay the same rate as their savings accounts but give you check-writing privileges and a debit card, making them useful if you need occasional access to the money. The tradeoff is slightly lower interest than a dedicated savings account at some institutions.
How to move money out of Wells Fargo savings
If you decide to switch, the process is straightforward. Open a savings account at your chosen bank—this takes 5 to 10 minutes online. Then log into Wells Fargo and initiate an external transfer to your new account, or ask the new bank to pull the money using your Wells Fargo account number and routing number (available on your checks or in the app).
Transfers typically clear within one to three business days. You can keep your Wells Fargo checking account open if you use it, or close it separately once you have moved everything out. There is no penalty for closing a savings account at Wells Fargo.
If you have automatic deposits or transfers set to your Wells Fargo savings account, update those before you close the account. Most employers and services let you change your deposit account online in minutes.
What happens to your money if you switch banks
Your deposits at Wells Fargo are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type. When you move money to another FDIC-insured bank, that insurance moves with it—there is no gap in coverage. Online banks like Marcus and Ally are also FDIC-insured, so your money is equally protected.
The transfer itself is not taxable. Moving money between your own accounts at different banks does not trigger any tax reporting or withholding. Interest you earn in the new account will be reported to you and the IRS on a 1099-INT form at the end of the year, just like interest at Wells Fargo would be.
Frequently Asked Questions
Can I earn more interest by moving to a different Wells Fargo account?
Wells Fargo offers a Premier Savings account that pays slightly higher interest than their standard savings account, but the difference is minimal—usually 0.01% to 0.05% APY. You would still earn far less than an online bank or credit union, and the Premier account requires a $25,000 minimum balance or an active checking account to avoid a $25 monthly fee.
What if I need to access my money quickly?
Savings accounts at online banks work the same way as Wells Fargo: you can transfer money to your checking account or request a withdrawal, which typically takes one to three business days. If you need cash immediately, visit a Wells Fargo branch or ATM. Online banks do not have physical locations, but most partner with ATM networks that let you withdraw cash fee-free.
Does Wells Fargo offer any savings products with better rates?
Wells Fargo offers certificates of deposit (CDs) that pay higher interest than savings accounts, but you must lock your money away for a set period (3 months to 5 years). If you need the money before the CD matures, you pay an early withdrawal penalty. Online banks and credit unions offer CDs with higher rates and lower penalties, so compare before committing.
Will closing my Wells Fargo savings account hurt my credit?
No. Closing a savings account does not affect your credit score. Credit scores are based on borrowing and repayment history, not on deposit accounts. You can close your Wells Fargo savings account without any impact on your credit.
How much money should I keep in savings?
Financial advisors typically recommend keeping three to six months of living expenses in an easily accessible savings account for emergencies. Where you keep that money matters less than having it set aside. If you are building that fund, using a high-yield savings account means your emergency money earns something while you wait to use it.