Wells Fargo does not offer a high yield savings account

Wells Fargo's standard savings accounts earn interest rates well below what you would find in a high yield savings account at online banks. As of early 2024, Wells Fargo's regular savings accounts earn rates that vary by account type and balance, but typically fall between 0.01% and 0.05% annual percentage yield (APY). A high yield savings account at another bank might offer 4% to 5% APY on the same deposit.

Wells Fargo has not launched a high yield savings product to compete with online banks. If you bank with Wells Fargo and want higher interest on savings, you would need to move money to a different institution or look at other products Wells Fargo offers, such as certificates of deposit (CDs) or money market accounts, which may pay more than their savings accounts but still typically less than dedicated high yield savings accounts elsewhere.

Key Takeaways

  • Wells Fargo savings accounts currently earn between 0.01% and 0.05% APY, which is significantly lower than high yield savings accounts at online banks.
  • Wells Fargo offers money market accounts and CDs that pay higher rates than their savings accounts, though these rates still lag behind online high yield options.
  • To earn high yield rates, you would need to open an account at a different bank, such as an online-only institution or a credit union.
  • Moving money between banks takes three to five business days through standard transfer methods, so you can keep your Wells Fargo checking account while opening a high yield savings account elsewhere.

Wells Fargo money market accounts and CDs as alternatives

Wells Fargo does offer money market accounts, which typically pay higher rates than their savings accounts. Money market accounts come with check-writing privileges and a debit card, but usually require a higher minimum balance to open and to earn the stated rate. The exact rate depends on your balance tier and changes frequently.

Certificates of deposit (CDs) at Wells Fargo lock your money for a set term—usually three months to five years—in exchange for a may provide rate. Shorter-term CDs pay less; longer-term CDs pay more. If you withdraw before the term ends, you pay a penalty that can erase most or all of your interest. Wells Fargo CDs currently pay rates that vary by term length, but you can compare them to high yield savings accounts by looking at what rate you would earn over the same time period.

Neither option matches the combination of high rates, liquidity, and low minimums that high yield savings accounts offer. Money market accounts require higher balances and have withdrawal limits. CDs lock your money away and charge you to access it early.

Why Wells Fargo's rates lag behind online banks

Wells Fargo is a large brick-and-mortar bank with thousands of branches, ATMs, and employees. Those physical locations and services cost money to maintain. Online-only banks have no branches and no tellers, so they pass the savings to customers through higher interest rates on deposits.

Wells Fargo also makes money by lending out customer deposits at higher rates than they pay depositors. A bank with lower deposit rates can afford to lend at lower rates and still profit. Online banks competing for deposits have to offer higher rates to attract customers, which means they lend at higher rates too—or they operate on thinner margins.

This is not unique to Wells Fargo. Most traditional banks—Bank of America, Chase, Citibank—offer savings rates in the same range. If you want a high yield savings account, you are almost always looking at an online bank, a credit union, or a smaller regional bank that focuses on deposit products.

How to move money to a high yield savings account

Opening a high yield savings account at another bank does not require you to close your Wells Fargo account. You can keep your Wells Fargo checking account for everyday spending and bill pay, and open a high yield savings account elsewhere for money you want to set aside.

To move money between banks, you can use an external transfer. Log into your Wells Fargo account, select "Transfer Money," and choose "Transfer to Another Bank." You will need the routing number and account number of the bank you are transferring to. The transfer typically takes three to five business days. Some online banks offer faster transfers or will reimburse fees if Wells Fargo charges you for the outgoing transfer (though most do not).

Alternatively, you can withdraw cash from a Wells Fargo ATM and deposit it at your new bank, though this works only for smaller amounts and carries the risk of loss or theft. For larger sums, an electronic transfer is safer and just as fast.

Comparing Wells Fargo to online high yield savings banks

The main trade-off between Wells Fargo and an online high yield savings bank is convenience versus rate. Wells Fargo offers in-person service, a large ATM network, and the ability to deposit checks at a branch. An online bank offers a higher rate but requires you to deposit checks by photograph or mail, and you cannot walk into a branch if you have a problem.

For most people saving money they do not need to touch often, the higher rate at an online bank outweighs the loss of branch access. The difference between 0.05% and 4.5% on a $10,000 deposit is roughly $450 per year. That gap widens with larger balances.

If you need frequent in-person access or have complex banking needs, Wells Fargo may still be worth the lower rate. But if your main goal is to earn interest on savings, an online high yield savings account will serve you better.

What to look for in a high yield savings account

When comparing high yield savings accounts at different banks, check the current APY, not the rate from an advertisement you saw last month. Rates change frequently and vary by bank. Some banks offer promotional rates for new customers that drop after a few months.

Look at the minimum balance required to open the account and to earn the stated rate. Some banks require $0; others require $500 or $1,000. If you fall below the minimum, your rate may drop to a lower tier.

Check whether the bank is insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance protects your deposits up to $250,000 per account holder per bank. Most online banks are FDIC-insured, but confirm before you open an account. Also check the bank's customer service options—whether they offer phone support, live chat, or only email.

Frequently Asked Questions

Does Wells Fargo have any account that earns high interest?

Wells Fargo's money market accounts and CDs pay higher rates than their savings accounts, but both still earn less than high yield savings accounts at online banks. Money market accounts require higher minimums and have withdrawal limits. CDs lock your money for a set term and charge a penalty if you withdraw early.

Can I keep my Wells Fargo checking account and open a high yield savings account elsewhere?

Yes. You do not have to close your Wells Fargo account to open an account at another bank. Many people keep a checking account at a traditional bank for everyday spending and bill pay, and maintain a high yield savings account elsewhere for money they want to save.

How long does it take to transfer money from Wells Fargo to another bank?

An electronic transfer between banks typically takes three to five business days. Transfers initiated on a weekend or holiday may take longer. Some online banks offer faster transfers or reimburse fees, so check before you transfer.

Will I lose FDIC insurance if I move my money to an online bank?

No, as long as the online bank is FDIC-insured. Most online banks are FDIC-insured and protect your deposits up to $250,000 per account holder. Confirm the bank's FDIC status before you open an account.

What if I need to deposit a check at a high yield savings account?

Most online banks allow you to deposit checks by taking a photograph with your phone and uploading it through their app. Some also accept checks by mail. The process takes longer than walking into a branch, but it works for most deposits.