Most Wells Fargo checking accounts earn no interest

Wells Fargo's standard checking accounts—including Wells Fargo Checking, Wells Fargo Clear Access Banking, and Wells Fargo Portfolio Checking—pay zero interest on your balance. Your money sits in the account earning nothing, no matter how much you keep there or how long you keep it.

The only exception is the Wells Fargo Way2Save Savings Account, which is technically a savings account, not a checking account. It does earn interest, though the rate is typically very low—often less than 0.01% annually, depending on your balance and current market conditions. That means $10,000 in the account might earn less than $1 per year.

If you are looking for a checking account that pays interest, you will not find one at Wells Fargo. Most large banks stopped offering interest-bearing checking accounts years ago. If earning interest on your everyday money matters to you, you would need to move funds to a separate savings account or look at banks that specialize in higher-yield products.

Key Takeaways

  • Wells Fargo checking accounts earn zero interest on any balance you hold.
  • The Way2Save Savings Account earns interest, but the rate is typically under 0.01% per year.
  • Interest rates on savings products change based on Federal Reserve decisions and market conditions, so current rates may differ from what you see advertised.
  • If you want your money to earn meaningful interest, you will need to open a separate savings account or money market account, or consider banks that offer higher rates.

How Wells Fargo checking accounts work instead

Wells Fargo checking accounts focus on access and convenience, not growth. You get a debit card, online banking, mobile deposits, and the ability to write checks. You can set up direct deposit, pay bills online, and transfer money between your own accounts when ready. None of these features generate interest.

What you do get in some accounts is fee waivers or account perks. For example, Wells Fargo Portfolio Checking waives certain fees if you maintain a minimum balance or set up direct deposit. Wells Fargo Clear Access Banking has no monthly maintenance fee and no minimum balance requirement. But these are cost reductions, not earnings.

The trade-off is straightforward: you pay nothing to hold the account (or very little), and Wells Fargo pays you nothing to keep your money there. The bank uses your deposits to lend out at higher rates, keeping the difference as profit.

What interest rates Wells Fargo currently offers

Wells Fargo's savings account rates change frequently and depend on the Federal Reserve's interest rate decisions. As of early 2024, the Way2Save Savings Account typically earns between 0.01% and 0.05% annually, though this varies by account tier and balance level. You can check the current rate on Wells Fargo's website or by calling 1-800-869-3557.

Even if you open a savings account alongside your checking account, the interest earned will be modest. A $10,000 balance earning 0.05% per year generates $5 in annual interest. That same $10,000 in a high-yield savings account at an online bank might earn $400 to $500 per year, depending on the bank and current rates.

If you want to compare what you could earn elsewhere, search for "high-yield savings accounts" or "money market accounts." Many online banks and credit unions offer rates five to ten times higher than Wells Fargo's standard savings products, with no monthly fees.

Why large banks stopped paying interest on checking

In the 1980s and 1990s, some checking accounts did earn interest. Banks stopped offering this feature for two reasons: regulation and profit margins. The Dodd-Frank Act of 2010 placed restrictions on interest rates banks could pay on checking accounts, and the financial crisis that followed made it unprofitable for large banks to offer these products.

When interest rates are low (as they have been for much of the past 15 years), banks earn less on the money you deposit. Paying you interest on a checking account would cost them more than they make. When rates rise, the math changes slightly, but large banks have not brought back interest-bearing checking because most customers do not expect it and do not shop based on it.

Smaller banks and credit unions sometimes still offer interest-bearing checking accounts, usually with conditions like a minimum balance, a cap on the amount that earns interest, or a requirement to use your debit card a certain number of times per month. These accounts are rare and the interest rates are still low.

Moving money between checking and savings at Wells Fargo

If you want to earn at least some interest, you can open a Wells Fargo savings account and transfer money between it and your checking account. Transfers between your own accounts at Wells Fargo are free and when ready online, or you can do them at an ATM or branch.

The catch is that federal rules limit you to six transfers or withdrawals per month from a savings account (though this rule was suspended during the pandemic and has not been fully reinstated). If you move money back and forth constantly, you may hit that limit. Checking accounts have no transfer limit.

A practical approach: keep your everyday spending money in checking (earning nothing), and move any money you will not need for 30 days into savings (earning a small amount). It is not a wealth-building strategy, but it is better than leaving everything in checking.

Alternatives if you want interest on checking

If earning interest on a checking account is important to you, consider these options:

  • Online banks like Ally, Marcus, or Discover often offer checking accounts with interest rates between 0.5% and 2% annually, depending on the account and current rates. These banks have no physical branches but offer full online and mobile banking.
  • Credit unions sometimes offer interest-bearing checking accounts to members. Rates vary widely, so you would need to check with credit unions in your area or those you are may be able to access to join.
  • Money market accounts at any bank earn higher interest than savings accounts, though they usually require a higher minimum balance and limit your monthly transfers.
  • High-yield savings accounts earn significantly more interest than Wells Fargo's savings account, with no checking features but full online access. You can keep your Wells Fargo checking for everyday use and use the savings account for money you want to grow.

Moving to a different bank takes time—you will need to set up direct deposit at the new bank, update bill payment information, and order new debit cards. But if you keep a large balance in checking, the interest difference over a year can be substantial enough to justify the switch.

Frequently Asked Questions

Can I earn interest if I keep a high balance in my Wells Fargo checking account?

No. Wells Fargo checking accounts earn zero interest regardless of your balance. Even if you keep $100,000 in the account, you will earn nothing. The interest rate is fixed at zero for all checking products.

Does Wells Fargo offer any checking account that earns interest?

No. Wells Fargo does not offer any checking account with interest. The Way2Save Savings Account earns interest, but it is a savings account, not a checking account, and the rate is very low.

What is the current interest rate on Wells Fargo savings accounts?

Rates change frequently based on Federal Reserve decisions. As of early 2024, the Way2Save Savings Account typically earns between 0.01% and 0.05% annually. Check Wells Fargo's website or call 1-800-869-3557 for the exact current rate on the account you are considering.

If I open a savings account at Wells Fargo, how often can I move money to my checking account?

You can transfer between your own accounts as often as you want. Federal rules limit withdrawals and transfers from savings accounts to six per month, but transfers to your own checking account at the same bank typically do not count against this limit. Confirm the current rules with Wells Fargo before you open the account.

Would I earn more interest at a different bank?

Almost certainly yes. Online banks and some credit unions offer savings and checking accounts with interest rates five to ten times higher than Wells Fargo's current rates. If you keep a balance of $5,000 or more, the difference in annual interest can be $20 to $200 or more, depending on the bank and account type.