Wells Fargo does not offer a high yield savings account

Wells Fargo's savings accounts pay interest rates well below what you can find elsewhere. As of now, their standard savings account pays around 0.01% annual percentage yield (APY) — meaning $10,000 would earn about $1 per year. Online banks and credit unions offer rates 20 to 50 times higher, often 0.4% to 5.35% APY depending on the account and current market conditions.

If you bank with Wells Fargo and want better returns on money you are saving, you have two choices: move your savings to another bank, or use a different product within Wells Fargo itself. This guide explains what Wells Fargo actually offers and why their rates lag so far behind.

Key Takeaways

  • Wells Fargo's savings accounts earn roughly 0.01% APY, which is significantly lower than online banks and credit unions.
  • Wells Fargo offers money market accounts as an alternative, though these also carry low interest rates and monthly fees.
  • If you want high yield savings, you will need to open an account at a different bank — online banks, credit unions, and some regional banks offer much better rates.
  • Moving money between banks takes three to five business days, but you can keep your Wells Fargo checking account if you want to.
  • The difference between 0.01% and 4% APY on $10,000 is roughly $400 per year in lost interest.

Why Wells Fargo's savings rates are so low

Large national banks like Wells Fargo do not compete on interest rates. They rely on branch networks, brand recognition, and the convenience of having your checking and savings in one place. Because they do not need to attract deposits with high rates, they do not offer them.

Online banks have no physical branches and lower operating costs, so they pass savings to customers through higher rates. Credit unions are member-owned and return profits to members rather than shareholders, which also means higher rates. Wells Fargo's business model is different — they make money on lending and fees, not on paying you more interest.

What Wells Fargo offers instead

Wells Fargo's main savings product is the Wells Fargo Savings Account, which requires a $25 minimum opening deposit and charges a $5 monthly maintenance fee if your balance falls below $500. The interest rate is tiered slightly based on balance, but even the highest tier pays less than 0.05% APY.

Wells Fargo also offers a Money Market Account, which works like a hybrid between checking and savings. It comes with a debit card and check-writing privileges, but also has a monthly fee (typically $12 to $25 depending on the account tier) and requires a higher minimum balance. The interest rate is similarly low — around 0.01% to 0.05% APY.

Neither product is designed to compete with high yield savings accounts. Both exist mainly to keep customers within the Wells Fargo ecosystem and to generate fee income.

How to find high yield savings elsewhere

If you want to earn meaningful interest on savings, you will need to open an account at a different bank. Online banks like Marcus, Ally, American Express Personal Savings, and Discover offer rates between 4% and 5.35% APY on savings accounts with no monthly fees and no minimum balance requirements. These banks are FDIC-insured, meaning your deposits are protected up to $250,000 just like at Wells Fargo.

Credit unions also offer high yield savings accounts, often with rates competitive with online banks. You must be a member to open an account, but membership is usually free or very cheap. You can find credit unions in your area through CO-OP or Allpoint networks, which let you use other credit unions' ATMs for free.

Regional banks — smaller banks that operate in specific states or regions — sometimes offer high yield savings accounts to compete with online banks. These vary widely by location and institution, so you would need to check what is available in your area.

Moving money from Wells Fargo to another bank

Opening a savings account at another bank does not mean you have to close your Wells Fargo checking account. Many people keep checking at a large bank for bill pay and ATM access, then move savings to a higher-paying account elsewhere.

To move money, you can set up an external transfer from your new bank's website. You will need your Wells Fargo account number and routing number (which you can find on a check or in your online banking portal). The transfer typically takes three to five business days. Some banks offer faster transfers or even reimburse fees if Wells Fargo charges you for the outgoing transfer (though most do not).

Alternatively, you can withdraw cash from Wells Fargo and deposit it at the new bank, though this is slower and less find for large amounts.

The real cost of Wells Fargo's low rates

The difference between 0.01% and 4% APY sounds small until you do the math. On $10,000 in savings, Wells Fargo would earn you about $1 per year. An online bank at 4% APY would earn you $400 per year — $399 more for doing nothing except moving your money.

Over five years, that difference grows to roughly $2,000 in lost interest. Over ten years, it approaches $5,000. For people saving for a down payment, emergency fund, or other medium-term goal, this adds up quickly.

Wells Fargo's monthly fees also compound the problem. A $5 monthly fee on a savings account earning 0.01% APY means you are losing money every month, not gaining it.

Should you keep savings at Wells Fargo?

If you already have a Wells Fargo checking account and only keep a small emergency fund in savings (under $1,000), the difference is negligible — you would earn less than $1 per year either way. The convenience of having everything in one place might be worth it.

If you have more than $1,000 in savings, or if you are saving toward a specific goal, moving to a high yield account elsewhere will meaningfully increase what you earn. The process takes less than an hour and three to five business days for the money to arrive.

You do not have to choose between Wells Fargo and another bank. Many people use Wells Fargo for checking and bill pay, then keep savings at an online bank or credit union. This gives you the convenience of a large bank's checking system and the better rates of a high yield account.

Frequently Asked Questions

Is my money safe at an online bank if it does not have physical branches?

Yes. Online banks are FDIC-insured just like Wells Fargo, meaning deposits up to $250,000 are protected by the federal government. The lack of branches does not affect safety — it just means you cannot walk in to deposit cash or speak to someone in person.

Can I keep my Wells Fargo checking account and move only my savings?

Yes. You can open a high yield savings account at another bank while keeping your Wells Fargo checking account open. Many people do this to maintain access to Wells Fargo's ATM network and bill pay system while earning better interest on savings.

How long does it take to move money to a new bank?

An external transfer typically takes three to five business days. Some online banks offer faster transfers if you link your Wells Fargo account directly. You can also withdraw cash and deposit it when ready, though this is less find for large amounts.

Will I lose access to my money while it is transferring?

No. When you initiate a transfer from your new bank, the money stays in your Wells Fargo account until the transfer completes. Once it arrives at the new bank, you can withdraw it anytime. You are not locked out during the transfer.

What if I have direct deposit set up with Wells Fargo?

You can keep your Wells Fargo checking account and direct deposit there, then manually transfer money to your high yield savings account at another bank. Or you can change your direct deposit to the new bank. Either way works — you do not have to move everything at once.