Wells Fargo does not offer a dedicated high yield savings account
Wells Fargo's standard savings account earns interest, but the rate is significantly lower than what you will find at online banks or credit unions. As of now, Wells Fargo does not have a product specifically branded as a high yield savings account. If you keep money at Wells Fargo primarily for savings, you are earning less than you could elsewhere.
The bank does offer a Way2Save Savings Account, which is their main retail savings product. This account has no monthly maintenance fee if you maintain a $25 minimum balance, but the interest rate is typically well below 1 percent—often in the range of 0.01 percent annually. At that rate, $10,000 would earn roughly $1 per year.
If you have a Wells Fargo checking account and want to keep your savings in the same bank for convenience, you should understand what you are giving up in interest income. The difference between Wells Fargo's rate and a high yield account elsewhere can amount to hundreds of dollars per year on a five-figure balance.
Key Takeaways
- Wells Fargo's Way2Save Savings Account earns less than 1 percent interest annually, making it one of the lowest rates available in the market.
- Online banks and some credit unions offer high yield savings accounts earning 4 to 5 percent or more, which would generate significantly more income on the same balance.
- Wells Fargo does not have a separate high yield product, so you cannot move to a different Wells Fargo account to earn a higher rate.
- You can keep a Wells Fargo checking account while opening a high yield savings account at another institution for better returns on your savings.
How Wells Fargo's savings rates compare to other banks
The gap between Wells Fargo and high yield savings accounts is substantial. A high yield savings account at an online bank typically earns between 4 and 5 percent annually, depending on market conditions and the specific bank. Wells Fargo's Way2Save earns a fraction of that.
On a $25,000 balance, the difference is real money. At Wells Fargo's typical rate of 0.01 percent, you would earn $2.50 per year. At a high yield account earning 4.5 percent, you would earn $1,125 per year. That is $1,122.50 in foregone interest annually—or roughly $93 per month.
Credit unions sometimes offer competitive rates as well, particularly if you are a member. Some credit unions have savings accounts earning 3 to 4 percent, which is still substantially higher than Wells Fargo but slightly lower than the best online options.
Why Wells Fargo's rates are lower
Wells Fargo is a large brick-and-mortar bank with physical branches, employees, and overhead costs. Those expenses are reflected in lower interest rates paid to depositors. Online banks have fewer costs and pass those savings to customers in the form of higher rates.
Wells Fargo's business model also relies on deposits to fund loans—mortgages, auto loans, credit cards. The bank can afford to pay lower rates on savings because customers value the convenience of a local branch and integrated checking and savings accounts. You are paying for that convenience in the form of lower interest.
Interest rates also move with the Federal Reserve's decisions. When the Fed raises rates, banks eventually raise the rates they pay on savings. When the Fed cuts rates, savings rates fall. Wells Fargo typically lags behind online banks in passing along rate increases to customers.
What to do if you want higher returns on your savings
You do not have to close your Wells Fargo checking account to earn a better rate on savings. Many people keep a checking account at Wells Fargo for bill pay and debit card use, then open a high yield savings account at an online bank for their emergency fund or other savings goals.
Moving money between banks takes one to three business days via ACH transfer (the standard electronic transfer method). You can set up automatic transfers from your Wells Fargo checking account to a high yield savings account at another bank, so the process becomes routine.
When choosing a high yield savings account elsewhere, look for one that is FDIC insured (which protects deposits up to $250,000 per account). Most online banks that offer high yield savings are FDIC insured, but confirm this before opening an account. Your Wells Fargo deposits are also FDIC insured, so you are not taking on additional risk by moving savings to another bank.
The trade-off between convenience and interest income
If you value having all your accounts in one place and being able to walk into a branch, Wells Fargo offers that convenience. Some people are willing to accept lower interest rates in exchange for the ability to deposit cash at a physical location or speak to a banker in person.
However, most online banks now offer mobile check deposit, so you can photograph a check with your phone and deposit it without visiting a branch. If you rarely need to deposit cash, the convenience argument for Wells Fargo weakens significantly.
The decision ultimately depends on your priorities. If you have a large emergency fund or other savings you plan to hold for years, the interest rate difference matters enough to justify opening an account elsewhere. If you have a small balance or only keep money in savings temporarily, the difference is minimal.
How to move money from Wells Fargo to a high yield account
The process is straightforward. First, open a high yield savings account at the bank of your choice—most online banks allow you to open an account in 10 to 15 minutes using your Social Security number, address, and employment information.
Once your new account is open, you will need your Wells Fargo account number and routing number (which you can find on the bottom left of any check, or by logging into your Wells Fargo account online). Use these details to initiate an ACH transfer from Wells Fargo to your new account.
The transfer typically takes one to three business days. During that time, the money is in transit and earns no interest at either bank. Once it arrives at your new bank, it will begin earning the high yield rate when ready.
You can also transfer money the other direction if you need to move funds back to Wells Fargo for any reason. There are no limits on how many transfers you can make between your own accounts at different banks.
Frequently Asked Questions
Can I earn more interest at Wells Fargo with a different account type?
Wells Fargo offers a Money Market Account in addition to the Way2Save Savings Account, but the interest rate is similarly low—typically around 0.01 percent or slightly higher. Neither product is competitive with high yield savings accounts at online banks. Your best option for higher returns is to open an account elsewhere.
What if I need to deposit cash regularly?
If you deposit cash frequently, you have a genuine reason to keep an account at Wells Fargo or another bank with branches. You could maintain a Wells Fargo checking account for deposits and bill pay, then transfer the cash you want to save to a high yield account at an online bank once per month or as needed.
Is my money safe in a high yield savings account at an online bank?
Yes, as long as the bank is FDIC insured. FDIC insurance protects deposits up to $250,000 per depositor per bank, regardless of whether the bank has physical branches. Most reputable online banks are FDIC insured. Verify this on the bank's website before opening an account.
How often do high yield savings rates change?
High yield rates change frequently—sometimes weekly—based on market conditions and the bank's decisions. When the Federal Reserve raises or lowers its benchmark rate, online banks typically adjust their savings rates within days or weeks. Wells Fargo usually takes longer to adjust rates in either direction.
Can I keep both a Wells Fargo account and a high yield account open at the same time?
Yes. There is no rule against having accounts at multiple banks. Many people maintain a checking account at one bank and a savings account at another. You can transfer money between them as needed, and both accounts remain active.