Wells Fargo does not offer a dedicated high yield savings account
Wells Fargo's standard savings accounts pay rates that are much lower than what you can find elsewhere. As of now, Wells Fargo offers savings accounts with rates that typically range from 0.01% to 0.04% annual percentage yield (APY) — meaning the bank pays you very little interest on the money you keep there. A high yield savings account is one that pays significantly more, usually 4% APY or higher, though rates change frequently.
If you already bank with Wells Fargo and want to earn more interest on savings, you have two realistic paths: move your money to another bank that specializes in high yield savings, or keep a smaller amount at Wells Fargo for checking and everyday use while opening a separate high yield account elsewhere.
Key Takeaways
- Wells Fargo's savings accounts pay between 0.01% and 0.04% APY, which is far below what high yield accounts offer at other banks.
- Banks that offer high yield savings accounts are usually online-only institutions or credit unions, not traditional branch banks like Wells Fargo.
- You can keep your Wells Fargo checking account for daily banking and open a high yield savings account at a different bank for money you want to save.
- The difference in interest earned grows quickly — on $10,000, the gap between 0.01% and 4% APY is roughly $400 per year.
Why Wells Fargo's rates are lower than other banks
Wells Fargo is a large branch bank with physical locations in most states. Maintaining thousands of branches, staffing them, and running the technology that supports them costs money. To cover those costs, the bank keeps interest rates on savings accounts low — they pay you less so they can keep more of the profit.
Online-only banks have no branches to maintain. They operate with much smaller overhead, so they can afford to pay you more interest. That is why you will see high yield savings accounts almost exclusively at online banks or credit unions, not at traditional banks with storefronts.
What Wells Fargo savings accounts actually offer
Wells Fargo has several savings products, but none are designed to compete on interest rate. The main options are a basic savings account and a money market account, which is a hybrid between a savings account and a checking account. Both pay similarly low rates.
The money market account does come with a debit card and check-writing privileges, which a regular savings account does not. If you need to access your money quickly and often, that flexibility might matter to you. But you are still earning almost nothing on the balance.
How much interest you would actually earn at Wells Fargo
To see the real difference, consider a concrete example. If you have $10,000 in savings, here is what you would earn in one year at different rates:
| Account Type | APY | Interest Earned in One Year |
|---|---|---|
| Wells Fargo Savings | 0.01% | $1 |
| Wells Fargo Money Market | 0.04% | $4 |
| High Yield Savings (typical) | 4.00% | $400 |
The difference is not small. Over five years, that $10,000 would grow to $10,000.20 at Wells Fargo, or $12,166 at a high yield account. That extra $2,166 comes from interest alone, with no additional money added by you.
Where to find high yield savings accounts outside Wells Fargo
High yield savings accounts are offered by online banks (banks with no physical branches) and some credit unions. Online banks like Marcus, Ally, American Express Personal Savings, and Discover have no branch overhead, so they pass the savings to you in the form of higher interest rates. Credit unions, which are member-owned rather than shareholder-owned, sometimes offer competitive rates as well.
Opening an account at one of these institutions takes about 10 minutes online. You provide your name, address, Social Security number, and initial deposit information. The bank verifies your identity and opens the account. You can then transfer money from your Wells Fargo account to your new high yield account using a wire transfer or ACH transfer (a slower but free electronic transfer that takes one to three business days).
Should you keep money at Wells Fargo at all
Many people keep a Wells Fargo checking account for everyday use — paying bills, receiving paychecks, making purchases with a debit card — because they like the branch network or already have direct deposit set up there. That makes sense. Checking accounts at Wells Fargo are functional, and the interest rate on checking is so low anyway that it barely matters.
The money you want to save — money you are not spending this month or next month — should go somewhere that pays you for keeping it there. That is where a high yield account at another bank becomes valuable. You can have both: a Wells Fargo checking account for spending and a high yield savings account elsewhere for saving.
What to watch for when comparing high yield accounts
When you look at high yield savings accounts, pay attention to the APY and whether it is may provide or variable. Most high yield rates are variable, meaning the bank can lower them if interest rates in the economy fall. That is normal and happens at all banks.
Also check the minimum deposit required to open the account (many have none) and whether there are monthly fees. Most online banks charge no monthly fee and have no minimum balance requirement. Some have limits on how many times per month you can withdraw money, though that rule is less common now than it used to be.
Frequently Asked Questions
Can I move money from Wells Fargo to a high yield account without closing my Wells Fargo account?
Yes. You can keep your Wells Fargo checking and savings accounts open and straightforward transfer money to a high yield account at another bank. The two accounts can exist at the same time. You might transfer money monthly or whenever you have savings to move.
Will opening a high yield account hurt my credit score?
No. Opening a savings account does not involve a credit check and does not affect your credit score. The bank may do a soft inquiry to verify your identity, but this does not show up on your credit report or impact your score.
What if Wells Fargo raises its interest rates in the future?
Wells Fargo could raise its rates, but historically it does not keep pace with online banks. Even if Wells Fargo increased its savings rate to 1%, it would still be far below what high yield accounts offer. The business model of a branch bank makes it unlikely they will ever compete on interest rate.
Is my money safe in a high yield account at an online bank?
Yes, as long as the bank is FDIC insured. FDIC insurance protects your money up to $250,000 per account at any single bank. Nearly all online banks that offer high yield savings are FDIC insured. You can verify this on the bank's website or by checking the FDIC's bank search tool.
How often does the APY on a high yield account change?
High yield rates change frequently — sometimes weekly — because they are tied to the Federal Reserve's interest rate decisions. When the Fed raises rates, banks raise their APY. When the Fed lowers rates, banks lower their APY. You will not see a rate locked in for a year the way you might with a certificate of deposit.