Wells Fargo does not currently offer a dedicated high-yield savings account
Wells Fargo's regular savings accounts earn interest rates that are much lower than what you can find elsewhere. As of now, Wells Fargo does not have a product specifically branded as a high-yield savings account (HYSA). Their standard savings accounts typically earn less than 0.01% annual percentage yield (APY), which means your money grows very slowly.
If you want to earn meaningful interest on savings, you would need to look at other banks. Online banks and some credit unions offer high-yield savings accounts with rates that are often 4% APY or higher, depending on market conditions. The difference between Wells Fargo's rate and a high-yield account can add up significantly over time, especially if you have a larger balance.
Key Takeaways
- Wells Fargo's savings accounts earn less than 0.01% APY, which is well below what high-yield accounts offer.
- High-yield savings accounts at other banks currently earn rates that are often 4% APY or higher, though rates change with the market.
- If you keep money in a Wells Fargo savings account instead of a high-yield account, you lose out on interest earnings over time.
- You can open a high-yield savings account at an online bank while keeping your Wells Fargo checking account for everyday use.
What Wells Fargo savings accounts actually offer
Wells Fargo has several savings products, but none of them are designed to compete on interest rates. Their main options are the Wells Fargo Way2Save Savings Account and the Wells Fargo Savings Account. Both charge a monthly service fee (currently $5) unless you meet certain conditions, such as maintaining a minimum balance or setting up direct deposit.
The interest rate on these accounts is set by Wells Fargo and does not change based on how much money you have in the account. You earn the same tiny percentage whether you have $100 or $10,000 saved. This is very different from how high-yield savings accounts work — those accounts are designed specifically to pay you more interest, and that is their main selling point.
How high-yield savings accounts work at other banks
A high-yield savings account is a savings product offered by online banks, some traditional banks, and credit unions. The defining feature is that it pays a much higher interest rate than a regular savings account. The rate changes based on what the Federal Reserve does with interest rates, so it goes up and down over time.
High-yield savings accounts are FDIC insured (at banks) or NCUA insured (at credit unions), which means your money is protected up to $250,000 if the bank fails. You can usually open one online in minutes, and you can transfer money in and out whenever you need it. There are no monthly fees at most high-yield savings accounts.
The catch is that high-yield accounts are typically offered by online-only banks or the online divisions of larger banks. You do not get a physical branch or a debit card connected to the account. Most people use a high-yield savings account as a separate place to keep money they are saving, not as their main checking account.
Why the interest rate difference matters
The difference between 0.01% and 4% might sound small, but it adds up fast. If you have $5,000 in savings, a Wells Fargo account earning 0.01% APY would earn you about 50 cents per year. The same $5,000 in a high-yield account earning 4% APY would earn you about $200 per year. Over five years, that is a difference of roughly $1,000.
The longer your money sits in a low-interest account, the more interest you miss out on. This is especially important if you are saving for a goal that is still months or years away, like an emergency fund or a down payment on a car.
How to use both Wells Fargo and a high-yield account together
You do not have to choose between Wells Fargo and a high-yield savings account. Many people keep a Wells Fargo checking account for everyday spending and bills, then open a high-yield savings account at another bank for money they are saving. This way, you get the convenience of Wells Fargo for daily banking and the better interest rate for your savings.
To set this up, you would open a high-yield savings account online at a bank like Marcus, Ally, American Express Personal Savings, or another online bank. Once the account is open, you can transfer money from your Wells Fargo checking account to your high-yield account whenever you want. The transfer usually takes one to three business days.
Some people also use a high-yield savings account as a temporary holding place for money before they move it to a longer-term savings goal, like a certificate of deposit (CD) or an investment account. This lets your money earn interest while you decide what to do with it.
Other Wells Fargo savings options to consider
Wells Fargo does offer certificates of deposit (CDs), which are a different type of savings product. With a CD, you agree to leave your money in the account for a set period of time — usually three months, six months, one year, or longer. In exchange, Wells Fargo pays you a higher interest rate than you would get in a savings account. However, if you take your money out before the time period ends, you pay a penalty.
CDs can make sense if you have money you know you will not need for a specific amount of time. But they are not as flexible as a high-yield savings account, where you can withdraw your money whenever you want without a penalty.
Frequently Asked Questions
Can I move money from Wells Fargo to a high-yield savings account easily?
Yes. Once you open a high-yield account at another bank, you can link it to your Wells Fargo checking account and transfer money between them. The transfer takes one to three business days. You can move money back and forth as often as you want.
Will I lose FDIC protection if I move my savings to another bank?
No. High-yield savings accounts at banks are FDIC insured just like Wells Fargo accounts. Your money is protected up to $250,000 at each bank. If you have more than $250,000 in savings, you would spread it across multiple banks to keep it all protected.
What happens to my Wells Fargo savings account if I stop using it?
Wells Fargo will not close your account just because you are not using it, but you will still owe the monthly service fee if you do not meet the requirements to waive it. You can close the account online or by visiting a branch if you no longer want it.
Do high-yield savings rates ever go down?
Yes. High-yield rates change when the Federal Reserve changes interest rates. When the Fed raises rates, high-yield accounts pay more. When the Fed lowers rates, they pay less. Your rate can change, but you will not lose money — you just earn less interest going forward.
Is there a minimum amount I need to open a high-yield savings account?
Most online banks have no minimum opening deposit, though some require $1 or $25. Check the specific bank's requirements before you open an account. You can usually start with whatever amount you want to save.