Wells Fargo does not offer a dedicated high yield savings account

Wells Fargo's standard savings account earns 0.01% annual percentage yield (APY) on most balances. That rate has not changed in years. If you are looking for a savings account that pays significantly more—what banks call "high yield"—you will not find it in Wells Fargo's main product lineup.

Wells Fargo does offer a Money Market Account that pays higher rates than the basic savings account, but the rate still falls well below what online banks and credit unions offer. As of early 2024, Wells Fargo's Money Market Account earns between 0.01% and 0.05% APY depending on your balance tier, which is roughly one-tenth of what a true high yield account pays elsewhere.

The gap matters. On $10,000 in savings, Wells Fargo's Money Market Account might earn $5 per year. The same $10,000 in a high yield account at an online bank earning 4.5% APY would earn $450 per year—90 times more.

Key Takeaways

  • Wells Fargo's standard savings account earns 0.01% APY, and the Money Market Account earns up to 0.05% APY, both far below high yield rates offered by online banks.
  • High yield savings accounts typically earn between 4% and 5% APY and are offered primarily by online banks, credit unions, and a few regional banks, not major national chains like Wells Fargo.
  • If you bank with Wells Fargo for checking and want higher savings returns, you can open a high yield account elsewhere while keeping your Wells Fargo checking account open.
  • Wells Fargo's Money Market Account does offer slightly better rates than savings, but you will still earn far less than you would in a dedicated high yield product.

Why Wells Fargo's rates are lower than high yield accounts

Wells Fargo is a large national bank with thousands of branches and ATMs. That physical infrastructure costs money—rent, staff, maintenance. Those costs get passed along in the form of lower deposit rates. High yield accounts are offered almost exclusively by online banks that have no branches, no tellers, and no physical locations to maintain.

Online banks can afford to pay 4% or higher on savings because they spend almost nothing on operations. Wells Fargo has to fund its branch network, so it keeps deposit rates low. This is not a Wells Fargo problem specifically—it is how the entire banking model works. Every major national bank (Bank of America, Chase, Citibank) offers similarly low rates on savings.

The Federal Reserve's interest rate decisions affect all banks equally, but banks choose how much of that rate to pass on to customers. Wells Fargo chooses to keep most of it and pass very little to savers. Online banks choose the opposite.

Where to find high yield savings if you want to move your money

High yield savings accounts are offered by online banks like Marcus (owned by Goldman Sachs), Ally Bank, American Express Personal Savings, and Discover Bank. Credit unions also often offer competitive rates—sometimes higher than online banks—through services like CO-OP Network or Alliant Credit Union. Some regional banks offer high yield accounts as well, though rates vary.

To open a high yield account, you will need to provide your Social Security number, proof of identity, and an initial deposit (usually $0 to $25, depending on the bank). The process takes 5 to 10 minutes online. You can link it to your Wells Fargo checking account so money transfers between them easily.

Most high yield accounts have no monthly fees, no minimum balance requirements, and no restrictions on how many times you withdraw per month. They are FDIC insured up to $250,000, just like Wells Fargo accounts. The main trade-off is that you cannot walk into a branch to deposit cash or speak to a teller in person—everything happens online or by mail.

How to move money between Wells Fargo and a high yield account

Once you open a high yield account at another bank, you can transfer money between it and your Wells Fargo account in two ways: ACH transfer or wire transfer.

An ACH transfer is free and takes 1 to 3 business days. You initiate it through your Wells Fargo online banking portal by entering the other bank's routing number and your account number there. The money moves automatically. Most people use ACH because it is free and fast enough for savings transfers.

A wire transfer is faster (same day or next day) but costs $15 to $20 at Wells Fargo. You would use a wire only if you need the money urgently. For moving savings to a high yield account, ACH is the standard choice.

Wells Fargo's Money Market Account as a middle ground

If you want to keep all your money at Wells Fargo, the Money Market Account is the closest thing to a higher-rate product. It earns more than savings and usually comes with a debit card and check-writing privileges, which savings accounts do not.

The catch is that the rate is still very low. Wells Fargo's Money Market Account earns 0.01% to 0.05% depending on your balance. You need to maintain a minimum balance (usually $2,500 to $10,000) to avoid a monthly fee. If your balance drops below the minimum, you pay $12 to $25 per month, which wipes out any interest you earned.

For most people, the combination of low rates and balance requirements makes the Money Market Account less attractive than moving money to a true high yield account elsewhere. But if you strongly prefer to keep everything in one place and do not mind the low return, it is an option.

What happens to your rate if Wells Fargo raises it

Wells Fargo could raise its savings and Money Market rates at any time. The Federal Reserve controls the benchmark rate, but individual banks decide whether to pass increases to customers. Wells Fargo has historically been slow to raise deposit rates when the Fed raises its rate, and quick to lower them when the Fed cuts.

If you are counting on Wells Fargo to eventually offer competitive rates, you will likely wait a long time. The bank has shown no sign of changing its strategy. Online banks, by contrast, tend to raise rates quickly when the Fed raises, because they compete directly on rate and have little else to offer.

If high yield savings is important to you, opening an account elsewhere now is more reliable than waiting for Wells Fargo to change.

Frequently Asked Questions

Can I have a Wells Fargo checking account and a high yield savings account somewhere else?

Yes. Many people do this. You keep your Wells Fargo checking for everyday spending and bill pay, and open a high yield savings account at an online bank for money you want to save. The two accounts can be linked so you transfer money between them easily.

Is a high yield savings account safe if it is at an online bank?

Yes. Online banks are FDIC insured just like Wells Fargo. Your deposits are protected up to $250,000 per account. The bank's lack of physical branches does not affect the safety of your money.

What if I need to deposit cash into a high yield account?

Most online banks do not accept cash deposits because they have no branches. If you need to deposit cash, you can deposit it into your Wells Fargo account first, then transfer the money electronically to your high yield account. Some credit unions that offer high yield rates do accept cash at their branches.

Will opening a high yield account hurt my credit score?

No. Opening a savings or Money Market account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft inquiry to check for fraud, but this does not show up on your credit report.

How much should I keep in a high yield savings account?

That depends on your emergency fund goal and how much you want to earn. A common rule is to keep three to six months of living expenses in savings. The higher your balance, the more interest you earn, but high yield accounts are best for money you plan to keep there for a while, not money you need to access frequently.