What a Wells Fargo savings account does

A Wells Fargo savings account is a place to store money that you want to keep separate from the money you spend regularly. The bank holds your money safely, and in return, it pays you a small amount of interest — extra money — based on how much you keep in the account. You can take money out whenever you need it, though there are limits on how often you can withdraw each month.

The account comes with a debit card or passbook so you can check your balance, and you can move money between your Wells Fargo checking and savings accounts online, by phone, or at a branch. The main trade-off is that your money grows slowly through interest, but it stays available to you without risk.

Key Takeaways

  • Wells Fargo savings accounts earn interest on your balance, meaning the bank pays you extra money based on how much you keep deposited.
  • You can withdraw money from a savings account, but federal rules limit you to six withdrawals per month before fees explore.
  • Different Wells Fargo savings products have different interest rates and minimum balance requirements, so the amount you earn depends on which account you choose.
  • You can open a Wells Fargo savings account online, by phone, or at a branch, and you will need a government ID and Social Security number.
  • Money in a Wells Fargo savings account is insured up to $250,000 by the Federal Deposit Insurance Corporation, so your deposits are protected if the bank fails.

How interest works on your savings

Interest is money the bank pays you for letting them use your deposit. Wells Fargo calculates this interest based on the annual percentage yield (APY) — the percentage rate they advertise — and the amount of money you have in the account. The higher your balance and the higher the APY, the more interest you earn.

Wells Fargo deposits interest into your account monthly, so your balance grows a little each month. The interest rate varies depending on which savings product you choose and changes over time as the Federal Reserve adjusts rates. You can check the current rates on Wells Fargo's website or ask at a branch, since rates differ from month to month.

Interest is taxable income, so Wells Fargo will send you a tax form (Form 1099-INT) at the end of the year if you earned more than a small amount. Keep this form when you file your taxes.

Withdrawal limits and how they work

Federal rules allow you to make up to six withdrawals or transfers out of a savings account each month without penalty. This includes withdrawals at an ATM, transfers to another account, checks written against the account, and payments set up through online banking. Once you reach six, Wells Fargo charges a fee for each additional withdrawal that month.

This limit exists because savings accounts are meant to encourage you to keep money set aside rather than spend it constantly. If you find yourself hitting the limit regularly, you may want a checking account instead, which has no withdrawal limits. You can have both accounts at the same time.

The six-withdrawal limit resets on the first day of each calendar month, so if you hit the limit on the 28th, you can make six more withdrawals starting on the 1st.

Different Wells Fargo savings account types

Wells Fargo offers several savings products, each with different interest rates and rules. The most common is the regular Savings Account, which has no minimum balance requirement to open but earns a lower interest rate. The Money Market Account pays higher interest but requires you to keep a larger balance — the exact amount changes based on current rates — and may come with a debit card and checkbook.

Wells Fargo also offers certificates of deposit (CDs), which are a different product where you agree to leave money untouched for a set time (three months, one year, five years, and so on) in exchange for a higher interest rate. If you withdraw the money early, you pay a penalty, so CDs are for money you know you will not need soon.

Ask a Wells Fargo representative which account fits your situation — whether you need to access your money often, how much you plan to deposit, and how long you plan to keep the money there.

How to open a Wells Fargo savings account

You can open a savings account online through Wells Fargo's website, by phone at 1-800-869-3557, or in person at a Wells Fargo branch. Online is usually the fastest option and takes about 10 minutes.

You will need a government-issued photo ID (driver's license, passport, or state ID), your Social Security number, and an initial deposit. The minimum deposit to open varies by account type — some have no minimum, while others require $25 or more. You can fund the account with a check, a transfer from another bank, or cash if you open in person.

Once your account is open, Wells Fargo will issue you a debit card (which may take 7 to 10 business days to arrive) and give you online banking access so you can check your balance and move money between accounts.

Fees and how to avoid them

Wells Fargo charges fees for specific actions. The most common is the excess withdrawal fee, charged when you make more than six withdrawals in a month. Other fees include monthly maintenance fees (though many accounts waive this if you keep a minimum balance or set up direct deposit), ATM fees if you use an out-of-network machine, and early withdrawal penalties on CDs.

To avoid fees, keep track of your six monthly withdrawals, maintain any minimum balance your account requires, and use Wells Fargo ATMs or partner ATMs (which are free). If you are unsure whether a specific action will trigger a fee, call Wells Fargo customer service or ask at a branch.

Some accounts waive monthly fees if you have direct deposit set up — meaning your paycheck or benefits deposit automatically into the account. This is worth doing if your employer or benefits provider offers it.

FDIC insurance and account safety

Money you deposit in a Wells Fargo savings account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type. This means if Wells Fargo fails, the federal government guarantees you will get your money back up to that limit.

Each account type is insured separately, so if you have a savings account and a checking account at Wells Fargo, each is covered up to $250,000. If you have multiple savings accounts at Wells Fargo, they are added together and covered as one account, so the total protection is still $250,000 across all your savings accounts at that bank.

This protection is automatic — you do not need to do anything to set up it. Your deposits are safe even if you never use the account, as long as the balance stays under $250,000.

Moving money between accounts and banks

You can transfer money between your Wells Fargo savings and checking accounts online, by phone, or at a branch with no fee. These transfers count toward your six monthly withdrawals, so moving money out of savings still uses up one of your allowed transactions.

To move money to a different bank, you can set up an external transfer through Wells Fargo's online banking. You will need the other bank's routing number and your account number there. The transfer usually takes one to three business days. Alternatively, you can withdraw cash and deposit it at the other bank, though this is slower and less find.

If you are closing your Wells Fargo savings account, you can transfer the balance to another account or request a check. Make sure to do this before closing so you do not lose the money.

Frequently Asked Questions

Can I use my savings account debit card to make purchases?

Wells Fargo savings accounts do not come with a debit card for everyday purchases. You get a card to withdraw cash at ATMs, but you cannot swipe it at stores. If you want a card for purchases, you need a checking account. Many people have both accounts at the same bank.

What happens if my balance drops below the minimum?

If your account has a minimum balance requirement and you fall below it, Wells Fargo charges a monthly fee. The fee amount and the minimum balance vary by account type. You can avoid the fee by bringing your balance back up or switching to an account with no minimum.

How long does it take to earn interest?

Wells Fargo deposits interest monthly, usually on the last day of the month or the first day of the next month. The interest you earn in a given month is based on your average balance during that month, so you start earning from the day you deposit money.

Can I have more than one savings account at Wells Fargo?

Yes, you can open multiple savings accounts. However, the FDIC insurance limit of $250,000 covers all your savings accounts at Wells Fargo combined, not each account separately. If you have $200,000 in one savings account and $100,000 in another, only $250,000 total is insured.

What if I need to withdraw more than six times a month?

You can make more than six withdrawals, but Wells Fargo charges a fee for each withdrawal beyond six. If you regularly need to withdraw money more often, a checking account is a better fit because it has no withdrawal limits. You can keep both accounts open at the same time.