Wells Fargo savings accounts pay between 0.01% and 0.04% annual percentage yield, depending on the account type and your balance

Wells Fargo offers three main savings products: the regular Savings Account, the Way2Save Savings Account, and the Preferred Savings Account. The regular Savings Account pays 0.01% APY on all balances. The Way2Save account, designed for automatic savers, also pays 0.01% APY. The Preferred Savings Account pays 0.04% APY if you maintain a $25,000 minimum balance; if your balance falls below that, the rate drops to 0.01% APY.

These rates are current as of early 2024, but Wells Fargo changes them regularly in response to Federal Reserve policy. The rates you see today may not be the rates you earn next month. You can check your account's current rate by logging into your Wells Fargo account online, calling 1-800-869-3557, or visiting a branch.

The difference between 0.01% and 0.04% matters more than it sounds. On a $10,000 balance, 0.01% earns you $1 per year. The same balance at 0.04% earns $4 per year. That gap widens with larger balances: $100,000 at 0.01% yields $10 annually, while $100,000 at 0.04% yields $40.

Key Takeaways

  • Wells Fargo's regular Savings Account and Way2Save account both pay 0.01% APY on all balances with no minimum.
  • The Preferred Savings Account pays 0.04% APY only if you keep at least $25,000 in the account; below that threshold, it drops to 0.01%.
  • These rates change frequently and are significantly lower than rates offered by online banks and credit unions, which often pay 4% to 5% APY.
  • Interest compounds daily and posts to your account monthly, so the actual dollars you earn depend on your exact balance each day.

How Wells Fargo calculates and pays your interest

Wells Fargo calculates interest daily based on your account balance. The bank takes your balance at the end of each day, applies the annual rate divided by 365, and adds that amount to a running total. At the end of each month, the accumulated interest posts to your account as a single deposit.

This daily compounding means your interest earns interest, though the effect is tiny at these rates. If you had $10,000 earning 0.04% APY and never touched it, after one year you would have $10,004.00. The extra $0.04 comes from compounding—interest earned on interest.

The interest posts on the last business day of the month. If you withdraw money mid-month, you lose the interest that would have been earned on that withdrawn amount for the rest of the month. If you deposit money mid-month, you start earning interest on that deposit when ready.

Why Wells Fargo rates are lower than other banks

Wells Fargo's savings rates are among the lowest in the banking industry. Online banks like Marcus, Ally, and American Express offer 4% to 5% APY on savings accounts. Credit unions often pay 3% to 4%. Even some traditional brick-and-mortar banks pay higher rates than Wells Fargo.

The reason is structural. Wells Fargo operates thousands of physical branches, which costs money. The bank funds those branches partly through the interest it keeps when it pays you less than it could. Online banks have no branches, so they can pass more of their earnings to depositors. Wells Fargo prioritizes branch access and customer service over rate competitiveness.

If you keep your money at Wells Fargo primarily for convenience—because you use their checking account, have a mortgage with them, or value in-person service—the rate difference may be acceptable to you. If you are choosing a bank purely for savings interest, Wells Fargo is not the best option.

Moving money between Wells Fargo accounts and external banks

If you decide to move your savings to a higher-paying account elsewhere, Wells Fargo allows you to transfer money out without penalty. You can initiate an external transfer through Wells Fargo's online banking portal by linking your external bank account and requesting a transfer. The transfer typically takes three to five business days.

Alternatively, you can withdraw cash from a Wells Fargo branch or ATM and deposit it into another bank. There is no fee for closing a Wells Fargo savings account, and you can close it online, by phone, or in person.

If you have automatic deposits going into your Wells Fargo savings account—such as direct deposit from your employer—you will need to update those instructions with your new bank's routing number and account number before you close the Wells Fargo account.

How Wells Fargo savings rates compare to other account types

Wells Fargo also offers Money Market Accounts, which typically pay slightly higher rates than savings accounts but require larger minimum balances and limit the number of withdrawals you can make per month. As of early 2024, Wells Fargo Money Market Accounts pay between 0.01% and 0.05% APY depending on balance tier, with minimums starting at $2,500.

Certificates of Deposit (CDs) at Wells Fargo pay higher rates than savings accounts, but your money is locked in for a set term—typically three months to five years. If you withdraw before the term ends, you pay an early withdrawal penalty. A three-month CD might pay 5% APY, but you cannot touch that money without losing some interest.

For money you need to access without penalty, a savings account remains the standard choice. The trade-off is that you accept lower interest in exchange for liquidity.

What affects your Wells Fargo savings rate going forward

The Federal Reserve sets a target interest rate range that influences what all banks pay on savings. When the Fed raises its target rate, banks typically raise savings rates. When the Fed lowers its target rate, banks lower savings rates. Wells Fargo usually moves its rates within a few weeks of a Fed decision, though the bank is not required to match the Fed's moves exactly.

Your individual rate also depends on which account you hold and your balance. If you have a Preferred Savings Account with $25,000, you earn 0.04%. If your balance drops to $24,999, you when ready drop to 0.01%. Wells Fargo does not notify you of this change; it happens automatically.

You can monitor Fed rate decisions through the Federal Reserve's website or financial news outlets. If the Fed raises rates, check back with Wells Fargo in a few weeks to see if your rate has increased. If it has not, you may want to compare rates at other banks.

Frequently Asked Questions

Does Wells Fargo charge a monthly fee on savings accounts?

Wells Fargo's regular Savings Account and Way2Save Savings Account have no monthly maintenance fee. The Preferred Savings Account also has no monthly fee. However, Wells Fargo charges $5 per month if you make more than six transfers or withdrawals from any savings account in a calendar month, though this rule is less strictly enforced than it once was.

Can I earn higher interest by keeping a larger balance?

Only with the Preferred Savings Account. If you maintain $25,000 or more, you earn 0.04% APY. Below that, you earn 0.01% APY. The regular Savings Account and Way2Save account pay 0.01% on all balances, regardless of size. Money Market Accounts have tiered rates based on balance, so larger balances earn slightly more.

How often does Wells Fargo change its savings rates?

Wells Fargo typically adjusts rates several times per year in response to Federal Reserve decisions. The bank may also change rates independently. There is no fixed schedule. You should check your account statement or log into online banking monthly to see your current rate.

What happens to my interest if I close my account mid-month?

You receive interest through the last day your account is open. Interest posts on the last business day of the month, so if you close your account before that date, you may not receive that month's interest. Close your account after interest has posted to may support you receive all earned interest.

Is my savings account insured if Wells Fargo fails?

Yes. Wells Fargo is a member of the Federal Deposit Insurance Corporation (FDIC). Your savings account is insured up to $250,000 per account type per depositor. If you have a savings account and a checking account at Wells Fargo, each is insured separately up to $250,000.