Wells Fargo was founded in San Francisco in 1852 during the California gold rush. More than 170 years later, Wells Fargo would become one of the top five largest banks in the United States.
Currently, the financial institution serves more than 70 million customers, employs more than 266,000 people, and owns more than $1.97 trillion in total assets.
The rise of online banking has resulted in options that come with far superior interest rates to banks like Wells Fargo.
What is the Interest Rate on a Wells Fargo Savings Account?
There are two different saving account options currently available with Wells Fargo: Way2Save and Platinum Savings. Each program has its own unique features, but they share an interest rate of 0.01% APY. Here is a closer look into each program:
Way2Save
Way2Save is the standard savings account offered by Wells Fargo. You’ll need to make at least a $25 deposit in order to open a Way2Save account. Once created, you’ll have the option to use your savings account as overdraft protection for your linked checking account.
The primary benefit of having a Way2Save account is that you’ll gain access to the “Save As You Go” automatic transfer program. This program allows you to transfer $1 from your checking account to your savings account every time that you:
- Use your debit to make a one time purchase; or
- Complete a transaction using the “Bill Pay” feature
You’ll also have the ability to establish automatic transfers from your checking account. An automatic monthly transfer must be at least $25, and an automatic daily transfer must be at least $1.
Platinum Savings
The Platinum Savings account is essentially the premium version of the Way2Save program that also gives you the option of writing checks. Opening this account will also require at least an opening deposit of at least $25. You’ll have the ability to establish monthly and daily automatic transfers if you want.
The key difference between Platinum Savings and Way2Save is the possibility of a Portfolio Relationship Interest Rate. If granted, the interest rate on your savings account will double and become 0.02% APY.
This practice is commonly known as “relationship banking” and is used to reward customers that apply for multiple bank products. You would need to engage in multiple other Wells Fargo programs in order to qualify for the Portfolio Relationship Interest Rate.
Are There Fees for Having a Wells Fargo Savings Account?
Both savings account programs will come with standard monthly service fees. The Way2Save account comes with a $5 monthly service fee, and the Platinum Savings comes with a $12 monthly service fee. However, both of these fees can be waived if you can meet certain conditions.
For a Way2Save account, you’ll need to meet at least one of the following requirements:
- You maintain a minimum daily balance of at least $300
- You are currently 24 years old or younger
- You establish a recurring monthly automatic transfer of $25 or more from a linked Wells Fargo checking account.
- You establish a recurring daily automatic transfer of $1 or more from a linked Wells Fargo checking account.
- You have at least one qualifying transfer from the “Save As You Go” program.
For a Platinum Savings account, there is only one way to avoid the fee. You’ll need to maintain a minimum daily balance of at least $3,500 during the free period.
Does Wells Fargo Offer Other Savings Options?
Wells Fargo offers both Certificates of Deposit and Individual Retirement Accounts. There are currently no options for a Money Market Account.
Certificates of Deposit (CDs) will come with a standard interest rate of 0.01% but can be increased to 0.02% if you qualify for the Portfolio Relationship Interest Rate. The minimum opening deposit for a CD must be at least $2,500. There are three different term lengths available, including three months, six months, and 12 months.
Individual Retirements Accounts (IRAs) will also come with the standard interest rate of 0.01% unless you qualify for the bonus relationship rate of 0.02%. The minimum opening deposit for an IRA must be at least $1,000.
There are eight different term lengths available, including three to five months, six to 11 months, 12 to 23 months, 24 to 35 months, 36 to 47 months, 48 to 59 months, 60 to 71 months, and 72 to 144 months.
Are There Saving Alternatives With Higher Interest Rates?
The majority of Wells Fargo customers will only be granted an interest rate of 0.01% APR. Depending on the amount of money in your account, that will only amount to a few dollars at the end of the year. Any account with an interest rate that low isn’t a very lucrative long-term investment. The good news is it isn’t hard to find options with better rates.
Yotta is one example of a savings account that can help you build up your money quickly. The average Yotta user enjoys an interest rate of 0.04%, but that’s only the beginning. The main attraction of Yotta is that you’ll be entered into free weekly drawings.
At the beginning of each week, you’ll be given one ticket for every $25 in your account. A new number is drawn every night at 9 PM EST for a total of seven numbers. You’ll have the chance to win various prizes depending on how many numbers you match on your tickets. There’s a chance that you could win a brand new Tesla Model 3 or even a $10 million cash prize.
Save With a Higher Rate
Wells Fargo is one of the largest banks in the nation and can meet most of your financial needs. However, they currently offer some of the lowest interest rates of all major banks. If you’re looking to make your money work for you, then it’s probably best to look elsewhere.
By using Yotta, you’ll enjoy a much higher expected interest rate with your savings.
Visit Yotta today to create your account and get started. You can learn all about the various ways that you can use your money to earn even more.
