Yes, Wells Fargo savings accounts earn interest, but the rate is very low

Wells Fargo savings accounts do earn interest. The bank pays you a small percentage of your balance each month, added to your account. However, the rate Wells Fargo offers on savings accounts is typically far below what you can find at online banks or credit unions. As of now, Wells Fargo's standard savings account rate is less than 0.01% annual percentage yield (APY), meaning a $10,000 balance would earn roughly $1 per year or less.

The rate varies slightly depending on which Wells Fargo savings product you choose and how much money you keep in the account. Some accounts offer slightly higher rates if you maintain a larger balance, but even those are well below the national average. Online banks and some credit unions currently offer rates between 4% and 5% APY on savings accounts, which means your money grows much faster elsewhere.

Interest is calculated daily and deposited monthly. Wells Fargo compounds interest daily, meaning you earn a tiny amount of interest on the interest already in your account, though at such low rates this effect is negligible.

Key Takeaways

  • Wells Fargo savings accounts earn interest, but the rate is typically below 0.01% APY, which means very little growth on your balance.
  • Online banks and credit unions currently offer rates 100 to 500 times higher than Wells Fargo's standard savings rate.
  • Interest is calculated daily and added to your account once per month.
  • If you keep money at Wells Fargo primarily for checking or other services, moving your savings to a higher-rate account elsewhere costs nothing and takes a few days.
  • Wells Fargo does offer money market accounts and certificates of deposit (CDs) with slightly higher rates, though these still lag behind online alternatives.

How Wells Fargo's savings account interest works

When you deposit money into a Wells Fargo savings account, the bank pays you interest on that balance. The amount you earn depends on two things: the APY the bank is currently offering and how much money sits in your account. Wells Fargo calculates interest daily, meaning it looks at your balance every single day and computes a tiny fraction of the annual rate. At the end of each month, all those daily calculations are added together and deposited into your account as a lump sum.

The APY is an annual rate expressed as a percentage. If Wells Fargo offers 0.01% APY, that means if you kept $10,000 in the account for a full year without adding or withdrawing anything, you would earn $1. If you withdraw money mid-month, you earn interest only on the days the money was there. If you add money, interest starts accruing on the new balance the next day.

Wells Fargo does not charge a monthly fee on most savings accounts, so you do not lose money to service charges. However, some accounts have minimum balance requirements or other conditions that may apply.

Why Wells Fargo's rate is so much lower than online banks

Wells Fargo is a large brick-and-mortar bank with thousands of physical branches, ATMs, and employees. Running that network costs money. Online banks have no branches and minimal staff, so they can afford to pass savings on to customers in the form of higher interest rates. They compete almost entirely on rate, because they cannot offer the convenience of walking into a branch.

Wells Fargo's business model relies on customers using checking accounts, loans, credit cards, and investment services—not on paying high rates on savings. The bank makes money by lending out deposits at much higher rates than it pays you. When the gap between what it pays depositors and what it charges borrowers is wide, the bank profits more.

This does not mean Wells Fargo is doing anything wrong or dishonest. It is simply a different business model. If you value having a physical branch, a Wells Fargo banker to talk to, or the ability to deposit checks at an ATM, you may accept the lower rate as a trade-off. If you do not need those services, moving your savings to an online bank or credit union is a straightforward way to earn significantly more interest on the same money.

Wells Fargo savings account types and their rates

Wells Fargo offers several savings products, each with a different rate structure:

Savings Account (standard): This is the basic savings account most people open. The rate is typically below 0.01% APY and does not change based on your balance.

Money Market Account: This account usually offers a slightly higher rate than a standard savings account, often tiered so that larger balances earn more. However, it typically comes with a higher minimum balance requirement and may limit the number of withdrawals you can make per month.

Certificate of Deposit (CD): A CD is a product where you agree to leave money in the account for a set period—3 months, 6 months, 1 year, or longer. In exchange, Wells Fargo pays a higher rate than on savings or money market accounts. The longer the term, the higher the rate. However, if you withdraw the money before the term ends, you pay a penalty that can wipe out all the interest you earned.

Rates on all these products change over time based on what the Federal Reserve does with interest rates. When the Fed raises rates, banks eventually raise the rates they pay depositors. When the Fed cuts rates, bank rates fall. Wells Fargo typically lags behind online banks in raising rates when the Fed moves, and lags behind in cutting rates when the Fed falls.

How to find out your current Wells Fargo savings rate

Your current rate depends on which account you hold and when you opened it. Wells Fargo sometimes offers different rates to new customers than to existing ones. The easiest way to find your rate is to log into your Wells Fargo account online or through the mobile app and look at your account details. The APY should be displayed there.

You can also call Wells Fargo customer service at 1-800-869-3557 and ask a representative what rate your account is currently earning. Have your account number ready.

If you are thinking about opening a new Wells Fargo savings account, visit wellsfargo.com and look at the rates listed for each product. These rates change frequently, so what is listed today may not be what you see next month.

Moving your savings to earn more interest elsewhere

If you decide the Wells Fargo rate is too low, you can move your savings to another bank without closing your Wells Fargo checking account or other services. Many people keep a Wells Fargo checking account for convenience and move their savings to an online bank or credit union for the higher rate.

To move money, you have two options. First, you can withdraw the money from Wells Fargo and deposit it into the new bank. This takes a few days and you can do it online or at a branch. Second, you can ask the new bank to pull the money directly from your Wells Fargo account using an ACH transfer. This is faster and safer because you do not have to handle cash or write checks.

Opening an account at an online bank typically takes 10 to 15 minutes online. You will need your Social Security number, a government ID, and proof of address. Once the account is open, you can transfer money in. The transfer usually clears within one to three business days.

Credit unions work similarly, though some require you to live or work in a certain area or meet other membership criteria. You can search for credit unions near you at CO-OP.org or Alliant.org, which are networks that let credit union members use each other's ATMs.

When it makes sense to keep savings at Wells Fargo

There are situations where keeping your savings at Wells Fargo makes sense despite the low rate. If you are saving a small amount of money for a short time—a few weeks or months—the difference in interest is so tiny that convenience matters more than rate. If you use Wells Fargo for checking and want all your money in one place for simplicity, that is a reasonable choice. If you value being able to walk into a branch and talk to someone about your money, Wells Fargo offers that.

You might also keep some money at Wells Fargo for emergency access. Online banks are reliable, but if you need cash immediately and cannot wait for a transfer to clear, a Wells Fargo branch can help. Some people split their savings: a small emergency fund at Wells Fargo and the rest at a higher-rate online bank.

If you have a large balance and may have access to for Wells Fargo's premium banking products, you may receive slightly better rates or fee waivers that offset the lower interest rate. Ask a Wells Fargo banker whether you may have access to for any of these programs.

Frequently Asked Questions

How often does Wells Fargo pay interest on savings accounts?

Wells Fargo calculates interest daily but deposits it into your account once per month. The deposit typically happens on the last business day of the month. You can see the interest payment in your account history.

Do I have to pay taxes on the interest I earn?

Yes. Interest earned on a savings account is taxable income. Wells Fargo will send you a Form 1099-INT at the end of the year if you earned $10 or more in interest. You report this on your tax return. At Wells Fargo's current rates, most people earn so little interest that it does not significantly affect their taxes.

What happens to my interest if I withdraw money before the end of the month?

You still earn interest on the money for the days it was in the account. Interest is calculated daily, so if you withdraw on the 15th of the month, you earn interest from the 1st through the 14th. The full month's interest is still deposited on the last day of the month.

Can I move my savings to another bank and still use Wells Fargo for checking?

Yes. Your checking and savings accounts are separate. You can close the savings account and keep the checking account open, or move the savings balance to another bank while keeping Wells Fargo checking active. There is no penalty for doing this.

Is my money safe if I move it to an online bank?

Yes, as long as the online bank is FDIC-insured. FDIC insurance protects deposits up to $250,000 per account holder per bank. Most online banks display their FDIC insurance status clearly on their website. You can also verify it at fdic.gov. Online banks are regulated the same way as brick-and-mortar banks.