Wells Fargo's Free Savings Account Options

Wells Fargo offers one savings account with no monthly maintenance fee: the Wells Fargo Way2Save Savings Account. There is no minimum opening deposit and no monthly charge as long as the account remains open. However, the account does have limits on how many withdrawals you can make per month, and interest rates are typically very low.

All other Wells Fargo savings products charge a monthly fee unless you meet specific balance or deposit requirements. The Wells Fargo Savings Account costs $5 per month unless you maintain a $500 minimum daily balance or set up a monthly direct deposit of at least $25. The Wells Fargo Growth Savings Account charges $5 monthly unless you keep $2,500 in the account at all times.

If you do not want to meet balance requirements or set up direct deposit, Way2Save is your only truly free option at Wells Fargo. If you can meet those conditions, the regular Savings Account becomes free and typically offers a slightly higher interest rate than Way2Save.

Key Takeaways

  • Wells Fargo Way2Save Savings Account has no monthly fee, no minimum opening deposit, and no balance requirement to keep it free.
  • The regular Wells Fargo Savings Account charges $5 per month but becomes free if you maintain a $500 minimum daily balance or receive a $25 monthly direct deposit.
  • Way2Save limits you to six withdrawals per month; exceeding this limit costs $10 per transaction.
  • Interest rates on all Wells Fargo savings accounts are typically low compared to online banks, so the fee structure matters more than the rate.

How Way2Save Works and What It Costs

Way2Save charges no monthly maintenance fee and requires no minimum balance. You can open it with any amount of money. The account is designed for people who want to save without worrying about hitting a balance target each month.

The trade-off is the withdrawal limit. Federal law allows banks to restrict savings account withdrawals to six per month. Wells Fargo enforces this limit on Way2Save. If you make a seventh withdrawal in a calendar month, Wells Fargo charges $10 for that transaction and each one after. This limit applies to withdrawals made in person, by phone, online, or through ATM.

Transfers between your own accounts at Wells Fargo do not count toward the six-withdrawal limit. Only transfers out of the account to external accounts or cash withdrawals count. If you need to move money frequently, this account may not suit you.

When the Regular Savings Account Becomes Free

The Wells Fargo Savings Account normally costs $5 per month. You can waive this fee in two ways: maintain a $500 minimum daily balance, or set up a recurring monthly direct deposit of at least $25.

The $500 balance requirement means the account must never drop below $500 on any day of the month. If your balance falls to $499 on a single day, you pay the $5 fee for that month. This requirement is stricter than Way2Save because it forces you to keep money tied up in a low-interest account.

The direct deposit route is easier for people who receive regular paychecks or benefit payments. Once the direct deposit is set up, the fee disappears automatically. You can then let the balance drop below $500 without penalty. This account typically earns slightly more interest than Way2Save, making it the better choice if you can meet the direct deposit requirement.

Interest Rates and How They Compare

Wells Fargo savings accounts earn interest, but the rates are among the lowest in the banking industry. As of early 2024, Way2Save and the regular Savings Account earn rates well below 0.05% annual percentage yield (APY). The Growth Savings Account earns a slightly higher rate if you maintain the $2,500 balance, but still far below what online banks offer.

Online banks and credit unions often pay 4% to 5% APY on savings accounts with no fees and no balance requirements. If you keep a large balance in a Wells Fargo account primarily for the interest, you are losing hundreds of dollars per year compared to moving that money elsewhere. The fee structure is more important than the rate when choosing between Wells Fargo accounts, but the rate itself is a reason to consider other banks.

Interest is calculated daily and deposited monthly. You earn interest on your full balance every day the money sits in the account, even if you make withdrawals during the month.

Withdrawal Limits and What Happens When You Exceed Them

Way2Save allows six withdrawals per month at no charge. This includes ATM withdrawals, online transfers to external accounts, phone transfers, and in-person withdrawals. The only transactions that do not count are transfers between your own Wells Fargo accounts.

If you make a seventh withdrawal in a calendar month, Wells Fargo charges $10 for that withdrawal. The $10 fee applies to each withdrawal beyond six. If you make ten withdrawals in a month, you pay $40 in fees ($10 × 4 excess withdrawals).

The six-withdrawal limit resets on the first day of each calendar month. If you hit the limit on the 30th, you can make six more withdrawals starting January 1st. Plan your cash needs around this limit if you use Way2Save, or switch to the regular Savings Account if you need more frequent access.

How to Avoid Monthly Fees at Wells Fargo

Your lowest-cost option depends on your situation. If you have irregular income or unpredictable cash needs, Way2Save is free with no strings attached. Accept the six-withdrawal limit and plan withdrawals around it.

If you receive a paycheck or regular benefit deposit, set up direct deposit to the regular Savings Account. Once the $25 monthly direct deposit is active, the $5 fee disappears. This account gives you unlimited withdrawals and typically earns more interest than Way2Save.

If you can keep $500 in the account at all times without touching it, the regular Savings Account is also free. This works if you have an emergency fund you do not plan to use regularly. The $500 stays untouched, and you use the account for actual savings.

Do not open the Growth Savings Account unless you can maintain the $2,500 minimum balance. The $5 monthly fee is not worth the slightly higher interest rate.

Frequently Asked Questions

Can I have multiple Way2Save accounts to get more withdrawals?

No. The six-withdrawal limit applies to each individual Way2Save account. Opening two accounts does not give you twelve free withdrawals per month. Wells Fargo counts withdrawals per account, not per customer.

Does a transfer from my Wells Fargo checking account count as a withdrawal?

No. Transfers between your own Wells Fargo accounts do not count toward the six-withdrawal limit. Only transfers to external accounts or cash withdrawals count. You can move money between your checking and Way2Save as many times as you want.

What happens if I fall below the $500 balance on the regular Savings Account?

You pay the $5 monthly fee for that month. The fee is charged once per month regardless of how many days your balance was below $500. If your balance recovers to $500 or above before the end of the month, you still pay the fee that month.

Can I waive the fee on the regular Savings Account with both direct deposit and the balance requirement?

Yes, but you only need one method. If you have both a $500 balance and a $25 monthly direct deposit, the fee is still waived once per month. You do not get a discount or benefit for meeting both conditions.

Do ATM withdrawals at non-Wells Fargo ATMs count toward the six-withdrawal limit?

Yes. Any ATM withdrawal, whether at a Wells Fargo ATM or another bank's ATM, counts as one of your six free withdrawals per month on Way2Save. Using an out-of-network ATM may also trigger a separate ATM fee from Wells Fargo or the other bank.