Wells Fargo savings accounts do earn interest, but the rate is very low
Yes, Wells Fargo savings accounts pay interest. The bank calls this the Annual Percentage Yield, or APY. However, the rate Wells Fargo offers on standard savings accounts is typically well below 0.01% — meaning on a $1,000 balance, you would earn less than $0.10 per year. The actual rate changes without notice and varies depending on which type of savings account you hold and how much money you keep in it.
Wells Fargo publishes current rates on its website, but the rates are not competitive with what online banks or credit unions offer. If you are comparing savings accounts specifically to earn interest on money you are not spending, a Wells Fargo savings account is usually not the best choice. If you already bank with Wells Fargo and want to keep your savings there for convenience, you should understand that the interest earned will be minimal.
Key Takeaways
- Wells Fargo savings accounts earn interest at rates below 0.01% APY on most account types, which generates almost no income on typical balances.
- The exact rate depends on your account type and balance, and Wells Fargo can change rates at any time without advance notice.
- Interest is calculated daily but paid monthly, so you see the deposit once per month in your account statement.
- Online banks and credit unions typically offer savings rates 10 to 50 times higher than Wells Fargo, though they do not have physical branches.
How Wells Fargo calculates and pays interest on savings
Wells Fargo calculates interest on your savings balance every day. The bank takes your account balance at the end of each day, applies the APY to that amount, and divides by 365 to get the daily interest earned. Over the course of a month, those daily amounts add up, and Wells Fargo deposits the total into your account once per month, usually between the 1st and 5th of the following month.
The timing matters only if you are moving money in and out frequently. If you deposit $5,000 on the 15th of the month, you earn interest on that $5,000 only from the 15th onward — not for the first half of the month. If you withdraw $2,000 on the 20th, your interest for that month is calculated on the lower balance from the 20th forward.
Wells Fargo savings account types and their interest rates
Wells Fargo offers several savings account products, and the interest rate can differ slightly between them. The most common are the Wells Fargo Savings Account (the basic option), the Wells Fargo Way2Save Savings Account (marketed toward younger customers), and the Wells Fargo Preferred Savings Account (which requires a higher minimum balance). All three currently pay rates below 0.01% APY, though Wells Fargo does not publish a single fixed rate — the bank reserves the right to change rates daily.
Some Wells Fargo savings accounts offer tiered rates, meaning the APY increases slightly if you maintain a higher balance. For example, a balance of $25,000 or more might earn a marginally higher rate than a balance under $25,000, but the difference is typically a fraction of a basis point (0.01% of 1%). On a $25,000 balance, this might mean earning $0.50 more per year instead of $0.25.
Wells Fargo also offers Money Market Accounts, which are a different product from savings accounts. Money Market Accounts sometimes pay slightly higher rates than savings accounts, but Wells Fargo's Money Market rates are also very low. Check the current rates on Wells Fargo's website or ask at a branch, because rates change and vary by account type.
Why Wells Fargo rates are lower than other banks
Wells Fargo is a large national bank with thousands of physical branches and ATMs. Maintaining that branch network is expensive, and the bank passes some of that cost to customers by offering lower interest rates on deposits. Online banks have no branches, no tellers, and no physical locations, so they can afford to pay higher rates on savings accounts because their operating costs are much lower.
The Federal Reserve also influences how much interest banks pay. When the Fed raises its benchmark interest rate, banks gradually raise the rates they pay on savings. When the Fed lowers rates, banks lower what they pay depositors. Wells Fargo's rates tend to lag behind online banks even when the Fed is raising rates, because Wells Fargo does not need to compete aggressively for deposits — customers often stay with Wells Fargo for convenience or because they already have a checking account there.
What you earn on a Wells Fargo savings account in real numbers
The interest you earn depends on your balance and the current APY. Here is what typical earnings look like at current Wells Fargo rates:
| Account Balance | At 0.01% APY | Annual Interest Earned |
|---|---|---|
| $1,000 | $1,000 × 0.0001 | $0.10 |
| $5,000 | $5,000 × 0.0001 | $0.50 |
| $10,000 | $10,000 × 0.0001 | $1.00 |
| $25,000 | $25,000 × 0.0001 | $2.50 |
These numbers assume a 0.01% APY, which is typical for Wells Fargo savings accounts. Your actual rate may be lower or slightly higher depending on your account type and balance. Even at higher balances, the annual interest is small enough that it rounds to zero on most monthly statements.
By contrast, online banks currently offer savings rates between 0.4% and 5.0% APY depending on the account type and market conditions. At 4.5% APY, a $10,000 balance would earn $450 per year instead of $1.00. That difference compounds over time, especially if you are saving for a long-term goal.
When a Wells Fargo savings account makes sense despite low interest
A Wells Fargo savings account is worth keeping if you already have a Wells Fargo checking account and value the convenience of managing everything in one place. If you use Wells Fargo's ATM network regularly or visit a branch frequently, the ease of moving money between accounts may outweigh the cost of earning almost no interest.
A Wells Fargo savings account also makes sense if you are saving a small amount of money for a short period — say, $500 to $2,000 that you plan to spend within a few months. The difference in interest between Wells Fargo and an online bank is so small on low balances that convenience matters more than yield.
If you are saving a larger amount or planning to keep the money untouched for a year or more, moving it to an online bank or credit union savings account will earn you significantly more interest with almost no additional effort. You can open an online savings account in minutes, and transfers between banks typically take one to three business days.
How to check your current Wells Fargo savings rate
Wells Fargo publishes current rates on its website under the savings account product pages. You can also call Wells Fargo customer service at 1-800-869-3557 or visit a local branch to ask about the current APY on your specific account type. When you call or visit, have your account number ready so the representative can tell you the exact rate for your account, since rates can vary slightly by account type and balance tier.
Your monthly account statement also shows the interest you earned that month and the APY that was applied. If you log into your Wells Fargo online account, you can usually see the current rate listed in your account details or in a rates and fees section.
Frequently Asked Questions
Is the interest on a Wells Fargo savings account taxable?
Yes. Any interest you earn 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 amount on your tax return. Because Wells Fargo rates are so low, most customers earn less than $10 per year and do not receive a 1099-INT.
Can I move my Wells Fargo savings to a higher-rate account without closing the account?
Yes. You can open a savings account at another bank and transfer your balance there while keeping your Wells Fargo account open. Transfers between banks take one to three business days. You do not have to close your Wells Fargo account unless you want to — you can keep it open with a small balance or leave it dormant.
Does Wells Fargo charge a monthly fee on savings accounts?
Wells Fargo does not charge a monthly maintenance fee on most savings accounts, but fees vary by account type. Check your account agreement or ask Wells Fargo directly about any fees that might explore to your specific account. Some accounts waive fees if you maintain a minimum balance or have a linked checking account.
Will Wells Fargo raise its savings rates if the Federal Reserve raises rates?
Wells Fargo typically raises savings rates when the Fed raises rates, but the increases are usually smaller and slower than at online banks. Wells Fargo may wait weeks or months to raise rates, and the increase is often just a few basis points (fractions of a percent). Online banks usually respond to Fed rate changes within days.
What is the difference between a Wells Fargo savings account and a Money Market Account?
A Money Market Account usually offers a slightly higher interest rate than a savings account, but it may require a higher minimum balance and limit how many withdrawals you can make per month. Wells Fargo's Money Market rates are still very low compared to online banks. Choose based on whether you need frequent access to the money — savings accounts have no withdrawal limits, while Money Market Accounts may restrict you to three to six withdrawals per month.