Had $25K in a Wells Fargo Savings Account for 5 Years? You Just Lost $5,000 in Interest
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If you've been keeping your money in a Wells Fargo savings account, you're not alone. I did the same for years -- until I realized I'd been missing out on thousands of dollars in interest.
Fun fact: Wells Fargo's standard savings account has an interest rate of just 0.01% APY. That means if you kept $25,000 in your account, you were earning just $2.50 a year.
Meanwhile, the best high-yield savings accounts (HYSAs) have offered APYs of 4.00% or higher over the last few years -- so that $25,000 could've been earning you $1,000 or more a year.
Here's how the math works, and why it's not too late to switch today.
Get hundreds more a year for moving your money
Here's a simplified example: Let's say you kept $25,000 in savings with Wells Fargo over the last five years. At Wells Fargo's 0.01% APY, you earned about $12.50 in interest in that stretch -- enough to buy a nice Taco Bell dinner.
On the other hand, an account offering 4.00% APY could have earned you $1,000 a year on that same balance -- about $5,000 over five years.
Keep in mind that this example doesn't account for things like compounding interest, fluctuating rates, or changes in your account balance. But the point stands that in the long run, high-yield savings accounts offer much better returns.
They can also come with features like:
- No account fees or minimum deposit requirements
- No-fee overdraft coverage
- FDIC insurance up to $250,000, just like traditional banks
Ready to earn hundreds more on your savings? Check out our full list of the best high-yield savings accounts today.
I opened my new account in minutes
It took me less than half an hour to open my new account -- and I did it all from the comfort of my couch.
Here's how to do it:
- Compare top options. Look for HYSAs with a high APY and no fees.
- Apply online. Applications are usually quick and easy.
- Transfer your funds to your new account.
- Move direct deposits and other automatic transfers to your new account, too.
Even if you don't have tens of thousands in the bank, opening an HYSA is well worth your time. Just a few minutes can mean hundreds more in savings every year, and your money's just as safe and accessible as it was in your old, dusty Wells Fargo account.
Want to earn a higher APY today? See our full list of the best high-yield savings accounts available now.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.