I Moved My Savings From Wells Fargo to SoFi. I Could Earn an Extra $2,000 in the Next 3 Years
Image source: Getty Images
I kept my money in a Wells Fargo savings account for 15 years -- mostly because I thought it was a safe, smart move. That was until I realized I was earning next to nothing on my savings.
My Wells Fargo account was earning just 0.01% annual percentage yield (APY) -- giving me exactly $2 a year in interest on a $20,000 balance.
A few months ago, I moved my money to the SoFi Checking and Savings (Member FDIC) account. Now my money earns up to 3.80% APY. (Note that SoFi® currently has a limited-time offering of up to 4.50% APY on savings when certain terms are met, but I joined before this promotional rate took hold, so my savings are only eligible for the standard 3.80%.) If that rate holds, I'll earn $760 a year in interest -- or $2,280 over three years.
Here's how the math breaks down and why you might want to switch to SoFi®, too.
How the numbers stack up
With SoFi®'s non-promotional 3.80% APY for eligible members, my $20,000 in savings earns $760 every 12 months. Here's how that compares to Wells Fargo over three years:
| Time | Wells Fargo Earnings (0.01% APY) on $20,000 balance | SoFi® Non-Promotional Earnings (3.80% APY) on $20,000 balance |
|---|---|---|
| 1 year | $2 | $760 |
| 2 years | $4 | $1,520 |
| 3 years | $6 | $2,280 |
Savings account rates rise and fall, but even if interest rates decline, the difference between Wells Fargo and SoFi® will still be massive.
Instead of pocket change, you could earn thousands of dollars over the next three years, just for moving your money.
I also love how SoFi® offers:
- Up to $50 in no-fee overdraft coverage with direct deposit
- Access to paychecks up to two days early with direct deposit
- No account fees or minimum deposit requirements
- FDIC insurance up to $250,000, just like Wells Fargo
Ready to earn a higher APY on your savings? Read our full review of SoFi Checking and Savings (Member FDIC) to open an account today.
On SoFi's Secure Website.
Member FDIC.
SoFi Checking and Savings
On SoFi's Secure Website.
= Best
= Excellent
= Good
= Fair
= Poor
= Best
= Excellent
= Good
= Fair
= PoorOn SoFi's Secure Website.
- Competitive APY on both Savings and Checking
- No monthly account fee
- Welcome bonus up to $300 (direct deposit required)
- ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Early access to direct deposits
- Tools to help you track savings goals
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- No branch access; online only
- Overdraft protection requires monthly direct deposit minimum
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, new customers earn a bonus of up to $300 with eligible direct deposit. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
Smaller balances still make much more
Even if you don't have $20,000 in the bank, switching to a high-yield savings account (HYSA) can make a big difference. Here's how much you can make with an account earning 3.80% APY:
- $10,000 = $380/year
- $5,000 = $190/year
- $2,500 = $95/year
Compare that with Wells Fargo's 0.01% APY, and SoFi® is still the clear winner:
- $10,000 = $1/year
- $5,000 = $0.50/year
- $2,500 = $0.25/year
What do I keep in my HYSA?
I keep almost all of my cash in my high-yield savings account. I use it for my:
- Emergency fund: Three to six months of living expenses
- Short-term savings: Money for a big upcoming purchase like a car or vacation
- Extra cash: Any other money that I don't need in my checking account
The only things I don't use it for are 1) long-term investments and 2) money I need for day-to-day transactions. For pretty much almost everything else, though, my HYSA is the perfect fit.
I only wish I'd switched sooner
For 15 years, I never questioned what my Wells Fargo savings account was earning. Now that I have, I know I'm much better off with an HYSA like SoFi®.
My SoFi® account took minutes to open, and it's just as safe as my old Wells Fargo account. And if I keep earning at this rate, I could make more than $2,000 in the next three years.
I only wish I'd made the switch sooner.
Don't settle for next to nothing on your cash. Open one of our favorite high-yield savings accounts today.
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.