Which is Better for You?

By
Internationalfinancialnews.com
-
0
15


How do you choose between two banking behemoths that offer a similar range of products and services? By drilling down into the details to uncover which one best fits your unique needs. Broadly speaking, both Wells Fargo and Bank of America will cover your basic banking, but depending on the type of saver (or spender) you are, one could be a better match.   

Personal checking accounts 

Wells Fargo and Bank of America offer various personal checking accounts that range from standard to more premium options. Each account differs depending on whether you’re looking to store your money somewhere that charges minimal fees, or an account that earns interest for little requirements.

The Bank of America SafeBalance Banking® account is the lowest tier of checking accounts offered by that bank, with a minimum deposit requirement of $25 and a $4.95 monthly maintenance fee, which you can waive by maintaining a minimum daily balance of $500. This account is ideal for everyday banking, as it comes with no overdraft fees and is suited for those who prefer using debit cards, Zelle or digital banking over checks.

On the other hand, the Wells Fargo Everyday Checking Account, which offers overdraft protection and mobile banking features, also has a minimum deposit requirement of $25, but comes with a $10 monthly maintenance fee unless you maintain a $500 minimum daily balance. So if a $10 monthly maintenance isn’t feasible for you, the Bank of America checking account is a great option.

And if you’re looking to rebuild your banking history, the Wells Fargo Clear Access Banking account is a good second-chance checking account that can help you get back on your feet.

Bank of America Advantage SafeBalance Banking®

  • Monthly maintenance fee

    $0 for eligible students under 25

  • Minimum deposit to open

  • Minimum balance

  • Annual Percentage Yield (APY)

  • Free ATM network

  • ATM fee reimbursement

  • Overdraft fee

  • Mobile check deposit

Terms apply. Bank of America, N.A. Member FDIC.

Wells Fargo Everyday Checking

Wells Fargo Bank is a Member FDIC.

  • Monthly maintenance fee

    $10, with options to waive

  • Minimum deposit to open

  • Minimum balance

    $500 daily deposit balance to avoid monthly maintenance fee

  • Annual Percentage Yield (APY)

  • Free ATM network

  • ATM fee reimbursement

  • Overdraft fee

    $35 (max of 3 overdraft fees per day)

  • Mobile check deposit

How to avoid the monthly fee:

  • Maintain $500 in combined minimum deposit balances,
  • or make qualifying direct deposits totaling $500 or more,
  • or be between 17 – 24 years old
  • or have a linked Wells Fargo Campus ATM Card or Campus Debit Card (for college students)

When it comes to interest-bearing options, the Bank of America Advantage Relationship Banking® earns 0.01% APY for balances less than $50,000 and 0.02% for balances over $50,000. It also comes with a minimum deposit requirement of $100 and a $25 monthly maintenance fee unless you maintain a minimum daily balance of $20,000.

However, Wells Fargo offers two interest-bearing checking accounts, the Wells Fargo Prime Checking and Wells Fargo Premier Checking. Both earn 0.01% APY and have a $25 minimum deposit requirement. But because the Premier Checking account requires a $35 monthly service fee unless you have $250,000 or more in statement-ending qualifying balances, the Wells Fargo Prime Checking is more comparable to Bank of America’s option. It has a $25 monthly maintenance fee unless you have $20,000 or more in statement-ending qualifying balances.

Bank of America Advantage Relationship Banking®

  • Monthly maintenance fee

    $25, with options to waive

  • Minimum deposit to open

  • Minimum balance

    Maintain a balance of $10,000 or more in combined eligible Bank of America and/or Merrill investment accounts each statement cycle to avoid monthly maintenance fee

  • Annual Percentage Yield (APY)

    Varies by balance size (0.01% to 0.02%)

  • Free ATM network

    16,900 Bank of America ATMs

  • ATM fee reimbursement

  • Overdraft fee

    $10 per item (max 2 per day)

  • Mobile check deposit

Terms apply. Bank of America is a Member FDIC.

Wells Fargo Prime Checking

Wells Fargo Bank is a Member FDIC.

  • Combined account minimum to qualify

    To waive $25 monthly fee, minimum $20,000 in qualifying linked Wells Fargo balances

  • Eligible accounts

    Wells Fargo deposit, investment and retirement accounts

  • Benefits

    Banking discounts, waived fees, interest rate discounts, relationship rates on linked CDs and savings accounts

Personal savings accounts 

When it comes to savings accounts, each bank offers its unique options. However, while Wells Fargo offers two savings accounts, Bank of America offers only one. They’re not high-yield savings accounts so you won’t get as high of a rate as what they offer, but you’ll still earn some extra cash in your savings. Of each account, Wells Fargo’s Platinum Savings offers the highest APY of 0.05% with options by linking your account to one of Wells Fargo’s checking accounts.  

Here’s how each accounts compare: 

Way2Save® Savings

Wells Fargo is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

    $5 per month, with options to waive

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

    Each withdrawal over the 6 per month limit will be assessed

  • Overdraft fees

    Overdraft protection when you link your savings account to your checking account

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a Wells Fargo checking account

Wells Fargo Platinum Savings

Wells Fargo is a Member FDIC.

  • Annual Percentage Yield (APY)

    0.05% APY; 0.06% when linked to Prime Checking Account; 0.26% when linked to Premier Checking Account

  • Minimum balance

  • Monthly fee

    $12 per month, with options to waive

  • Maximum transactions

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a Wells Fargo checking account

Bank of America Advantage Savings

Bank of America, N.A. is a Member FDIC.

  • Annual Percentage Yield (APY)

    0.01%, with option to increase if a Preferred Rewards member

  • Minimum balance

  • Monthly fee

    $8 per month, with options to waive. New account holders get the first six months with no monthly fees

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle

  • Excessive transactions fee

    $10 when you make over 6 withdrawals in a month

  • Overdraft fees

    Overdraft protection when you link your savings account to your checking account

  • Offer checking account?

  • Offer ATM card?

    Yes, if have a Bank of America checking account

Certificates of deposit

Bank of America and Wells Fargo both offer a wide range of CDs but it all depends on how much interest you’re looking to earn and how long you’d like to lock away your funds. While Wells Fargo requires a $2,500 minimum opening deposit, Bank of America only requires $1,000. 

Wells Fargo 

Wells Fargo offers both standard and special fixed-rate CDs with terms ranging from three to 11 months earning up to 4.75% APY. However, while you’d only earn 2.50% APY with a three-month standard fixed-rate CD, you can earn 4.75% APY with a four-month special fixed-rate CD.  

Wells Fargo CDs

Wells Fargo is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Terms

  • Minimum balance

  • Monthly fee

  • Early withdrawal penalty fee

    The early withdrawal penalty or Regulation D penalty applies. The Regulation D Penalty is seven days’ simple interest on the amount withdrawn. Other than Regulation D, for terms less than 90 days (or less than 3 months), the penalty is 1 month’s interest. For 90 through 365 days (or 3-12 months), the penalty is 3 months’ interest. For over 12 months through 24 months, the penalty is 6 months’ interest. For over 24 months, the penalty is 12 months’ interest.

Bank of America 

Bank of America, on the other hand, offers terms from seven to 10 years earning up to 4.80% APY. They also range from fixed-term CDs, featured CDs and flexible CDs.  

  • Featured CDs – Featured CDs offer the highest APY of 4.80% APY for a 7-month CD but an APY of 0.05% for its highest CD term of 37 months.  
  • Fixed-term CDs – These CDs have a broader range of CD terms from one month to ten years. The highest APY is 4.00% for terms between three and five months, while other terms earn a 0.03% APY.
  • Flexible CDs – Unlike the others, this CD is limited to 12 months and lets you withdraw your principal balance and any interest before the maturity date as long as you do so at least seven days after opening your account or making a withdrawal. It offers 4.00% APY for all account balances under $10,000 and over $1,000,000.

Bank of America CDs

  • Annual Percentage Yield (APY)

  • Terms

    From 7 months to 10 years

  • Minimum balance

  • Monthly fee

  • Early withdrawal penalty fee

    The early withdrawal penalty for CDs with terms of less than 90 days, is the greater of all interest earned on the amount withdrawn or an amount equal to seven days of interest on the amount withdrawn; or primarily on the direct or overall costs and expenses associated with providing the particular account or service involved.

ATM networks 

Both Wells Fargo and Bank of America offer a broad ATM network nationwide. While Wells Fargo has approximately 11,000 ATMs, Bank of America has approximately 15,000 ATMs.  

With Wells Fargo, you can access your accounts using a mobile device or a physical debit card. Their ATMs allow you to make deposits with checks or cash, transfer funds between your personal or business accounts, and make payments to your Wells Fargo credit card. 

As a traditional brick-and-mortar bank, Bank of America offers additional features, such as drive-through banking at certain locations and access to audio ATMs. These ATMs deliver private spoken instructions in English or Spanish through a headset that plugs into an audio jack. 

Physical locations 

Bank of America and Wells Fargo both have a strong presence with their nationwide physical locations. However, as of August 2024, Wells Fargo leads with 4,227 locations, compared to Bank of America’s 3,800. 

Is Wells Fargo right for you? 

Wells Fargo can be great for a standard checking account but it especially stands out for its second-chance checking account option, which Bank of America doesn’t have. If you need to rebuild your banking history and would like the help of a second-chance checking account to get back on track this could be a good option. Plus, the $5 monthly fee is waived if you qualify for Wells Fargo’s Worldwide Military Banking program. 

Its savings accounts also offer fair APYs — slightly higher than Bank of America — with the option to increase with the Platinum Savings account but remember neither of these are high-yield savings accounts so you won’t be getting that high of a yield. And if you don’t mind locking away your money for a certain period you can opt for one of its CDs.  

Is Bank of America right for you? 

Bank of America could be a great fit if you’re looking for a standard checking account and savings account that offers a debit card, Zelle, mobile and online banking, checks and overdraft protection. And if you’d also prefer to earn interest on your checking account with these same features, you can opt for the Advantage Relationship Banking account.  

Bank of America also offers a wider range of CD options compared to Wells Fargo, whether you’re looking to earn more interest, choose from a broader range of CD terms, or have the flexibility to withdraw your money slightly early without penalty. 

Subscribe to the CNBC Select Newsletter!

Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.




LEAVE A REPLY

Please enter your comment!
Please enter your name here