Earn 4.25% APY: Why This U.S. Bank Money Market Account Beats Wells Fargo's Bonus
KEY POINTS
- If you have $25,000 of cash savings, you could qualify for a Wells Fargo savings account bonus of $525 (offer expires June 25, 2024).
- But savers can earn higher yields with a U.S. Bank Elite Money Market Account, offering up to 4.25% APY for balances of $25,000 or more.
- Got less than $25,000 in cash? Some of the best savings accounts pay 5.00% APY or more -- and do not require a minimum balance.
Have you ever wondered if it's worth signing up for a new bank account bonus? Wells Fargo is offering a new savings account bonus of $525 (offer expires June 25, 2024; must apply in person at a Wells Fargo branch), but you have to deposit $25,000 to earn it.
Getting "free money" to open a new bank account might sound like a good deal. But here's the problem: If you have some extra cash, instead of chasing after bonuses, you can often earn higher yields from the best money market accounts or best savings accounts.
If you have $25,000 of extra cash, let's see if the Wells Fargo $525 savings account bonus is really a smart move -- or what you could do instead.
How to get Wells Fargo's $525 savings account bonus
The Wells Fargo savings account bonus offer of $525 is only valid through June 25, 2024. It requires a minimum deposit of $25,000, and you have to keep a $25,000 minimum balance in your newly opened Wells Fargo savings account for at least 90 days.
Our Picks for the Best High-Yield Savings Accounts of 2024
Capital One 360 Performance Savings
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
|
APY
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
|
Min. to earn
$0
|
American Express® High Yield Savings
APY
4.25%
Rate info
4.25% annual percentage yield as of July 7, 2024
Min. to earn
$1
|
APY
4.25%
Rate info
4.25% annual percentage yield as of July 7, 2024
|
Min. to earn
$1
|
Citizens Access® Savings
APY
4.50%
Min. to earn
$0.01
|
APY
4.50%
|
Min. to earn
$0.01
|
Unfortunately, Wells Fargo savings accounts pay quite low interest. The APY for the Wells Fargo Platinum Savings account is 0.05% to 2.51%. But the best yield you can get that account with a $25,000 balance is only 0.25% APY (as of June 15, 2024). The other Wells Fargo savings account, Wells Fargo Way2Save Savings, offers an even lower yield -- just 0.01% APY.
So by committing your $25,000 of cash to a Wells Fargo savings account, yes, you can earn a $525 bonus. But you might be missing out on even more money that you could get from other banks.
Better than a bonus: U.S. Bank Elite Money Market Account (up to 4.25% APY)
If you have enough cash to get the $525 Wells Fargo savings account bonus, here's what you should consider instead. U.S. Bank now offers the U.S. Bank Elite Money Market Account with up to 4.25% APY (as of June 15, 2024). This rate is competitive with some of the best money market accounts -- but U.S. Bank requires a minimum balance of $25,000 to get up to 4.25% APY; lower balances get 0.01% APY.
Want to see how much you can earn? Here's how $25,000 in a U.S. Bank Elite Money Market Account compares to a $525 savings account bonus from Wells Fargo.
Bank account | Wells Fargo Way2Save Savings | Wells Fargo Platinum Savings | U.S. Bank Elite Money Market Account |
---|---|---|---|
Balance | $25,000 | $25,000 | $25,000 |
APY | 0.01% APY | 0.25% APY | up to 4.25% APY |
Bonus | $525 | $525 | $0 |
Yield after 3 months (including bonus) | $525.62 | $540.61 | $261.49 |
Yield after 1 year | $527.53 | $588.48 | $1,062.50 |
If you look at the short-term picture, that $525 Wells Fargo savings bonus is worth more than the higher interest rate on a U.S. Bank Elite Money Market Account. But beyond the first three months (the minimum required time to earn the $525 bonus), you are losing money with Wells Fargo compared to what you'd earn from the higher yields with U.S. Bank.
Could you put money into a Wells Fargo savings account for three months, earn the $525 bonus, and then move your money to another savings account with a better APY? Technically, yes -- but this kind of "account churning" can be risky. You don't want to get a bad reputation with banks for opening (and closing) too many accounts too often; this could cause you problems or lead to denials for new bank accounts in the future.
Bottom line
If you have $25,000 of cash, you could qualify for a $525 savings account bonus from Wells Fargo (offer expires June 25, 2024). Or you could earn a higher yield on your savings with a U.S. Bank Elite Money Market Account ($25,000 minimum balance to earn up to 4.25% APY, as of June 15, 2024).
Do you have less than $25,000 of cash savings? If so, consider some of the best savings accounts. SoFi Checking and Savings does not require a minimum balance to earn up to 4.60% APY (as of June 15, 2024).
These savings accounts are FDIC insured and could earn you 11x your bank
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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