Earn 4.25% APY: Why This U.S. Bank Money Market Account Beats Wells Fargo's Bonus

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 Open Account for Capital One 360 Performance Savings Member FDIC.	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 June 28, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of June 28, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	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 0.25% to 2.51%, depending on balance. 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.

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).