Forget Wells Fargo's $525 Savings Account Bonus. This Account Could Earn You $1,250 in a Year

Bank account bonuses used to be limited to checking accounts, but an increasing number of banks now offer them to new savings account customers as well. Wells Fargo is currently offering a $525 bonus to new Wells Fargo Way2Save Savings account customers who complete certain qualifying activities.

It sounds great, but when you delve into the details, it's clear there are better options available. Below, I'll explain why you may want to stay away from the Wells Fargo offer and where to put your cash instead so you could earn $1,250 in a year.

Why the Wells Fargo $525 savings account bonus isn't all it's cracked up to be

Obtaining the Wells Fargo $525 savings account bonus is fairly straightforward. To earn it, you must:

1. Open a new Wells Fargo Way2Save Savings account with at least a $25 minimum opening deposit by July 9, 2024, using the bonus offer code you can obtain on this Wells Fargo offer page.
2. Deposit at least $25,000 in new Wells Fargo money into the account within 30 days and maintain a balance of at least $25,000 for 90 days after account opening.

If you do this, Wells Fargo will pay you the $525 bonus within 30 days of meeting the offer requirements.

But there are a few drawbacks. First, many people don't have a spare $25,000 in savings, so this bonus won't even be an option to them. There's also the Wells Fargo Way2Save Savings's low APY. It only offers 0.01%, so you'd earn $2.50 on your $25,000 initial deposit in a year. So if you manage to achieve the $525 sign up bonus, your total earnings for the year will be $527.50. It's not bad, but you could do a lot better.

This account could earn you $1,250 in a year

The CIT Platinum Savings doesn't have a sign up bonus, but it has a much higher APY -- 5.00% APY for balances of $5,000 or more to be exact. Its requirements are steeper than many other online banks in that you need $100 to open the account and at least $5,000 to earn the APY. But if you have the cash for the Wells Fargo Way2Save Savings sign up bonus, you should have no problem with the CIT Platinum Savings account's requirements.

A 5.00% APY could earn you $1,250 on a $25,000 balance over a year. That's more than double what you'd earn with the Wells Fargo Way2Save Savings account over the same period. And the best part is you don't have to wait four months to get your cash. You can start earning interest the month after you deposit cash into the account.

Alternatives if you don't have a lot in savings

Neither of the above accounts is a good fit for you if you have less than $5,000 in savings, but don't worry. There are plenty of other top savings accounts that don't have minimum balance requirements. One of these could be a better fit for you.

Or if you prefer easy accessibility over high earnings, you might prefer a checking account from an online bank instead. Several of these now offer interest as well, though their APYs aren't as high as online savings account rates.