Wells Fargo vs. Bank of America: Which Bank Suits Your Financial Needs Best?
Choosing between two of the largest banks in the U.S.—Wells Fargo and Bank of America—can be challenging, especially since both offer a similar array of financial products and services. However, understanding the differences in their account offerings, fees, interest rates, ATM networks, and branch locations can help you make the right choice based on your financial habits and needs.
In this article, we’ll take a deep dive into each bank’s key deposit accounts, personal savings options, certificates of deposit (CDs), ATM networks, and physical locations, helping you make a more informed decision.
Checking Accounts Comparison: Wells Fargo vs. Bank of America
Both Wells Fargo and Bank of America offer a range of personal checking accounts, with options for standard and premium accounts. Whether you’re looking to avoid fees or earn interest, each bank provides unique solutions that cater to different types of customers.
For those focused on avoiding fees, the Bank of America SafeBalance Banking® is a better option, with a low $4.95 monthly maintenance fee and no overdraft fees. However, if overdraft protection is important, the Wells Fargo Everyday Checking Account is worth considering despite its higher $10 monthly fee.
If you’re looking to rebuild your banking history, Wells Fargo offers the Clear Access Banking account, a second-chance account designed to help individuals get back on their financial feet. Bank of America doesn’t have a direct equivalent to this service, giving Wells Fargo an edge for customers who may need to repair their banking history.
Interest-Bearing Checking Accounts: Where Can You Earn More?
For those interested in interest-bearing checking accounts, the choice between the two banks boils down to maintenance fees, minimum balance requirements, and interest rates.
Both banks offer similar interest rates on their checking accounts, with a 0.01% annual percentage yield (APY) for balances under $50,000. However, Bank of America’s Advantage Relationship Banking® offers a slightly better APY (0.02%) for balances over $50,000. On the other hand, Wells Fargo’s Premier Checking account has a much higher balance requirement to waive fees and access premium services, making Prime Checking a more comparable option for most customers.
Personal Savings Accounts: How Do They Compare?
When it comes to savings, Wells Fargo and Bank of America provide options that are not high-yield accounts but still offer ways to grow your savings over time.
Wells Fargo offers two savings accounts, while Bank of America has one. Here’s how they stack up:
The Wells Fargo Platinum Savings offers the highest APY at 0.05%—significantly higher than the 0.01% APY from both Wells Fargo’s Way2Save Savings and Bank of America Savings. However, the monthly fee for Platinum Savings is also higher unless you maintain a $3,500 balance. For those looking for simplicity with lower balances, the Way2Save Savings account from Wells Fargo may be a better fit.
Certificates of Deposit (CDs): Where to Lock in the Best Rates?
Both Wells Fargo and Bank of America offer a variety of CDs, allowing you to choose based on how much you want to save and how long you’re willing to lock away your funds.
While Wells Fargo offers a strong 4.75% APY for a special 4-month CD, Bank of America edges ahead with a slightly higher 4.80% APY for a 7-month featured CD. Bank of America also offers more CD options, including flexible CDs that allow early withdrawals, making it an appealing choice if you’re concerned about locking your money for long periods.
ATM Networks: Accessibility at Your Fingertips
Both banks have extensive ATM networks across the U.S. Wells Fargo boasts around 11,000 ATMs, while Bank of America leads with 15,000. For many customers, the larger Bank of America ATM network might offer greater convenience, especially in less urban areas.
Wells Fargo also offers mobile banking access at ATMs, allowing you to withdraw funds without needing your physical debit card. Bank of America goes a step further with drive-through banking and audio ATMs that provide spoken instructions in English or Spanish through a headset.
Branch Locations: Who Has More Reach?
When it comes to physical branches, Wells Fargo takes the lead with 4,227 locations compared to Bank of America’s 3,800 as of August 2024. If in-person banking is important to you, Wells Fargo may be the better option purely based on the number of locations.
Final Thoughts: Wells Fargo or Bank of America?
Choosing between Wells Fargo and Bank of America depends on your financial priorities. If you’re looking for more robust CD options or a broader ATM network, Bank of America may be the better choice. On the other hand, if you need a second-chance checking account or want slightly better interest rates on savings accounts, Wells Fargo could be a stronger fit. Regardless of which bank you choose, both offer reliable and comprehensive banking services to meet your everyday needs.
