Wells Fargo Savings Account
Wells Fargo Savings Account
Authority: Wells Fargo Bank, N.A is a major nationally chartered bank within the United States. It is a U.S based subsidiary of the Wells Fargo & Company (NYSE:WFC) which is an American company that was founded back in 1852. As at 2012 according to the FDIC It has a large domestic branch presence throughout the country with 6433 branches in 41 states, with the largest presence in California (1065), Texas (713) and Florida (666).
How to open a Wells Fargo Savings Account:
- Visit the bank website at www.wellsfargo.com , find the savings product of choice and complete the application for that account.
- You can contact the customer service on 1-800-869-3557 who can assist you in the process of opening up an account as well as answer questions you may have in opening an account.
- With thousands of branches in 41 states you can find a physical branch location where you can speak to customer service representatives directly who can assist you in the process of opening the product.
What information you will require when completing an online application for Wells Fargo Savings Account product:
On the Wells Fargo website it indicates that new customers will require a valid driver's license ( issuing state, expiry, number), SSN (Social Security Number), a minimum deposit as well personal information such as your date of birth, address and full name.
Information on Wells Fargo Savings Account Interest Rates:
While a savings account is a common product that is issued by banks, the Interest rate and annual percentage yield on this product can vary from bank to bank. This can also vary amongst other banking products such as money market accounts and certificates of deposit.
Products for Savings and Deposits from the banks point of view are considered a liability and therefore the rate at which banks lend will typically be always higher than the rates they provide for deposits and savings.
In particular the savings rate set by Wells Fargo is affected by a number of factors including but not limited to the Federal Reserve monetary policy and the "fed funds rate", cost of wholesale funding, net interest margin, profitability, competition for deposits and regulation requirements. Some of these factors can vary from bank to bank which could perhaps affect the rate it sets.
A savings account is a highly liquid product, is covered by FDIC insurance and is considered low risk. Comparing against CDs which may also be considered low, covered by FDIC but are considered more illiquid due to APY being fixed and issued for a set maturity date e.g. 6 months. Due to this highly liquid nature, interest rates set by banks tend to be lower than CDs.
One of the risks of savings products is if the interest rate set by the bank is very low and the CPI inflation is much higher, over time purchasing power on the rate of return will be negative.
The rate of 0.03% is 0.07% lower than the average 0.1%. Also it is 0.96 % lower than the highest rate.