Table Of Content
Certificates of deposit (CDs) can be a low-risk investment option for individuals who want to earn higher interest rates than a typical savings account. Two major players in the banking industry, Wells Fargo and Bank of America, offer CDs with varying rates and terms.
In this article, we'll compare the CD rates and terms offered by Wells Fargo and Bank of America, including early withdrawal fees and other important considerations.
Here's a general CD comparison:
Wells Fargo CDs | Bank Of America CDs | |
|---|---|---|
CD Range | 3.75%- 4.00% | 0.03% – 4.00% |
Minimum Deposit | $2,500 | $1,000 |
Early Withdrawal Penalty | 1 – 6 months of interest | 90-365 days of interest |
Terms | 3 months – 13 months | 1 – 120 months |
Compare CD Rates: Wells Fargo vs. Bank Of America
The table compares the CD rates offered by Wells Fargo Bank and Bank Of America for specific terms.
With both banks, you can get higher rates only on its featured CD. Those types of CDs require a higher minimum deposit, and Wells Fargo rates are better for most terms. However, in order to get the highest level in the CD range, you'll need a relationship with the bank.
CD Term | Wells Fargo APY | Bank Of America APY |
|---|---|---|
3 Months | 2.00% – 2.01% | 3.75% |
6 Months | 3.75% – 4.01% (7 months) | 3.80% (Featured, 7 months) |
9 Months | N/A | 0.03% |
12 Months | 4.50% – 4.76% (11 months) | 2.75% (Featured, 13 months) |
18 Months | N/A
| 0.03% |
24 Months | N/A | 2.00% (Featured, 25 months) |
30 Months | N/A | 0.03% |
36 Months | N/A | 0.03% |
48 Months | N/A | 0.03% |
60 Months | N/A | 0.03% |
120 Months | N/A | 0.03% |
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Which Is Better If You Need An Early Withdrawal?
The amount of the early withdrawal penalty can differ based on the financial institution and the remaining time until the CD matures.
The table below shows that there is no obvious leader in terms of penalties for the different terms, as both banks offer similar ones. However, if you are looking for 3 month CD, Wells Fargo has lower penalty.
CD Term | Wells Fargo | Bank Of America |
|---|---|---|
3 Months | 1 month of interest | 90 days of interest |
6 Months | 3 month of interest | 90 days of interest |
9 Months | N/A | 90 days of interest |
12 Months | 6 month of interest | 180 days of interest |
18 Months | N/A | 180 days of interest
|
24 Months | N/A | 180 days of interest |
30 Months | N/A | 180 days of interest |
36 Months | N/A | 180 days of interest |
48 Months | N/A | 180 days of interest |
60 Months | N/A | 365 days interest |
120 Months | N/A | 365 days interest |
CD Alternatives: What Do Wells Fargo And BoFa Offer?
Those who prioritize flexibility and liquidity over higher interest rates provided by CDs may consider savings account as an alternative. Although savings accounts offer lower interest rates than CDs, they provide easier access to funds without early withdrawal penalties.
Wells Fargo Platinum Savings | Bank Of America Savings | |
|---|---|---|
Savings Rate | 0.26% – 2.51% | 0.01% – 0.04% |
Minimum Deposit | $25 | $100 |
Fees | $12
can be waived by maintaining a $3,500 minimum daily balance
| $8 per month
Can be waived by maintaining a balance of $500+, becoming a Preferred Rewards member or linking to your B of A Advantage Banking account. Fees are also waived for enrolled students aged under 24
|
Promotion | None | None |
Wells Fargo offers two savings account – the Wells Fargo Way2Save Savings and the Wells Fargo Platinum Savings, which offers a higher rate. However, the rates are significantly lower than what you can get with Wells Fargo CDs.
Bank Of America doesn't offer a real alternative. The APY on its savings account is very low.
The Smart Investor CDs Comparison Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
Compare BofA Certificate Of Deposit (CDs)
While Citi Bank offers CD competitive rates on most terms, Bank Of America is the winner for specific terms. Citi also offers no penalty CD.
Compare Wells Fargo Certificate Of Deposit (CDs)
While Citi Bank offers competitive CD rates on most terms, Wells Fargo offers high rates on specific terms. Compare rates and withdrawal fees.
Chase and Wells Fargo offer competitive CD rates only on specific terms. Compare rates, minimum deposits, and early withdrawal penalties.
