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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 | 0.50% – 4.51% | 0.03% – 4.50% |
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 | 0.50% – 1.02% | 4.00% |
6 Months | 3.75% – 4.01% (5 months) | 4.50% (Featured, 7 months) |
9 Months | N/A | 0.03% |
12 Months | N/A (11 months) | 4.50% (Featured, 13 months) |
18 Months | N/A
| 0.03% |
24 Months | N/A | 3.20% (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% |
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 | 0.15% – 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.
