Wells Fargo Vs. Chase: Which Bank Is Better for You?
source link: https://www.businessinsider.com/personal-finance/wells-fargo-vs-chase-comparison
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Wells Fargo vs. Chase review
Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
The bottom line: Chase is a better choice for savings and CDs, but Wells Fargo has easily manageable checking options. When it comes to trustworthiness, both banks have been involved in recent public controversies.
Wells Fargo and Chase are two of the biggest national banks in the US. To help you determine which bank accounts and services may be the best for you, we've compared checking, savings, and CDs. We're also comparing financial institutions in trustworthiness so you can know more about each institution's history.
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Chase
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Wells Fargo
Pros and cons of Chase
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Pros and cons of Wells Fargo
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Checking account comparisons
Wells Fargo and Chase each have an ample number of checking accounts.
Below, we've compared two checking accounts that the average person would open if they were looking for a checking account with minimal bank fees.
| Chase Total Checking® | Wells Fargo Everyday Checking Account | |
| Minimum opening deposit | $0 | $25 |
| Monthly service fee | $12 (with options to waive) | $10 (with options to waive) |
| How to waive the monthly service fee | Meet one of the following requirements:
| Meet one of the following requirements:
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| Sign-up bonus | $200 | $0 |
| Next steps | Open an account | Open an account |
Winner: Wells Fargo
Wells Fargo makes it easier to waive the monthly service fee than Chase.
Wells Fargo Everyday Checking Account
Details
Pros & Cons
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Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Additional Reading
Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Savings account comparisons
Chase and Wells Fargo offer traditional and premium savings accounts. We compared two savings accounts with monthly services fees of $5 (or under if you qualify to waive the fee).
| Chase Savings℠ | Wells Fargo Way2Save® Savings Account | |
| APY | 0.01% effective as of 10/10/2022. Interest rates are variable and subject to change | 0.15% |
| Minimum opening deposit | $0 | $25 |
| Monthly service fee | $5 (with options to waive) | $5 (with options to waive) |
| How to waive the monthly fee | Meet one of the following requirements:
| Meet one of the following requirements:
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| Other perks | None | Save As You Go® transfers $1 into your Way2Save Savings Account from checking each time you swipe your debit card |
Winner: Chase
Chase doesn't require a minimum opening deposit and makes it easier to waive the $5 monthly service fee. However, the Wells Fargo Way2Save® Savings Account might be worth considering if you find the account's Save As You Go® feature appealing.
Chase Savings℠
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Pros & Cons
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Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Additional Reading
Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.CD comparisons
| Chase Certificate of Deposit (CD) | Wells Fargo Fixed Rate Certificate of Deposit | |
| Term lengths | 1 month to 10 years | 3 months to 1 year |
| Minimum opening deposit | $1,000 | $2,500 |
| APY | 0.01% to 3.00% (vary by location) | 0.50% to 2.01% |
| Early withdrawal penalties | 90 to 365 days interest | 3 months interest for 3-month, 6-month, and 1-year CDs |
| Next steps | Open an account | Open an account |
Winner: Chase
Chase has more CD terms to choose from and has a lower minimum opening deposit. But if you're searching for which bank offers the highest CD rate, it'll largely depend on the term you choose. Chase also pays much higher relationship rates on CDs if you also have a checking account than it does otherwise.
Chase Certificate of Deposit (CD)
Details
Pros & Cons
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Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Additional Reading
Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Which bank is more trustworthy?
We use ratings from the Better Business Bureau to evaluate how a bank deals with customer issues.
The Better Business Bureau gave JP Morgan Chase & Co. (Chase's parent company) a A rating due to government action taken against the business. Wells Fargo received an F rating because it is responding to previously closed complaints and has received government action against the bank.
A good BBB rating won't necessarily ensure your relationship with a bank will be perfect. Consider talking to current customers or reading online customer reviews.
Chase and Wells Fargo have also both gone through a few public controversies in the last few years.
Here are recent cases with JP Morgan Chase & Co.:
- In 2020, JP Morgan Chase & Co. paid the Department of Justice $920 million when charged with wrongful trading.
- In 2020, JP Morgan Chase & Co. paid $800,000 in back wages in a settlement with the US Department of Labor that accused the company of underpaying women. The US Department of Labor also required the bank to provide a total of $9 million for compensation adjustments over five years.
Meanwhile, Wells Fargo has been involved in the following issues:
- In December 2022, The Consumer Financial Protection Bureau required Wells Fargo to pay more than $3.7 billion in a settlement that accused the bank of wrongfully charging fees that led thousands of customers to lose vehicles and homes. The settlement also accuses the bank of wrongfully charging overdraft fees on checking and savings accounts.
- In 2021, the Office of the Comptroller of Currency issued a cease and desist order against Wells Fargo because the OCC said the bank's compliance risk management program had unsafe business practices.
- In 2020, the Department of Justice required Wells Fargo to pay $3 billion in a settlement that accused company employees of opening unauthorized bank accounts to meet unrealistic sales goals.
- In 2019, Wells Fargo paid the city of Philadelphia $10 million in a settlement. The city claimed Wells Fargo engaged in predatory mortgage lending to racial minorities.
- In 2019, the bank also paid $10 million in a settlement with the California Department of Insurance (CDI). The CDI stated that Wells Fargo signed up and charged 1,500 consumers on insurance products without their knowledge.
Winner: Tie
Chase has been involved in public scandals about wrongful trading and gender discrimination, while Wells Fargo has been a part of settlements regarding discrimination and unauthorized accounts. You may prefer another financial institution if you are concerned about a bank's history.
Frequently asked questions
It'll depend on which bank accounts you'd like to open. Wells Fargo's checking account makes it easier to waive the monthly service fee, but Chase has stronger options with savings accounts and CDs.
Keep in mind neither Wells Fargo nor Chase offers a money market account. Look over our money market account guide for our top picks.
Chase has more than 4,800 branches and more than 16,000 free ATMs. Meanwhile, Wells Fargo has 4,700 branches and 12,000 ATMs.
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