Money market accounts (MMA)Ī money market account has the features of a savings and a checking account and generally offers higher interest rates than a savings account. Make sure you will not need this money during your term so that you avoid paying withdrawal fees. Wells Fargo has a higher minimum deposit than Bank of America.Īt Wells Fargo and Bank of America, the more money you put into your CD up to a certain amount, the higher the APY will be. Both banks offer short and long term options. To consider whether Wells Fargo or Bank of America has a better CD offer, determine how much money you are planning on setting aside and dedicating to your CD and how much time you want to leave that money untouched. However, the minimum opening deposit with a CD is generally higher than a savings account and you get charged a fee if you withdraw your money earlier than the term. Interest rates tend to be higher than those with a savings account. In other words, you save money in the CD for a specific amount of time. The difference with a savings account is that the CD has a fixed term. Certificates of deposits (CDs)Ī certificate of deposit, also known as a CD, is a service where you can save money and earn interest over time. The fees are monthly, not daily, even though the balance of $300 and $500 for Wells Fargo and Bank of America, respectively, is daily. It’s important to keep both of these figures in mind (the minimum opening deposit and the minimum daily balance) so that you know how much money you need to open the account and how much money you need daily in the account if you want to avoid the fee. Bank of America has a minimum opening deposit of $100 and you must keep a minimum daily balance of $500 or more. As far as the minimum deposit, Wells Fargo has the option to open an account with $25 and avoid the monthly service fee with a minimum daily balance of $300. Bankīank of AmericaBank of America Advantage Savings: $100.īoth banks offer savings accounts with monthly fees at or below $8. These are generally the most popular accounts, with low monthly fees of $10 (Wells Fargo) and $12 (Bank of America) and also offer ways to avoid the monthly fees (see the table below). These checking accounts allow you to avoid the monthly fees.īoth banks also offer checking accounts that are useful for everyday checking. Both Wells Fargo and Bank of America have checking accounts that are available for people under the age of 24. What is the purpose of your checking account? By taking into account your life stage and what you’ll use your checking account for, you will be able to determine which bank and checking account is best for you. However, if you plan on tapping into your savings from time to time, then a regular savings account might be a better idea so you avoid withdrawal penalties that come with a CD.īoth Wells Fargo and Bank of America have options for various life stages and the amount of money you have. Do you want to save and set money aside? If you will leave that money untouched, you could consider opening a CD. Both Wells Fargo and Bank of America offer services that allow you to organize and grow your money over time.ĭeciding which service is best for you – whether that is a personal checking, a small business checking, a personal savings account, a Certificate of Deposit (CD), or a Money Market Account (MMA) – will mostly depend on your current financial goals. Setting aside time to review your financial goals and the options available to you is always a good idea.
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