Two of the nation’s largest megabanks, Wells Fargo and Citibank, have thousands of branch locations each, a full array of financial products and sizable ATM networks. At first glance the two institutions appear very similar.
Putting them side by side, however, it’s clear that each outshines the other slightly in certain areas.
Who wins
|
|
|
|
|---|---|---|
| Checking accounts |
|
|
| Savings & money market accounts |
|
|
| Certificates of deposit (CDs) |
 |
|
| Customer experience |
|
|
| Other fees |
|
|
| Overall |
|
|
When it comes to customer experience, Wells Fargo goes the extra mile. Comparing CDs, Citibank is a bit friendlier to beginners with its lower minimum deposit requirement.
Here’s an in-depth look at how Citibank and Wells Fargo compare.
Basic checking accounts
| Citibank Basic Checking | Wells Fargo Everyday Checking | |
|---|---|---|
| Monthly fees | $12; waived with one direct deposit and one bill payment per month or a combined average balance of $1,500 in qualifying Citibank accounts | $10; waived with an minimum daily balance of $1,500, $500 in direct deposits, or 10 debit card purchases per month |
| Minimum opening deposit | $0 | $50 |
| Interest | None | None |
| ATM network | 34,000 ATMs in the U.S., 45,000 worldwide | 13,000 ATMs |
| Out-of-network ATM fee | $2.50, waived if age 62 or older | $2.50 |
The basic checking accounts are quite similar, though Citibank charges a $2 higher monthly fee. To waive the fee, Citibank has no minimum for direct deposit, but also requires one bill pay per month. With Wells Fargo, you are offered the unusual option of waiving the fee by making 10 debit card purchases per month.
As the country’s largest mortgage lender, Wells Fargo offers certain perks for customers who have one of their home loans, including waiving the monthly fee for its interest-earning checking account. More benefits accrue if you maintain a high balance — at $25,000 you get a modest interest rate boost, although the highest rate isn’t much at all, 0.05%. You also get reimbursements for out-of-network ATM fees.
At Citibank, you can upgrade to an interest checking account with a waived monthly fee if you maintain a balance of $10,000 or more. With balances of $50,000 or more, you’ll be able to earn rewards and get discounts on certain loans.
» MORE: Bank of America review
Basic savings accounts
| Citibank Savings Plus | Wells Fargo Way2Save | |
|---|---|---|
| Monthly fees | $4.50; waived with a linked checking account | $5; waived with a minimum daily balance of $300 or a recurring auto-transfer from a linked account |
| Interest rate | 0.01% APY on balances below $10,000; steps up gradually to 0.08% APY for balances of $500,000 and higher | 0.01% APY |
| Minimum opening deposit | $500, $100 if linked to a checking account | $25 |
| Automatic transfer from linked checking | Yes | Yes |
Big national banks typically pay very little interest on their savings accounts, and this is true of both Citibank and Wells Fargo. Citibank’s monthly fee is 50 cents lower and is waived if you link a checking account. Its interest rate steps up a small amount for balances above $10,000. Without a linked checking account, the minimum deposit to open an account is a high $500. Wells Fargo’s monthly fee is waived with a $300 minimum daily balance or one recurring auto-transfer to savings per month.
If higher yield is a priority for you, check out NerdWallet’s best savings account tool and explore other savings options.
CDs
| Citibank | Wells Fargo | |
|---|---|---|
| Minimum deposit | $1,000 | $2,500 (certain CDs require a higher deposit) |
| Short-term rate | 0.25% APY for 2 years | 0.20% APY for 26 months (this rate applies for one term only) |
| Long-term rate | 0.50% APY for 5 years | 0.50% APY for 58 months (this rate applies for one term only) |
CDs provide security and predictability, but big banks like Wells Fargo and Citibank offer below-average yields. While there are some minor differences between the CDs offered by these two institutions, neither one pays much of a return for an instrument that requires you to lock your money away for a period of time. To scope out other options for parking your cash, you can use NerdWallet’s best CD rates tool.
» MORE: Four ways to earn more interest
Customer experience
| Citibank | Wells Fargo | |
|---|---|---|
| Branches | About 1,000 in the U.S. and 4,000 worldwide | 6,250 |
| Website | Comprehensive website, but some fees are difficult to find | Attractive and organized site covers all products |
| Banking apps (ratings from app store users) | 3.5 out of 5 stars for iPhone; 4 for Android | 3.5 out of 5 stars for iPhone; 4.3 for Android |
| Customer service | 24/7 by phone, chat, email and social media | 24/7 by phone, email and social media |
Both Wells Fargo and Citibank offer customers a solid banking experience, complete with brick-and-mortar offices and tellers you can talk to. One major difference is in their geographical coverage. Wells Fargo’s massive footprint covers most areas of the U.S — exceptions include parts of New England, Hawaii and Missouri — while the majority of Citibank’s branches are international. In the U.S., Citibank’s network extends only through half of the states. However, Citibank’s network of 34,000 domestic ATMs is tops among national banks, while Wells Fargo has a significantly smaller number.
Independent rating firm J.D. Power did a large survey of banking customers and their level of satisfaction. Wells Fargo ranked among the best or about average in all 11 of the regions it serves. Meanwhile, Citibank got an average rating in two of its five regions, while ranking below average in the rest of them.
Other fees
| Citibank | Wells Fargo | |
|---|---|---|
| Overdraft fee | $34, maximum of 4 per day | $35, maximum of 4 per day |
| Overdraft protection transfer fee | $10 per day | $12.50, but free with a linked home equity line of credit or savings account. |
| Extended overdraft fee | None | None |
| International debit card fee | 3% of transaction amount | 3% of transaction amount |
Like most banks, Wells Fargo and Citibank may ding you with multiple fees if you overdraw your account. Both offer overdraft “protection” programs that let you link to another account, but those have fees, too. Wells Fargo waives its overdraft protection transfer fee if you link a home equity line of credit or certain savings accounts.
Both offer the advantages of heft and ubiquity that large national banks are known for. If you are among the masses of Americans with a mortgage or home equity product from Wells Fargo, you can gain advantages by also using it for everyday banking. Consumers who frequently travel overseas may benefit from the customer support Citibank offers through its international offices.
But if the traditional banking model — of full service with high fees and low yields — doesn’t seem too appealing, consider using NerdWallet’s list of best checking accounts to find some other options.
Jeanne Lee is a staff writer at NerdWallet, a personal finance website. Email: jlee@nerdwallet.com. Twitter: @jlee_jeanne
No comments:
Post a Comment