Comparing two giant banks can be like choosing between vanilla and French vanilla: What the heck is the difference? Bank of America and Wells Fargo, the second- and third-largest U.S. banks, respectively, offer similar flavors of traditional-style banking.
But we compared the two closely, and found that Wells Fargo has the edge in one key area.
Who wins
|
|
|
|
|---|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
|
|
|
|
Although both institutions have substantial market reach, a full line of financial products and first-class online and mobile tools, Wells Fargo serves up extra flair when it comes to customer experience.
Here’s an in-depth look at how Wells Fargo and Bank of America compare:
Basic checking accounts
| Wells Fargo | Bank of America | |
|---|---|---|
| Monthly fees | $10; waived with an average balance of $1,500, $500 in direct deposits or 10 debit card purchases per month. | $12; waived with an average balance of $1,500 or $250 in direct deposits per month. |
| Minimum opening deposit | $50 | $25 |
| Interest | None | None |
| ATM network | 13,000 ATMs | 16,000 ATMs |
| Out-of-network ATM fee | $2.50 | $2.50 |
Bank of America’s basic checking is somewhat friendlier to beginners, with a lower opening deposit, lower direct deposit threshold for waiving the monthly fee, and no monthly fee at all for students under 23. It does not pay interest.
Consumers who maintain a balance of $10,000 or more across all of their Bank of America accounts can qualify for free access to a premium checking account that pays a small amount of interest and comes with perks such as no-fee overdraft protection transfers. If your employer offers Bank of America at Work, you may be eligible to get a $100 bonus when you sign up.
Wells Fargo also gives free access to an interest checking account to customers at the $10,000 average balance threshold. As the nation’s No. 1 mortgage lender, it gives the same fee waiver to customers with one of its home loans.
» MORE: NerdWallet’s best checking accounts of 2016
Basic savings accounts
|
|
|
|
|---|---|---|
| Monthly fees | $5; waived with an average balance of $300 or a recurring auto-transfer from a linked account. | $5; waived with an average balance of $300, linked interest checking or $25 in monthly transfers from checking to savings. |
| Interest rate | 0.01% APY | 0.01% APY |
| Minimum opening deposit | $25 | $25 |
| Automatic transfer from linked checking | Yes | Yes |
The two institutions’ basic savings accounts are almost indistinguishable — and pay virtually no interest. If high yield is a priority, consider whether one of NerdWallet’s top high-yield online savings accounts would work better for you.
CDs
| Wells Fargo | Bank of America | |
|---|---|---|
| Minimum deposit | $2,500 (certain CDs require higher deposit) | $1,000 |
| Short-term rate | 0.2% APY for 26 months (this rate applies for one term only) | 0.1% APY for 2 years |
| Long-term rate | 0.5% APY for 58 months (this rate applies for one term only) | 0.15% APY for 5 years |
The biggest U.S. banks typically pay less-than-average yields on CDs, but among the top four banks, Bank of America’s CD rates are the lowest. If you’re serious about yield, explore a high-yield CD from an online bank, like Synchrony Bank, that sports interest rates well north of 1% for a two-year term.
MORE: Four ways to earn more interest on your money
Customer experience
| Wells Fargo | Bank of America | |
|---|---|---|
| Branches | 6,250 | 4,800 |
| Website | Attractive and organized site covers all products. | Handy feature allows side-by-side comparisons of accounts. |
| Banking apps (ratings from app store users) | 3.5 out of 5 stars for iPhone; 4.3 for Android | 3 out of 5 stars for iPhone; 4 for Android |
| Customer service | 24/7 by phone, email and social media. | Available by phone Mon - Fri 7 a.m. - 10 p.m.; Sat - Sun 8 a.m. - 5 p.m. Also chat, email and social media. |
Consumers who prefer an in-person banking experience may be better served by Wells Fargo, which has the largest bank branch footprint in the country. It also offers more weekend and evening hours for live phone representatives. Bank of America, meanwhile, has been selectively closing hundreds of branches, though it does have about 3,000 more ATMs in its network.
Wells Fargo fared better overall in regional rankings from J.D. Power. In a study of bank customers, respondents rated it “about average” or better in 11 regions, while Bank of America managed that in only seven regions.
Other fees
|
|
|
|
|---|---|---|
| Overdraft fee | $35, maximum of 4 per day | $35, maximum of 4 per day |
| Overdraft protection transfer fee | $12.50, but free with a linked home equity line of credit or savings account. | $12, but free for certain premium account holders |
| Extended overdraft fee | None | $35 after every 5 days |
| International debit card fee | 3% of transaction amount | 3% of transaction amount |
One notable difference in the overdraft policies of the two institutions: Although both have a penalty for overdraft, if you don’t bring your balance back into the black within five business days, Bank of America charges an additional $35 extended overdraft fee. This fee is in addition to the overdraft fee itself and recurs every five days. Wells Fargo does not charge an extended overdraft fee.
Although these two giants both offer a solid banking experience, Wells Fargo’s greater geographical coverage and superior independent customer satisfaction ratings might just be the cherry on top that makes the difference. But if you still haven’t found what you’re looking for, check out NerdWallet’s best banks and credit unions for 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