Wells Fargo VS PenFed Credit Union

Which bank is better for you?

  • Financial Rates: 1.5 Star Icon
  • Customer Service: 4.5 Star Icon
  • Website Experience: 5.0 Star Icon
  • Bank Fees: 3.5 Star Icon
0.01%APY
Savings/MMA
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Pros:

  • Opportunity checking account
  • Business accounts are available
  • Checking account for teenagers
  • Low opening required amounts

Cons:

  • Low-interest rates
  • Accounts have monthly fees
  • Few CD options and high opening amount
  • No money market account offered
  • Financial Rates: 4.0 Star Icon
  • Customer Service: 5.0 Star Icon
  • Website Experience: 3.5 Star Icon
  • Bank Fees: 3.0 Star Icon
No Rate Information
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Pros:

  • CDs have competitive interest rates
  • Low opening required amount
  • CDs offered to save for education
  • Low monthly fee for checking account

Cons:

  • High opening balances for CDs
  • Low-interest rates
  • Best rates require large balances
  • Do not offer a variety of accounts
Wells Fargo Review

Wells Fargo offers an Opportunity Checking account. This account is for those who do not qualify for a regular checking account. It offers checks, a debit card, bill pay, and mobile banking. With the Opportunity account, there is a $10 monthly fee. There are options to waive the fee.

Many business accounts are available through Wells Fargo. Business savings and checking accounts are available. They offer CDs, loans, and credit cards. Commercial finance options are available. Wells Fargo offers retirement and investment options for businesses, along with payroll options.

Wells Fargo offers a checking account specifically for kids 13-17 years old. A parent must open the account with the child. There are no monthly fees and it offers a debit card and mobile banking. Parents can set limits on the number of purchases and withdrawals made from the account.

To open a Wells Fargo checking and savings requires a low opening deposit. The savings and checking accounts only need $25 to open. The accounts may require more money to earn interest, but to open the account only requires $25.

The interest rates for Wells Fargo accounts are low. They are not competitive with other online-only accounts. Even the highest interest rates offered are low compared to other online accounts.

Most Wells Fargo accounts have a monthly fee. The fees range from $10-30, depending on the account. Ways to waive the fees include:

  • Signing up for electronic statements
  • Having an average daily balance above a set amount
  • Setting up a reoccurring savings deposit
  • Account holder is between a certain age
  • Having a direct deposit over a certain amount
  • Combined account balances are above a set amount
  • Making a set number of debit card transactions

Wells Fargo does not offer many CD term lengths. There are only four CDs with an opening amount of $2,500. Those terms are three-month, six-month, and one-year CDs. The 9, 29, and 39-month CDs require $5,000 to open. The Step Rate CD is a 24-month term. To open requires $2,500 and must be done in a branch location.

Wells Fargo does not offer a money market account. They offer a basic and a Platinum savings account. Neither account offers interest rates competitive to online accounts.

Read the full Wells Fargo review.

PenFed Credit Union Review

PenFed CDs have competitive interest rates. The rates on CDs are competitive with online-only accounts. The longer you can invest the money in the CD the higher the interest rates you will earn. CD terms range from six months to seven years.

All accounts, other than CDs, have a low opening balance of only $25. The more you invest in the money market account, the higher interest rates you will earn. However, you are only required to have $25 to open an account with PenFed.

PenFed offers CDs designed to save specifically for education costs. These CDs only require $500 to open instead of $1,000. The education CDs range in term from one year to seven years. The interest rates earned on these CDs are competitive with other CD accounts.

Only the checking account has a monthly maintenance fee. The fee is low and is easy to waive. The fee is waived by having a daily balance of $500 in the account. Having a direct deposit into the account of more than $500 each month will also waive the fee. The savings account and money market accounts do not have a monthly fee.

To open a CD, PenFed requires $1,000. The CD terms vary in length from six months to seven years. The longer you can invest your money in a PenFed CD the higher interest you will earn over the CD term. The interest rates on these CDs are competitive with other online-only CDs.

The interest rates for PenFed savings, checking, and money market accounts are not competitive. The rates are low. Those interest rates are competitive to your typical bank rates. Online only accounts offer much higher interest rates for these accounts.

To earn the highest interest on the PenFed checking account, a daily balance of $20,000 to $50,000 is required. If you do not have at least $20,000, you will earn much lower interest rates. Any amount earns interest. To get the highest rates, your daily balance must meet the requirements.

PenFed only offers one checking account, savings account, and money market account. This does not allow you to find the account that best fits your needs.

Read the full PenFed Credit Union review.

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