TD Bank vs. Wells Fargo

When it comes to choosing a bank, TD Bank and Wells Fargo are two excellent picks. Both boast competitive benefits and accessibility. But before you choose to open a checking account or savings account with either bank, it’s best to compare TD Bank vs. Wells Fargo side by side on a number of factors. Read on below to see which bank would best fit your needs.

Consider working with a financial advisor as you decide which bank offers you services that fit your goals and budget.

What to Know About TD Bank

If you’re looking for a bank that enables you to withdraw money anytime and anywhere, TD Bank, which traces its origins to a merger of Canada’s Dominion Bank and Bank of Toronto, should be a strong contender. TD Bank also stands out with its unusually long store hours and commitment to being open on weekends and many holidays. It operates more than 1,100 branches in the U.S.

TD Bank offers a great deal of account variety to its customers: savings accounts, checking accounts, certificates of deposit (CDs), money market accounts (MMAs) and IRAs. Some savings accounts include waivable monthly maintenance fees. MMAs even come complete with check-writing capabilities. In general, most of these services also offer increased rates with qualifying account activity.

What to Know About Wells Fargo

Wells Fargo is the third-largest bank in America, with about $1.67 trillion in assets, more than 4,500 physical locations and more than 12,000 ATMs in 39 states plus the District of Columbia. They also provide a highly rated app and easy-to-use online form, so you’ll never be without access to your accounts.

Wells Fargo also excels in consumer options. There are two savings account options, three CD types, five checking accounts and a couple of different IRAs. For those looking to keep their assets in one bank, Wells Fargo has the breadth of options to make this happen. Among its many distinctive benefits, Wells Fargo has created its Clear Access Banking Account for teenagers with the goal of educating kids and adolescents on money management.

Unfortunately, much like most of the top ten largest bank chains, Wells Fargo fails to offer any great interest rates. Usually, this is because such large banks must pay for the upkeep of their thousands of physical locations. Wells Fargo’s basic Way2Save® Savings account only earns a 0.15% APY. This number is mostly standard for big banks, but many online banks and smaller chains can beat it.

TD Bank vs. Wells Fargo: Bank Accounts

TD Bank is one of the few banks in America that offers money market accounts (MMAs). These are a type of savings account that will generally earn you a higher amount of interest than a run-of-the-mill savings account. However, a small caveat is that the minimum balance and deposit for MMAs are often much higher than for a basic savings account.

With TD Bank, you may also take advantage of CDs, high-interest-earning checking accounts and more. The bank also specializes in mobile banking for savings and checking account customers, which gives you the ability to deposit your checks as you receive them, via the convenience of your smartphone.

Wells Fargo provides a wider variety of bank accounts available to its customers. Not only does Wells Fargo offer bank account IRAs, but it also provides more choices of both CDs and checking accounts. Wells Fargo offers an array of choices, allowing you to select which best fits your retirement saving needs.

IRAs and CDs, simple Retirement Savings Accounts and a Retirement High Yield Savings Account. To add another benefit, Wells Fargo’s benefit CDs accumulate interest at much higher rates than the less popular “Standard CD” option. For the extra reward-focused, you can earn Bonus Rates with each CD account you open when you link a Portfolio by Wells Fargo checking account.

TD Bank vs. Wells Fargo: Fees

TD Bank’s saving accounts have monthly maintenance fees, but it’s also possible to waive those. Its CD accounts don’t have a fee, while Simple Savings accounts have a $5 monthly fee and its Signature Savings accounts’ includes a $15 fee. Overall, the takeaway for TD Bank fees is that, for the most part, they are usually nonexistent or waivable.

Wells Fargo customers must pay $25 to open an Everyday Checking account, and there’s a $10 monthly fee if the balance is below $500. Its Clear Access Banking account, which doesn’t have any overdraft fees, carries a $5 monthly, but that’s waived for customers from 13 to 24 years of age. Wells Fargo no longer assesses insufficient funds fees.

TD Bank vs. Wells Fargo: Rates

As stated earlier, neither Wells Fargo nor TD Bank offers impressive interest rates despite their vast resources. In your search for the best interest rates, do your research on credit unions and online-only banks. Those typically have fewer operating costs. Despite low-interest rates, you can still boost your rate with a wide array of premium banking packages with either branch. However, you could end up with worse rates than most competing banks if you don’t choose to actively seek out the best-offered benefits wherever you can.

Bottom Line

Making the TD Bank vs. Wells Fargo decision can be difficult. TD Bank is a great choice for those who don’t have huge savings and would like human assistance whenever they need it. TD Bank is better suited for people new to banking, such as students or people in their early twenties. Wells Fargo offers their customers convenient access to their accounts. With Wells Fargo’s 4,700 banking locations combined with ATMs and top-notch online and mobile banking, you can deposit, withdraw or check your balance almost anywhere.

However, if generous interest rates are a top priority, there’s a strong likelihood that neither Wells Fargo nor TD Bank is the bank for you. Rates from either bank are unlikely to surpass 1%. Ultimately when considering the TD Bank vs. Wells Fargo debate or exploring other options, it’s best to determine which bank would be better for you by carefully comparing the respective rates, accounts and fees of the two of them, given your own unique financial abilities and constraints.

Tips for Choosing the Right Bank

Before you decide on a bank for any service, make sure you have a thorough understanding of your own financial situation. Do you need a free checking account? Or are you in the market to up your savings with a high-interest savings account? Acknowledging these questions can greatly narrow down your search.
Don’t underestimate the benefits of credit unions. Companies like Western Union can very likely provide much higher rates than you’d receive with TD or Wells Fargo.
You won’t be able to grow your money and have a concrete retirement plan just based on the bank you use. A financial advisor is a key addition to your planning. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.