I’ve had Wells Fargo for my checking, savings, and credit card accounts for years. This year, I joined SoFi because their APY for savings is higher than what Wells Fargo offers.
I’ve set up my paycheck to be split between the two banks. I use Wells Fargo to pay bills since it’s linked to my gas, internet, and cell phone accounts, while I use SoFi for disposable income, savings, and investing.
Is there any real reason to keep my Wells Fargo accounts open? Can an established bank like Wells Fargo offer something that SoFi can’t? Eventually, I’ll need a mortgage and a business loan.
Would closing a bank account affect my credit score? I know the credit score is influenced by the longevity of accounts, right?
Hold onto the wells account. As a banker and financial advisor, I would never advise sticking with a single bank, much less a neo bank like Sofi. Although Wells has a negative reputation, it’s clear that they’re improving if you follow the banking industry. Even if a bank is a larger name like Wells, BoA, Chase, etc., there is still benefit in maintaining accounts with places where you can walk in and get assistance.
Close it immediately. I only have a Wells Fargo savings account because I wanted to take advantage of their $525 sign-up bonus. After that, I plan to close it. The interest rate on Fidelity’s cash management account is significantly lower than that of their brokerage account, which transfers funds automatically to a money market fund (SPAXX). A brokerage account, such as one from Fidelity or Vanguard, that has an automated cash sweep is superior to practically any savings account.
Yes, keep your Wells Fargo account. It’s good to have accounts with different banks, not just one. While Wells Fargo has had a bad reputation, they’re improving. Having accounts with traditional banks like Wells Fargo, Bank of America, or Chase is valuable because you can visit branches for in-person help.
Reasons to keep Wells Fargo may include convenience of branch locations, familiarity with services, specific account features, competitive interest rates, or existing relationships with bankers for personalized service.
Hold onto the wells account. As a banker and financial advisor, I would never advise sticking with a single bank, much less a neo bank like Sofi. Although Wells has a negative reputation, it’s clear that they’re improving if you follow the banking industry. Even if a bank is a larger name like Wells, BoA, Chase, etc., there is still benefit in maintaining accounts with places where you can walk in and get assistance.