A CD, or certificate of deposit, is a special type of investment vehicle that generally provides you with a better rate of return than placing your money in a savings account. These are generally established through a local or online bank, and each financial institution will have different CD options. For example, they can vary based on the minimum initial deposit, the rate of return and the term length. This means that it can pay off to shop around for the best CD available for your needs. When you are comparing options available through different financial institutions, you may be wondering what CD rates Wells Fargo has, and you will be pleased to learn that there are several options available.
Special Versus Standard Rates
When you compare CD rate from Wells Fargo or any other financial institution, it is important to remember that the rate of return and the other terms associated with the CDs can change periodically over time. Currently, there is a special offer available through Wells Fargo that offers a very attractive yield. With a minimum initial deposit of $5,000, you can choose from term lengths that range from nine months through 58 months. The rate of return on these special offer CDs is higher than the other options available. The range varies by term length, but you can expect to receive between .10 percent and .50 percent annual percentage yield on these investment options. Even the smallest yield under the special program is considerably higher than the best yield under the standard rates. Because of this, investors should carefully consider if they can take advantage of the special program available.
Different Term Lengths
In addition to the special rates, you can choose standard term lengths with varying minimum initial deposit requirements. The standard term lengths are three months, six months and one year. Each of these have a renewal option at the end of the initial term, and you may choose to pull out your interest as a source of income from your CDs at the end of the initial term or you may roll the interest into a new CD. Keep in mind that the rate of return is higher with a longer term length.
Tiers With Different Minimum Initial Deposits
With many financial institutions, you will benefit from making a larger initial deposit with the standard CD programs. However, with the current rate structure, there is not an increase in yield or rate of return when you make a larger initial investment unless you choose a special CD program. The different tier options are currently for a minimum initial deposit of $2,500, $10,000 and $100,000. All of the programs provide an annual percentage yield of .10 percent except the programs for a one year term and the special CD rates.
Making Your Decision
If you are in the market to invest your funds into a CD, you understandably want to find the best rate of return that meets your needs. While you generally can expect to receive a better rate of return on a CD with a larger initial deposit or a longer term length, it is important that you make an investment that is reasonable for your financial situation. In many cases, if you pull your money out of your CD before the end of the term length, you may be required to pay a penalty fee. Because of this, you should only use funds that you know you will not need access to over the course of the term length.
When you are looking for the best rate of return on a CD, the special offer available through Wells Fargo for a minimum initial deposit of $5,000 will be difficult to beat. However, you should make sure that this minimum initial deposit is affordable for you. If so, you can reach out to Wells Fargo to set up your CD today.
Do not get a CD from Wells Fargo they will loss it and hide behind a very bad law. Wells Fargo will just tell you they will not give you your money because you cashed it out already. They do this very often.