Wells Fargo is a large commercial bank that offers checking, savings, loans, and investment services

Wells Fargo is one of the largest banks in the United States. It operates physical branches in most states, an online banking platform, and a phone line for customer service. The bank holds deposits, makes loans to individuals and businesses, manages investment accounts, and processes payments.

The bank is regulated by the federal government through the Office of the Comptroller of the Currency and the Federal Reserve. This means Wells Fargo must follow rules about how much money it keeps on hand, how it treats customers, and what it can charge for services.

Wells Fargo is a publicly traded company, meaning people and institutions own shares of it and can buy or sell those shares on the stock market. The bank has headquarters in San Francisco and employs over 250,000 people.

Key Takeaways

  • Wells Fargo is a commercial bank where you can open a checking or savings account, take out a loan, or invest money.
  • The bank is regulated by federal agencies that set rules about deposits, lending, and customer protection.
  • You can access Wells Fargo through physical branches, online banking, mobile apps, or by phone.
  • Wells Fargo charges fees for some services, such as overdraft fees, monthly account maintenance, and wire transfers, though many accounts waive these fees if you meet certain conditions.

What services Wells Fargo offers

Wells Fargo offers deposit accounts (checking and savings), credit products (credit cards, personal loans, mortgages, auto loans), investment services (brokerage accounts, retirement accounts), and wealth management for customers with larger amounts of money to invest.

The bank also offers small business banking, commercial lending, and treasury services for companies. For individuals, the most common products are a checking account, a savings account, and a credit card.

Wells Fargo's checking accounts come in several versions. Some have no monthly fee if you maintain a minimum balance or set up direct deposit. Others charge a monthly maintenance fee that can be waived if you meet certain conditions, such as keeping $500 or more in the account or having your paycheck deposited automatically.

How Wells Fargo makes money

Wells Fargo makes money primarily through interest. When you deposit money in a savings account, the bank pays you a small amount of interest. The bank then lends that money to other customers at a higher interest rate. The difference between what the bank pays you and what it charges borrowers is the bank's profit.

Wells Fargo also makes money from fees. These include monthly account maintenance fees, overdraft fees (charged when you spend more than you have in your account), wire transfer fees, and ATM fees if you use an ATM that does not belong to Wells Fargo.

Credit card fees and investment management fees are another source of income. When you use a Wells Fargo credit card, the bank earns a percentage of the purchase amount from the merchant. When you pay someone to manage your investments through Wells Fargo, that fee goes to the bank.

How to access Wells Fargo services

You can visit a Wells Fargo branch in person to open an account, deposit or withdraw money, or speak with a banker about loans and investments. Branch locations vary by state; you can find the nearest one through the Wells Fargo website or by calling 1-800-869-3557.

Online banking is available through the Wells Fargo website or mobile app. You can check your balance, transfer money between accounts, pay bills, deposit checks by taking a photo, and manage your accounts from a computer or phone at any time.

Phone banking is available by calling the number on the back of your debit card or credit card, or by calling the main customer service line. A representative can help you with account questions, report fraud, or discuss products.

Wells Fargo's history and past problems

Wells Fargo was founded in 1852 and grew through mergers with other banks, including Wachovia in 2008. For many years it was known as a stable, large bank.

Between 2011 and 2015, Wells Fargo employees opened millions of accounts without customers' knowledge or permission to meet sales targets. The bank discovered this in 2015 and paid billions in fines and settlements. The bank also fired thousands of employees involved.

This scandal damaged Wells Fargo's reputation and led to stricter oversight by federal regulators. The bank has since changed its compensation structure and policies, but some customers chose to move their accounts to other banks.

How Wells Fargo compares to other banks

Wells Fargo is one of four "megabanks" in the United States, along with JPMorgan Chase, Bank of America, and Citibank. These four banks hold a large share of all deposits in the country.

Compared to smaller regional or community banks, Wells Fargo has more branches and more online tools. However, smaller banks sometimes offer higher interest rates on savings accounts or lower fees. Compared to online-only banks, Wells Fargo charges higher fees but offers the option to visit a physical branch.

The choice between Wells Fargo and another bank depends on what matters most to you: branch access, fee structure, interest rates, or specific products like investment services.

Frequently Asked Questions

Is my money safe if I keep it in a Wells Fargo account?

Yes. Wells Fargo deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per bank. This means if the bank fails, the federal government will reimburse you up to that limit. Most individual customers' accounts fall well below this threshold.

What happens if I overdraw my Wells Fargo checking account?

Wells Fargo will charge an overdraft fee, usually around $35 per transaction, if you spend more money than you have in your account. The bank may also decline the transaction. You can set up overdraft protection by linking your checking account to a savings account; if you overdraw, money transfers automatically from savings to cover it, though a smaller fee may apply.

Can I close my Wells Fargo account online?

You can close most Wells Fargo accounts by visiting a branch or calling customer service. Some accounts may require you to visit in person. Before closing, make sure you have withdrawn all your money or transferred it to another bank, and that you have no outstanding checks or automatic payments pending.

Does Wells Fargo offer accounts for people with bad credit?

Wells Fargo offers checking and savings accounts to anyone who can open a bank account, regardless of credit history. However, the bank does check ChexSystems, a banking history database, and may deny an account if you have a history of overdrafts or fraud at other banks. Some customers in this situation use second-chance banking accounts at other institutions.