What is the minimum balance for wells fargo

Heads up, Wells Fargo customers: Many of you have a new checking account and should make sure by July 31 that you have the qualifying balances to avoid future monthly fees.

Wells Fargo has replaced its two portfolio checking accounts — the highest tiers — with two new accounts it's calling premier and prime.

The move solidifies the line between its highest balance holders and everybody else by imposing penalties and adding perks. It is part of a larger banking trend of pursuing wealthy individuals.

The premier checking account is for customers with $250,000 or more in "statement-ending-qualifying-linked-balances." The prime checking account requires a $20,000 end-of-statement balance.

These new accounts replace the two former portfolio accounts. But whereas customers could move between the two former levels penalty-free — so long as they didn't dip below $20,000 — the new accounts lock customers into one tier or the other.

Ed Kadletz, head of the Deposit Products Group for Wells Fargo, said the real difference is at the $250,000-and-above tier. "The reason we're separating that out is we have a lot of features and functions that customers will really enjoy. That's the distinction at the $250,000 and above level."

The bank says it is trying to simplify the checking accounts and add more perks for customers with the largest balances.

Perks of the premier include: No ATM fees charged worldwide; 2% foreign currency discount; no fee on stop payments, and an annual advisory fee discount on linked intuitive investor accounts. The prime account offers some of these perks.

Customers may not realize they've been moved into a new type of checking account — or what that means for fees. Premier and prime account holders will incur a monthly fee if they dip below the established account level at the end of the statement period.

Fees for not having qualifying balances in the premier and prime accounts are $35 and $25 a month, respectively. Wells Fargo customers concerned about their ability to maintain those qualifying standards can shift to another account.

The move to offer more perks to account holders with higher balances is common practice as banks compete for wealthier households, said Greg McBride, chief financial analyst at Bankrate.com.

"In banking and every other business, businesses are trying to segment their customers in order to maximize loyalty and deliver appropriate value. The holy grail in financial services is the higher income, higher net worth consumer," McBride said. "They get more products and they have the potential to generate far more revenue the more money and business they bring under that one roof."

Wells Fargo says it's been communicating with customers and that the majority won't face fees during this transition. The bank said it has waived the monthly service fee as a courtesy on prime and premier accounts opened before May 9 until their statement-ending qualifying balance is calculated on July 31.

"We want every customer to have the products that best meet their financial needs with relationship benefits they value," Kadletz said. "If an account no longer meets our customer's needs, we're here to help review options and make change."

Customers can link and de-link qualifying accounts through online banking or through a banker, either in a branch or over the phone. The 24-hour number for Wells Fargo is 800-869-3557.

The bank didn't make changes to the Wells Fargo clear access banking or its most popular everyday checking accounts. Customers also have options to eliminate the low fees in those accounts as well.

Bankrate's McBride advises consumers who want to avoid fees to either seek alternatives at the same bank or at a credit union, community bank or online institution.

"A lot of consumers, and particularly higher-end consumers, prefer the convenience of having everything under one roof," he said. "Whereas lower- or moderate-income households that are watching every dollar, they're more concerned with making sure they get the best deal on every product they have. If that means having a checking account at one bank and getting the mortgage at another and a car loan at the credit union, then so be it."

According to FDIC data, Wells Fargo is the second-largest bank in the state with about $75 billion in deposits, behind only Minneapolis-based U.S. Bancorp.

Wells Fargo is a household name, but not just because it is one of the largest banks in the United States. Scandals surrounding fake accounts, fee disclosures and other sketchy activity dating back to 2016 has led to billions of dollars in fines and still casts a shadow over this megabank.

That past may be a deciding factor in whether to open a business account with Wells Fargo, but should be considered alongside the finer points of the bank’s three core business checking accounts: Initiate Business Checking, Navigate Business Checking and Optimize Business Checking.

While this review includes information on all three accounts, the star rating indicated above is specific to Wells Fargo’s Initiate Business Checking account.

Wells Fargo business checking is best for small-business owners who:

• Prioritize in-person banking at a brick-and-mortar branch.

• Qualify to waive the monthly service fee.

• Can utilize Wells Fargo's other business banking services.

Wells Fargo business checking at a glance

How to apply for a Wells Fargo business checking account

Most businesses can open a Wells Fargo business checking account online, in person or over the phone. But trusts, government agencies, publicly traded companies and Indian tribal governments must apply in person at a local branch. Wells Fargo operates roughly 4,900 retail branches and more than 12,000 ATMs across 40 states and Washington, D.C.

What you'll need to open a Wells Fargo business account

Business owners need to provide the following documents and information, as well as an opening deposit of at least $25.

• Personal information, including name, Social Security number and date of birth.

• Business name, legal structure, date of formation and state where registered.

• Business tax ID (EIN or SSN).

• Annual revenue and a brief description of your business.

• Legal business documentation, including business license, DBA certificate, partnership agreement or articles of organization, depending on your business entity type.

If you apply online or over the phone, Wells Fargo will provide you with instructions on how to supply your documentation. If you visit a branch location to apply, all owners, partners and key executives will need to be present in order to complete an application.

Where Wells Fargo business checking stands out

Caters to growing businesses: Wells Fargo offers three core business checking accounts, each with an increasing number of features. If your business outgrows one account, simply upgrade to one that allows more transactions and deposits.

You can also take advantage of other services — from Wells Fargo's business loans (including SBA loans) to merchant services — as your business needs change, making Wells Fargo a true one-stop shop for small-business owners.

How Much Do You Need?

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Expansive branch access: With more physical branch locations than any other bank in the United States, you’re never far from a Wells Fargo banker. This is a major plus for business owners who travel frequently throughout the U.S.

Business owners can also withdraw cash, deposit checks, transfer funds between their Wells Fargo accounts and deposit cash for no additional charge at any of Wells Fargo’s more than 12,000 ATMs. But be aware, there are fees (from Wells Fargo and the ATM owner) for using your debit card at non-Wells Fargo ATMs in the U.S. and internationally.

Ability to open an account online: Wells Fargo allows customers to open a business checking account online. That even applies to businesses located outside of Wells Fargo’s 40-state coverage area.

While that’s a novel feature from a brick-and-mortar bank — most require you open an account in person — there are plenty of online business accounts with more perks and far fewer fees.

Customer service: Your business isn’t limited to banker’s hours, and neither is Wells Fargo’s customer service. Business owners can contact customer service for general account issues Monday through Saturday from 7 a.m. to 11 p.m. ET and Sunday from 9 a.m. to 10 p.m. ET. Need help with online banking or bill pay? Customer support is available 24/7.

Where Wells Fargo business checking falls short

No free checking option: All three Wells Fargo business checking accounts carry a monthly maintenance fee, ranging from $10 to $75 per month, depending on the account. Business owners can avoid the fee by maintaining a certain balance, but that bar could be too high for some companies.

With the Navigate Business Checking account, for example, the threshold to waive is a minimum of $10,000, compared with $500 with the Initiate Business Checking account. While monthly fees are not uncommon, there are plenty of options for free business checking accounts at both brick-and-mortar and online competitors.

Stingy transaction limitations: It’s not uncommon for banks to cap transactions on business accounts, but Wells Fargo’s limits are much lower than its competitors. The bank’s entry-level account, Initiate Business Checking, includes 100 fee-free transactions per month, with each additional transaction costing 50 cents. Bank of America’s Business Advantage Fundamentals Checking offers twice as many free transactions (up to 200) and charges less for overage.

Don’t want to worry about transaction limits? Consider an online bank like Axos or NBKC, which offer free business checking accounts with unlimited fee-free transactions.

High ATM and incidental fees: Using your Wells Fargo business debit card at a non-Wells Fargo ATM will cost you $2.50 per withdrawal, transfer and balance inquiry ($5 if you’re outside of the U.S.). That’s on top of any fees charged by the ATM owner. While Wells Fargo’s 12,000+ ATM network is large, it’s not nearly as expansive as competitors like Capital One, Citibank and U.S. Bank, which partner with ATM networks like AllPoint and MoneyPass to give customers fee-free access to tens of thousands of ATMs.

Wells Fargo also charges a variety of incidental fees that can add up quickly, including $35 overdrafts and returned items, $31 stop payment fees, and wire fees that range from $15 to $30. Wells Fargo waives some of these fees for Navigate and Optimize Business Checking customers.

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