Why having less than $1,500 in your Wells Fargo account could suddenly cost you

The full article continues below these offers from our partners.

Wells Fargo’s new fee rules

Wells Fargo updates how customers will qualify for a daily checking fee waiver. The new rules go into effect first, and then the fees themselves rise in the second phase.

The updates are as follows:

• October 25: New fee waiver requirements went into effect for fee periods beginning on or after that day, including a higher minimum balance required to avoid fees.
• November 29: Monthly fees increase from $10 to $15 for fee periods beginning on or after this date.

If you have a Wells Fargo Everyday Checking account, now is a good time to review the updated fee waiver rules to make sure you’re still eligible to avoid monthly fees. Otherwise, you may soon end up paying fees you’ve never seen before.

Check your balance and statement cycle to avoid surprise fees

To avoid monthly fees, Wells Fargo customers need to meet one of several requirements. Most remain the same, but a new rule means some customers may face charges for the first time.

What stays the same?

You can continue to avoid monthly fees if you meet any of these criteria:

• Have $500 or more in qualifying electronic deposits per fee period (e.g., direct deposit)
• Be between 17 to 24 years old and be the primary owner of the account
• Earn eligible military deposits through Wells Fargo’s Global Military Banking program

What changes?

These rule changes began rolling out on October 25 and will be implemented at the start of each new statement cycle:

• The minimum daily balance requirement will increase to $1,500 (up from $500).
• The new waiver option will allow you to qualify with $5,000 or more in combined deposit and investment balances at Wells Fargo.

If you’re an existing Everyday Checking customer, start by checking your account balance. If it’s less than $1,500 and you don’t meet any of the other fee waiver criteria, you may see a monthly fee once you start a new statement cycle. (Because the timing of statement cycles varies by customer, your next cycle may start earlier or later than someone else’s.)

To stay fee-free, try to add enough funds to keep your balance above the $1,500 limit before your new cycle begins.

Smart moves if you’re facing new charges

If you want to stay with Wells Fargo, one option is a Clear Access Banking account. Its $5 monthly fee is waived if you have qualifying direct deposits of $250 or more each month. There is no minimum balance to avoid fees, but paper checks are not available with this account. Customers between the ages of 13 and 24 or those receiving qualifying military payments may also receive a fee waiver.

If this account isn’t right for you, you have plenty of other checking account options. You can, of course, move to a bank that doesn’t charge any monthly fees for checks, but you can also consider a couple of additional possibilities that will help your money do more for you.

Option 1: Move your checking account and high-yield savings account to the same bank

One option is to transfer your checks to a bank that also offers a high-yield savings account at a competitive rate. By opening both types of accounts in one bank, you can easily move money between them while earning more from your savings. Today’s best high-yield savings accounts pay between 4% and 5% annual yield, which is several times higher than Wells Fargo’s savings rate of 0.01%.

Option 2: Open a checking account where you can earn interest

Some banks and credit unions offer rewards checking accounts that pay a high interest rate — currently up to 6.75% APY — if you meet certain activity requirements, such as using your debit card frequently or setting up a monthly direct deposit. If you can meet the criteria, these accounts allow you to earn a strong return on your money while maintaining the day-to-day flexibility of a checking account.

Bottom line

Transferring your account from Wells Fargo may not be for everyone, but it’s helpful to know that you have options. If you can’t consistently meet the bank’s new waiver requirements, it makes sense to explore other accounts rather than lose $15 to fees every month.

How to Find the Best Savings and CD Rates

Every working day, Investopedia It tracks rate data for more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country and determines daily rankings of the highest-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial account deposit must not exceed $25,000. It is also not possible to determine A maximum The deposit amount is less than $5,000.

Banks must be available in at least 40 states to be eligible to be available nationwide. While some credit unions require you to donate to a specific charity or association to become a member if you do not meet other eligibility criteria (for example, if you do not live in a certain area or work a certain type of job), we exclude credit unions with donation requirements of $40 or more. To learn more about how to choose the best rates, read our full methodology.