Big bank raises monthly fee – here’s how to avoid paying higher fees

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What changes with Wells Fargo’s checking fee

Wells Fargo currently charges a $10 monthly fee for its daily checking account. This fee coming soon increase to $15unless you meet one of the opt-out conditions. In addition to increasing the fee, Wells Fargo is adjusting one of its key cancellation criteria while also adding a new way to avoid the fee.

The updates will be rolled out in two phases:

• October 25: New fee waiver requirements apply to fee periods beginning on or after this date.
• November 29: Higher monthly fee of $15 begins for fee periods starting on or after this date.

If you have a Wells Fargo Everyday Checking account, it’s worth reviewing the new rules now to make sure you still qualify for the waiver.

How to avoid a higher fee before it takes effect

To skip the new $15 monthly fee, Wells Fargo customers still need to meet one of several requirements. Most remain the same, but two will change this fall.

What remains the same

You can still avoid paying the monthly fee if:

• Receive $500 or more in qualifying electronic deposits every fee period (e.g. direct deposit)
• They are between 17 and 24 years old and are the primary account holder
• Receive qualifying military deposits through Wells Fargo’s Worldwide Military Banking program

What’s changing

Beginning with fee periods beginning October 25, the following updates apply:

• Minimum daily balance requirement increases to $1,500 (from $500)
• New opt-out option allows you to qualify for $5,000 or more in your Wells Fargo combined deposit and investment balance

These updates mean that some customers who previously avoided the fee by having a few hundred dollars in their account may need to adjust how they use their bank account or look for a different type of account.

Other screening options to consider

If you don’t find it easy to regularly meet Wells Fargo’s new exemption requirements, you may want to check out other accounts. The bank’s new monthly fee of $15 is $180 per yearwhile many other institutions offer free checking. You can simply go to a bank that doesn’t charge fees, or consider two other options that will help your money work harder.

Checking and high-yield savings in the same bank

One option is to transfer your check to a bank that also offers a high-yield savings account at a competitive rate. By opening both types of accounts at one bank, you can easily move money between them while earning much more on your savings. Today’s best high-yield savings accounts pay 4% to 5% APR compared to Wells Fargo’s savings rate of 0.01%.

Earn interest with a rewards checking account

Some banks and credit unions offer rewards for checking out high-interest accounts –currently up to 6% APR—if you meet certain activity requirements, such as frequent use of a debit card or setting up a monthly direct deposit. If you can easily meet the criteria, these accounts will allow you to get a high return on your money while maintaining the day-to-day flexibility of a checking account.

Switching your Wells Fargo account may not suit everyone, but it’s good to know you have options. If you can’t consistently meet your bank’s new withdrawal requirements, it may be worth looking for other accounts instead of wasting $15 in fees each month.

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