Is Wells Fargo a trustworthy bank?
Wells Fargo, along with thousands of other financial institutions, is FDIC-insured. FDIC insurance limits cap at $250,000. The FDIC insures certificates of deposit and money market accounts, along with traditional checking and savings accounts.
Wells Fargo bank account deposits are FDIC insured up to $250,000, or $500,000 for joint accounts. This means your money is safe even if Wells Fargo were to shut down.
One of the disadvantages of Wells Fargo is that its interest rates on savings products tend to be lower than what online banks and credit unions offer. Although the bank does offer higher savings rates to existing checking customers for some types of accounts, the difference from standard rates is generally negligible.
| Bank | Forbes Advisor Rating | Learn more CTA below text |
|---|---|---|
| Chase Bank | 5.0 | Read Our Full Review |
| Bank of America | 4.2 | |
| Wells Fargo Bank | 4.0 | Read Our Full Review |
| Citi® | 4.0 |
If you're looking for better rates and lower fees, Wells Fargo will likely be your best bet. Wells Fargo also has a wider variety of bank accounts to choose from. However, whether you choose Chase or Wells Fargo, you can rest easy knowing you'll always have quick and easy access to your accounts.
Chase is the largest bank in the country, holding over $3.38 trillion in assets. Bank of America is the second-largest bank with over $2.45 trillion in assets. Wells Fargo is the third-largest bank, holding over $1.7 trillion in assets.
If a bank closes, what happens to your money depends on whether the account is sold to another institution or the FDIC takes responsibility for paying out depositors. In most cases, accounts are sold to another bank, and you will automatically have access to your funds at the new institution.
The Wells Fargo fake accounts scandal was a major financial scandal that shook the banking industry to its core. The bank was revealed to have created fake accounts. Shockingly, these accounts were in the names of its customers. without their knowledge or consent.
The Wells Fargo Everyday Checking slightly beats out the Bank of America Advantage Plus Banking® because it requires a lower minimum opening deposit and monthly service fee. It also boasts a higher bank bonus for new customers. However, Bank of America has slightly easier requirements to waive monthly fees.
Wells Fargo said the latest quarter's results were negatively affected by $1.9 billion (40 cents a share) for a special assessment from federal regulators following last year's collapse of Silicon Valley and Signature Banks, and by $969 million (20 cents per share) for severance payouts.
Which bank is most trustworthy?
- Ally Bank.
- Citizens Bank.
- Bank of the West.
- US Bank.
- SunTrust.
- Union Bank.
- Wells Fargo.
- HSBC.
- JPMorgan Chase.
- U.S. Bank.
- PNC Bank.
- Citibank.
- Wells Fargo.
- Capital One.
- M&T Bank Corporation.
- AgriBank.
| RANK | BANK NAME | TOTAL ASSETS |
|---|---|---|
| 1 | JPMorgan Chase | $3.39 trillion |
| 2 | Bank of America | $2.47 trillion |
| 3 | Wells Fargo | $1.70 trillion |
| 4 | Citigroup | $1.66 trillion |
All of Wells Fargo's bank accounts come with monthly service fees. You may be better off banking elsewhere if you aren't confident you can meet monthly requirements to have the fees waived. You'll have to weigh the cost of paying fees versus account benefits to see if it's worth banking with Wells Fargo.
Wells Fargo is among the top five banks in the United States. The bank makes money by lending out at a higher rate than it borrows. Wells Fargo operates four segments including Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management.
Headquartered in San Francisco, Wells Fargo is the fourth largest bank in the U.S. with over $1.7 trillion in assets. It's a full-service institution offering consumer and commercial banking, mortgage and home equity lending, credit cards, investment banking and wealth management.
| Bank desc asc Close Sort by column for easier option comparison. | Category desc asc | Best For desc asc |
|---|---|---|
| U.S. Bank | National Bank | Low Fees, Military |
| USAA | National Bank | Sign-up Bonus |
| Vio Bank | Online Bank | Money Market Account |
| Wells Fargo | National Bank | Best Rate (Checking) |
Generally speaking, credit unions are safer than banks in a collapse. This is because credit unions use fewer risks, serving individuals and small businesses rather than large investors, like a bank.
| Company | APY |
|---|---|
| Ally Bank Best Overall | 4.35% for savings, 0.10-0.25% for checking |
| Synchrony Bank Best for Savings | 4.75% for savings, no checking |
| Capital One Best for College Students | 4.30% for savings, 0.10% for checking |
| Discover Best for Checking | 0% for checking (1% cash-back), 4.30% for savings |
If your bank fails, up to $250,000 of deposited money (per person, per account ownership type) is protected by the FDIC. When banks fail, the most common outcome is that another bank takes over the assets and your accounts are simply transferred over. If not, the FDIC will pay you out.
Can a bank close your account and not give you your money?
Of course, the bank must return any remaining funds in your account but may hold on to them to cover any negative balance or fees. In some cases, the bank may hold the funds if your account is flagged for suspicious activities, which is increasingly common.
No Bank can refuse to close your deposit account and even loan account if you are repaying all dues with interest. However, if the account is opened for some specific purpose and the purpose still exists, banks may in such cases refuse to close the account.
Wells Fargo's fake accounts scandal surfaced in September 2016, revealing that employees at the San Francisco-based bank had opened millions of fraudulent accounts, often to meet sales goals.
The Wells Fargo cross-selling scandal is the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent or knowledge. News of the fraud became widely known in late 2016 after various regulatory bodies, including the Consumer Financial Protection Bureau (CFPB) ...
- It apologized to its customers and the public, and launched a campaign to rebuild its image and brand. These steps have helped Wells Fargo to improve its financial performance, reduce legal risks, and regain some of the lost confidence.
