Wells Fargo is a bank that holds your money and lends it out

Wells Fargo is one of the largest banks in the United States. It takes deposits — money you put into accounts — and uses that money to make loans to other customers. In return, it pays you interest on your deposits and charges borrowers interest on their loans. The difference between what it pays depositors and what it collects from borrowers is how the bank makes money.

The bank operates thousands of branches across the country where you can walk in, deposit cash, withdraw money, or speak to someone about opening an account. It also runs an online banking platform and a mobile app so you can manage your money from home. Wells Fargo is regulated by federal banking authorities, which means it must follow rules about how much money it keeps on hand, how it treats customers, and what it can do with deposits.

Key Takeaways

  • Wells Fargo holds checking and savings accounts, processes payments, and issues debit cards and credit cards to customers.
  • The bank makes loans for mortgages, car purchases, personal needs, and business purposes, and charges interest on the money it lends.
  • Wells Fargo pays interest on savings accounts and money market accounts, though the rate changes based on what the Federal Reserve does.
  • You can visit a physical branch, use online banking, or call customer service to manage your account and conduct transactions.
  • Wells Fargo is insured by the Federal Deposit Insurance Corporation (FDIC), which protects your deposits up to $250,000 per account type.

Checking and savings accounts

A checking account is designed for money you use regularly. You can deposit paychecks, withdraw cash at ATMs, write checks, and set up automatic payments to bills. Wells Fargo offers several checking account options with different monthly fees, minimum balance requirements, and features. Some accounts waive the monthly fee if you keep a certain amount on deposit or set up direct deposit of your paycheck.

A savings account is meant to hold money you are not spending right away. Wells Fargo pays you interest on the balance — a small percentage of your money each month — as a reward for letting the bank use your deposit. The interest rate changes over time based on decisions made by the Federal Reserve, the central banking system. Savings accounts typically have limits on how many times per month you can withdraw money, though those limits have become less strict in recent years.

Loans and credit products

Wells Fargo lends money to customers for large purchases and other needs. A mortgage is a loan to buy a house; you repay it over 15, 20, or 30 years with interest. An auto loan finances a car purchase, usually repaid over three to seven years. A personal loan gives you a lump sum of cash for any reason — medical bills, home repairs, debt consolidation — and you repay it in fixed monthly payments.

The bank also issues credit cards, which let you borrow money to make purchases and pay it back later. If you pay the full balance by the due date, you owe no interest. If you carry a balance into the next month, Wells Fargo charges you interest on what you owe. Credit cards report your payment history to credit bureaus, which affects your credit score — a number that lenders use to decide whether to lend to you and at what interest rate.

Debit cards and payment processing

When you open a checking account at Wells Fargo, the bank issues you a debit card. This card draws money directly from your checking account when you use it to pay for something. Unlike a credit card, you cannot spend money you do not have — the transaction is declined if your account balance is too low. Debit cards work at stores, gas stations, restaurants, and online retailers.

Wells Fargo also processes wire transfers, which move money from your account to another bank account, usually within one business day. The bank handles automatic bill payments, where money leaves your account on a set date each month to pay utilities, insurance, or loan payments. These services make it easier to manage money without writing checks or visiting a branch.

Interest rates and how they change

The interest rate Wells Fargo pays on savings accounts and money market accounts is not fixed — it moves up and down based on what the Federal Reserve decides to do with its benchmark interest rate. When the Federal Reserve raises rates, banks typically raise the rates they pay on deposits. When the Federal Reserve lowers rates, banks usually lower deposit rates too. This means the amount of interest you earn can change from month to month.

The interest rate Wells Fargo charges on loans works differently. When you take out a mortgage or auto loan, the bank locks in an interest rate for the life of the loan — you pay that same rate every month. Credit card interest rates can change, but the bank must notify you before raising your rate. Checking accounts typically earn no interest at all, though some premium accounts offer a small rate on balances above a certain threshold.

FDIC insurance and account protection

Wells Fargo is a member of the Federal Deposit Insurance Corporation (FDIC), a government agency that protects deposits at member banks. If Wells Fargo were to fail, the FDIC would reimburse you up to $250,000 per account type — meaning $250,000 for your checking account, $250,000 for your savings account, and so on. This protection applies to the money you have on deposit, not to losses from investments or credit card debt.

The FDIC insurance covers deposits in your name alone, deposits in a joint account (each owner gets $250,000 of protection), and certain retirement accounts. It does not cover investment products like stocks or mutual funds, even if you buy them through Wells Fargo. If you have more than $250,000 in one account type, the amount above $250,000 is not protected if the bank fails.

How to contact Wells Fargo and manage your account

You can reach Wells Fargo customer service by phone, through the website at wellsfargo.com, or through the mobile app available on iOS and Android. At a physical branch, you can deposit cash, withdraw money, open new accounts, or speak to someone about loans and other services. Many branches have extended hours on weekdays and limited hours on weekends, though hours vary by location.

Online banking lets you check your balance, transfer money between accounts, pay bills, and deposit checks by taking a photo with your phone. You can also set up alerts that notify you when your balance drops below a certain amount or when a large transaction occurs. If you have questions about your account or need to report fraud, customer service representatives are available by phone during business hours.

Frequently Asked Questions

Is my money safe at Wells Fargo?

Your deposits are protected by FDIC insurance up to $250,000 per account type. Wells Fargo is also subject to federal banking regulations that require it to maintain certain capital levels and follow security standards. However, the bank has faced regulatory issues in the past, so you may want to research its current standing before opening an account.

What is the difference between a checking and savings account?

A checking account is for money you use regularly — you can write checks, use a debit card, and make unlimited withdrawals. A savings account earns interest and is meant for money you are not spending right now, though you can withdraw it when needed. Savings accounts traditionally had withdrawal limits, though these have become less common.

How much interest will I earn on a savings account?

Interest rates change frequently and vary based on the Federal Reserve's decisions. Wells Fargo's current rates are posted on its website. Generally, traditional savings accounts at large banks pay very small amounts of interest — often less than 0.5% per year — compared to online banks or high-yield savings accounts elsewhere.

Can I use Wells Fargo if I am new to banking?

Yes. Wells Fargo offers basic checking and savings accounts that work well for people new to banking. You will need a government-issued ID and usually a Social Security number to open an account. Some branches have staff who can walk you through the process and explain how to use online banking and a debit card.

What happens if I overdraw my checking account?

If you try to spend more money than you have, Wells Fargo may decline the transaction or allow it and charge you an overdraft fee — typically $35 per occurrence. You can set up overdraft protection, which links your checking account to a savings account or credit line so transfers happen automatically if you run short. Ask about this option when you open your account.