Wells Fargo is one of the largest banks in the United States

Wells Fargo is a national bank — meaning it operates branches in all 50 states and holds deposits and makes loans across the country. It is one of the four largest banks by assets in the U.S., alongside JPMorgan Chase, Bank of America, and Citigroup. If you have a checking account, savings account, or credit card with Wells Fargo, you are a customer of this bank.

The bank offers the products most people encounter when they first open a bank account: checking and savings accounts, debit cards, credit cards, home loans, auto loans, and investment services. It also manages retirement accounts and provides wealth management for customers with larger amounts of money to invest. Wells Fargo operates physical branches where you can deposit checks, withdraw cash, and speak with a banker in person, and it offers online and mobile banking for customers who prefer to manage their accounts remotely.

Key Takeaways

  • Wells Fargo is a national bank with branches in all 50 states and is one of the four largest U.S. banks by total assets.
  • The bank offers basic accounts like checking and savings, along with credit cards, loans, and investment services.
  • Wells Fargo is a for-profit company owned by shareholders, not a government agency or nonprofit.
  • The bank is regulated by federal agencies including the Federal Reserve and the Office of the Comptroller of the Currency, which set rules for how it operates and protects customer deposits.
  • If you bank with Wells Fargo, your deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account type.

How Wells Fargo makes money

Wells Fargo is a for-profit business, which means it exists to make money for its owners — the shareholders who hold stock in the company. The bank makes money in three main ways: by charging fees on accounts and services, by earning interest on loans it makes to customers and businesses, and by investing customer deposits.

When you take out a home loan or car loan from Wells Fargo, you pay interest on that loan — a percentage of the borrowed amount that goes to the bank as profit. When you keep money in a savings account, Wells Fargo uses that money to make loans to other customers and keeps most of the interest earned. The bank also charges monthly maintenance fees on checking accounts (though many accounts waive this fee if you meet certain conditions), overdraft fees if you spend more than you have, and fees for services like wire transfers or stopping a check payment.

Who regulates Wells Fargo and what that means for you

Wells Fargo is not a government agency — it is a private company — but it is heavily regulated by the federal government. The Federal Reserve oversees Wells Fargo's overall safety and soundness, making sure the bank has enough capital (money set aside) to handle losses. The Office of the Comptroller of the Currency (OCC) examines the bank's day-to-day operations and enforces federal banking laws. The Consumer Financial Protection Bureau (CFPB) enforces rules that protect you as a customer, including rules about how the bank discloses fees and interest rates.

This regulation protects you in concrete ways. Your deposits at Wells Fargo are insured by the Federal Deposit Insurance Corporation (FDIC), which means if the bank fails, the government guarantees you will get back up to $250,000 per account type (checking, savings, money market, and certificates of deposit are each insured separately). The bank must disclose the interest rate on your savings account and the annual percentage rate (APR) on loans before you sign. The bank cannot charge you unfair or deceptive fees, and it must give you a written explanation of its policies.

Wells Fargo's history and past problems

Wells Fargo was founded in 1852 as a stagecoach company that transported mail and valuables across the American West. It grew into a bank and has operated continuously since then. In 2008, during the financial crisis, Wells Fargo received a government bailout (a loan from the federal government to prevent collapse), which it repaid.

Between 2011 and 2016, Wells Fargo employees opened millions of unauthorized accounts in customers' names without permission — a major scandal that damaged the bank's reputation. The bank paid billions of dollars in fines and settlements. This history is worth knowing because it shows that even large, regulated banks can harm customers, and that regulation and oversight exist partly because of past failures. If you choose to bank with Wells Fargo, you are relying on both the bank's current practices and the regulatory systems designed to catch problems.

What services Wells Fargo offers

Wells Fargo offers the full range of banking services. For everyday banking, you can open a checking account (which comes with a debit card for purchases and ATM withdrawals) or a savings account (which earns a small amount of interest). The bank offers credit cards with different rewards programs and interest rates depending on your credit history.

If you need to borrow money, Wells Fargo makes home loans (mortgages), auto loans, personal loans, and home equity lines of credit. For longer-term financial planning, the bank offers certificates of deposit (CDs), which lock your money away for a set period in exchange for a may provide interest rate, and investment accounts where you can buy stocks and mutual funds. Wells Fargo also manages retirement accounts like IRAs and 401(k)s, though if you have a 401(k) through your employer, your employer chooses the bank or investment company that manages it.

How to open an account with Wells Fargo

You can open a Wells Fargo account online, by phone, or in person at a branch. Online is usually fastest — you will need a valid government-issued ID, a Social Security number or Individual Taxpayer Identification Number (ITIN), and a way to fund the account (another bank account, a debit card, or a check). The bank will ask for your name, address, date of birth, and employment information.

Wells Fargo will check your banking history using a system called ChexSystems, which tracks whether you have had accounts closed for overdrafts or fraud at other banks. If you have a negative history, Wells Fargo may deny your account. If you are approved, you can usually start using your account the same day. The bank will mail you a debit card and checks within a few business days, though you can use your account online when ready.

Alternatives to Wells Fargo

Wells Fargo is one option among many. Other large national banks include JPMorgan Chase, Bank of America, and Citigroup. Regional banks operate in specific parts of the country and often offer more personalized service. Credit unions are member-owned cooperatives that often charge lower fees and offer better interest rates on savings accounts, though they may have fewer branches and ATMs.

Online banks like Ally, Charles Schwab, and Marcus have no physical branches but often charge no monthly fees and offer higher interest rates on savings accounts because they have lower overhead costs. The right choice depends on what matters to you: whether you need in-person service, what fees you are willing to pay, how much interest you want to earn on savings, and whether you want to borrow money from the same institution where you keep your deposits.

Frequently Asked Questions

Is my money safe at Wells Fargo?

Your deposits are insured by the FDIC up to $250,000 per account type, so if the bank fails, you will get your money back. The bank is also regulated by federal agencies that examine its operations. However, the 2011-2016 scandal shows that regulation does not prevent all problems — it catches them after they happen and requires the bank to pay restitution.

What is the difference between Wells Fargo and a credit union?

Wells Fargo is a for-profit bank owned by shareholders. A credit union is a nonprofit owned by its members. Credit unions often charge lower fees and pay higher interest on savings, but they have fewer branches and ATMs. Both are insured by federal agencies — banks by the FDIC, credit unions by the National Credit Union Administration (NCUA).

Can I use Wells Fargo ATMs for free?

Yes, if you have a Wells Fargo account, you can use any Wells Fargo ATM for free. Using ATMs from other banks usually costs a fee — typically $2 to $3 per transaction — unless you use an ATM in a shared network. Ask Wells Fargo which ATM networks it participates in.

What happens if I overdraw my account?

If you spend more money than you have in your account, Wells Fargo will cover the transaction (if it is a debit card purchase or check) and charge you an overdraft fee, usually around $35. You then owe the bank the amount you overspent plus the fee. Some accounts offer overdraft protection, which links your checking account to a savings account or credit line so overdrafts are covered without a fee.

Does Wells Fargo offer accounts for people new to banking?

Wells Fargo offers basic checking and savings accounts that do not require a minimum balance, though some accounts have monthly maintenance fees. The bank does not have a specific "beginner" account, but its standard accounts work for people opening a bank account for the first time. Ask a banker in person or online about which account has the lowest fees for your situation.