Wells Fargo rolls out new checking accounts for customers with large balances

Heads up, Wells Fargo customers: Many of you have a new checking account and should make sure by July 31 that you have the qualifying balances to avoid future monthly fees.

Wells Fargo has replaced its two portfolio checking accounts — the highest tiers — with two new accounts it's calling premier and prime.

The move solidifies the line between its highest balance holders and everybody else by imposing penalties and adding perks. It is part of a larger banking trend of pursuing wealthy individuals.

The premier checking account is for customers with $250,000 or more in "statement-ending-qualifying-linked-balances." The prime checking account requires a $20,000 end-of-statement balance.

These new accounts replace the two former portfolio accounts. But whereas customers could move between the two former levels penalty-free — so long as they didn't dip below $20,000 — the new accounts lock customers into one tier or the other.

Ed Kadletz, head of the Deposit Products Group for Wells Fargo, said the real difference is at the $250,000-and-above tier. "The reason we're separating that out is we have a lot of features and functions that customers will really enjoy. That's the distinction at the $250,000 and above level."

The bank says it is trying to simplify the checking accounts and add more perks for customers with the largest balances.

Customers may not realize they've been moved into a new type of checking account — or what that means for fees. Premier and prime account holders will incur a monthly fee if they dip below the established account level at the end of the statement period.

Fees for not having qualifying balances in the premier and prime accounts are $35 and $25 a month, respectively. Wells Fargo customers concerned about their ability to maintain those qualifying standards can shift to another account.

The move to offer more perks to account holders with higher balances is common practice as banks compete for wealthier households, said Greg McBride, chief financial analyst at Bankrate.com.

"In banking and every other business, businesses are trying to segment their customers in order to maximize loyalty and deliver appropriate value. The holy grail in financial services is the higher income, higher net worth consumer," McBride said. "They get more products and they have the potential to generate far more revenue the more money and business they bring under that one roof."

Wells Fargo says it's been communicating with customers and that the majority won't face fees during this transition. The bank said it has waived the monthly service fee as a courtesy on prime and premier accounts opened before May 9 until their statement-ending qualifying balance is calculated on July 31.

Customers can link and de-link qualifying accounts through online banking or through a banker, either in a branch or over the phone. The 24-hour number for Wells Fargo is 800-869-3557.

The bank didn't make changes to the Wells Fargo clear access banking or its most popular everyday checking accounts. Customers also have options to eliminate the low fees in those accounts as well.

Bankrate's McBride advises consumers who want to avoid fees to either seek alternatives at the same bank or at a credit union, community bank or online institution.

"A lot of consumers, and particularly higher-end consumers, prefer the convenience of having everything under one roof," he said. "Whereas lower- or moderate-income households that are watching every dollar, they're more concerned with making sure they get the best deal on every product they have. If that means having a checking account at one bank and getting the mortgage at another and a car loan at the credit union, then so be it."