Wells Fargo customers may run into a new rule that they might consider to be rather inconvenient.
Individuals are no longer able to deposit cash into someone else’s Wells Fargo account.
It is a rule that has also been enforced by many other major U.S. banks in an effort cut down on illegal financial activity.
Here’s what you need to know about the policy that bans cash deposits into another person’s Wells Fargo account, and how to work around it.
Wells Fargo’s No-Cash-Deposits Policy
According to Wells Fargo:
“We'll only accept cash deposits into your Wells Fargo Consumer checking or savings accounts if it is coming from an account owner or authorized signer.”
Customers will need to present valid identification to make cash deposits to their account.
So, why did they make these changes?
The bank said that these changes will protect customers and help reduce criminal activity.
The law requires banks to take certain steps to prevent and combat money laundering.
Wells Fargo is following on the heels of other banks to put policies in place to prevent illegal activity.
1. Check
Americans are still writing checks. In fact, 20 percent of Americans use personal checks to pay for expenses such as rent or extracurricular activities.
Writing a check is still one of the cheapest ways to exchange money since you won’t pay a convivence or transaction fee.
In fact, many banks offer a free box of checks as an incentive to attract new customers.
A box of replacement checks can cost anywhere from $12 to $38.
Depositing a check is convenient through online and mobile banking.
Almost all banks and credit unions offer mobile deposit. It’s as simple as taking a picture of the check and uploading it to the app. This way, you don’t even have to make a trip to the bank.
Wells Fargo customers can use this feature to deposit up to:
- $2,500 per day, or
- $5,000 over a 30-day period
Note that these limits are the standard, but they can vary by each specific account based on the relationship with the bank.
2. Money Order
A money order is like a check, except the money is prepaid.
It’s a secure way to pay bills or exchange money. People who do not have a bank account often rely on money orders to send or receive payments, like rent or utilities.
You can send up to $1,000 per money order. The exact maximum amount depends on where you buy it from.
They’re also convenient since you can go to many different locations to buy one, such as:
Compare Money Order Fees at Banks & Retailers
| Company | Fees | Limits |
|---|---|---|
| Chase | $5 | $1,000 |
| Bank of America | $5 | $1,000Not available in Arizona, California, Nevada. |
| Wells Fargo | $5 | |
| Citibank | $5 | |
| U.S. Bank | $5 | |
| Truist | $5 for customers$10 for non-customers | |
| PNC Bank | $5 | |
| BMO Harris Bank | $5 | $1000 |
| TD Bank | $5 | |
| Capital One | Does not issue money orders | |
| Regions Bank | $1 | $1000 |
| Santander | $5 | |
| BMO Harris Bank | $5 | $1000 |
| M&T Bank | $6 | |
| CVS | $0.70 | $500 |
| USPS | $1.20 | $500 |
| Walmart | $0.70 | $1,000 |
To buy a money order, you’ll prepay the amount of money to send, plus a small processing fee. Fees range anywhere from $1 to $15.
A money order includes the specific payee’s name in the “pay to the order of” field, similar to a check. You will sign the front, and the recipient will sign the back when they go to cash or deposit it in a bank account.
The best way to get access to the cash right away is to bring the money order to a location of the third-party business that issued it.
Also, you’ll need to show your I.D.
3. Cashier’s Check
Understanding the difference between a money order and cashier’s check can be confusing.
Money orders are cheaper in comparison and are limited to less than $1,000.
Cashier’s checks are preferred for larger payments with fees ranging from $8 to $10 a check.
Banks issue cashier’s checks, making them more secure.
In addition, you must have a checking or savings account from the issuing bank in order to get a cashier’s check.
When you order a cashier’s check, online or in person, the money is immediately deducted from your account and set aside until the check is deposited.
If you’re on the receiving end, the money is available almost immediately.
Wells Fargo customers can order a cashier’s check online, or by visiting a local branch.
4. Zelle
Zelle is the quickest way to electronically send money to another person, known as Person-to-Person payments (P2P payments).
All you need is an email address or mobile phone number, and eligible bank account in the U.S.
Backed by more than 30 banks, Zelle is giving its biggest competitors, Venmo, Popmoney and PayPal, a run for their money. But, unlike many of its competitors, Zelle is free.
Since Zelle is set up through your bank, you can quickly and securely send money, without entering your bank account information.
The only information you need to enter is an email address or mobile phone number, and the amount of money you want to send.
Note that there are limits to Zelle payments:
Zelle Pay Limits at Top U.S. Banks
| Bank | Daily limits | Monthly limits |
|---|---|---|
| Ally | Up to $500/day | Up to $10,000/30 days |
| Bank of America | ||
| Capital One | Up to $2,500/day | Up to $10,000/month |
| Charles Schwab | Up to $2,500/day | Up to $5500/30 days |
| Chase | - | |
| Citibank | If you have been a Citi customer for less than 90 days: If you have been a Citi customer for more than 90 days: | If you have been a Citi customer for less than 90 days: If you have been a Citi customer for more than 90 days: |
| Citizen's Bank | Up to $1,000/day | Up to $5,000/month |
| Discover | $600 per day | - |
| KeyBank | Up to $2,000/day ($500/day to start) | - |
| PNC Bank | Up to $1,000/day | Up to $5,000/month |
| TD Bank | ||
| Truist | Up to $2,000/day | Up to $10,000/rolling 30-day period |
| U.S. Bank | Between $1,500 and $2,500/day | Between $5,000 and $10,000/month |
| Wells Fargo | Up to $3,500/day | Up to $20,000/month |
5. Prepaid Card
A prepaid card has the same look and feel of a standard debit or credit card, except it’s not linked to a bank account.
Visa, MasterCard, and American Express offer prepaid cards that you can use anywhere that type of card is accepted.
To add money to the card, you can deposit cash at select ATMs, bank branches or retailers. You can even download the app and deposit checks, or arrange for direct deposit from your employer.
A prepaid card comes in handy since you can request a second card to give to a friend or family member. That person can load cash onto the card that you will be able to access with your card.
The downside of prepaid cards is that they do come with monthly fees, ranging anywhere from $5 to $10 a month.
A prepaid credit or debit card is ideal for someone who receives regular money deposits into their account, such as a teen or young adult.
6. Wire Transfer
A wire transfer is not the cheapest option, but it’s still an option. A wire transfer is a service to send or receive electronic payment by wire.
You can send or receive money to almost anyone in the U.S. or abroad.
To send a wire transfer, you will need the following details to initiate the transfer with your bank:
- Name and address
- Bank name and address
- Wire transfer routing number
- Account Number
Wire transfer fees depend on the amount of money that is sent. You can expect to pay anywhere from $25 to $40.
And, the recipient will also pay an income wire transfer fee. Wells Fargo charges $15 for incoming domestic wires and $16 for incoming international wires.
Once the money is wired to another person, or business the money is available to them pretty quickly.
Wire Transfer Fees at the Top U.S Banks
| U. | Domestic Incoming | Domestic Outgoing | Foreign Incoming | Foreign Outgoing* |
|---|---|---|---|---|
| Bank of America | $15 (fee waived for Interest Checking and Advantage Plus Preferred Rewards accounts) | $30 | $16 (fee waived for Preferred Rewards Platinum and Platinum Honor Tiers accounts) | $45 for USD and $35 for foreign currency |
| Chase | $15 | $35 ($25 for wires initiated online) | $15 | $50 ($40 for wires initiated online) |
| Wells Fargo | $15 (fee waived for Portfolio by Wells Fargo Plus w/ qualifying balances of $250,000 or more) | $30 | $16 | $40 |
| Citibank | $15 (fee waived for Citigold and Citi Priority accounts) | $35 ($25 for wires initiated online, $17.50 for Citigold and Citi Priority accounts) | $15 (fee waived for Citigold and Citi Priority accounts) | $45 ($35 for wires initiated online, $25 for Citigold and Citi Priority accounts) |
| U.S. Bank | $20 | $30 | $25 | $50 |
| Capital One | $15 (fee waived for 360 Checking accounts) | $25 (could be up to $40 for 360 Checking accounts) | $15 | $50 for USD and $40 for foreign currency |
| PNC Bank | $15 ($15 additional fee for wires initiated over the phone) | $30 ($15 additional fee for wires initiated over the phone) | $15 | $45 |
| TD Bank | $15 | $25 | $15 | $40 |
| Citizens Bank | $18 if initiated by mail, $28 if initiated by phone, $26 if initiated by fax, and $30 if initiated online | $30 | $12 for USD and $10 for foreign currency** | $35 for USD and $10 for foreign currency |
| Fifth Third Bank | $15 | $30 | $15 | $50 for foreign currency and $85 for USD |
| Regions Bank | $15 | $25 | $18 | $45 |
| M&T Bank | $16 | $32 | $16 | $75 |
| Santander | $13 (fee waived for Student Value Checking accounts and Premier Plus Checking accounts) | $25 | $13 | $40 |
| BMO Harris Bank | $0 | $25 | $0 | $45 |
| Discover Bank | $0 | $30 | $0 (if received in foreign currency, an intermediary bank may charge fee of $20) | $30 |
| AVERAGE | $13 | $29 | $16 | $49 |
*Foreign outgoing fee is in USD, unless otherwise stated. |
7. Joint Account
A joint account is when two or more people “own” an account. Each person has full access to all the account details, including the ability to deposit or withdrawal money in the account.
The only difference between a joint account and individual account is the number of people who own the account.
If you already have an account with Wells Fargo, you can add a person to the account, making it a joint account.
If you don’t have an account already opened, opening a joint account is the same process as an individual account. Both people will need to provide information and identification in order to open the joint account.
A joint checking account is a good option for someone who regularly receives cash deposits from a specific person, a trusted source.
For example, newlyweds who are looking to combine their finances might explore joint checking account options to pay bills, while each maintaining their own individual account for other expenses.
8. Switch Banks
Several of the nation’s largest banks have implemented this change, most notably Chase and Bank of America.
History has a way of repeating itself, so it’s safe to say that other banks will likely roll out these changes shortly.
Whether you’ve been a loyal Wells Fargo customer for years or just opened an account, it might be time to shop around for a new bank.
Although online banks don’t have bank branches to deposit cash, higher interest rates and lower fees might be just what you need to switch banks.
Here’s what to look for when you’re shopping around for a new bank with checking accounts and savings accounts:
- No maintenance fees
- No minimum balance requirements
- Interest bearing
- Online bill pay
- Mobile banking
- Worldwide ATM access
- FDIC Insured
- P2P payments
Conclusion
Wells Fargo did not give a specific date these changes will go into effect.
So, keep an eye out for upcoming notifications.
