FREE NEWSLETTER
NOW THAT I’M RETIRED and have all the time in the world, I often use that time to worry about money. That brings me to a recent offer from Wells Fargo to get a $525 bonus for depositing $25,000 in a savings account for 90 days.
My immediate concern was whether the $525 would more than compensate for the paltry interest rate that Wells Fargo pays. A quick calculation determined that investing $25,000 in a Wells Fargo savings account and getting the $525 bonus—rather than the 4.25% I could then earn with Capital One 360 Performance Savings—would still leave me almost $260 ahead.
I clicked on the offer, and was emailed a “bonus offer code” that I then needed to show my “banker” at a Wells Fargo branch. While it seemed rather a dated process, I was still game. Besides, I liked the idea of having a “banker.” Maybe we could meet for a martini, talk about the fights, and then catch a show at the Copacabana.
Still, the more I thought about it, the idea of visiting a branch was a little confusing. At age 58, I was entirely too young. Did they think I didn’t know how to access the internet?
It felt like I might be in one of those Progressive commercials about the “young homeowners” who are turning into their parents. Was I going to visit a branch in person to pick up a toaster? It all seemed strange, as I hadn’t physically been inside a bank in more than 10 years.
Since the nearest Wells Fargo branch was 25 minutes away, I decided to also visit a Trader Joe’s near the bank. I made a 2:30 p.m. Monday appointment with my banker. In addition to my bonus, now I was looking forward to picking up some Trader Joe’s Kentucky Bourbon Straight Whiskey, English peas and a twelve-pack of Simpler Times Lager.
When I arrived at the bank 10 minutes early, I got a bad vibe. The place seemed so sterile. There was a bunch of empty cubicles in one corner, a waiting area where a woman was collating bank statements and what appeared to be my banker, who was deep in conversation with another customer.
After waiting on line for 15 minutes to check in with a teller, I was informed that I was next. Problem is, my banker was busy opening a credit card account. I thought, “Someone visited a branch to open a credit card account? Have I entered a wormhole to 1975?”
After waiting another 30 minutes, the branch manager informed me that I could continue to wait, make another appointment or open the account online. Hearing that third option almost made me apoplectic. But I calmly showed her the bonus offer email that I’d printed out, clearly stating that I needed to open the account at a branch.
As I wasn’t sure whether this branch was located in 1975 or 2024, I was thankful that I’d printed out the email just in case there was no wi-fi. She read my email and found it equally confusing.
I had come so far and waited for so long that I just had to see it through. And some 30 minutes later, Alex and I started the process. He read off numerous disclaimers, and entered my address, phone number and other vital information on his computer. He had me enter my Social Security number and birth date, and confirm a number of details on a keypad.
He also asked if I intended “to open the account just to get the bonus or to establish a relationship with Wells Fargo?”
I replied, “Let’s just see how this goes.”
It then dawned on me that, while much of the business world has been replaced by the internet, Wells Fargo had decided to try to have one man replace the internet. While it all seemed ridiculous, I had to admire Alex and his quixotic quest.
Alex then gave me three savings account options: Wells Fargo Way2Save at a 0.01% interest rate, Platinum at 0.25%, or opening a certificate of deposit.
I asked, “Can I open a CD and still get the $525?” Which was met with a resounding “no” from a disembodied voice.
I looked around and then up, before saying, “Is that you, God?”
That’s when I noticed the voice came from a previously unseen and dimly lit corner where a woman was sitting alone at a desk. I became just a little upset, not by her answer, but that she hadn’t opened my account some 60 minutes earlier.
Believe it or not, I went with Way2Save as it was specifically mentioned in my offer email. I didn’t want to compromise my two-and-a-half-hour odyssey due to the fine print.
When the end thankfully came, Alex mentioned that he was going “to slip all the paperwork into a manila envelope.” That seemed a perfect ending, as I can’t remember the last time anyone said that to me. I waited a moment before I said goodbye, just in case he wanted to give me my passbook.
I wanted to ask Alex why I had to open this account at a branch. But at this point, I was too exhausted. Further research indicates the goal may be to make the bonus so difficult to collect that no one actually gets the $525.
It’s either that or it’s an initiation, with the pain endured making you feel like you’re part of something special. A feeling that a new member might have after becoming a Navy SEAL (“the only easy day was yesterday”) or a Crip (“blood in, blood out”).
Immediately after shaking Alex’s hand, it started raining. Not just any rain, but biblical rain. I thought it might be an omen.
The next day, I tried to electronically transfer the required $25,000 into my account. I couldn’t. You see, Wells Fargo had thoughtfully limited my daily transfer to $5,000, with a monthly limit of $6,000.
When I contacted Alex, I was informed that this was done to protect me from fraud. He said that I needed to deposit the $25,000 by check.
I then let Alex know that I was planning to close the account as it was becoming quite apparent that I didn’t have what it takes to be a Wells Fargo depositor.
By the next day, my daily transfer limit was magically increased to $25,000. I guess having my own banker finally paid off.
Michael Flack blogs at AfterActionReport.info. He’s a former naval officer and 20-year veteran of the oil and gas industry. Now retired, Mike enjoys traveling, blogging and spreadsheets. Check out his earlier articles.
Want to receive our weekly newsletter? Sign up now. How about our daily alert about the site's latest posts? Join the list.
Update: Just took the twenty-five grand I withdrew from Wells Fargo and invested it in a Barclay Tiered Savings Account. They offer 4.35% and a $200 bonus.
Tell the truth–maybe you just thought it would make for a fun article on Humble Dollar. I try to remind myself that I am now “above” this sort of offer, and I should leave the “opportunity” for those for whom it is more “appropriate.”
Steve Spinella, “Thanks” for “updating” me on your “thoughts.” I “really” do “appreciate” it.
Bonuses like these are also taxable income, which is another point to consider in the cost-benefit analysis.
Interesting experience. I’ve done it twice with Wells (checking only)- both times for $300. Closed accounts after about 7 or 8 months. I’ve also done it with Chase – twice. Each time for $900 (savings, checking, and monthly automatic deposit). I’m keeping my most recently opened Chase account because the benefits for a retired military guy are really outstanding.
Boy, do I have a Wells Fargo story. I’ll give you the short version. I opened a credit card w/ them. I received the credit card, made some purchases on the card, and paid the balance in full when it was due. A few months later they sent me a letter stating that they wanted permission to access my tax return with the IRS. They said they wanted to confirm my income. I made several calls to them and said I was not comfortable giving them access to my tax information through the IRS. I said you already gave me the credit card, I already made purchases on it, and have already made full payments to you for my purchases. I also told them to check my credit score; it is excellent, in the 800’s. No good they said, we want to access your tax return through the IRS. I even went to the local branch and a banker there made several calls and could not speak to anyone w/ authority to help me. He got the run around, just like me. It seems there is someone in the subbasement at headquarters that makes the call and not even a Wells Fargo banker can talk w/ him or her. A few days later I got a letter in the mail telling me my credit card was cancelled by them. Needless to say, I stay as far away as I can from them. I don’t care what type of deal they are offering. Some firms are best avoided, and Wells Fargo is at the top of the list.
This is why I do not ever take any free offers seriously. They are not worth the effort. We get offers for almost-free vacations, if we sit through a sales presentation. They immediately go in the trash.
This reminded me of the give-always that bank offered in the distant past, toaster ovens and such. But in those days one actually wanted received the promotion item!
All brick n mortar banks are empty.. since Wells is considered too big to fail, one can become an investor instead of a customer.. consider the preferred
WFC-L.. pays 6.1% now and due to a technicality it can not be called..
You forgot the important part. Did you make it to Trader Joe’s?
DrLefty, With a surgeon’s precision, you’ve cut “straight” (see “Steve Spinnela” above) to the chase, accompanied by 280 g of “Greek Chickpeas with Parsley & Cumin.” Yamas!
https://www.allrecipes.com/best-trader-joes-hidden-gem-greek-chickpeas-8740129
Hoping for a follow-up in 90 days on how easy it is to get your deposit and bonus out.
cesplint, 93 days later (wanted to give WF a buffer) I withdrew it all. Used the $525 to buy some “free” steak. The best-tasting porterhouse I ever ate!
My dad used to run from one S&L to another moving his CD’s to the highest rates and gifts. This was in the 70’s and 80’s before they crashed. I tried to convince him to open a money market account but it was too risky (to him). I think he enjoyed the process.
My own experience with Wells was a relationship that was forced on me by a lender while I was CFO. They were terrible in every facet of our relationship. It took months to close out the accounts when the lender was paid off.
After several years of dealing with Wells Fargo for my Mom, she finally agreed to moving her accts to my local credit union. That WF branch is now a funeral home.
Hilarious and a reason I throw 99% of my mail in the trash.
Your quest is similar to finding one of Southwest’s probably legal but dubious $25 low flight offers. It’s out there, one seat on a 2am flight with a change in Iowa.
I switched brokerage accounts once for a $10,000 Citibank bonus, which was enough hassle to last a lifetime (but not nearly as entertaining as your experience). I’m not going through that again for less than $1,000 — bare minimum.
Great story.
I too got a bonus about a year ago by following these steps and closed the account as soon as possible after I got the bonus. Wells Fargo is the worst bank to deal with because everything with them is weird. Unfortunately I have had a checking account with their predecessor bank they acquired so I’m kind of stuck.
Nick Politakis, I agree φίλος! Though how did they become the fourth-largest bank in the US?
Too funny. I had the same experience at a regional bank about two years or so ago when they were offering $500. I enjoy free money so after I had received numerous offers, I decided to give it a go. They went 0 and 2 after 3 days of trying to get the account to work. Brazenly, they expressed dismay at me not wanting to engage with an investment advisor there for some ridiculous fee. Strike three – I’m outta here. Cancelled the whole shebang.
Wells Fargo? Run away!
Great article. However, I wouldn’t go near Wells Fargo, bonus or no bonus. Like Jeff, I was a long time Wachovia customer. I only stayed with WF for a few months after the take over. The last straw was when the guy apparently in charge of my local branch told me my ATM card wouldn’t work abroad!
Very entertaining! Thanks for the play-by-play, especially the “woman in the corner” scenario.
Years ago, I was a long-time Wachovia customer. During the banking crisis, it was determined that Wachovia should be taken over by Wells Fargo.
In short order, my local branch had immediate (and continuous) turnover, followed by a reduction in all the little things that make banking transactions less onerous. I was the executor of my father’s estate, and I did not want to change banks and add that to the stress of estate settlement. I pushed through it. When all was said and done, I closed the estate and all of my personal accounts, then found a credit union that met my needs with a minimum of fuss.
That was a great read.
In a few weeks I’m going to exit a high yield savings account I signed up for with a similar bonus. Fortunately that was a fairly easy experience. Still, I expect that to have been the last of my bonus or higher rate chasing. Simplicity has won.
Awesome post Mike! For me, chasing free toasters doesn’t jive with my desire to keep things simple. As for Wells Fargo,
I’m in total agreement with Dave Lancaster’s comment below.
I wish this was surprising. I’ve had very few in branch experiences that weren’t a test of my patience.
At least the days of lining up to deposit money, waiting 30 minutes for the privilege is basically over.
When I finally had access to an HSA in the last few years of my teaching career, it was with Wells Fargo. I had no wish to let WF have my money to invest (see David Lancaster’s comment). I just drew down the balance each year to reimburse me for current medical expenses, e.g., my LTC premiums. This freed me up to invest more in my TIAA 403(b). For me, the tax differential (HSA vs. 403(b) funds) was the cost of not doing business with Wells Fargo.
That was some fun writing and a great insight into your experience. What a time warp. There are so few banks to go in to now…and one can see why! Thanks for this article.
I wouldn’t go anywhere near Wells Fargo. If you don’t know the past history of this bank Google their years of fines for deceptive practices, and other run ins with federal regulators.
This is their most recent encounter with the feds, The Office of the Comptroller of the Currency just this year, although apparently they were not fined.
Sept 12 (Reuters) – “… a U.S. banking regulator found its safeguards against money laundering and other illegal transactions were too lax and restricted its ability to expand in risky businesses.
The California-based bank, which has been under intense scrutiny since a 2016 fake accounts scandal.
Thats eight years and running of investigations into Wells Fargo practices leading to fines and sanctions.
Michael, have you calculated the hourly rate of your time spent for this “additional “ $260 “ahead” interest amount? lol.
I’ve fallen for some of these new bank account promotions recently as they appear to be “free money” for opening and maintaining balances at competing banks.
I opened a High Yield Savings account with American Express Bank that was paying a competitive 4.25% rate (decreased since the Feds rate cuts). I only had to maintain that balance for about 60 days before receiving a $350 bonus. The small print said it could take 8-12 weeks to receive the bonus after the required date to maintain the funds. It turned out the bonus hit my account 1 week after the minimum time. I’ve kept this account and we are using it to separate and fund some longer term savings needs. The account has all the benefits of my regular bank accounts so including online check deposits, links with external bank accounts to transfer funds and full online statements and transfer facilities (I think even Zelle which I haven’t used from this account yet). I’m not sure I would have opened it if I had to go to a physical bank for a meeting.
thanks for the entertaining post!
You may be better off using Fidelity or Vanguard by opening a brokerage account. Their MM accounts pay very well and you have so many options with them. You can use bill pay with Fidelity while you get the high interest rate. You just cannot get that at most banks. You can get check writing at both places.
luvtoride44afe9eb1e, Decided against calculating my hourly rate as I felt I might be then violating Federal minimum wage laws.
Might?
Nick Politakis, well, that’s how my lawyer said I should word it.