Wells Fargo Bank IRA Rates
Wells Fargo Bank offers a selection of IRA’s, including Roth and Traditional varieties. Contributions are invested in FDIC-insured deposits. There is no fee to open an Individual Retirement Account with the bank; and there is no annual fee, either. Since it’s a bank IRA, there is no level of activity required. There is also no fee to close or transfer a Well Fargo IRA, and there is also no low-balance fee.
IRA contributions can be invested in either a savings account or a CD. The bank’s savings account requires a $100 deposit and
currently pays just 0.05%. There are a variety of CD’s available. They have either a $1,000 or $2,500 minimum. Interest rates vary
based on zip code, term, and balance. Currently, the bank’s CD’s pay anywhere from 0.05% to 2.40%. You can see them
under think link »
Wells Fargo Brokerage IRA Fees
The above rates aren’t very high. Thankfully, Wells Fargo also offers investment IRA’s with its securities arm WellsTrade. Individual Retirement Accounts with the broker cost nothing to setup. There is a $25 annual fee, although it can be avoided with a $5,000 account balance. Investors who have a relationship with Wells Fargo Bank can also avoid the fee, but $50,000 in assets is required.
WellsTrade does not require any level of activity in an IRA. The broker does charge $95 to close a retirement account. There is also a $95 transfer fee for moving an IRA to a different firm.
Retirement savers who would rather turn over investment decisions to financial professionals have access to Wells Fargo Advisors, an investment advisory service. This firm is compensated either through commissions or a percentage of assets under management. Fees are negotiable depending on account size. The percentage-based fee ranges from 2.00% to 0.75%. An initial consultation with the firm is free.
Wells Fargo IRA Commissions at WellsTrade
Stock and ETF transactions in a WellsTrade IRA cost $5.95. Certain traders with a Wells Fargo Bank relationship receive a $3
discount. Placing a trade over the phone tacks on an extra $25.
The broker has a good selection of mutual funds. The WellsTrade screener returns 9,845 products that are open to new investors. Of these, 2,558 come with no load and no transaction fee. The broker’s charge for transaction-fee funds is $35. Unfortunately, there are no commission-free ETF’s available at WellsTrade.
Wells Fargo IRA Review
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Wells Fargo IRA review »
Wells Fargo IRA Fees Comparison
The annual IRA fee at WellsTrade is a disappointment. Most on-line discount brokers have eliminated the charge. Firstrade, Merrill Edge, and
TD Ameritrade have no
retirement account fees.
Charging $95 to close an IRA is rather expensive, judged by industry standards. Vanguard and TD Ameritrade, for instance, charge nothing to close a retirement
account.
WellsTrade’s $95 transfer fee is also above average. Merrill Edge charges just $49.95 to move an IRA to another broker.
Wells Fargo’s IRA rates are pretty low compared to what is available at other banks. For example,
CIT Bank currently pays
2.10% APY.
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Firstrade
|
$0
|
$0
|
$0 + $0 per contract
|
$0
|
$0
|
|
Ally Invest
|
$0
|
$9.95
|
$0 + $0.50 per contract
|
$0
|
$0
|
|
TD Ameritrade
|
$0
|
$49.95
|
$0 + $0.65 per contract
|
$0
|
$0
|
Disclaimer
For the most recent information on Wells Fargi IRA fees (ROTH, Simple, SEP, traditional IRA accounts) visit their website.
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