I recently received a letter in the mail from Wells Fargo advertising the Wells Fargo PMA Package. The details of a PMA Package include free checks, $100 minimum opening deposit, no access fees for Wells Fargo ATM transactions, premium PMA prime checking rates (see below), and no monthly service fee that the monthly ending statement balance in PMA qualifying accounts equate to more than $25,000. If you don’t have sufficient funds in qualifying accounts, you will be charged a monthly $25 service fee.
|Premium PMA Prime Checking rates|
|$0 – $4,999.99||
|$5,000 – $24,999.99||
|$25,000 – $99,999.99||
|$100,000 or more||
A bonus of 100 free trades per year is given to qualified PMA package customer with at least $25,000 in a combination of Wells Fargo investment accounts and Wells Fargo bank accounts (including checking, time accounts/CDs, & loans outstanding credit card). After using up 100 trades in a given year, subsequent trades will cost $5.95/trade.
Wells Fargo PMA Package Pros:
– Get better interest rates for money sitting in your Wells Fargo checking accounts
– Free trades up to 100 trades and only $5.95/trade afterward (Scottrade comparatively offers $7 trades)
Wells Fargo PMA Package Cons:
– In order to get free trades, you must have $25,000 in Wells Fargo applicable accounts. If I opened a $25,000 1 year CD in Hayward (California), I would get a 3.45% APY instead of putting into Wachovia’s 1 year CD at 4.25%. Therefore I would be losing $200/year in CD interest income by keeping the money in Wells Fargo. To make up for that $200 loss, I would need to make over 33 trades per year at Wells Fargo to make up for the difference.
– $25 monthly service fee if your qualified Wells Fargo investments drop below $25,000
I think that the cons outweigh the pros for me because I like the flexibility of not having to worry about that $25,000 minimum (with service fees and trading stipulations). For someone with much more than $25,000 to put into the Wells Fargo PMA Package, this might be a very ideal situation. Also people who trade very frequently would benefit from the plethora of trades and cheap trades after reaching the 100 trade milestone.
Final note: There is no termination fee for the PMA Package if you want to cancel at any time.