Please ensure Javascript is enabled for purposes of website accessibility

Wells Fargo Cuts Fees, Minimums for Robo-Investor Service

By Eric Volkman – Apr 13, 2020 at 6:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The new levels became valid on Monday.

Effective immediately, Wells Fargo's (WFC 2.01%) Intuitive Investor service is cheaper and more accessible. The bank announced on Monday that it's reducing its fees for the service, which is an automated investing platform augmented by access to human advisors.

The new annual advisory fee for Intuitive Investor is 0.35% of assets under management (AUM), and the minimum for those assets now stands at $5,000. Customers who link their account to a Wells Fargo premium checking account get an additional break, with their fee dropping to 0.30% of AUM.

Exterior of a Wells Fargo branch.

Image source: Wells Fargo.

Previously, Wells Fargo's threshold for the service was $10,000 in assets, and it charged a fee of 0.50%.

The bank said its minimum and fee adjustment was done "to help emerging affluent clients start on their investment journey earlier."

Intuitive Investor is one of a growing number of so-called "robo-advisor" services that harness advances in automated financial technology. They have become popular to the point where they are nearly commonplace among financial services companies and even banks. As the space gets more crowded, it's becoming more competitive.

Wells Fargo rolled out its service in 2017. After an evaluation of financial status and goals, investors are slotted into one of nine portfolio strategies, each one designed by the bank's strategy and research division. Customers can pick from a variety of account types, which include popular retirement accounts.

On Monday, Wells Fargo's share price slumped by 5.3%. That fall was steeper than the losses for rival big bank stocks and the broader equities market.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$40.84 (2.01%) $0.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.