Review of Wealthfront Cash Account: Earn a high APY without investing in any security.
The Wealthfront Cash Account is worth considering, despite Wealthfront's reputation as a robo-advisor.
A cash management account combines brokerage, checking, and savings features into one account, making it a convenient one-stop shop for all your financial needs. With this account, you can make purchases, pay bills, deposit and send checks, and withdraw money from ATMs.
Wealthfront allows savers to use the Cash Account as an additional checking or savings account without engaging with its investment features. However, they can also use the money in the account to fund connected Wealthfront investment accounts.
The Wealthfront Cash Account offers higher FDIC insurance coverage limits than a single bank account because your money is transferred to partner bank accounts.
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What is Wealthfront Cash Account?
The Wealthfront Cash Account is a high-yield cash management account that utilizes over two dozen partner banks to provide FDIC insurance on deposits and offers a debit card issued by Green Dot Bank.
With our bank account, you won't have to pay any fees, and you'll have access to over 19,000 fee-free ATMs. Additionally, we offer two out-of-network ATM fee reimbursements per month, unlimited transfers, free same-day withdrawals, and free wire transfers.
Wealthfront offers features such as sending money on payment apps, receiving paychecks early via direct deposit, and instant fund transfers to connected investment accounts.
Key features
The Wealthfront Cash Account's variable 4.50% APY, without caps or minimum requirements, is comparable to the best high-yield savings accounts available today.
Wealthfront Cash Account provides the highest FDIC insurance coverage of up to $8 million through its partner banks.
Pros and cons
Who is Wealthfront Cash Account for?
A cash management account with a good return and extensive insurance coverage is ideal for those who want to manage their cash effectively. Additionally, it is a great option for existing Wealthfront investors looking to add a free cash account.
Alternatives to Wealthfront Cash Account
Wealthfront Cash Account is a great cash management option, but it's worth exploring other alternatives in the market.
The Betterment Cash Reserve, a product from the well-known robo-advisor Betterment, provides a high 4.50% APY with no minimum balance requirement. Similar to Wealthfront, there are no fees and unlimited withdrawals. Although Betterment's FDIC insurance coverage is lower at up to $2 million with its partner banks ($4 million for joint accounts), this is still excellent coverage for an everyday cash account. If you already invest with Betterment, you may want to consider adding the Cash Reserve.
If you want a simpler option than a cash management account, a high-yield savings account may be suitable, offering an above-average rate of return and easy access to your cash.
The UFB Portfolio Savings account provides a high APY without any minimum requirement or monthly fees. Additionally, it offers a complimentary ATM card and allows for free transfers between direct deposit accounts.
If you want to keep checking features from your deposit account while maintaining a high APY, a money market account may be the best option for your savings. The Ally Bank Money Market Account offers both a competitive APY and access to checks and a debit card.
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