The Wealthfront Cash Account is unique. It is a combined high-yield savings and checking account. It’s unusual to find a “banking account” that offers both high interest and bank features like a debit card, direct deposit and zero fees.
- How Does Wealthfront Cash Work?
- Top Features
- Who Benefits?
- Fees and Minimums
- Wealthfront Cash Account Review – Deep Dive
- Compare Robo-advisor High Yield Cash Accounts
- Wealthfront Cash Account – Pros and Cons
- Wealthfront Savings Account Review – The Takeaway
Wealthfront is an affordable, user-friendly robo that gives clients excellent service for a low account management fee. Wealthfront continues to innovate with this top-notch high yield savings and checking hybrid account.
The Wealthfront Savings Account is safe and protects your cash from loss and also offers high rates.
Just launched! The Wealthfront Self Driving MoneyTM feature helps optimize your money – so you’re getting the best returns for your goals and money strategy!
Wealthfront Cash Review
Name: Wealthfront Cash
Description: Free high-yield cash management account with no minimum and free ATMs.
Ease of Use
Tool & Resources
- Current Wealthfront customers
- Anyone seeking banking with free ATMs, high yields, and $1,000,000 FDIC insurance.
- Great app
- High interest rate on deposits
- Early access to direct deposit funds
- No physical bank branches
This Wealthfront high yield savings account review will answer all your questions, like “How does Wealthfront cash work?” and “Is Wealthfront cash account safe?”.
How Does Wealthfront Cash Work?
Wealthfront’s Cash Account functions much like other online, high yield savings accounts. All the paperwork to open the account is completed online.
The Wealthfront high yield savings account offers substantially better interest rates than brick and mortar competitors, primarily because they keep overhead costs low.
High yield savings accounts are not investment accounts. The reason Wealthfront can pay higher interest rates than other banks is because Wealthfront has automated many of their services and has low-overhead by operating only online and not with a physical location.
As a well-known robo-advisor, Wealthfront is already well-versed in keeping costs low: there are none of the usual expenses required to keep a physical business running, and the robo-advisor algorithms do much of the same work that a team of financial professionals might do. The Wealthfront online savings account continues with the firm’s automation and innovation by offering higher interest rates and helpful features:
- $1 minimum to start
- No fees
- FDIC insured up to $1 mil (Wow! Does so by spreading your deposit across 4 different banks)
- APY interest rate substantially higher than nationwide average
- Unlimited free transfers
Although, currently, interest rates are low, this won’t always be the case. So, it’s a good idea to open a high yield cash account now. That way you’ll earn more interest as interest rates increase.
Besides being housed under the umbrella of a reputable robo-advisor, the Wealthfront Cash Account has several great features:
- $1 minimum to open an account. Additionally, Wealthfront has no minimum balance required for accounts to earn interest or to remain open.
- No account management fees. You don’t have to worry about reading any fine print: your account will always remain free.
- FDIC insurance for up to $1 million.
- Unlimited free transfers.
- High interest rates that change in line with market rates.
- Wealthfront Debit Card – Free ATM withdrawals. Make purchases and withdraw cash.
- Free bill pay. Can auto pay bills like cable, rent, and mortgage. Can pay friends with apps like Cash App, Venmo, and PayPal.
- Direct deposit allows cash access two days early.
- Mobile check deposit.
- Free overdraft protection.
- Existing Wealthfront customers with taxable investment accounts can move money between those investments and their Cash Account.
The Wealthfront Cash account is administered in partnership with Green Dot Bank. You’re money might be held in one or more partner banks.
Whether you have an investment account with Wealthfront or not, we like the many features of this cash account.
The Wealthfront Cash Account is good for people who:
- Need relatively easy access to their money. Clients can transfer money out of their Cash Account, though these transfers are not instantaneous.
- Have short-term plans for their money. Investing in the market remains the best way to grow your money over the long term.
- Want to earn interest on their ready cash.
- Want early access to their paycheck. You get access to your paycheck two days early, with direct deposit.
- Don’t need access to a brick and mortar bank.
- Already invest with Wealthfront.
Fees and Minimums
Wealthfront is a low-fee robo-advisor, so it shouldn’t come as any surprise that their Cash Account is also affordable.
In fact, Wealthfront offers their Cash Account with no fees and no investment minimums.
Would-be Cash Account customers can get started with as little as $1. There are no minimum balance requirements to earn interest on your account.
Wealthfront Cash Account Review – Deep Dive
Is the Wealthfront Savings Account FDIC Insured?
This is one area where Wealthfront knocks the competition out of the park. Because they’re not a brick and mortar company, Wealthfront deposits your money at four different banks to make the typical $250,000 in FDIC insurance go four times as far—a whopping $1 million is protected for clients who use the Wealthfront Cash Account.
A similar robo-advisor cash account, Betterment’s savings account, also offers up to $1 million in FDIC insurance.
There is one catch: if you have other money saved at one of Wealthfront’s four banks, you will only have the typical $250,000 FDIC insurance across all accounts held at that institution.
Like any savings account, Wealthfront’s interest rates are subject to market fluctuations. As of November, 2020, interest rates are at all time historical lows.
The current Wealthfront Cash Account interest rate is .10%. This is 5 times the national average. The rate will vary based upon market interest rates.
You can be confident that as interest rates rise, so will the Wealthfront Savings Rate.
This drastic drop in interest rates is a result of the economic toll that the novel coronavirus (COVID-19) has taken on the world. Stock market prices fell, and the Federal Reserve reduced interest rates to nearly 0%.
If you’re reading this review later, it’s likely that the Wealthfront cash account interest rate will be substantially higher.
While 0.35% APY is a shocking contrast to the usual interest rate Wealthfront has recently paid — an interest rate close to 2%, if not higher — it’s important to remember that this is still much higher than the interest rates paid out by brick and mortar banks. And, with all market and interest rate downturns, this one is bound to bounce back eventually.
The app is ranked 4.7 on Google Play and is updated every week. This is quite a selling point.
You can easily pay others through Venmo, Paypal and other platforms with the Wealthfront app.
The app also allows you to seamlessly integrate Apple Pay and Google Pay.
“Easy to use and very clear. I like being able to see my pending interest. Wealthfront as a whole is a much better experience than I’ve had with big banks- they make things easy to understand and are upfront about things like interest rate changes.”~S.E.P. Google app user
Wealthfront Self-Driving MoneyTM – Autopilot
Newly launched, Autopilot is Wealthfront’s first Self-Driving moneyTM service which offers another way to automate and maximize your money.
Here’s how the Autopilot works:
Choose an account to monitor – any checking or your Wealthfront Cash account.
Set the maximum amount of cash that you need in the account. It could be any amount, you decide.
Then choose an account that you want money transferred into. That could be your Wealthfront Investment Account or your Wealthfront Cash Account (if you’re monitoring an outside checking account).
Then, when the balance exceeds your designated maximum by $100 in the first account, it will automatically be transferred into the second.
This is a great way to make sure that all of your money is working for you.
If you monitor your Wealthfront Cash account and then have it transferred into your Wealthfront investment account you can ensure that all of your money is growing in the financial markets!
How to Sign up for Wealthfront Cash?
After clicking the button above, you’ll be on the Wealthfront home page.
Just click the get started button on the top right of the page.
Next you’ll begin the easy process to open a Wealthfront Account.
You’ll list some personal information and verify that you’re not a robot.
Then, select your goal. Select either High Interest Cash or choose from several investment goals.
Next, choose the type of account from the list including single and joint investment accounts, and many more.
Link your bank account and transfer the money.
Once the account is open you can set up regular deposits and direct deposit for your paycheck.
With the competition for your cash, let’s see how the Wealthfront Cash Account compares.
Compare Robo-advisor High Yield Cash Accounts
Wealthfront Cash vs Betterment vs Chime
|Features||Wealthfront Cash||Betterment Checking/Cash Reserve||Chime Spending|
|Pays Interest||Yes||Checking account - No|
Savings account - Yes
|Free Services||No minimum balance or account maintenance fees.||No minimum balance or account maintenance fees.||No minimum balance or account maintenance fees.|
|Minimum Investment Amount||No minimum.||No minimum.||No minimum.|
|Account Maintenance Fees||None||None||None|
|ATM Access||Free-In network||Free-In network (ATM fees reimbursed globally)||Free-In network|
|FDIC Insurance||Up to $1 million||Checking - $250,000|
Savings - $1 million
Yes! Founded in 2008, Wealthfront has demonstrated a commitment to providing its clients with quality services that meet their ever-changing needs.
Yes! Wealthfront savings accounts are protected with FDIC insurance, just like accounts held at traditional banks. Clients also don’t need to worry about the fluctuating stock market: while the Wealthfront savings account interest rates will fluctuate, clients’ money is not invested. Therefore, while your interest payments might change along with interest rates, you won’t lose money in your account.
Wealthfront is a very transparent company. In light of the changes to federal interest rates under the uncertainty of COVID-19, Wealthfront continues to be transparent in their communications with their clients. This makes Wealthfront trustworthy in our eyes, because they communicate in a timely, clear, and honest manner with the people who have entrusted their money in the company.
Yes, Wealthfront is a robo advisor investment platform where you can invest your money in accord with your goals, age and risk tolerance. Wealthfront also offers a cash account, which we review here.
In it’s broadest terms it refers to a brokerage account without borrowing or margin privileges. In this case, the Wealthfront Cash Account is akin to an all-in-one high yield savings and checking account. You get all of the benefits of high savings interest rates with a debit card, extra FDIC insurance and zero fees.
Wealthfront Cash Account – Pros and Cons
- FREE – No fees or hoops to jump through to keep your account free.
- Unlimited ACH transfers and withdrawals. Most bank money market accounts limit monthly transactions.
- FDIC insurance goes above and beyond, insuring up to $1 million.
- $1 minimum to open an account.
- No minimum balance to earn interest and keep your account open.
- No market risk. Your money is safe from short-term volatility.
- Direct deposit and can access funds two days early.
- Bill pay.
- Peer-to-peer a transfers.
- Check deposits with mobile phone.
- Free overdraft protection.
- The Wealthfront Interest rate is much higher than competitors. (Although it may not seem too high now, it’s certain that in future, interest rates will be higher!)
- No option for in-person banking.
- Transferring between banks is effective, but slow. Money typically takes 1-2 days to move from your Wealthfront Cash Account.
- Can’t deposit cash into the account.
Wealthfront Savings Account Review – The Takeaway
The Wealthfront cash account checks all the boxes. It is a combined high yield checking and savings account. This high yield cash account is a good, safe way to make sure your liquid assets are accessible while still earning more than the mere pennies paid out by brick and mortar banks.
The Wealthfront Cash account receives high marks for your emergency fund, vacation fund, or cash that you’ll need within the next one to three years. While the COVID-19 pandemic continues to take a toll on the economy, high yield accounts are still paying more in interest than traditional banks, making them a good place to keep your assets.
Wealthfront is also a strong company overall, and clients might appreciate having their savings accounts, loans, and investment accounts all under one roof.
Overall, the Wealthfront Cash Account is comparable to other high yield savings accounts offered by competitors like Betterment and Personal Capital. All three offer higher interest rates than their brick and mortar competitors; they are also free with no minimum balance requirements. These high yield savings accounts are easy choices for clients who don’t need access to physical banking locations and are looking for a way to earn more on their liquid assets.
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- Is Wealthfront Safe?
Disclosure: Please note that this article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. That said, I never recommend anything I don’t believe is valuable.