Wealthfront Cash Account: Everything You Need to Know
Wealthfront Explained
Firstly, Wealthfront is not a bank. Instead, it’s an automated investment service or robo-advisor. Said another way, Wealthfront is a fintech company that uses technology to automate investing.
Beyond these investment services, Wealthfront also offers a Cash Account which is made possible by partnering with a network of banks to make this option available to you.
So why should you care?
Well, if you want to potentially earn significantly higher amounts of interest on your savings versus traditional brick-and-mortar banks, then this is one of the best options available today.
Keep reading below to see more details or check out our video review.
How Does the Wealthfront Cash Account Work?
The Wealthfront Cash Account is essentially a checking account with some savings account features. In other words, with this account, you can pay bills, withdraw money at ATMS, or simply store your money safely and enjoy one of the most competitive APY rates across all US financial institutions.
With the Wealthfront Cash Account, all of this is possible with no account fees or strings attached.
Is Wealthfront an HYSA?
Wealthfront is not exactly a HYSA (High Yield Savings Account), since it operates more as a checking account with its ATM access and complimentary debit card. However, by opening your account you will still be able to earn an APY higher than traditional brick-and-mortar banks, which is one of the main perks of HYSAs.
Further, this account is online only just like a vast majority of HYSA options.
Is Wealthfront Cash Account FDIC Insured?
With this question, you may also be wondering “Is Wealthfront Safe?”
Simply put, yes. As with most HYSA options, the Wealthfront Cash Account is FDIC-insured. Unlike competitors though, the FDIC insurance of this account is currently $8 million, which is 32 times more than the standard insurance amount of $250,000. If you have a joint account, this FDIC insurance amount increases to $16 million.
Wealthfront partners with a network of banks, and since the FDIC usually insures $250,000 per institution, this account allows increased coverage.
Pros of Wealthfront Cash Account
- Competitive APY (among highest across competitors)
- FDIC Insurance of $8M (up to $16M for joint accounts)
- Complimentary Debit Card for purchases and cash withdrawals
- Access to over 19,000 free ATMs at places like CVS, Target, Walgreens,
- Up to $8M FDIC insurance through partner banks
- No minimum or maximum balance to earn APY
Cons of Wealthfront Cash Account
- No Cash Deposits
- No Zelle support
- Customer Service is not available 24/7
Wealthfront vs. SoFi
One of the biggest differences between SoFi and Wealthfront is that SoFi requires you to link your account to direct deposit to receive the advertised APY. This can be a major deterrent to self-employed individuals who have no access to direct deposit. On the other hand, with Wealthfront the advertised APY is automatically earned.
Recap
In summary, opening a Wealthfront Cash Account could be a great option to make more interest on your savings. With its high FDIC insurance amount, competitive APY rate, and ability to withdraw money, this account stands out from other options.
Looking for another HYSA option? Check out our review of SoFi Checking and Savings.
Special Offer: click below to receive up to a $325 sign-up bonus when creating your SoFi Checking and Savings Account!
Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
