Wealthfront Cash Account Review: Online Cash Management
GOBankingRates Score
-
Features
5.0
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Fees
5.0
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Customer Experience
4.5
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APY
4.5
Pros
- Combines the features of a checking and savings account
- No account maintenance fees
- No minimum balance requirement
- High APY compared to other savings accounts
- Early direct deposits
- Instant transfers to Wealthfront investment accounts
Cons
- No physical branches
- Cash deposits only available at third-party retailers for a fee
- No reimbursement for out-of-network ATM fees
Read: How To Guard Your Wealth From a Potential Banking Crisis With Gold
Wealthfront Cash Account Overview
The Wealthfront Cash Account is a high-yield account that combines the features and benefits of both a checking and a savings account. As you would with a checking account, you can deposit funds into the account or set up direct deposit, and then spend it using your debit card. And like a high-yield savings account, you’ll earn interest on your balance. As of April 21, 2023, the Wealthfront Cash Account has an APY of .
Key Features
The Wealthfront Cash Account has some key features that may help you decide whether it’s the right place to keep your money.
High APY
First and foremost, the Wealthfront Cash Account offers a high annual percentage yield on your account balance. As of April 21, 2023, the account offers an APY of .
Wondering how that stacks up with other accounts? According to the FDIC, the average rate on a savings account in 2023 was 0.39%. Even when you compare Wealthfront’s APY to other high-yield savings accounts, it still stands out among the top rates.
Checking Account Features
One feature that really helps Wealthfront’s Cash Account to stand out among competitors is its checking account features. After you sign up for your Cash Account, you can opt in to have access to those features Once you do, you’ll be able to use the account like any other checking account. Some of the features available include:
- Direct deposit
- Mobile check deposit
- Debit card
- Bill payment
- 19,000 no-fee ATMs
Easy Transfers
Wealthfront makes it easy to transfer your money to other accounts. First, you can make unlimited fee-free transfers to external accounts, including using automated transfers. Additionally, you can make near-instant transfers to your connected Wealthfront Investment Account, which makes it easy to invest extra cash in your Wealthfront Cash Account.
No Fees
Many checking and savings accounts charge fees that include monthly maintenance fees, debit card fees and more. With the Wealthfront Cash Account, you won’t have to worry about that. Wealthfront doesn’t charge any fees on its cash accounts.
How Wealthfront Cash Account Stands Out
The Wealthfront Cash Account stands out in a few different ways. First, the account has a higher APY than many other high-yield savings accounts on the market, meaning it can help you put your savings to better use.
Next, the account offers checking account features as well as savings features, which many high-yield accounts don’t offer. Because of this, you can do all of your banking in just one account. Finally, Wealthfront offers easy transfers, including from your Cash Account to your Investment Account to help you earn an even better return on your cash.
Comparable Wealthfront Cash Account Options
The Wealthfront Cash Account is an excellent way to earn a high return on your money, but there are some alternatives you may also want to consider.
SoFi Online Bank Account
The SoFi Online Bank Account is comparable to the Wealthfront Cash Account in that you get the features of both a checking and savings account with no fees. While the money technically sits in two separate accounts, they both a high APY, for SoFi and for Wealthfront as of April 2023. If you spend more money than is in your checking account, it will simply move money over from your savings account.
The SoFi Online Bank Account also has some additional features, including getting access to your direct deposits two days early and getting a $250 bonus when you open your account.
UFB Direct
UFB Direct offers two different savings accounts to help you earn high interest on your cash. First, the UFB Premier Savings Account offers an APY of , as of April 2023. There’s no minimum deposit requirement and no monthly fees.
The other UFB Direct account is the UFB Premier Money Market account. This account offers the same APY as the savings account — — but with the added benefit of check-writing privileges.
How To Apply
Signing up for a Wealthfront Cash Account is easy. You can open either an individual account, a joint account, or a trust account. You’ll need to provide the name and personal information for each person listed on the account, as well as an email address and password for the login.
When signing up, you’ll have to connect an external account with which to fund your cash account. But you’ll only need a deposit of $1 to open your account and start earning interest.
Who the Wealthfront Cash Account Is Best For
The Wealthfront Cash Account is ideal for someone who wants simplicity in their finances. Because this account combines the features of both a checking and a savings account, you can have just one account instead of several spread across multiple banks.
This account is also a great choice for someone who always invests with Wealthfront. It’s easy to move money from your Wealthfront Cash Account to your Wealthfront Investment account instantly, meaning you can earn a higher return on the cash you aren’t using.
Final Take
Wealthfront offers one of many high-yield savings accounts on the market. It has a competitive APY that’s higher than many others on the market. It also has the added bonus of combining the features of a checking and savings account, all with no fees.
FAQ
Ready to learn more? Here are the answers to some of the most frequently asked questions about the Wealthfront Cash Account.- Does Wealthfront have a savings account?
- Yes, the Wealthfront Cash Account serves as a high-yield savings account, with the option to add checking account features.
- Is the Wealthfront savings account safe?
- Yes, the Wealthfront savings account is safe. First, the money in your account is insured by the FDIC up to $3 million. Additionally, like other financial institutions, Wealthfront offers excellent security features to keep your money safe.
- What are the cons of using Wealthfront?
- Wealthfront does have some key disadvantages, including its lack of physical branches. Not only does this mean you can't do in-person banking, but it also makes it challenging to make cash deposits. Additionally, unlike many competitors, Wealthfront doesn't offer ATM fee reimbursement.
- What is the interest rate on Wealthfront cash savings?
- As of April 21, 2023, the interest on savings in your Wealthfront Cash Account is 4.20%.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 21, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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- Federal Deposit Insurance Corporation. "National Rates and Rate Caps."
