Business Insider's personal finance team compared the Wealthfront Cash Account to the best high-yield checking accounts and found it to be a better-than-average product.
The Wealthfront Cash Account is a great high-yield checking account. But if you're looking to open a separate savings account, take a look at the best high-yield savings accounts.
Wealthfront Account Options
The Wealthfront Cash Account is a low-fee cash management account that works like a high-yield checking account.
It offers a high interest rate of 4.00% APY (Annual Percentage Yield) while still letting you withdraw money as frequently as you want without fees. Wealthfront isn't a bank, so it provides banking services by partnering with several FDIC-insured banks.
no monthly service fee
4.00%
$1
$30 bonus when you open and fund your new account with $500 or more
- Use as both a savings and checking account
- $1 opening deposit
- No monthly service fees
- FDIC insured up to $8 million for individual Cash Accounts ($16M for joint accounts) through partner banks
- Get paid 2 days early
- Access to a debit card
- Mobile check deposit
- Automatically move extra money into investments with Autopilot
- Save for separate goals in one account
- No physical branch locations
- To deposit cash, pay a fee at a Green Dot ___location
- $2.50 out-of-network ATM fee
The Wealthfront Cash Account is a solid high-yield checking account. But if you're looking to open a separate savings account, take a look at our best high-yield savings accounts guide.
- FDIC insured up to $8 million for individual Cash Accounts ($16M for joint accounts) through partner banks
- 19,000 free ATMs
- Autopilot feature lets you set maximum account balance, and automatically transfers money into investments if you exceed maximum balance by more than $100
- Interest compounded daily, paid monthly
Overview of Wealthfront Cash Account
Wealthfront is an online-only investing and banking platform. In addition to brokerage accounts and other investment options, it also offers one alternative cash management option, the Wealthfront Cash Account.
Its website is easy to navigate, and its mobile app has received 4.8 out of 5 stars in both the Apple and Google Play stores. These ratings are strong compared to the ratings of other mobile banking apps.
Wealthfront does not offer 24/7 customer service. To contact customer support, you can either send the financial technology company an email or call Monday through Friday, 7 a.m. to 5 p.m. ET.
Wealthfront Cash Account Key Features and Benefits
Wealthfront Cash Account's Competitive APY
Most checking accounts don't offer an APY at all, and many that do only offer a fraction of a percent of interest or have strict limitations and requirements to earn that interest. The average bank account interest rate for checking accounts is 0.07% APY, according to the FDIC. This makes the Wealthfront Cash Account's 4.00% APY stand out, as it offers a high rate without making you meet additional requirements.
You can also earn an additional 0.50% APY for three months when you refer a friend.
Wealthfront Perks and Investment Integrations
Cash account features include a debit card with access to over 55,000 ATMs, online bill pay, early direct deposit, and the option to link your account to PayPal, Cash App, and Venmo. You also have access to Wealthfront investment accounts, so you can keep your savings, checking, and investments with one company.
Having a Wealthfront Cash Account makes it easier to use the company's other investing products, such as its Automated Investing Account. You can transfer money from a cash account to a Wealthfront investment account much faster than you could transfer money from an external checking account to a Wealthfront investment account.
If you're someone who's already using Wealthfront for its online brokerage features, its cash account will make it easier for you to invest while letting you earn a great interest rate.
Wealthfront offers investment features such as an automated treasury bond ladder, automated index investing, and a do-it-yourself stock investing account.
The Wealthfront Automated Bond Portfolio lets you purchase bonds with varying maturity rates from the federal government, locking in an interest rate for the length of the ladder. This works similarly to a CD ladder, although you can sell bonds before their maturity date for a potentially reduced yield.
An automated investing account lets you choose diversified portfolios to invest in, while a stock investing account lets you invest in individual stocks. If you want to boost the money in your portfolio, you can use Wealthfront portfolio line of credit to borrow cash; just keep in mind that you might lose more by paying back interest for the portfolio loan than you gain from your investments.
Wealthfront Extended FDIC Insurance
The Wealthfront Cash Account is a good option if you're looking for a place to store FDIC-insured savings with high interest. Legally, banks can provide FDIC insurance for up to $250,000 per account, or $500,000 for a joint account. But Wealthfront is an platform backed by banks, so it spreads your money across multiple banks — meaning it can insure up to $8 million, or $16 million for a joint account.
Wealthfront Cash Account Fees and Charges
Wealthfront does not charge monthly maintenance fees on the Wealthfront Cash Account, and only requires an opening minimum deposit of $1.
It also doesn't charge overdraft fees, ACH transfer fees, or wire transfer fees, although it also doesn't reimburse wire transfer fees from the receiving account. You also won't be able to overdraft your account at all: if you would overdraft your account, your transaction will be denied instead. All fees associated with the Wealthfront Cash Account are related to debit card usage.
The platform offers in-network ATM usage through the Allpoint network, which gives you access to over 55,000 ATMs nationwide. If you have to use an out-of-network ATM, you'll be charged a $2.50 ATM fee from the company, alongside whatever fees the ATM itself charges you.
That being said, Wealthfront will reimburse up to $7.50 for each of your first two domestic out-of-network ATM fees each month. Many of the best banks to avoid ATM fees don't charge out-of-network ATM fees while offering similar out-of-network ATM reimbursements.
You'll also be charged foreign transaction fees if you use the debit card abroad, which will amount to 2.75% of your transaction.
Finally, if you use your debit card to deposit cash at a store cash register, you'll pay a fee of up to $6.
Wealthfront User Experience and Accessibility
Wealthfront accessibility is similar to that of online banks. If you're just looking for a great savings rate, Wealthfront savings accessibility and features are available anywhere in the United States.
However, since the platform isn't a bank, it doesn't have any in-person branches. This means you can't bank in person, and it makes certain things, like depositing cash, harder.
Wealthfront Cash Account Pros and Cons
Wealthfront Cash Account Pros
- FDIC-insured account
- Earn 4.00% Annual Percentage Yield (APY)
- Receive your paycheck up to two days early
- Same-day transfers to external bank accounts
- Can also invest with Wealthfront
Wealthfront Cash Account Cons
- Doesn't have separate checking and savings accounts
- May need to pay a fee to deposit cash
Wealthfront Cash Account Alternatives
Wealthfront vs. Ally
Ally has separate checking and high-yield savings accounts, as well as a money market account and three types of CDs. If you're comparing online savings account options, Ally has several options. If you want to open multiple bank accounts, Ally will be the better fit.
Ally also doesn't charge out-of-network ATM fees, and it refunds up to $10 per month if out-of-network ATM issuers charge you for using machines. Meanwhile, Wealthfront charges you $2.50 each time you use an ATM that's out of network, and the ATM issuer may charge you an additional fee.
But you may prefer Wealthfront if your ultimate goal is to earn a high rate because it pays a better rate than the Ally Savings Account, which offers 3.60% APY. You also might prefer Wealthfront if you want integrated investment options with your account.
Wealthfront vs. Marcus
Marcus by Goldman Sachs offers a high-yield savings account and three types of CDs. It's a great choice if you want to open CDs — but it doesn't have a checking account. If you want to use checking features, Wealthfront is the better choice.
It also pays a higher rate than Marcus by Goldman Sachs does. The Marcus High Yield Online Savings Account only offers 3.75% APY.
Opening a Wealthfront Cash Account
Opening a Wealthfront Cash Account involves similar steps to opening a checking account at an online bank. Just go to the Wealthfront website and answer the questions it provides you. You'll need to provide some personal information, such as your social security number or a government ID. The whole process should only take a few minutes, as long as you have your information ready.
Why You Should Trust Us: How We Reviewed the Wealthfront Cash Account
At Business Insider, we use our bank account methodology to rate all of our banking products. For checking accounts, we consider the following criteria: minimum opening deposits, monthly service fees, overdraft fees, and protection, ATM networks and fees, customer support, mobile app ratings, miscellaneous features, and company ethics and security.
We assign each category a rating between 0 and 5, and star ratings can be anywhere from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Wealthfront Cash Account FAQs
How does the interest rate on the Wealthfront Cash Account compare to traditional banks?
The Wealthfront Cash Account's 4.00% APY is much higher than what's usually offered on checking accounts at traditional banks.
Are there fees associated with the Wealthfront Cash Account?
The Wealthfront Cash Account doesn't charge monthly maintenance fees, and it only requires a minimum opening deposit of $1. It also doesn't charge for ACH transfers and RTP withdrawals, although it does charge for international debit card usage and usage of out-of-network ATMs.
How does FDIC insurance work with the Wealthfront Cash Account?
Wealthfront isn't a bank, so it partners with several FDIC-insured banks in order to offer the Wealthfront Cash Account. While FDIC insurance generally caps out at $250,000 per person, Wealthfront keeps your money in many different banks at once, letting you be insured for up to $8 million per person.
Can I access my money easily from the Wealthfront Cash Account?
Yes, Wealthfront lets you transfer money from your cash account without additional cost, avoiding both ACH transfer fees and wire transfer fees. If the account you're wire transferring money to charges a fee, it will not reimburse it.
Is it easy to open a Wealthfront Cash Account?
Yes, you can open a Wealthfront Cash Account easily online in a few minutes. You'll need to give it some personal information to do so.
