The Wealthfront Cash Account is like a checking and savings account wrapped into one. Among its benefits is a high APY. For those who dislike the transaction restrictions on a standard savings account, another benefit is that the Wealthfront Cash Account sets no such restrictions. You can move money around or make withdrawals as often as you wish.
Top perks
APY: The Wealthfront Cash Account currently earns 4.25% APY and can be opened with as little as $1. Cash withdrawals can be made from more than 19,000 fee-free ATMs nationwide. However, Wealthfront does not reimburse ATM charges when another ATM network is used.
FDIC insurance: As far as FDIC protection, Wealthfront's partnership with other banks allows them to keep the money in accounts that are FDIC insured for up to $8 million (or $16 million for joint accounts).
Three types of cash accounts: There are three versions of the Wealthfront Cash Account:
Of those three, only the individual account offers access to debit cards, direct deposits, and bill pay.
Investment opportunities: Another advantage of a Wealthfront Cash Account is how easy it is to set up automatic transfers into Wealthfront's Automated Investing Account. Say you have a few extra months and want to put it to work but don't wish to be a hands-on investor. No investment experience is needed to get started. Just answer a few simple questions, and the robo-advisor personalizes a portfolio of low-cost index funds from up to 17 global asset classes. The Wealthfront robo-advisor makes investments based on your goals and preferences. Once set, it rebalances your portfolio when needed, automatically diversifying deposits.
Your only job is to focus on the big picture and get on with your life.
Deposits: Customers who have their paychecks directly deposited into their Wealthfront Cash Account are given access to the funds up to two days early. However, there are other ways to make deposits.
- ACH bank transfer: Once a customer links their Wealthfront account to an outside checking or savings account, they can transfer money electronically at any time.
- Wire transfer: Money can be wired from any outside account where the customer is listed as an owner. Wealthfront does not charge a fee for incoming wire transfers (although there is a $10 fee for outgoing wire transfers).
- At select retailers: Through select retailers, customers can use their debit card to deposit up to $3,000 per day. The fee is typically around $5.95.
What could be improved
No checkbook privileges: The account does not come with a checkbook, meaning there's no way to write a check to pay the plumber or dog walker. Instead, the account comes with a routing and account number that customers can use to pay vendors online. Or -- the easiest option -- customers can always use their debit card to make payments.
Debit card fees: This Wealthfront account is not without fees, specifically debit card fees.
Wealthfront Cash Account fees
