Wealthfront Cash Account
Fees
Minimum Deposit
Our Rating
APY
Wealthfront Cash Account
Fees
Minimum Deposit
Our Rating
APY
If you’re interested in investing and find transferring funds between your bank and your investment platform a little frustrating, the Wealthfront Cash Account could be a good fit for you. While Wealthfront is not a bank, it does offer a high yield account that can allow you to earn an impressive APY on your funds while you’re deciding on your next investment choice.
The account operates a little like a hybrid checking and savings account. You’ll receive a debit card for the account and you can access a network of over 19,000 fee free ATMs.
With the account you can use online bill pay, receive your direct deposit salary up to two days early, but you’ll receive a high APY which is not available on high interest checking accounts. This is currently 5.00% APY on your full balance, but you can earn a further 0.50% APY for three months if you refer a friend.
Wealthfront Cash Account Features
The Wealthfront Cash Account is designed to help investors earn more on their cash while keeping it safe and easily accessible. Here are the main features:
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No Account Minimums or Maximums
You can open a Wealthfront Cash Account with just $1 and there are no minimums or maximums to earn the advertised APY. This means that if you’re weighing up your next financial move, you can afford to allow your funds to sit in your Cash Account without significant losses.
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Fee Free Transfers
Wealthfront allows you to withdraw and deposit money as frequently as you like with no fees for these transfers. You can enjoy unlimited transfers to and from an external account with no cost.
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FDIC Protected
One of the reasons why many people shy away from non traditional accounts is that they tend to lack the federal protection offered with a standard bank account.
However, the Wealthfront Cash Account has up to $2 million of FDIC coverage. This is far higher than the standard $250,000 of insurance offered with a typical account.
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Automatic Payments
While this isn’t a standard checking account, Wealthfront does provide routing information so you can set up automatic bill payments for utility bills, credit card bills and other payments.
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Check Writing
Although you won’t receive a checkbook with this account, Wealthfront recently added check writing abilities. Instead of needing to write your own checks, you can get Wealthfront to write and send them on your behalf.
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Free Debit Card with ATM Access
Wealthfront provides a free debit card with its Cash Account so you can use your account funds to make purchases online and in stores. However, you can also use the card to access cash via a network of more than 19,000 fee free ATMs.
The Pros And Cons Of Wealthfront Cash Account
There is no clear cut answer to this, as whether you consider the account good will depend on your unique circumstances, requirements and preferences.
However, we can highlight the pros and cons of this account to help you make an informed decision.
Pros | Cons |
|---|---|
High APY | No Physical Branches |
Mobile Check Deposit | No Paper Checkbook |
No Monthly Maintenance Fees | Fees for Cash Deposits |
Link Possibilities | |
Automated Savings |
- High APY
The Wealthfront Cash Account offers an APY which rivals many online savings accounts, but there are no minimums to qualify for the rate and you can also enjoy many features associated with a traditional checking account.
- Mobile Check Deposit
The Wealthfront mobile app features mobile check deposit, which means that you can pay any checks you receive directly into your Cash Account.
- No Monthly Maintenance Fees
Although this account offers a number of features that you would typically associate with a checking account, you won’t incur the monthly maintenance fee typical of traditional checking accounts.
- Link Possibilities
You can link your Wealthfront Cash Account to PayPal, Venmo and other payment services to make it easier and quicker to make payments to family members and friends.
- Automated Savings
Wealthfront has an intelligent automated savings feature called Self Driving Money. This makes it easier to create savings categories for your personal goals with savings rules to automate the process.
This will teach your account how much, and how often you want to put money aside and which goal it should go toward.
- No Physical Branches
Wealthfront operates solely online, so there are no physical branches if you want to access support. If you do run into a problem or issue, you’ll need to rely on phone or email support.
- No Paper Checkbook
While Wealthfront can facilitate check payment, you won’t have your own paper checkbook, which may be limiting for some people.
- Fees for Cash Deposits
Since there are no physical branches, if you do want to deposit cash into your account, you’ll need to use a participating retailer.
This does allow you to use your debit card to “load” your account with up to $3,000, but a fee will apply to this transaction.
Is the Wealthfront Cash Account Good or Your Needs?
Although you don’t have to have to use the entire Wealthfront investing platform, this account is best suited to those who enjoy using Wealthfront and want easier access to their investing funds. With an impressive APY, you don’t have to worry about leaving money lingering in your account, so you’re poised to make an investment when the right opportunity presents itself.
Additionally, Wealthfront may present a viable alternative to traditional checking accounts for those who want to get their finances in order, but it lacks many features you could get on banks with good checking accounts.
While you may not have access to every feature offered with a traditional checking account, it does offer most of the features you would need to receive your paycheck, pay bills and make purchases, with intelligent savings features, so you can build up an investment fund.
What Else Does Wealthfront Offer?
Wealthfront is best known for its online investment solutions, with its passive robo advisor that is a good option for newbies or those who prefer a hands off approach to investing and retirement planning. However, Wealthfront offers a number of different account types including:
- Individual, joint and trust investment accounts
- Traditional, Roth and SEP IRAs
- 401k rollovers
- 529 College Savings Plan accounts.
You can also access a portfolio line of credit. This offers a simple way to borrow cash quickly. You can borrow up to 30% of your portfolio value and have the funds deposited within one business day.
So, in addition to the Cash Account to manage your day to day transactions, you can use the account for savings and build up an investing fund. Since Wealthfront requires at least $500 to begin investing, this account could be a good option for those who are completely new to investing.
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How to Open a Wealthfront Cash Account
You can open a Cash Account in a few simple steps using the Wealthfront official website.
- Navigate to the Cash Account Product Page: You can find the Cash Account page by clicking on the “Save” option on the top bar. This will take you to a page to review all of the Cash Account details and if you’re ready to proceed, you can click the blue “Get Started” button.
- Confirm the Account Type: The first screen asks whether you want to open a sole, joint or trust account.
- Complete the Application: You will then need to complete the account application. This includes providing your full name, address, date of birth, email address and setting up a password.
- Fund your Account: Once you fund your account with at least $1, you can request the checking features that we’ve covered in this article.
FAQs
Does the Wealthfront Cash Account earn interest?
Yes, while the account works similarly to how traditional checking works, the Wealthfront Cash Account pays interest on your balance regardless of how much or how little you have in the account.
Does Wealthfront Cash Account offer a promotion?
Wealthfront does not typically offer promotions for its Cash Account.
How do you close a Wealthfront Cash Account account?
If you want to close your Wealthfront Cash Account, you’ll need to transfer all your funds including any interest payments to an external account. Once you have a zero balance, you can send a message to the support team to request account closure.
There are no fees for closing your account or canceling your associated debit card. Additionally, only your Cash Account will be closed, any other Wealthfront accounts that you hold will remain open unless you indicate otherwise.
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How We Review Checking Accounts: Our Methodology
The Smart Investor team has conducted a comprehensive review of checking accounts offered by various banks, taking into account several key factors to provide a thorough evaluation. Here's how we rated them across four important categories:
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Checking Account Features (60%): We meticulously assessed the features and benefits associated with each bank's checking accounts. Factors considered include account fees, minimum balance requirements, ATM access, overdraft protection, online and mobile banking functionalities, and additional perks such as rewards programs. Higher ratings were awarded to banks offering a wide range of features and benefits that cater to diverse customer needs, ensuring convenience and flexibility in managing finances.
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Customer Experience (20%): A positive customer experience is essential in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Diversity of Other Financial Products (10%): We also considered the diversity of other financial products offered by each bank, such as savings accounts, loans, credit cards, and investment options. Higher ratings were given to banks with a comprehensive suite of financial products, allowing customers to meet their various banking and financial needs in one place.
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Bank Reputation (10%): The reputation of a bank is a crucial factor in decision-making. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were assigned to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when selecting a checking account
