What is Wealthfront’s Cash Account?

Wealthfront’s cash account is neither a checking or savings account. It is a high-interest cash account that offers many of the same features you typically associate with high-yield savings accounts, but with fewer restrictions since Wealthfront is not a bank.

Here are the highlights:

  • 0.26% APY. No strings attached. That interest rate is more than 3x greater than the national average* according to as of 3/17/20. The rate may change but we’ll continue to do everything in our power to pass along more savings to you.
  • FDIC insurance for up to $1 million. Your cash is FDIC insured through our partner banks for up to $1 million. Learn more.
  • No fees. No advisory fees, no management fees, no surprises. Learn more.
  • Zero market risk. Your cash is kept out of the markets, so you never have to worry about short-term volatility.
  • Unlimited, free transfers. Easily move your money in and out of your cash account at no cost to you.  (Transfers across Wealthfront accounts coming soon!) Learn more.
  • $1 minimum. It only takes $1 to open and there are no additional deposit requirements.

Make sure to keep enough in your everyday checking account to cover your regular bills and expenses. In the future, we plan to support additional features to serve your everyday cash needs!

To learn more about the Wealthfront Cash Account, please see our blog post that accompanied our product launch: Introducing the Wealthfront Cash Account.

Was this article helpful?

*National rates are calculated based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Savings and interest checking account rates are based on the $2,500 product tier.

The Wealthfront Cash Account Annual Percentage Yield (APY) is as of March 17, 2020. The APY may change at any time, before or after the Cash Account is opened. The APY for the Wealthfront Cash Account represents the weighted average of the APY on the aggregate deposit balances of all clients at the program banks. Deposit balances are not allocated equally among the participating program banks.

Cash Account is offered by Wealthfront Brokerage LLC (“Wealthfront Brokerage”) a member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. Wealthfront Brokerage conveys Cash Account funds to depository institutions that accept and maintain such deposits. The cash balance in the Cash Account is swept to one or more banks (the “Program Banks”) where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC insurance is not provided until the funds arrive at the Program Banks. While funds are at Wealthfront Brokerage, and before they are swept to the Program Banks, they are subject to SIPC’s protection limit of $250,000 for cash. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution.

Wealthfront Brokerage uses more than one Program Bank to ensure FDIC coverage of up to $1 million for your cash deposits. For more information on FDIC insurance coverage, please visit Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC. This is not an offer, or solicitation of any offer to buy or sell any security, investment or other product.

Wealthfront Brokerage is a wholly owned subsidiary of Wealthfront Corporation.

Investment management and advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC registered investment adviser, and financial planning tools are provided by Wealthfront Software LLC (“Wealthfront”).

Nothing in this communication should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security.

Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.

© 2020 Wealthfront Corporation. All rights reserved.