The annual percentage yield (APY) for Cash Accounts is 4.80% as of July 28, 2023. This is not a promotional rate, and you don’t have to maintain a certain balance to earn it.
When does the rate change?
Our rate is primarily impacted by movement in the federal funds rate.
When the Fed raises interest rates, we raise ours. And when the Fed lowers rates, we’re required to lower ours (this is because brokerage regulations don’t let us pay more interest than we get from our partner banks). Learn more
We’ll email you whenever we change your rate. You can also see the current APY in your account dashboard.
How is my interest calculated?
Your interest accrues daily and compounds monthly. You earn interest on the total balance in your Individual Cash account, including cash in your Categories. You’ll see pending interest grow throughout the month until it’s paid.
When is interest paid to my account?
Typically on the first business day of the month, we credit your account with the interest you earned during the previous month.
For example, all of the interest that accrued in November should be credited to your account by the end of the first business day in December.
What if I withdraw cash before I’m paid interest?
If you withdraw cash before interest is paid to your account, you’ll still earn interest on that amount for the time you held it. This payment will arrive at the usual time (the first business day of the following month).
Do I pay taxes on the interest I earn?
Yes, if you earn more than $10, we’ll send you a 1099-INT during tax season. For help with taxes, please consult your tax advisor.
The national average interest rate is based on FDIC.gov, as of July 28, 2023. 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 July 28, 2023. 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. We convey funds to institutions accepting and maintaining deposits. 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”).
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. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $5 million for your cash deposits. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution. For more information on FDIC insurance coverage, please visit www.FDIC.gov. 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.
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Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.
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