We provide you up to $8 million of FDIC insurance through our partner banks. Since this insurance is given to each account holder, Joint Cash Accounts may have up to $16 million in FDIC insurance.
How is my money FDIC insured?
Typically, banks provide $250K in FDIC insurance. To provide you with $8 million in FDIC insurance, we automatically allocate your money across up to thirty-two unaffiliated partner banks.
To see which banks are holding your funds, check out your monthly Cash Account statement from Wealthfront Brokerage.
To learn more, read this disclosure.
I have an account directly with one of your partner banks. Is my Wealthfront Cash Account still insured up to $8 million?
The FDIC insures up to $250K per depositor, per institution, and per ownership category. So, if you have any accounts with our other partner banks, those balances may count toward the total amount that the FDIC insures.
Here’s a list of our partner banks. If you see your bank on the list and expect you might exceed the $250K limit, please send us a support message. We can keep your deposits to Wealthfront out of that bank.
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 $8 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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