Updated
How automated savings helps avoid overdrafts
With automated savings, we'll only withdraw cash in excess of the maximum balance you set for your external checking account or Wealthfront Cash Account.
- We'll email you when a transfer is scheduled, and you'll have 24 hours to edit or cancel it.
- We'll cancel the transfer if you don't exceed your maximum balance by at least $100.
You’re in control of your settings and can increase or decrease your maximum balance at any time.
Can an overdraft still happen?
Yes, this can still happen if your automated savings plan uses an external checking account and you have an outgoing withdrawal from that account at the same time we transfer funds to Wealthfront. We check your balance again right before the transfer is executed, but because banks don’t lock balances, your balance can still change while the transfer is being processed.
To avoid this, we suggest choosing a maximum balance that’s more than the amount you typically spend or withdraw each month. This helps reduce the risk of an overdraft if your balance changes around the time of a transfer.
The Cash Account is offered by Wealthfront Brokerage LLC ("Wealthfront Brokerage"), Member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and the Cash Account itself is not a deposit account. Investment management and advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser. Financial planning tools are provided by Wealthfront Software LLC (“Wealthfront Software”).
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