Updated
Why was cash transferred from my Stock Investing Account to my Cash Account?
In August 2026, we made a one-time transfer of cash that had accumulated in some Stock Investing Accounts before we made changes to how this cash was handled. This was a one-time event and doesn’t affect accounts going forward.
Why did this cash accumulate?
Previously, cash could accumulate in a Stock Investing Account for two reasons: dividends paid by investments and small residual amounts from trades. These residual amounts could occur when fractional shares were rounded, causing the final amount to differ slightly from the requested amount (for example, if we invested $9.99 instead of the requested $10.00).
We’ve since changed how dividends and trades are handled. We improved order execution to help eliminate residual cash from trades. In January 2026, we also introduced the option to automatically sweep dividends into a connected Cash Account as they’re received or reinvest them into the security that paid them in the Stock Investing Account.
This one-time transfer moved this cash balance into Cash Accounts, where it could earn interest and be easily accessed or used for investing. As with all other funds in the Cash Account, this balance was swept to one or more FDIC-insured program banks.
The Stock Investing Account is a limited-discretion investment product offered by Wealthfront Advisers.
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. The Annual Percentage Yield (“APY”) on cash deposits, is representative, requires no minimums, and may change at any time. References to the APY for the Wealthfront Cash Account, including any APY increase, are to the APY paid by insured depository institutions that participate in our cash sweep program (the "Program Banks”). Wealthfront Brokerage does not pay interest. Wealthfront sweeps available cash balances to Program Banks where they earn a variable rate of interest and, subject to the satisfaction of certain conditions, are eligible for FDIC insurance. A list of current Program Banks can be found here: www.wealthfront.com/programbanks. Deposit balances are not allocated equally among the participating program banks. FDIC pass-through insurance is not provided until the funds arrive at the Program Banks, and protects against the failure of Program Banks, not Wealthfront. While cash balances are at Wealthfront Brokerage, and while they are transitioning to and/or from Wealthfront Brokerage to the Program Banks, they are not eligible for FDIC pass-through insurance, but are eligible for SIPC protection, subject to the limit of $250,000 for cash. FDIC insurance coverage is limited to $250,000 for the total amount of all deposits a customer holds in the same ownership capacity per banking institution, regardless of whether those deposits are placed through Wealthfront Brokerage, so you are responsible for monitoring your total deposits at each Program Bank to avoid exceeding FDIC limits. Wealthfront Brokerage partners with more than one Program Bank to make available up to $8 million (or up to $16 million for joint accounts) of FDIC pass-through coverage for your cash deposits. 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.
All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Securities investments are not bank deposits, are not bank guaranteed or FDIC-insured and may lose value. Please see our Full Disclosure for important details.
Investment management and advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser.
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