Wealthfront is not a bank, but an automated investment service. However, that doesn't stop the company from offering its Wealthfront Cash Account, a hybrid of sorts. Wealthfront Cash Account is a mix of checking and savings that offers an excellent APY.
Read our full review to learn about everything the Wealthfront Cash Account has to offer.
Ratings Methodology
Rates asof Aug 09, 2024
Wealthfront Cash Account
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Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Rating image, 4.50 out of 5 stars.
4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
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APY
5.00%
Min. To Earn APY
$0
- High APY
- Fee-free cash withdrawals at 19,000 ATMs
- Two-day early direct deposit for paychecks
- Automated saving and investing tools
- Complimentary debit card
- No transaction limits
- FDIC protection
- No branches
- No ATM fee reimbursem*nt
A Wealthfront Cash Account offers many of the key features you'd expect from a checking account, including a debit card, no-fee ATMs, and -- working with a partner bank -- FDIC insurance on deposits.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | up to 4.60%² Rate infoYou can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.Min. to earn: $0 | New customers can earn up to a $300 bonus with qualifying direct deposits!¹ | Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. |
Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.Min. to earn: $0 | N/A | Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. |
Open Account for UFB Portfolio Savings Account OnUFB'sSecure Website. Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 5.15% Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.Min. to earn: $0 | N/A | Open Account for UFB Portfolio Savings Account OnUFB'sSecure Website. |
Full Wealthfront Cash Account review
The Wealthfront Cash Account is like a checking and savings account wrapped into one. Among its benefits is a high APY. For those who dislike the transaction restrictions on a standard savings account, another benefit is that the Wealthfront Cash Account sets no such restrictions. You can move money around or make withdrawals as often as you wish.
Top perks
APY: The Wealthfront Cash Account currently earns 5.00% APY and can be opened with as little as $1. Cash withdrawals can be made from more than 19,000 fee-free ATMs nationwide. However, Wealthfront does not reimburse ATM charges when another ATM network is used.
FDIC insurance: As far as FDIC protection, Wealthfront's partnership with other banks allows them to keep the money in accounts that are FDIC insured for up to $8 million (or $16 million for joint accounts).
Three types of cash accounts: There are three versions of the Wealthfront Cash Account:
- Individual
- Joint
- Trust
Of those three, only the individual account offers access to debit cards, direct deposits, and bill pay.
Investment opportunities: Another advantage of a Wealthfront Cash Account is how easy it is to set up automatic transfers into Wealthfront's Automated Investing Account. Say you have a few extra months and want to put it to work but don't wish to be a hands-on investor. No investment experience is needed to get started. Just answer a few simple questions, and the robo-advisor personalizes a portfolio of low-cost index funds from up to 17 global asset classes. The Wealthfront robo-advisor makes investments based on your goals and preferences. Once set, it rebalances your portfolio when needed, automatically diversifying deposits.
Your only job is to focus on the big picture and get on with your life.
Deposits: Customers who have their paychecks directly deposited into their Wealthfront Cash Account are given access to the funds up to two days early. However, there are other ways to make deposits.
- ACH bank transfer: Once a customer links their Wealthfront account to an outside checking or savings account, they can transfer money electronically at any time.
- Wire transfer: Money can be wired from any outside account where the customer is listed as an owner. Wealthfront does not charge a fee for incoming wire transfers (although there is a $10 fee for outgoing wire transfers).
- At select retailers: Through select retailers, customers can use their debit card to deposit up to $3,000 per day. The fee is typically around $5.95.
What could be improved
No checkbook privileges: The account does not come with a checkbook, meaning there's no way to write a check to pay the plumber or dog walker. Instead, the account comes with a routing and account number that customers can use to pay vendors online. Or -- the easiest option -- customers can always use their debit card to make payments.
Debit card fees: This Wealthfront account is not without fees, specifically debit card fees.
Wealthfront Cash Account fees
| Activity | Amount |
|---|---|
| In-network ATM | Free |
| Out-of-network ATM | $2.50 + ATM owner fee |
| Bank teller | $2.50 + teller fee |
| International transaction fee | 2.75% |
| Cash deposits at select retailers | Up to $5.95 |
Data source: Wealthfront.
Alternatives to a Wealthfront Cash Account
If Wealthfront doesn't have what you're looking for, one of these other investment firms might.
Fidelity Cash Management
The Fidelity Cash Management account from Fidelity also combines features from checking and savings accounts. This account includes some sweet benefits, like ATM fee reimbursem*nt at any U.S. ATM displaying the Visa, Plus, or Star logos. It also comes with a checkbook to pay bills and allows users to set up a Fidelity BillPay account to make mobile payments. Customers can connect their accounts to digital wallets for the ultimate convenience.
Webull Cash Management
Currently paying an impressive APY, Webull Cash Management is open to any Webull brokerage clients who have cash accounts (excluding IRA accounts). In addition to the current APY, Webull Cash Management periodically offers promotional "bumps" in rates and bonuses for meeting specific criteria. With no minimum balance requirement and no monthly fees, Webull is an excellent choice for those who already have a cash account with Webull or plan to open one.
Is a Wealthfront Cash Account right for you?
The Wealthfront Cash Account is a good fit for you if:
- You frequently need access to your paycheck two days early.
- You're comfortable working without a checkbook.
- You're interested in the convenience of transferring funds from the cash account into any of Wealthfront's many investment products
Other Wealthfront accounts
- Investment accounts
- Traditional IRA
- Roth IRA
- SEP IRA
- 529 college savings plan
- Portfolio line of credit
Our checking account methodology
At The Motley Fool Ascent, we rate checking accounts on a five-star scale (1 = poor, 5 = best). We evaluate all checking accounts across four main criteria: brand and reputation, APY and rewards, fees and minimum requirements, and perks.
Our scores are weighted as:
- Brand and reputation: 30%
- APY and rewards: 30%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
APY is important but not the only factor worth considering. For example, you may want to decide which brokerage you would like to make investments through. When you have cash in a brokerage's account, it's easy to sign up for auto-investments. Let's say you want to deposit $10,000 in a cash account and hope to make $200 worth of investments each month. You would benefit by reading up on each investment firm to learn which gives you the most confidence.
No, there are no limits.
Like most investment firms offering cash accounts, Wealthfront "sweeps" your funds into different partner accounts. In other words, it works with banks that are FDIC insured, and that's where it keeps your money. However, your money may be spread out among five different banks, with each account never exceeding the $250,000 limit set by FDIC for a single account. Once it appears that one of your accounts is going to go over that amount, the extra money is moved into another account so it's always fully protected.
