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Account Basics
Wealthfront Cash Account
The Wealthfront Cash Account offers an alternative to traditional checking and savings accounts. The account earns 5.00% APY and only requires a $1 deposit to open, making it one of the best cash management accounts out there. Customers also enjoy no monthly fees, no overdraft fees and access to more than 19,000 no-fee ATMs nationwide.
A complimentary debit card is provided through one of Wealthfront’s partner banks, Green Dot. Like the large majority of cash management providers, Wealthfront uses partner banks to provide FDIC insurance on deposits, up to $8 million for individual Cash Accounts.
You can link your cash account to popular payment apps—like Apple Pay, Venmo and Paypal—to make purchases and send money to people. Wealthfront also lets you access direct deposits up to two days early.
The Wealthfront Cash account isn’t bound by transaction limits found with traditional savings accounts. Customers can move money in and out of their accounts at any time with free unlimited transfers.
Wealthfront cash management accounts are available in three variations—individual, joint and trust. However, joint and trust accounts don’t have access to checking features, like debit cards, direct deposits and bill payments.
Wealthfront Cash Accounts don’t come with a checkbook either. There are some ways to make bill payments with your account, though. Your account comes with a routing and account number you can use directly on vendor sites to make payments. You can also pay with your Wealthfront debit card. Lastly, Wealthfront will send a one-time or recurring check on your behalf at no cost, but there’s no way to do this directly through your online account or mobile app. You have to contact Wealthfront and let them know the check amount and where to send it.
You could end up paying for some usage fees attached to Wealthfront’s debit card. Out-of-network ATM use comes with a $2.50 fee per transaction plus any fees charged by the ATM owner, and there are no ATM reimbursem*nts offered by this account. You can make cash deposits at participating retail locations, but these transactions can cost up to $5.95 each. Wealthfront’s debit card also comes with a 2.75% foreign transaction fee on purchases made outside of the U.S.
Other Wealthfront Accounts
Opening a Wealthfront Cash Account doesn’t require having another Wealthfront account. Wealthfront is known for its online investment and retirement solutions. Robo-advisors like Wealthfront offer beginners an entry into investing in a more passive, hands-off way. Wealthfront provides the following account types:
- Cash Account
- Investment accounts: Individual, joint and trust accounts
- Traditional IRA
- Roth IRA
- SEP IRA
- 401(k) rollovers
- 529 College Savings Plan accounts
- Portfolio line of credit
You’ll need a minimum of $500 to open a Wealthfront investment account¹. The account is primarily hands-off, similar to most robo-advisors. An investment account is made up of a globally diverse portfolio of low-cost index funds. Accounts carry a 0.25% annual advisory fee and expense ratios on funds.
Wealthfront doesn’t currently offer individual cryptocurrency investing at this time. Instead, you can invest in Bitcoin and Ethereum through unit investment trusts (UITs), which operate like exchange-traded funds (ETFs).
Read our in-depth Wealthfront review for details on investment and retirement accounts through the robo-advisor.
Access on the Go
Wealthfront accounts are managed via online access and through its highly-rated mobile app, available on iOS and Android. The mobile app allows customers to access and manage accounts, transfer money, connect to third-party payment apps, link other financial accounts and more.
Wealthfront customer support is available by email and phone. You can also message general questions through Wealthfront’s social media accounts.
Wealthfront Fees
The Wealthfront Cash account is exceptionally easy on the wallet, as there are no fees of any kind associated with the Cash account itself.
However, fees may apply to the debit card that’s linked to your Wealthfront Cash account. Here’s how the fees add up.
| Fee | Amount |
|---|---|
| In-network ATM | $0 |
| 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 |
As mentioned, you can withdraw cash at more than 19,000 Allpoint ATM locations fee-free. You will pay a fee if you use another bank’s machine and Wealthfront doesn’t currently reimburse out-of-network fees. Some competing cash management accounts offer fee waivers if you use out-of-network ATMs.
How Wealthfront Stacks Up
Wealthfront’s cash management account offers an alternative to traditional banking, allowing you to keep your savings, everyday spending and investment accounts in one place. Its cash management account is especially ideal if you already have a Wealthfront investment account. And the interest rate on this account is relatively competitive.
If you’re looking for other high-yield accounts, check out the best online banks. Also, the Wealthfront Cash Account doesn’t come with check-writing privileges, so an interest-bearing checking account or money market account may be a better fit if that’s a need.
SoFi vs. Wealthfront
SoFi Bank offers a combined checking and savings account with many of the same features as the Wealthfront Cash account, including no account fees, the ability to get paid early with direct deposit and a competitive APY on balances.
In terms of how much interest you could earn, the Wealthfront Cash account interest rate outshines SoFi. Wealthfront also offers a higher limit for FDIC insurance coverage. However, SoFi has a larger network of fee-free ATMs, which could be important if you withdraw cash regularly.
Vanguard vs. Wealthfront
Vanguard offers a cash deposit account for investors who have a brokerage account with the company. The cash deposit account is an FDIC-insured banking product designed to hold funds you plan to invest with Vanguard. Enrollment was previously open on a pilot basis but is currently closed.
If you’re interested in investing only, you could open a brokerage account or retirement account with Vanguard. You can pick and choose your investments yourself, or you can use Vanguard’s digital advisory services. However, you’ll need more money to invest with Vanguard vs. Wealthfront, and Vanguard’s management fee is higher.
Schwab vs. Wealthfront
Charles Schwab is another investment platform that also offers a cash management account. There are no minimum balance requirements or monthly fees with Charles Schwab. This account also includes unlimited ATM fee rebates and no foreign transaction fees.
As far as the APY goes, Wealthfront offers a much higher rate for your money. That may be more important if your primary goal when opening a cash account is to get the best interest rate possible.
Is Wealthfront Worth It?
Wealthfront could be worth it if you’re looking for a cash management account with a highly competitive rate and minimal fees. Wealthfront’s minimum deposit requirements are low, which could be ideal if you’re just getting started with saving or investing. If you already have an investment account with Wealthfront, you might consider opening a Cash account to maximize the growth potential of your savings.
FEATURED PARTNER OFFER
Vanguard Cash Plus Account
Annual Percentage Yield
4.50% APY
Rate as of 8/6/2024[ ]
Monthly Maintenance Fee
$0
On Vanguard's Website
4.50% APY
Rate as of 8/6/2024[ ]
$0
Details
- Brokerage account with a bank sweep program offering variable APY and FDIC coverage[ ]. See APY and coverage information on vanguard.com.
- Pay bills, set up direct deposit with your employer and make payments using apps like Paypal and Venmo
- No monthly, transfer, opening, or minimum balance fees. See commission and fee schedules on vanguard.com for fees that may apply
Frequently Asked Questions (FAQs)
Is the Wealthfront cash management account legit?
Yes, the Wealthfront Cash Account earns high-yield interest, carries no monthly fee and offers FDIC insurance up to $8 million for individual and $16 million for joint cash accounts through its partner banks. Your deposits are safe in Wealthfront’s cash account, which provides an opportunity to maximize savings.
The account combines savings and checking account features to allow you to build up savings while also accessing money as needed, including cash withdrawals. The Wealthfront Cash Account comes with a debit card and access to more than 19,000 ATMs across the U.S.
How does the Wealthfront Cash Account work?
The Wealthfront Cash Account is a hybrid account that combines popular features of both checking and savings accounts. You can open an account for just $1 and earn interest on all balances. Wealthfront customers can quickly transfer money from their Cash Account to their investment account. The account also comes with access to a debit card and an ATM network for quick access to cash when you need it.
Does Wealthfront charge fees for cash accounts?
Wealthfront doesn’t charge a monthly maintenance fee or overdraft fee on its cash management account. There are some fees attached to debit card use, like foreign transaction fees and out-of-network ATM fees.
Can you overdraft with Wealthfront?
Wealthfront doesn’t charge an overdraft fee on its Cash Account. However, Wealthfront may reject a transaction if you don’t have enough money in your account to cover it.
Is Wealthfront Cash Account FDIC insured?
Yes, the Wealthfront Cash Account is FDIC insured up to $8 million for individual cash accounts and $16 million for joint cash accounts through partner banks. Deposits to your Wealthfront Cash Account are covered through the FDIC-insured deposit sweep program through 10 partner banks.
Is Wealthfront a real bank?
No, Wealthfront is not a bank. Wealthfront Corporation is a nonbank financial institution known for its online investment and retirement savings solutions. Wealthfront Brokerage, a wholly owned subsidiary of Wealthfront Corporation, provides the Cash Account. It partners with Green Dot Bank to offer banking services through the Wealthfront Cash Account.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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