{"id":16539,"date":"2024-07-25T10:01:04","date_gmt":"2024-07-25T17:01:04","guid":{"rendered":"https:\/\/canary.kcprod.info/blog\/?p=16539"},"modified":"2024-09-24T11:54:52","modified_gmt":"2024-09-24T18:54:52","slug":"wealthfront-cash-account-vs-savings-accounts","status":"publish","type":"post","link":"https:\/\/canary.kcprod.info/blog\/wealthfront-cash-account-vs-savings-accounts\/","title":{"rendered":"The Wealthfront Cash Account vs. High-Yield Savings Accounts"},"content":{"rendered":"\n
Earn an industry-leading APY on your short-term cash. Open a Cash Account<\/a><\/div><\/div>\n\n\n\n

The Wealthfront Cash Account<\/a> offers a high yield of 3.30% APY and up to $8 million in FDIC insurance<\/a> through our partner banks. In some ways, that might sound similar to a high-yield savings account. But<\/strong> Wealthfront is not a bank<\/strong><\/a>, and the Cash Account is not a savings account or high-yield savings account\u2014it’s something better.<\/strong> In this post, we’ll explain the differences.<\/p>\n\n\n\n

Difference #1: The Wealthfront Cash Account has a high APY<\/h2>\n\n\n\n

The first difference between the Wealthfront Cash Account and savings accounts is the interest rate. When we launched the Wealthfront Cash Account, we committed to passing along as much interest to our clients as we could. This is in stark contrast to most banks, which often pay pennies per month on savings account balances. Even so-called “high-yield” savings accounts often offer lower APYs than the Wealthfront Cash Account does.<\/strong><\/p>\n\n\n\n

History shows we have delivered on our promise. The Wealthfront Cash Account has consistently offered one of the highest APYs on the market. We also have a proven track record<\/a> of passing along a large portion of every increase in the federal funds rate (in the form of a higher APY) since the Cash Account launched. And notably, we’ve raised our APY more quickly than two of the most popular high-yield savings accounts.<\/p>\n\n\n\n

Difference #2: The Wealthfront Cash Account offers more FDIC insurance<\/h2>\n\n\n\n

FDIC insurance protects the money held in bank accounts<\/a> in case the bank fails. If you have a savings account or high-yield savings account, you probably get up to $250,000 in FDIC insurance (or $500,000 for joint accounts). But the Wealthfront Cash Account offers up to $8 million in FDIC insurance through our partner banks and $16 million for joint accounts. <\/p>\n\n\n\n

How are we able to do this? Because Wealthfront isn’t a bank, we sweep your deposits to multiple FDIC-insured partner banks. This means you can benefit from more FDIC insurance without the hassle of dealing with those banks yourself. <\/p>\n\n\n\n

We sweep your money to up to 32 partner banks, keeping your deposits below the $250,000 threshold at each partner bank up to the limit. Every partner bank in our program is FDIC insured, and you can see the full list of them here. All of our partner banks undergo an initial risk assessment and also undergo regular, ongoing risk reviews to remain in our program.<\/p>\n\n\n\n

As a result, the Wealthfront Cash Account offers far more FDIC insurance than a savings account or high-yield savings account. That translates to more peace of mind for you.<\/p>\n\n\n\n

Difference #3: The Wealthfront Cash Account has no account fees<\/h2>\n\n\n\n

Banks are notorious for charging fees. Savings accounts can come with maintenance fees, excess activity fees, overdraft fees, and more. Combined, these account fees can eat into your savings in a significant way. High-yield savings accounts can come with fees, too.<\/p>\n\n\n\n

The Wealthfront Cash Account, by contrast, charges absolutely no account fees\u2014not even for things you might expect, like sending wires. We want the Cash Account to be an ideal home for your short-term cash, and charging account fees feels at odds with that. It also helps that we don’t have an expensive network of bank branches to maintain\u2014our costs are low, and we share the savings with you.<\/p>\n\n\n\n

Difference #4: The Wealthfront Cash Account makes it easy to access your cash<\/h2>\n\n\n\n

It’s important to be able to access your cash when you need it. Every savings account operates differently, but many offer a fixed number of free transfers and withdrawals each month and charge for anything beyond that. This is partially due to longstanding rules limiting transfers from savings accounts set by the Federal Reserve.<\/p>\n\n\n\n

Wealthfront\u2019s Cash Account, on the other hand, offers unlimited transfers and free same-day withdrawals<\/a>\u2014even on weekends and holidays. Plus you get free wires (although receiving institutions may charge their own fee) and access to a debit card, 19,000+ free ATMs plus two out-of-network ATM fee reimbursements per month, compatibility with your favorite payment apps (Google Pay, Venmo, Apple Pay, CashApp, PayPal). You can also use your account and routing numbers<\/a> to pay bills and businesses and even send checks for free.<\/p>\n\n\n\n

Difference #5: The Wealthfront Cash Account makes investing simple and automatic<\/h2>\n\n\n\n

Wealthfront\u2019s vision is to make it delightfully easy to build long-term wealth on your own terms. That means helping you get in the market within minutes when you’re ready to invest.<\/p>\n\n\n\n

You can even set up an automated savings plan<\/a> that regularly sweeps money from your Cash Account to a dedicated category for a particular goal (a new car, a vacation), your Wealthfront Automated Investing Account, or Wealthfront IRA. We don’t know of a savings account or high-yield savings account that makes saving and investing for your future this easy and intuitive.<\/p>\n\n\n\n

Key takeaways: Wealthfront Cash Account vs high-yield savings accounts<\/h2>\n\n\n\n

We built the Wealthfront Cash Account to be the ideal home for your cash until you’re ready to invest. The Cash Account isn’t a high-yield savings account or a savings account \u2013\u2013 we think it’s much better. To recap, the Wealthfront Cash Account:<\/p>\n\n\n\n

    \n
  • Has a higher APY than most savings accounts<\/li>\n\n\n\n
  • Offers more FDIC insurance than savings accounts<\/li>\n\n\n\n
  • Has no account fees<\/li>\n\n\n\n
  • Makes it easy (and free) to access your cash<\/li>\n\n\n\n
  • Makes investing simple, fast, and automatic<\/li>\n<\/ul>\n\n\n\n

    We sometimes get questions about the “Wealthfront high-yield savings account,” when in reality, it is a cash account. As a result, we wanted to set the record straight. We hope this helps!<\/p>\n\n\n\n

    <\/span><\/span><\/span><\/span><\/div><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    The Wealthfront Cash Account offers a high yield of APY and up to in FDIC insurance through our partner banks. In some ways, that might sound similar to a high-yield savings account. But Wealthfront is not a bank, and the Cash Account is not a savings account or high-yield savings account\u2014it’s something better. In this […]<\/p>\n","protected":false},"author":10028,"featured_media":16164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2390],"tags":[],"coauthors":[2504],"class_list":["post-16539","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving"],"acf":[],"yoast_head":"\nDoes Wealthfront Offer a High-Yield Savings Account?<\/title>\n<meta name=\"description\" content=\"Wealthfront is not a bank. 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