Wealthfront Cash Account Review: Impressive APY, No Monthly Fees
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This Wealthfront Cash Account review explains how the account works and the best ways to use it. Our goal is to help you decide if it’s a good fit for your finances!
Stashing your cash in a regular ol’ bank account is a thing of the past. The lucrative options available for high-yield savings accounts are changing the face of banking by blowing traditional interest rates out of the water.
If you’re still using a traditional bank account, you’re missing out.
At standard brick and mortar banks and credit unions, typical interest rates hover around a stingy 0.10%…that’s one-tenth of one percent!
Your money is worth more than that.
You’ve heard us go on and on about the benefits of using a high-yield savings account before and for good reason – high-yield savings accounts offer some of the best interest rates around. And just when we thought interest rates couldn’t get any better, the Wealthfront Cash Account announces 0.35% APY.
It’s one of the best interest rates we’ve seen. Plus, you only need $1 to open a new account and there are no fees to worry about, either.
With a low minimum deposit like that, the Wealthfront Cash Account is an excellent option if you’re just getting started with saving money. But the high interest you earn makes it a perfect choice for people who are more experienced with saving money, too.
If you’re looking for a place to stash your cash, it’s definitely a top choice. Let’s jump into this Wealthfront Cash Account review and see if it might help your savings goals!
At a Glance – Wealthfront Cash Account
- 0.35% APY on your deposit
- No minimum balance requirement
- No monthly service fees
- Unlimited transfers in and out of your account
- FDIC-insured up to $1 million
- Minimum opening deposit of just $1
- No market risk
- Fast and easy account setup
What is the Wealthfront Cash Account?
You might recognize the Wealthfront name for its investment options. While automated investing can help you with your portfolio, the new Wealthfront Cash Account takes your money to another level. It gives you a way to earn an outstanding return without worrying about market fluctuations like you would with an investment account.
The Wealthfront Cash Account keeps your funds safe and sound in a savings account instead of investing your cash in the stock market.
That means you earn the 0.35% APY interest on your money without taking any risk.
And you don’t need a Wealthfront investing account to open a Cash Account. How great is that?
Opening a new account requires a low minimum deposit of just a buck. Although, you’ll want to start adding funds to the account sooner rather than later to get the most from the high interest rate.
It’s the perfect place to stash your emergency fund or to start saving for a wedding, dream vacation, or down payment on a house.
The only thing this account lacks is a debit card. But that’s really an advantage in disguise since not having the ability to spend your savings on a whim will conserve your cash and help you reach your savings goals faster.
You do get unlimited transfers between linked accounts, which is unlike other high-yield savings accounts that limit you to six per month.
Things We Love
As mentioned above, some might see the lack of debit or check access as a negative thing, but that’s actually one of the Wealthfront Cash Account’s best features. After all, you’re trying to save money, right? Having the ability to spend your savings without giving it much thought can drain your account pretty quickly.
The super-high interest rate is another massive draw. Some of the best high-yield savings accounts have great interest rates and this is definitely one of the top rates out there.
You also won’t pay any fees.
That’s right, the Wealthfront Cash Account lets you earn an amazing 0.35% APY without charging you any fees! That means more money stays in your pocket.
Opening an account can be done from a laptop or the mobile browser on your phone in only a few minutes.
Also, any deposits you make are insured by the FDIC. Standard bank accounts cover your money up to $250,000. Money in your Wealthfront Cash Account is held in more than one bank, going above and beyond to offer FDIC coverage of up to $1 million.
The ability to move money in and out of your account whenever you want is a huge bonus, too. Most online savings accounts don’t let you make more than six transactions in a month. While six transfers can still provide some flexibility, having unlimited transfers gives you true freedom.
But remember, you’re trying to save your money, not spend it!
Where the Account Falls Short
There are only a couple of spots where this account falls short. Most of them aren’t a big deal, but you should still know about them before deciding to open an account.
The first drawback is you can’t set up an automatic direct deposit through the Wealthfront Cash Account. This is a bummer, but it is easy to get around by setting a reminder to transfer cash from your linked account or scheduling them from another account for deposit. Still, having the option to set it and forget it would be nice.
The good news is that Wealthfront plans to add a direct deposit option to their Cash Account in the future.
Not having ATM access is good and bad. You won’t be tempted to spend your savings on impulse purchases, but transferring money out of the account can take one to three days to complete.
|No management or account fees||No direct deposit option|
|High-yield interest rate||No debit card access|
|Unlimited transfers between linked accounts|
|Minimum opening deposit of only $1|
|FDIC-insured up to $1 million|
|No market risk|
|Quick and easy setup|
How to Use the Wealthfront Cash Account
- Emergency Fund – Using the Wealthfront Cash Account as a place to store and build an emergency fund is a no-brainer. With such a high interest rate, you’re leaving money on the table if you don’t have your emergency cash in a high-yield savings account like this one.
- Down Payment on a New House – Houses are expensive! Unless you win the lotto, saving up for a down payment is a necessity. If a new home is your goal, get into the habit of transferring some money into the Wealthfront Cash Account every week or once a month.
- Saving to Buy a Car – Imagine paying cash for a new car and avoiding the dreaded monthly car payment. You might think it sounds crazy, but using this account properly can make buying a car with cash a reality. Or, at the very least, you could use the account to save up a big down payment to lower the monthly expense.
- Other Big Expenses – Life comes with a lot of expenses. Monthly bills are easy to take care of since you expect them to come up every month. But what about big expenses like new tires for your car or property taxes? Rather than stressing out when those expenses pop up, save a little at a time in a Wealthfront Cash Account to make those expenses easier.
- Save for Future Investing – If you’re not ready to invest yet but want to in the future, building up some savings is a smart move. A few investment options have minimum requirements and saving $500, $1,000, or more in a Wealthfront Cash Account means you’ll have the funds when you’re ready.
The Wealthfront Cash Account is a smart choice if you’re on the hunt for an online savings account that can help you meet your savings goals.
Everyone needs to save money, and most of us don’t save enough. Instead of letting the unexpected expenses pop up and take you by surprise, the Wealthfront Cash Account can help you get ahead of the game.
If you have some money set aside, those painful expenses won’t sting so much.
Plus, there are plenty of situations in life that require you to fork over large amounts of cash such as buying a house, paying for college, getting married, or having kids. And to get the most from your money, you should have a safe place to earn a return on your deposits.
That’s what makes the Wealthfront Cash Account so great: You earn a top interest rate to get a better return on your money without risking any of your hard-earned cash.
Wealthfront Cash Account Review
Commissions & Fees
Ease of Use
Wealthfront Cash Account Review
The Wealthfront Cash Account offers a fantastic online savings account that can help you meet your savings goals. You earn a top interest rate to get a better return on your money without risking any of your hard-earned cash. There are no monthly fees, unlimited transfers, low opening deposit, and no minimum balance requirement. While you don’t get a debit card, that could be a blessing in disguise, since this is a savings account. However, the lack of direct deposit is something to consider.
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