Wealthfront may be best known as a robo-advisor, but don't sleep on its Wealthfront Cash Account.
A cash management account is a type of brokerage account that also offers checking and savings features — think of it as a one-stop shop for all your investing and banking needs. You can use this account to make everyday purchases, pay bills, send and deposit checks, and withdraw money from ATMs.
You can also use the money in the account to fund connected Wealthfront investment accounts, but that's not required. Savers who only want to use the Cash Account as another checking or savings account don't have to engage with Wealthfront's investment features.
Cash management accounts typically have higher FDIC insurance coverage limits than you'd otherwise receive with a single bank account since your money is swept into partner bank accounts. This is where the Wealthfront Cash Account shines. Here's what else you can expect.
Wealthfront Cash Account
Annual Percentage Yield (APY)
3.50% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
Unlimited transfers and free same-day withdrawals
FDIC insurance coverage
Up to $8 million
Terms apply.
Pros
- Above-average APY
- No minimum balance or deposit
- No monthly fee
- Unlimited transfers and free same-day withdrawals
- FDIC insurance up to $8 million
Cons
- Limited customer support
Compare savings accounts
What is Wealthfront Cash Account?
The Wealthfront Cash Account is a high-yield cash management account, using over two dozen partner banks to provide FDIC insurance on deposits and offering a debit card issued by Green Dot Bank.
There are zero account fees, access to over 19,000 fee-free ATMs (along with two out-of-network ATM fee reimbursements per month), unlimited transfers and free same-day withdrawals, plus free wire transfers.
Other account features include the ability to send money on payment apps such as Venmo and Apple Pay, receiving paychecks up to two days early via direct deposit, plus instant fund transfers to any connected Wealthfront investment accounts.
Key features
What makes the Wealthfront Cash Account stand out is its variable 4.50% APY with no caps or minimum requirements. This interest rate is in line with what the best high-yield savings accounts offer these days.
The Wealthfront Cash Account offers a high FDIC insurance limit of up to $8 million through Wealthfront's partner banks — notably the highest coverage we found in researching the top cash management accounts.
Pros and cons
- Above-average APY
- No minimum or cap
- High FDIC insurance coverage limit
- No account fees
- Debit card access
- Large no-fee ATM network
- Out-of-network ATM fee reimbursements
- Free same-day withdrawals
- Early paychecks with direct deposit
- APY is variable, so can change at any time
- No in-person banking
- Not ideal for long-term savings goals since market returns can often outpace APY
Who is Wealthfront Cash Account for?
The Wealthfront Cash Account is great if you want a cash management account that offers a good return on your money, plus plenty of insurance coverage. It's also ideal for those who already invest with Wealthfront and want to add on a free cash account.
Alternatives to Wealthfront Cash Account
While we like the Wealthfront Cash Account as a cash management account, there are alternatives in the market to consider.
The Betterment Cash Reserve, from popular robo-advisor Betterment, also offers a high 4.75% APY with no minimum balance requirement. Like with Wealthfront, there are zero fees and unlimited withdrawals. Betterment's FDIC insurance coverage is lower, however, at up to $2 million with its partner banks ($4 million for joint accounts). This is still excellent coverage, especially as an everyday cash account. If you already invest with Betterment, consider adding the Cash Reserve.
Betterment Cash Reserve
Annual Percentage Yield (APY)
4.75% APY
Minimum balance
$10 deposit
Monthly fee
None
Maximum transactions
Unlimited withdrawals
FDIC insurance coverage
Up to $2 million
Terms apply.
If you're looking for something simpler than a cash management account overall, consider just a high-yield savings account where you can still earn an above-average rate of return and get easy access to your cash.
The UFB Portfolio Savings offers a high APY with no minimum requirement and no monthly fees. You can get a complimentary ATM card, which not all high-yield savings accounts have, and make free transfers between direct deposit accounts.
If you want even more checking features from your deposit account without settling for lower APYs, a money market account could hit the sweet spot for your savings. The Ally Bank Money Market Account boasts a strong APY and gives you access to checks and a debit card.
Ally Bank® Money Market Account
Annual Percentage Yield (APY)
Up to 3.30% APY
Minimum balance
None
Monthly fee
None
Offer checks?
Yes
Offer debit/ATM card?
Yes
Terms apply.
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