Wealthfront Cash Account review — earn this account's high APY without investing in a single security
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 review
Wealthfront Cash Account
-
Annual Percentage Yield (APY)
-
Minimum balance
-
Monthly fee
-
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
Pros
- 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
Cons
- 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 4.50% 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)
-
Minimum balance
$10 deposit
-
Monthly fee
-
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.
UFB Portfolio Savings
UFB Portfolio Savings is offered by Axos Bank ® , a Member FDIC.
-
Annual Percentage Yield (APY)
Up to 4.83% APY on any savings balance; add UFB Freedom Checking and meet checking account qualifications to get an additional up to 0.20% APY on savings
-
Minimum balance
$0, no minimum deposit or balance needed for savings
-
Fees
No monthly maintenance or service fees
-
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
-
ATM access
Free ATM card with unlimited withdrawals
-
Maximum transactions
-
Terms apply.
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
Ally Bank® is a Member FDIC.
-
Annual Percentage Yield (APY)
Up to 4.00% APY
-
Minimum balance
-
Monthly fee
-
Offer checks?
-
Offer debit/ATM card?
Terms apply.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every cash management account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and investing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.