Wealthfront is a financial services platform based out of Palo Alto, California. It was founded in 2008 by a former venture capitalist and a former trader, with the goal of providing automated investment services to anyone, anywhere. Though its roots are in investing, Wealthfront expanded into banking products in 2019, with an all-in-one deposit account called the Wealthfront Cash Account.
In this post, we’ll focus on Wealthfront’s Cash Account. You’ll learn exactly how the account works, with an overview of the most exciting aspects along with its limitations.
Wealthfront Cash Account Features
Let’s jump into all of the features that you can expect to find.
Cash Management Account
It’s important to note off the bat that while the Cash Account can serve the role of both a checking account and a savings account, it’s technically neither.
It’s a cash management account, an increasingly common alternative to traditional deposit accounts.
Cash management accounts are most often seen with non-bank account providers like Wealthfront. They’re similar to Money Market accounts in the sense that both checking and savings features are available.
The account comes with standard checking account features like a debit card, direct deposit, and bill pay. You can easily make deposits and withdrawals and move money between your Cash Account and your Wealthfront investment account.
The account has no monthly fee and requires a minimum deposit of just $1 to open.
19,000 Free ATMs
Wealthfront doesn’t have any of its own ATMs, but it’s part of the Allpoint network of more than 19,000 fee-free ATMs for its account holders.
You can easily find a nearby ATM from the app or website. Wealthfront charges a fee for out-of-network ATM use, and it doesn’t reimburse for any ATM fees, so it’s important to keep track of free options near you.
Mobile Banking
Wealthfront is a mobile-driven platform, so most of your account maintenance is taken care of through its mobile app.
You can monitor your account balance, move money around, and set up automated transfers.
Mobile check deposit makes it easy to get funds into your account, and you can easily have a check sent out to take care of bills.
App functionality is essential for neobanks like Wealthfront, and this is an area where it stands out.
The easy-to-use app has rave reviews, with a 4.9-star (out of 5) rating in the App Store and a 4.6-star rating (out of 5) in the Google Play Store — making it one of the highest-rated personal finance apps on the market.
Automation
With Wealthfront, everything starts with automation. The platform was built on the idea that an automated brokerage account makes investing more accessible, and the Cash Account sticks to the same basic principles.
The account aims to put your money on autopilot — whether you’re saving for a vacation or a down payment on a house. You can set your priorities, and Wealthfront’s software will divide your deposits accordingly.
You can optimize your paycheck by breaking it down into different categories. Once you determine how much you need for everyday expenses and an emergency fund, Wealthfront helps allocate the rest toward your savings goals or hands It off to its robo-advisor.
The idea here is to effectively organize your funds and paint a clearer personal finance picture without the extra log work.
4.30% APY
The Cash Account comes with an annual percentage yield (APY) of 4.30% on all balances.
Unlimited Free Transfers
You could conceivably use a Wealthfront Cash Account as your lone bank account, but it’s more likely that you’ll keep external accounts as well.
With this in mind, the ability to transfer money in and out easily is essential.
The Cash Account comes with free unlimited transfers, and funds are generally available in one to three business days following a transfer.
Mobile Wallet
Your Cash Account debit card is fully compatible with both Apple Pay and Google Pay, and the platform supports popular payment apps like Venmo, Cash App, and PayPal.
Fees
Wealthfront presents the Cash Account as an entirely fee-free banking option, but this is only partially true.
While the account mostly steers clear of common banking costs like monthly fees and minimum balance requirements, there are still some charges that could pop up. Let’s take a look.
- ATM Fees: You have fee-free ATM access within Wealthfront’s network, but if you have to use an out-of-network ATM, there’s a $2.50 fee. This charge is on top of whatever the ATM itself charges, so fees can add up in a hurry. Wealthfront unfortunately does not offer ATM fee reimbursements, so locating in-network ATMs should be a top priority when considering the account.
- Overdraft Fees: Fortunately, Wealthfront doesn’t charge any overdraft fees. Overdrafts are possible due to the automated nature of the platform, but for debit card transactions, your card will decline if you try to spend more than you have in your account.
- International Transaction Fees: If you’re using your debit card abroad, you’ll be charged a fee of 2.75% of the total amount of the transaction. This applies to both purchases and ATM withdrawals.
- Advisory Fees: There are no advisory fees associated with the Cash Account itself, but it’s important to note due to the investment-driven nature of the platform. There’s a 0.25% annual advisory fee for Wealthfront’s investment platform, which it assures is more than covered by the returns that you’ll see.
Getting Started
To get started with a Wealthfront Cash Account, you can head to the Wealthfront website or download the app.
The sign-up process is very simple — just enter your personal information and the account you’re using for initial funding, and you’ll be good to go.
Promotions
There’s no current sign-up bonus for new Cash Accounts, but when you sign up for a new investment account, you can get $5,000 of your funds managed for free.
Considering the standard 0.25% advisory fee, this is equivalent to a $50 bonus.
The offer is technically a referral bonus, so you’ll need a referral link to take advantage of it. If you don’t know anyone who currently invests with Wealthfront, you can easily find a link online with a quick Google search.
Security
Like most online banking options, digital security is a top priority for Wealthfront. Your Cash Account is closely monitored for any signs of fraud, and you’ll get an alert if Wealthfront sees something suspicious.
It might also place a restriction on your account, which you can lift by verifying your identity through the app.
Wealthfront uses multi-factor authentication to curb unauthorized account access, and you can easily lock your debit card if you think it’s been compromised.
The Wealthfront Cash Account is FDIC-insured by its partner banks. Each account comes with FDIC coverage of up to $1 million, which exceeds the typical coverage of $250,000.
Customer Service
Wealthfront’s online Help Center is full of useful articles and FAQs to help you troubleshoot any account issues that you run into. If you need to get in touch with someone, you can send an email or secure message or give them a call.
Wealthfron’t phone line is available Monday through Friday from 7 am to 5 pm Pacific Time and has no availability on weekends. There’s no live chat function, and without branches, you won’t have the luxury of in-person support.
All that said, current Wealthfront users, seem to be satisfied with its level of support — it currently holds a rating of 4 stars (out of 5) on Consumer Affairs.
Pros & Cons
Pros:
- Automated banking
- Excellent mobile app
- Very few fees
- Linked investment account
Cons:
- Out-of-network ATM fees
- No sign-up bonus
- No physical branches
Alternatives to Wealthfront Cash Account
If you like the sounds of the Wealthfront Cash Account but want to see what your other options are, you should check out SoFi and Betterment. Both of these neobanks come with similar online banking and investing platforms.
If you’re after higher interest rates, it’s worth looking into other full-service online banks. Banks like:
…are all chartered online banks and provide truly high-yield account options.
Another option for low-fee, high-earning accounts is to look into a credit union. Nationwide credit unions like Connexus and Alliant provide digital accounts that deserve your attention.
FAQs
Is my money safe with Wealthfront?
Yes. Wealthfront Cash accounts come with FDIC insurance, which is provided by its partner financial institutions.
Does Wealthfront charge fees for cash account?
There are no monthly fees associated with the account, but there are still some, like out-of-network ATM fees, that could pop up.
Can I withdraw money from Wealthfront?
Yes. You can withdraw cash at an ATM or transfer money to an external account. Transfers generally take one business day to clear.
Is the Wealthfront Cash Account Right For You?
The Wealthfront Cash Account is a relatively new banking option. With this in mind, there are some important things to consider when you’re weighing whether or not it’s the right account for you.
First, it’s important to acknowledge that Wealthfront is driven by its investment platform first. If the stock market isn’t something you’re interested in, then the benefits of the Cash Account might not quite be worth it.
Another important aspect of Wealthfront is automation. Automated tools can make your financial life a little easier, but if you prefer a hands-on approach to organizing your account, the Cash Account could be a poor fit.
You’ll also want to consider the savings rate. While it’s true that 0.10% is significantly higher than what you’ll generally see in a traditional bank, it still doesn’t come close to those you’ll find with other neobanks.
Overall, the Wealthfront Cash Account is an interesting new player in a crowded field of non-traditional bank accounts. There’s plenty of room for it to grow, and with automated financial planning and a clean, easy-to-use platform, it’s definitely worth keeping an eye on.
