Wealthfront: Cash Earns More Here (2024)

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1. Nerdwallet receives cash compensation for referring potential clients to Wealthfront Brokerage, LLC (“Wealthfront Brokerage”) via advertisem*nts placed on their website. Nerdwallet and Wealthfront Advisers are not associated with one another and have no formal relationship outside of this arrangement. Nerdwallet’s opinions are their own. Their ratings are determined by their editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities. Nerdwallet ranking as of June 2022. Wealthfront provides cash compensation in connection with obtaining this ranking.

2. Bankrate’s endorsem*nts were voluntarily given and neither Wealthfront Advisers or Wealthfront Brokerage has a formal relationship with Bankrate. Bankrate evaluates firms based on many factors including cost factors, account features, and consumer experience aspects, such as mobile apps and customer support. The evaluation process was conducted by Bankrate’s editorial team. Wealthfront pays an annual license fee to use Bankrate’s awards in marketing materials.

3. Apple App Store and Google Play Store ratings based on user ratings from February 2014 (Apple) and December 2015 (Google) through October 2023. Ratings compiled by Apple, Inc., and Google, Inc., who receive compensation for hosting our app.

We’ve partnered with Green Dot Bank. The checking features offered on your Wealthfront Cash account are provided by and the Wealthfront Visa® Debit Card is issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association. Checking features for the Cash Account are subject to identity verification by Green Dot Bank and the Wealthfront Visa® Debit Card is optional and must be requested. Wealthfront products and services are not provided by Green Dot Bank. Green Dot Bank operates under the following registered trade names: GO2bank, GoBank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage.

Fee-free ATM access applies to in-network ATMs only. For out-of-network ATMs and bank tellers a $2.50 fee will apply, plus any additional fee that the owner or bank may charge. Fees and Eligibility requirements may apply to certain checking features, please see the Deposit Account Agreement for details. Copyright 2023 Green Dot Corporation. All rights reserved.

Apple Pay, Face ID and Touch ID are trademarks of Apple Inc. Google Pay is a trademark of Google LLC.

Cash Account is offered by Wealthfront Brokerage LLC (“Wealthfront Brokerage”), a Member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investment management and advisory services--which are not FDIC insured--are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and financial planning tools are provided by Wealthfront Software LLC (“Wealthfront”).

The cash balance in the Cash Account is swept to one or more banks (the “program banks”) where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC insurance is not provided until the funds arrive at the program banks. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $8 million for your cash deposits. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the program banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at program banks are not covered by SIPC.

The Annual Percentage Yield (APY) for the Cash Account may change at any time, before or after the Cash Account is opened. The APY for the Wealthfront Cash Account represents the weighted average of the APY on the aggregate deposit balances of all clients at the program banks. Deposit balances are not allocated equally among the participating program banks.

The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. Nothing in this communication should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Any links provided to other server sites are offered as a matter of convenience and are not intended to imply that Wealthfront Advisers, Wealthfront Brokerage or any affiliate endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise.

Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.

Wealthfront: Cash Earns More Here (2024)

FAQs

Is the Wealthfront cash account trustworthy? ›

Is Wealthfront safe? Although Wealthfront is not a bank, it partners with multiple banks to offer deposit insurance. The Wealthfront Cash account comes with FDIC insurance for up to $8 million.

What are the cons of using Wealthfront? ›

The main con of Wealthfront is that its required $500 minimum deposit is higher than other free robo-advisors like SoFi Invest and Betterment Investing.

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Why is Wealthfront APY so high? ›

As you likely know, Wealthfront partners with multiple banks to offer you the Cash Account—and the Cash Account APY is highly dependent on the rate those banks pay us for deposits.

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Is there a penalty for withdrawing from a Wealthfront cash account? ›

If you get cash from an out-of-network ATM or any bank branch, you'll pay fees. You'll be charged an ATM owner or a teller fee at the time of the withdrawal. The $2.50 fee will show up as a separate transaction. To avoid these fees, please use a no-fee ATM.

What happens if Wealthfront goes out of business? ›

Your cash is insured by the Federal Deposit Insurance Corporation (FDIC). This coverage protects your cash in the event that a bank goes out of business. Wealthfront uses multiple partner banks to ensure FDIC coverage of up to $8 million for your cash deposits.

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Is Wealthfront financially stable? ›

At Wealthfront, we protect your funds in a variety of ways, like offering two kinds of insurance (including 32x the FDIC insurance a bank can offer through our partner banks), complying with the guidelines set by two federal regulators charged with protecting consumers, and diligently upholding very robust security ...

What is the Wealthfront controversy? ›

The SEC's order also found that Wealthfront improperly re-tweeted prohibited client testimonials, paid bloggers for client referrals without the required disclosure and documentation, and failed to maintain a compliance program reasonably designed to prevent violations of the securities laws.

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What is better than Wealthfront? ›

Both companies are among the winners in our list of the best robo-advisors of 2023, with Wealthfront winning best overall, best for goal planning, best for portfolio construction, and best for portfolio management, while Betterment is best for beginners and best for cash management.

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Is Wealthfront safe in FDIC? ›

Wealthfront uses more than one program bank to ensure FDIC coverage of up to $8 million for your cash deposits. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution. For more information on FDIC insurance coverage, please visit www.FDIC.gov.

What is the average return on Wealthfront? ›

The bottom line is: we've been good for our clients' bottom lines. Investors in Wealthfront's Classic Automated Investing Account, with a risk score of 9, watched their pre-tax investments grow an average of 8.24% every year since we started.

Is 5% APY possible? ›

Standout benefits: The Varo Savings Account has no monthly fees and users can qualify to earn 5.00% APY on balances up to $5,000 by meeting two requirements: Receive $1,000 or more in direct deposits per month. End the month with a positive balance in both their Varo Bank Account and Varo Savings Account.

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Is Wealthfront Cash Account risky? ›

Wealthfront isn't a bank, so it partners with several FDIC-insured banks in order to offer the Wealthfront Cash Account. While FDIC insurance generally caps out at $250,000 per person, Wealthfront keeps your money in many different banks at once, letting you be insured for up to $8 million per person.

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What are the cons of Wealthfront? ›

Access to human advisors

If there's a downside, it's that Wealthfront doesn't offer unlimited access to planning from a human advisor.

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What are the hidden fees for Wealthfront? ›

We charge an annual advisory fee of 0.25% on all assets held within our Automated Investing Accounts. This fee is deducted monthly. * Wealthfront does not charge any account-opening fees, withdrawal or account-closing fees, trading/commission fees, or account transfer fees.

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Is there a fee to close Wealthfront Cash Account? ›

There are no exit fees associated with Wealthfront accounts. Was this article helpful? This communication has been prepared solely for informational purposes only.

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Are cash accounts safe? ›

FDIC protection: For consumers with large balances, cash management accounts make it easy to keep money safe by offering FDIC insurance on balances of up to $1 million or more, after the funds arrive at a program bank.

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Is it safe to link bank accounts to Wealthfront? ›

To connect your account, we partner with third-party providers to establish and maintain secure, read-only links on your behalf. These providers specialize in tracking financial data; they employ robust, bank-grade security and follow data protection best practices. Wealthfront does not store your account password.

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