Review
Updated
Fact Checked
Nathan Alderman
Wealthfront is not a bank, but an automated investment service. However, that doesn't stop the company from offering its Wealthfront Cash Account, a hybrid of sorts. Wealthfront Cash Account is a mix of checking and savings that offers an excellent APY. Read our full review to learn about everything the Wealthfront Cash Account has to offer.
Ratings Methodology
Rates as
of May 11, 2024
Wealthfront Cash Account
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
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= Fair = Poor- High APY
- Fee-free cash withdrawals at 19,000 ATMs
- Two-day early direct deposit for paychecks
- Automated saving and investing tools
- Complimentary debit card
- No transaction limits
- FDIC protection
- No branches
- No ATM fee reimbursement
A Wealthfront Cash Account offers many of the key features you'd expect from a checking account, including a debit card, no-fee ATMs, and -- working with a partner bank -- FDIC insurance on deposits.
Full Wealthfront Cash Account review
The Wealthfront Cash Account is like a checking and savings account wrapped into one. Among its benefits is a high APY. For those who dislike the transaction restrictions on a standard savings account, another benefit is that the Wealthfront Cash Account sets no such restrictions. You can move money around or make withdrawals as often as you wish.
Top perks
APY: The Wealthfront Cash Account currently earns 5.00% APY and can be opened with as little as $1. Cash withdrawals can be made from more than 19,000 fee-free ATMs nationwide. However, Wealthfront does not reimburse ATM charges when another ATM network is used.
FDIC insurance: As far as FDIC protection, Wealthfront's partnership with other banks allows them to keep the money in accounts that are FDIC insured for up to $8 million (or $16 million for joint accounts).
Three types of cash accounts: There are three versions of the Wealthfront Cash Account:
- Individual
- Joint
- Trust
Of those three, only the individual account offers access to debit cards, direct deposits, and bill pay.
Investment opportunities: Another advantage of a Wealthfront Cash Account is how easy it is to set up automatic transfers into Wealthfront's Automated Investing Account. Say you have a few extra months and want to put it to work but don't wish to be a hands-on investor. No investment experience is needed to get started. Just answer a few simple questions, and the robo-advisor personalizes a portfolio of low-cost index funds from up to 17 global asset classes. The Wealthfront robo-advisor makes investments based on your goals and preferences. Once set, it rebalances your portfolio when needed, automatically diversifying deposits.
Your only job is to focus on the big picture and get on with your life.
Deposits: Customers who have their paychecks directly deposited into their Wealthfront Cash Account are given access to the funds up to two days early. However, there are other ways to make deposits.
- ACH bank transfer: Once a customer links their Wealthfront account to an outside checking or savings account, they can transfer money electronically at any time.
- Wire transfer: Money can be wired from any outside account where the customer is listed as an owner. Wealthfront does not charge a fee for incoming wire transfers (although there is a $10 fee for outgoing wire transfers).
- At select retailers: Through select retailers, customers can use their debit card to deposit up to $3,000 per day. The fee is typically around $5.95.
What could be improved
No checkbook privileges: The account does not come with a checkbook, meaning there's no way to write a check to pay the plumber or dog walker. Instead, the account comes with a routing and account number that customers can use to pay vendors online. Or -- the easiest option -- customers can always use their debit card to make payments.
Debit card fees: This Wealthfront account is not without fees, specifically debit card fees. Here's a breakdown:
| Activity | Amount |
|---|---|
| In-network ATM | Free |
| Out-of-network ATM | $2.50 + ATM owner fee |
| Bank teller | $2.50 + teller fee |
| International transaction fee | 2.75% |
| Cash deposits at select retailers | Up to $5.95 |
Data source: Wealthfront.
Alternatives to a Wealthfront Cash Account
If Wealthfront doesn't have what you're looking for, one of these other investment firms might.
Fidelity Cash Management
The Fidelity Cash Management account from Fidelity also combines features from checking and savings accounts. This account includes some sweet benefits, like ATM fee reimbursement at any U.S. ATM displaying the Visa, Plus, or Star logos. It also comes with a checkbook to pay bills and allows users to set up a Fidelity BillPay account to make mobile payments. Customers can connect their accounts to digital wallets for the ultimate convenience.
Webull Cash Management
Currently paying an impressive APY, Webull Cash Management is open to any Webull brokerage clients who have cash accounts (excluding IRA accounts). In addition to the current APY, Webull Cash Management periodically offers promotional "bumps" in rates and bonuses for meeting specific criteria. With no minimum balance requirement and no monthly fees, Webull is an excellent choice for those who already have a cash account with Webull or plan to open one.
Is a Wealthfront Cash Account right for you?
The Wealthfront Cash Account is a good fit for you if:
- You frequently need access to your paycheck two days early.
- You're comfortable working without a checkbook.
- You're interested in the convenience of transferring funds from the cash account into any of Wealthfront's many investment products
Other Wealthfront accounts
- Investment accounts
- Traditional IRA
- Roth IRA
- SEP IRA
- 529 college savings plan
- Portfolio line of credit
FAQs
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APY is important but not the only factor worth considering. For example, you may want to decide which brokerage you would like to make investments through. When you have cash in a brokerage's account, it's easy to sign up for auto-investments. Let's say you want to deposit $10,000 in a cash account and hope to make $200 worth of investments each month. You would benefit by reading up on each investment firm to learn which gives you the most confidence.
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No, there are no limits.
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Like most investment firms offering cash accounts, Wealthfront "sweeps" your funds into different partner accounts. In other words, it works with banks that are FDIC insured, and that's where it keeps your money. However, your money may be spread out among five different banks, with each account never exceeding the $250,000 limit set by FDIC for a single account. Once it appears that one of your accounts is going to go over that amount, the extra money is moved into another account so it's always fully protected.
Our Banking Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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Dana George has positions in Target. The Motley Fool has positions in and recommends Target and Visa. The Motley Fool has a disclosure policy.