We built the Wealthfront Cash Account to be the ideal home for your short-term cash. That’s why the Cash Account comes with a high 4.25% APY and up to $8 million of FDIC insurance through our partner banks, with absolutely no account fees.
It’s no secret that earning a high APY on your cash is incredibly powerful. But you might not know that a high APY can become even more powerful in combination with some of the other features the Cash Account offers through our partner banks, including checking features you’d expect from a bank. In this post, we’ll explain how to use these features to get the most out of your Cash Account.
1. Set up direct deposit to get 4.25% APY on every dollar you earn
If you’re like many people, you probably haven’t thought about your direct deposit in a while. Maybe you set it up when you started your current job and haven’t given it much thought since. But if you direct deposit your paycheck to an institution that doesn’t pay you much (or any) interest on your cash, you could be leaving money on the table—even if you eventually transfer some or all of that paycheck to your Wealthfront Cash Account.
That’s because compound interest adds up. Missing a few days of earning a high APY on your cash because you have to remember to transfer funds to your Wealthfront Cash Account each pay cycle could prove costly in the long run. This approach can also take considerable time and effort on your part. As long as you have a Wealthfront Cash Account with an account and routing number, you can direct deposit your paychecks to Wealthfront and start earning our high, competitive APY on your money through our partner banks right away instead of transferring money in after you get paid. And once your paycheck lands at Wealthfront, it’s easily and readily accessible—more on that below.
2. Take advantage of the many ways to access your cash, like free-same day withdrawals and transfers
Cash isn’t very helpful if you can’t access it quickly when you need it, or if you get charged exorbitant fees to do so. That’s why the Cash Account comes with a wide variety of ways to access your cash quickly and for free. We offer free same-day withdrawals (even on holidays and weekends), free wires (although receiving institutions may charge their own fee), and the ability to invest within minutes. You also get access to a debit card, 19,000+ free ATMs, compatibility with your favorite payment apps (Google Pay, Venmo, Apple Pay, CashApp, PayPal), plus you can use your account and routing numbers to pay bills (like credit card bills, your mortgage, or daycare) and businesses. You can even send checks for free.
How does this easy access to your cash help you get more out of your Cash Account? You can keep funds in your Cash Account (where they will keep earning a high APY) up until the moment you need it. As a result, you can earn more interest and skip the hassle of mentally accounting for a few days of buffer before making a payment out of your account. You also don’t have to worry about incurring late fees on payments or making last-minute purchases—your money is there when you need it, and earns interest all the while.
3. Use the power of automation
If you have to force yourself to set money aside for an upcoming goal each month, odds are you’ll have trouble sticking to your plan. You might forget to transfer your funds, decide to skip a month, or inadvertently spend the money on something else before you realize your mistake. Automation can help you avoid these pitfalls and confidently direct your cash exactly where you want it to go. For this reason, we suggest using the power of automation to help manage your money and get the most out of your Cash Account.
Wealthfront makes it simple to automate your finances from end to end. Starting from the moment your direct deposit (or transfer) hits your Cash Account, you can organize your cash into categories (like an emergency fund or a vacation fund) and automatically route your money exactly where you want it to go—including investing your excess cash so it has an opportunity to grow in the market and help you build long-term wealth. Once you decide where you want your money to go, it doesn’t take any extra time or willpower to execute on your plan. As a result, you’ll probably be more likely to stick with it and meet your goals.
Key takeaways
If you’re only using your Cash Account as a parking lot for some of your savings, you’re likely missing out. To get the most out of your Wealthfront Cash Account, we suggest that you:
- Set up direct deposit to get a high 4.25% APY on every dollar you earn
- Take advantage of the many ways to access your cash quickly and for free
- Use the power of automation to manage your money effortlessly. Here’s how to set up an automated savings plan.
We built our Cash Account to be the ideal home for your short-term savings until you’re ready to invest. The Cash Account offers a high APY, up to $8 million in FDIC insurance through our partner banks, and a long list of other features to help you manage and optimize your savings. Plus, we’re always looking for ways to offer more value to our clients, both by adding new features and making them available for no additional cost. We hope the information in this post helps you get even more out of your Cash Account.
Disclosure
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.
Early direct deposit availability depends on payor type, timing, payment instructions, and bank fraud prevention measures and may vary from pay period to pay period. The name and Social Security number on file with your employer or benefits provider must match your Account to prevent fraud restrictions on the account.
Fee-free ATM access applies to in-network ATMs only. Each calendar month, current eligible clients with ATM Transactions will receive a reimbursement of certain fees associated with their first two out-of-network ATM Transactions. Wealthfront Brokerage will utilize its best efforts to reimburse Green Dot’s $2.50 “out-of-network fee” and up to $5.00 of any operator or owner’s fee for your ATM Transactions, up to a maximum reimbursement of $7.50 per ATM Transaction (the “Reimbursement”). Your maximum total monthly Reimbursement shall be $15.00 ($7.50 + $7.50). If an ATM operator charges fees other than out-of-network fees and/or owner’s fees, Wealthfront Brokerage will not reimburse any portion of those fees. Once the maximum total monthly Reimbursement has been reached, no subsequent out-of-network ATM fees or charges that occur that calendar month will be reimbursed. For full details please review the Out-of-Network ATM Fee Reimbursement Terms and Conditions. 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.
Please note, Real-Time Payments (RTP) transfers may be limited by destination institutions, daily transaction caps, and by participating entities such as Wells Fargo and the RTP® Network. New Cash Account deposits are subject to a 2-4 day holding period before becoming available for transfer. Wealthfront doesn’t charge for transfers, but receiving institutions may impose an RTP fee.
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 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 is as of November 3, 2023 and 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.
Copyright 2024 Wealthfront Corporation. All rights reserved.
About the author(s)
Leotie Fukawa is a Product Specialist at Wealthfront and a Certified Financial Planner (CFP). She holds Series 66 and Series 7 licenses from FINRA. View all posts by Leotie Fukawa, CFP
