Question 1

Are there any restrictions around the 4.00% APY? Is this a promotional rate?

Accepted Answer

Believe it or not, there’s no funny business here. There are no minimum (or maximum) balance requirements to earn 4.00% APY from program banks in your Cash Account. Better yet, you can earn an extra 0.50% boost for three months when you refer a friend who signs up for the Cash Account. See promotional interest terms.

Question 2

What kind of fees do you charge? Is there a minimum to know about?

Accepted Answer

The Cash Account has no account fees and you can start saving with just $1. We also offer taxable and tax-advantaged automated investing accounts. Here’s an easy way to compare our investing products:{"Automated Investing":{"managementFee":0.0025,"investmentMinimum":500},"S&P 500 Direct":{"managementFee":0.0009,"investmentMinimum":5000},"Stock Investing Account":{"managementFee":0,"investmentMinimum":1},"Automated Bond Ladder":{"managementFee":0.0015,"investmentMinimum":500},"Automated Bond Portfolio":{"managementFee":0.0025,"investmentMinimum":500}}

Question 3

How is automated investing at Wealthfront different?

Accepted Answer

Not only were we one of the pioneers of automated investing, we’re consistently ranked as one of the best options out there. We developed the industry-first automated Tax-Loss Harvesting, and we’re constantly innovating, using our award-winning software to expand access to a broad range of financial products. Our suite of investing products never veer away from helping our clients focus on what they can control: keeping taxes low, keeping fees low, and staying protected from unnecessary risk. That’s because we’ve made it our mission to build products that benefit our clients, not just our bottom line.

Question 4

How does S&P 500 Direct work exactly?

Accepted Answer

Like an ETF, Wealthfront’s S&P 500 Direct lets you invest in stocks of the S&P 500® without any extra work on your part. Unlike an ETF, you own individual stocks that make up the index and unlock more opportunities to save on taxes with our automated Tax-Loss Harvesting. Additionally, this also gives you more control over your investments, with the ability to exclude the stocks you don’t want us to trade. And, thanks to fractional shares, it’s easier than ever to start investing in hundreds of stocks in the index. S&P 500 Direct is the same cost as the expense ratio of an ETF like SPY (SPDR S&P 500 ETF Trust), with a management fee of just 0.09%

Question 5

What is Tax-Loss Harvesting? And what does that mean for me?

Accepted Answer

Tax-Loss Harvesting is a strategy that can help lower your tax bill. Here’s how it works: If the price of an investment, say, a stock or ETF, falls below the price you paid for it, our software can take advantage of that volatility and sell those shares to harvest the loss, then swap it with a similar security to help keep your portfolio balanced. Because market volatility is just a part of investing, regular dips in the market continue to work as a kind of tax deduction. At tax time, the losses you’ve collected can offset your capital gains, and you can use any remaining losses to reduce your ordinary income by up to $3,000. Best of all, your harvested losses never expire. Anything you can’t use in a given year carries forward indefinitely. That’s good news for you now and in the future. Learn more about Tax-Loss Harvesting at https://www.wealthfront.com/tax-loss-harvesting

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