That means your cash will earn nearly 20x the interest at Wealthfront it would earn in a traditional savings account. And of course, you’ll still get up to $1 million in FDIC insurance through our partner banks and pay absolutely no account fees.
Why is the rate going up?
As you may know, we partner with banks to offer you a Cash Account with a high APY. As a result, the APY we offer on the Cash Account is largely determined by the rate we receive from these partner banks for deposits. The rate our partner banks pay us depends on both the effective federal funds rate (EFFR) and how eager the banks are for additional deposits (which translates to a premium or discount they pay relative to the EFFR). Whenever the Fed raises the target range for the EFFR, the rate we can offer our clients increases and vice versa. Fortunately, this most recent rate increase allows us to raise the rate we can offer quite significantly.
The Fed raises the target range for the federal funds rate when it believes the economy is overheating and lowers it when the economy is slowing down. This most recent rate increase is the third time the Fed has raised rates this year amid concerns about inflation (or an increase in the prices of goods and services). We look forward to raising our APY again as rates continue to increase.
Grow your savings faster with no fees
We’re delighted to pay you more interest on your Cash Account deposits so your savings can grow faster with no extra effort. Whether you’re building an emergency fund, saving for a big purchase like a car or down payment, or just keeping money handy for your everyday expenses, the Wealthfront Cash Account is an ideal home for your short-term savings. It also has best-in-class automation features so you can organize your savings into categories, track your progress against your goals, and invest your money within minutes. And since you get access to a debit card and 19,000 free ATMs, your cash is always available on your terms.
We’ve partnered with Green Dot Bank, Member FDIC, to bring you checking features.
Checking features for the Cash Account are subject to identity verification by Green Dot Bank. Debit Card is optional and must be requested. Wealthfront Cash Account Visa(Registered TM) 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. Green Dot Bank operates under the following registered trade names: GO2bank, GoBank, Green Dot Bank 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. Wealthfront products and services are not provided by Green Dot Bank. Green Dot is a registered trademark of Green Dot Corporation. Copyright 2022 Green Dot Corporation. All rights reserved.
Other fees apply to the checking features. 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. Other eligibility requirements for mobile check deposit and to send a check may apply. Please see the Deposit Account Agreement for details.
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 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 or its affiliates 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 2022 Wealthfront Corporation. All rights reserved.