Wealthfront's Cash Account offers a competitive 5% interest rate, quick access to funds, and customizable categories for savings. However, it lacks automation for transfers and has limited checking features, making it more suitable as a savings account than a full-fledged checking account.
Wealthfront has introduced a cash account that boasts one of the highest interest rates available in the market. In this review, I will provide an overview of its features and share my honest opinion based on my experience using the account.
The Wealthfront Cash Account combines elements of a money market account, checking account, and savings account into one product. Currently, it offers an impressive interest rate of 5%, which is among the highest in the industry. As soon as you deposit money into your account, you start earning interest.
Interest accumulates throughout the month and is deposited into your account on the first day of the following month. For example, if you earned $22.07 in January, it will be credited to your account on February 1st. You can also see pending interest for the current month, which will continue to grow until the end of the month.
Wealthfront offers a unique feature where you can boost your interest rate by an additional 0.5% for three months. This is achieved by sharing your referral link with someone who then creates a new account. This can be a great way to maximize your earnings.
One of the standout features of the Wealthfront Cash Account is the ability to link external banks and investments. When you log in, you can view your net worth across all linked accounts, along with the balance in each. However, if you find this information distracting, you can easily hide the balances in your settings.
The account allows for quick transfers in and out. If you link to one of the eligible accounts (approximately 400 options), you can access your funds the same day. Transfers initiated before 8:00 PM Eastern Time will be available in your other account on the same day, while those initiated after will typically be available by 8:00 AM the next morning. In my experience, I found the transfer speed to be faster than any other account I have used, including Ally.
Wealthfront allows you to create unlimited categories for your funds, which can help you visually separate your money for different purposes, such as saving for Christmas or a vacation. You can customize these categories with various emojis or icons. However, a notable downside is the lack of automation for transfers between categories. You must manually transfer funds each month, which may not be ideal for everyone.
While the Wealthfront Cash Account has some checking features, it is essential to note that not all account types have access to these features. To utilize the checking features, you must open an individual account. With an individual account, you can obtain a debit card and withdraw cash for free at approximately 19,000 ATMs, primarily located in Walgreens stores. However, this number is significantly lower than many other online banks.
You can use out-of-network ATMs, but Wealthfront will charge a $2.50 fee plus any additional ATM fees. The account also allows you to toggle foreign transaction capabilities on or off, but using it incurs a 2.75% fee, which I do not recommend.
Wealthfront provides a help center where you can search for articles and frequently asked questions. Additionally, you can send them a message or call their customer service for assistance.
In my opinion, the Wealthfront Cash Account is an excellent savings account due to its high interest rate and the ability to create unlimited categories for your funds. However, the lack of automation for transfers and limited checking features make it less suitable as a primary checking account. If you are looking for a product that primarily serves as a savings account with occasional checking features, Wealthfront could be a great fit. For those seeking more comprehensive online banking solutions, I recommend exploring other options.
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