Wealthfront 2.57% savings rate

Wealthfront Raises Cash Account APY Yet Again

It was only a few weeks ago that roboadvisor platform Wealthfront increased the annual percentage yield (APY) for their Cash Account to an industry-leading 2.51%. However, with other institutions subsequently besting them, the company recently shot back by raising their rates another six basis points to 2.57%. While the hike is more symbolic than anything, it does succeed in bringing attention to the account — including some of its current shortcomings.

Bankrate notes that Wealthfront’s move comes after Salem Five Direct increased its interest rate to 2.51% only to be edged out by Vio Bank’s 2.52%. Although .01% probably isn’t making a huge difference to the earnings of accountholders, Wealthfront explained in a statement, “We have been overwhelmed by the response to the launch of our high-interest cash account and we want to make choosing our cash account a no-brainer and eliminate the need to comparison shop.” Funny enough, while competition between Wealthfront and others seems to be driving paid interest rates up, the popular Marcus by Goldman Sachs actually lowered its APY from 2.25% to 2.15% just last week.

Of course, Wealthfront Cash isn’t like most bank accounts — even those of the online variety. Instead of offering a full banking experience, Wealthfront’s accounts currently have limited functionality. Not only are they currently lacking debit card or checking access but oddly the company doesn’t even support transfers between your Wealthfront brokerage and your Cash account at this time. That said, they do allow for unlimited transfers between any external accounts and your Cash Account and, thanks to partnerships with four banks that Wealthfront sweeps funds into, they advertise that your money is FDIC insured up to $1 million. Luckily, if you don’t have seven-figures to deposit, you can still open an account with as little as $1.

Obviously I’m not one to turn my nose up at raising paid savings interest, but I do wish this boost in APY came with an increase in features as well. Although Wealthfront says that things like debit cards, checks, and more are on the way, until they are in place, it’s hard for me to get too excited about this particular account. Personally, despite Wealthfront’s higher APY,  I’d recommend options such as SoFi Money (currently 2.25% APY) that offer easier access to the funds along with a few other perks. But, if you’re just looking for a risk-free place to stash your cash that you know will pay you handsomely, Wealthfront Cash may be a great option for you.

Author
Founder ~ Moneyat30
Kyle is a freelance writer - including being the head writer for Fioney.com. He also serves as editorial director for the Disney fan site LaughingPlace.com and the founder of Money@30.com. In 2015, Kyle and his wife Bekah moved from Los Angeles to Springfield MO in pursuit of greater financial freedom. Together, the pair enjoy travel, coffee, and spending time with their dog Rigby. Additionally, as of 2023, they become first-time homeowners.
Other Articles by Kyle Burbank
Walmart+ bag with goods, Paramount+ tablet, and Burger King bag and Whopper
Why I'm Excited for Walmart+ Week Happening Later This Month
To very loosely paraphrase a famed Dos Equis ad campaign, I don't always use Walmart+, but when I do, I enjoy it. For context, my Walmart+ membership is thanks to my Amex Platinum Card, which covers the monthly cost. While I enjoy the Scan & Go feature it offers and appreciate the complimentary Paramount+ subscription,...
entrance to Deta SkyClub ATL
Travel Tuesday: Delta's Newest Sky Club in Atlanta Has Arrived
Delta has debuted its latest Sky Club location at its hometown hub — which also happens to be the busiest airport in the world: Hartsfield-Jackson Atlanta. This week, the airline shared a first look at its new Concourse D lounge. While this is now the eighth Sky Club at ATL, there were previously nine, with...
vacationers with a Chase Sapphire Preferred Card
The Famed Chase Sapphire Preferred 100k Offer Has Returned
For credit card enthusiasts, while ongoing perks and rewards are great, it's the welcome bonuses that are really exciting. In particular, when a low or no annual fee card features an offer that crosses into six figures, people talk. On that note, one of the most often discussed deals in recent years was a 100,000-point...

Leave a Reply

Featured Articles
Why I'm Excited for Walmart+ Week Happening Later This Month
To very loosely paraphrase a famed Dos Equis ad campaign, I don't always use Walmart+, but when I do, I enjoy it. For context, my Walmart+ membership is thanks to my Amex Platinum Card, which covers the monthly cost. While I enjoy the Scan & Go feature it offers and appreciate the complimentary Paramount+ subscription,...
Travel Tuesday: Delta's Newest Sky Club in Atlanta Has Arrived
Delta has debuted its latest Sky Club location at its hometown hub — which also happens to be the busiest airport in the world: Hartsfield-Jackson Atlanta. This week, the airline shared a first look at its new Concourse D lounge. While this is now the eighth Sky Club at ATL, there were previously nine, with...
The Famed Chase Sapphire Preferred 100k Offer Has Returned
For credit card enthusiasts, while ongoing perks and rewards are great, it's the welcome bonuses that are really exciting. In particular, when a low or no annual fee card features an offer that crosses into six figures, people talk. On that note, one of the most often discussed deals in recent years was a 100,000-point...
Should I Have a Business Credit Card? This Offer is Tempting Me
For as much as my credit card collection has grown over the years, one arena that I have yet to expand into is business credit cards. Of course, that makes sense seeing as their products are built for small business owners and aren't available to regular consumers. However, as a freelance writer, I technically am...