Wealthfront Cash Management account review 2024

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Wealthfront’s cash management account offers the best of both worlds: You can easily access your money while earning a decent interest rate.

This account offers a highly competitive 5.00% APY, which far surpasses traditional savings accounts and is competitive with other online high-yield savings accounts. 

About Wealthfront

Wealthfront is a leading fintech company that offers a range of financial products and services designed to help people grow and manage their wealth. Founded in 2008, the company began as an automated investment platform but has since expanded its offerings to include cash management, lending, and financial planning tools.

The Wealthfront Cash Account is a high-yield cash management account that combines the benefits of a savings account and a checking account. It offers 5.00% on your money, almost 10 times the national average. 

The Cash Account also has many additional features generally associated with checking accounts, like ATM access and direct deposit. 

While Wealthfront shares many bank characteristics, it’s classified as a brokerage or a neo-bank. However, its “non-bank” status can work in your favor through higher interest rates and greater levels of FDIC insurance.

Wealthfront Cash Account features and benefits

Some online banks offer slightly higher interest rates on their high-yield savings accounts. However, the Wealthfront Cash Account has some unique features that make it well worth considering. 

Earning potential

The Wealthfront Cash Account offers some of the highest interest rates, with a current APY of 5.00%. But your earning potential isn’t capped there. You can qualify for a 3-month 0.50% APY boost through their referral program.

By inviting a friend to open their own Cash Accounts, you can temporarily earn 5.50% APY, potentially surpassing most rates available on the market.

To qualify, you must invite someone who isn’t an existing Wealthfront client or a secondary account holder on any of your accounts. There’s no limit to the number of referrals you can make. The maximum total duration of APY increases you can earn across all promotions is six months at any one time and applies to a maximum of $250,000 across all your balances. 

Accessibility

A Wealthfront Cash Account only requires $1 to open, and no additional deposit or balance requirements exist. 

The Wealthfront Cash Account also offers a range of convenient features to help you manage your money more efficiently:

• Direct deposit: Set up direct deposit to automatically fund your account each payday
• Bill pay: Pay your bills online or schedule recurring payments
• Mobile check deposit: Deposit checks remotely using your smartphone camera
• Free transfers: Move money between your Wealthfront Cash Account and other bank accounts
• Debit card: Access your funds easily with a Visa debit card accepted worldwide
• ATM access: You can withdraw cash for free at one of Wealthfront’s 19,000+ no-fee ATMs. 

Remember there are some limits on transfers and spending, but nothing that should hinder your everyday needs. Amongst them are a $1,000 daily ATM withdrawal limit, a $50,000 daily ACH withdrawal limit, and a $250,000 daily transfer limit.

Savings strategies

Being a diligent saver is sometimes easier said than done. However, with the help of Wealthfront’s automated savings plan (formerly known as Autopilot), you can set up recurring transfers to take the decision-making out of saving money. Your progress is tracked on an interactive website or mobile app chart.

Seamlessly transfer money from your Cash Account into Wealthfront’s investing products. You can invest in individual stocks or deposit money into one of their automated investing indexes. Additional investing products to choose from include bonds, IRAs, and 529s.

FDIC insurance 

One of the Wealthfront Cash Account's most significant benefits is its extensive FDIC insurance coverage. While most banks offer FDIC insurance up to $250,000, Wealthfront covers up to $8 million for cash deposits.

Wealthfront achieves this by partnering with multiple banks to spread your funds across different institutions, ensuring your money is fully protected. This feature provides peace of mind and makes the Wealthfront Cash Account an attractive option for those with larger balances.

Is the Wealthfront Cash Account right for you? 

The Wealthfront Cash Account can be a good option for everyone looking to bolster their emergency savings, facilitate their savings goals, or, at the very least, hedge against inflation. This account may be a good idea for:

• Savers looking to earn competitive interest rates on their cash
• Those seeking a low-fee, online-first banking experience
• Individuals who want the convenience of a checking account combined with the high yields of a savings account
• Those who maintain high balances and want expanded FDIC insurance coverage
• People who value a user-friendly, tech-forward approach to money management

Managing your Wealthfront Cash Account through the mobile app is remarkably user-friendly. But don't just take our word for it — thousands of positive reviews have propelled the Wealthfront mobile app to an impressive 4.9/5.0 rating on Google Play and 4.8/5.0 on the Apple App Store.

It is worth noting that Wealthfront is an entirely online service. There are no physical locations, so if you deposit cash or require access to a large network of physical branches and ATMs, you may be better served by a traditional brick-and-mortar bank. 

Wealthfront Cash Account fees

Another advantage of the Wealthfront Cash Account is its minimal fee structure: 

• In-network ATMs: None
• Out-of-network ATMs: $2.50 + ATM owner fee (which varies) 
• Monthly maintenance fees: None
• Overdraft fees: None
• Minimum balance fees: None 
• Cash deposits: Up to $5.95
• Foreign transaction fees: 2.75%

This means you can keep more of your money working for you rather than being eaten away by unnecessary charges.

How to open and fund a Wealthfront Cash Account

Opening a Wealthfront Cash Account takes only a few minutes and can be done either on their website or through the mobile app. If you are opening the account through the referral program, use the provided link so you and your friend can qualify for the APY boost.

Activating an account only requires a $1 deposit, but you’ll need to link an external account to begin funding the Cash Account. Wealthfront will need the username and password from your external account to establish a connection using its secure sign-in software. From there, you can also set up direct deposit for funding.

How we rated this account 

Every review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all financial institutions on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here. 

Here are some of the factors that influenced this account’s overall score: 

• Interest rates: The Wealthfront Cash Account offers a highly competitive interest rate (APY) of 5.00%, with the potential for a temporary boost to 5.50% through the referral program. This APY surpasses traditional savings accounts and is competitive with other online high-yield savings accounts, making it an attractive option for earning more on your savings.
• Requirements: The account shines in its lack of minimum balance requirements. Only $1 is needed to open an account, and there are no additional deposit or balance requirements. 
• Fees: Wealthfront's fee structure is generally favorable, with no overdraft, transfer, or minimum balance fees. 
• Ease of withdrawals: You can access your cash through a large network of no-fee ATMs and a debit card. 
• Digital experience: Wealthfront Cash Account offers a highly rated, user-friendly mobile app with intuitive savings tools and seamless integration with Wealthfront's investing products. 

The bottom line

Combining the benefits of a high-yield savings account with the flexibility of a checking account, the Wealthfront Cash Account simplifies your banking experience and helps you maximize your savings. Whether you're building an emergency fund, saving for a short-term goal, or simply looking for a smarter way to manage your cash, the Wealthfront Cash Account is worth considering.

Frequently asked questions 

Is my money safe in a Wealthfront Cash Account?

Yes, the funds in your Cash Account are FDIC-insured up to $8 million ($16 million for Joint Accounts) through Wealthfront’s network of thirty-two partner banks. This significantly surpasses the typical $250,000 limit on FDIC insurance for individual depositors dealing directly with a single bank.

How does the interest rate on Wealthfront's Cash Account compare to other options?

The Wealthfront Cash Account offers 5.00% APY, which is far above traditional savings accounts and is competitive with other online banks that offer high-yield savings accounts. 

However, it’s not always best to hyper-focus on interest rates. Before depositing your money in any bank or financial institution, consider other factors, like fees, accessibility, technology, and customer service.

Can I use the Wealthfront Cash Account for my emergency fund?

A Wealthfront Cash Account is a solid place for your emergency fund to grow, helping you be better prepared for any surprises life throws your way. But remember, there is some friction in how easy it is to access your funds. 

You could access your funds immediately via the debit card in an emergency. Or, you’ll have to wait one to three business days for a transfer to an external account to process.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.