Wealthfront Cash Review: Online Cash Management Account
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Cash management accounts, or cash accounts, are typically a sort of hybrid checking and savings account and are usually offered by brokers, such as Wealthfront, rather than banks. Wealthfront, like most cash management account providers, sweeps customers’ cash balances into third-party banks that provide FDIC insurance on deposits. The lack of fees on the cash account offered by Wealthfront, a top robo-advisor, make it a worthy cash account to consider.
Best for: Wealthfront brokerage customers who are looking for a free companion cash account that earns some interest.
» Want to see how Wealthfront Cash compares? See NerdWallet's list of the best cash management accounts
Where Wealthfront Cash shines | Where Wealthfront Cash falls short |
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» Learn more: What is a cash management account?
Checking and savings features
4.5/5.0
Upsides
Offers a high APY. At 4.25%, Wealthfront’s interest rate is higher than the national average for savings accounts, which is currently just 0.42%.
No fees. Wealthfront doesn’t charge any maintenance, withdrawal or other fees on this account, though there is a $1 minimum opening deposit.
Early direct deposit. Customers can have their paycheck directly deposited into their Wealthfront Cash Account and access the money up to two days earlier than their regular payday.
FDIC coverage up to $8 million through affiliated partner banks. The FDIC typically insures up to $250,000, per depositor, per institution. Wealthfront sweeps customers' funds into multiple partner banks to ensure coverage of up to $8 million (and up to $16 million for joint accounts).
Debit card allows purchases and cash withdrawals. Customers can use an optional debit card that allows them to make purchases and withdraw cash from more than 19,000 ATMs for free.
Bill pay and peer-to-peer app compatibility. Customers can enroll in bill pay with their account as well as link it to peer-to-peer money transfer apps such as Venmo, Cash App and PayPal.
Free “send a check” feature. If you’ve met the basic requirements of holding $2,500 across your Wealthfront balances for the past two months and have had at least $250 in direct deposits, Wealthfront can send a check payment on your behalf for free.
Automated saving and investing tools. Wealthfront allows its users to set a maximum account balance on their Wealthfront Cash Account or other checking account and automatically move additional cash into other accounts, such as a Wealthfront Individual or Joint Investment Account, an IRA or a 529 college savings plan.
Quick investing through the account. The Wealthfront Cash Account allows customers to quickly transfer money into their Wealthfront investment accounts, which feature a globally diversified portfolio of low-cost exchange-traded funds (ETFs).
Free same-day withdrawals. As long as they initiate a withdrawal by 6 p.m. PT, customers can receive a same-day transfer from their Wealthfront account to an external bank account within a few hours. There are more than 400 participating banks and credit unions that can receive same-day transfers.
Downsides
No cash deposits. Even though cash withdrawals are available, cash deposits are not.
Other things to consider
No overdraft program. Wealthfront rejects any transaction that can’t be covered by the funds in your account. While that means no overdraft fees, it also means you'll have to keep track of your account balance so you don’t come up short during a transfer.
Customer experience
4.0/5.0
Upsides
Solid website and high app ratings. The Wealthfront website is well-designed, and it’s easy to find information about different account offerings as well as FAQs and general information about the company. Both Apple and Android users give the Wealthfront app high ratings.
Downsides
No branches. Wealthfront Cash is an online-only service.
Limited support. Wealthfront has extended weekday hours for phone support — 7 a.m. to 5 p.m. PT Monday through Friday — but it doesn’t offer live phone support on weekends. There is no online chat support.
on Wealthfront's website
Wealthfront Cash Account
4.25%
$1
on Betterment's website
Betterment Cash Reserve – Paid non-client promotion
4.75%
$0
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