Update 12/19/23. Rate is now 5.00% APY. They also have now a signup bonus found at this link. (ht Anthony P.) The tiers aren’t great, but it’s still something for someone who wants to use them anyway:
- Update 11/2/22: Rate will be 3.3% from 11/4/22.
- Update 7/29/22: Now 2.00%
- Update 10/24/20: Now .35%.
- Update 1/13/20: Now 1.78%
- Update: now 1.82%.
- Update 9/20/19: Rate reduced to 2.07% due to fed rate cuts.
- Update 8/1/19: Rate reduced to 2.32% due to fed rate cuts.
- Update 6/26/19: Rate increase from 2.51% to 2.57%. Wow, they are leading the pack.
Offer at a glance
- Interest Rate:Â 2.57% APY
- Minimum Balance: $1
- Maximum Balance: $1M
- Availability:Â Nationwide
- Hard/soft pull: Soft pull
- ChexSystems:Â Unknown
- Credit card funding: None
- Monthly fees:Â None
- Insured: Funds held in FDIC accounts
The Offer
- Wealthfront offers a high yield Cash Account with an interest rate of 2.57% APY.
The Fine Print
- FDIC insured up to $1 million.
- It only takes $1 to open and there are no additional deposit requirements.
- Interest earned will be reported on a form 1099-INT.
Avoiding Fees
This account has no monthly fees and no other fees.
Our Verdict
It’s not technically a bank account, rather a brokerage account which holds the funds in an FDIC accounts (hence the ability to have up to $1M, more than FDIC limit of $250k), that does add a bit of risk. Looks like currently it’s more of a savings account than a checking account since they don’t offer a debit card, bill pay, check writing, etc, though they are considering adding those things. You can see their FAQ here. An advantage this has over savings accounts is that there is no limit to the number withdrawals per month.
Readers note in the comments that Wealthfront transfers, both in and out, must be initiated from the Wealthfront account to/from the external account. It can’t be done from an external account pushing/pulling to/from the Wealthfront account. Another thing mentioned is that they make it difficult to pull money out of the account, unless you transfer it back from the funding account where it came from initially.
We’ll add Wealthfront to our list of Best High Yield Savings Accounts. This account tops the best rates shown on that list by a little. If anyone has used this bank, please share your experiences in the comments below.
Thanks to reader Vlad, Kevin, and jcn
No referrals in the comments below.
Bonus is dead.
What was slow walking earlier has come to standstill!
Just a note that for the tiered bonus, Wealthfront has been slowwalking the bonus payouts. The first payment came through no problem, then I had to manually ask for the second payment 10 days after it was due, and now I am waiting for my third payment which was supposed to be 90 days after, but they told me I have to wait 120 days (???). Not sure why but just a head’s up…
Is there a limit on the amount of linked external accounts?
Anyone know, does Wealthfront have phone support?
I have a cash account with them since they started in 2019 and use it mostly as my checking account. They allow in- and outgoing transfers to linked accounts right from within their website (once logged into your account). The funds are held at Greendot bank, that’s why a few institutions (mostly credit unions) do not allow the account to be linked (Greendot – Prepaid cards – SCAMs).
Can there be a Wealthfront referral thread?
Does an ACH transfer from another bank count as a direct deposit for purposes of setting up the paper check deposit feature of the cash account?
ACH transfers are not considered direct deposits unless they meet the requirements (e.g. for wages/social security/retirement).
According to some comments on here, you CAN’T stack the 5.5% APY with the referral and the cash bonus promotion. Can someone please confirm?
Did you ever figure this out?
I currently have money tied up in all kind of other different promos but will have some available again come mid January.
As I read it this account becomes a 6% option for 3 months and then ongoing 5% after that. If so, sounds interesting, at least for a while.
I see DoC mentioning referrals.
What is the benefit of a referral currently and does anyone know if you can combine the bonus weblink with it to double dip on sign up?
TIA for any data points on this topic… 🙂
Benefits of a referral include both members receiving a .5% boost for 3 months. So right now that would move it to 5.5%. I’m not sure if you can combine offers. If interested here’s a referral link [removed]
I have same question about referral benefit. I just know referral bumps up apy by half percentage. Also if I sign up via referral link will I be eligible for the bonus ?
I think I saw language that for bonus sign up needs to be from bonus landing page.
btw How do you get 6% APY ? Are you adding the bonus as 1% ?
FWIW, the rates are pretty good. The transfer from Wealthfront to the other banks are pretty good and there are no limits.
Wealthfront savings account still doesn’t get recognized as a direct deposit source or a regular bank account source. If you’re thinking about paying a credit card by linking this account or setting up a direct deposit, it isn’t possible.
DP: Linking chase credit cards to pay using Wealthfront isn’t possible. Linking payroll provider from ADP to Wealthfront isn’t possible either.
Never had the issue for the bank but do note that support runs on typical business hours M-F 9-5.
It is possible. You can turn on checking account features which gives you a checking account and routing number. You can then pay bills/credit cards.
What I meant to say is that the account number and routing number provided by wealthfront doesn’t get recognized as a regular bank account. Most of them mention, the provider isn’t supported.
I pay my Chase credit card with my Wealthfront account through the Chase mobile app every month. I do have the checking account features turned on. Never had any issues with any other banks either.