REDWOOD CITY, Calif., Feb. 14, 2019 /PRNewswire/ -- Today, Wealthfront announced the Wealthfront Cash Account, offering a 2.24% interest rate and FDIC insurance that covers balances up to $1 million. Wealthfront clients can open a cash account with as little as $1 and enjoy an interest rate that is 20 times higher than the national average and four times more insurance than they'd receive from a traditional bank. Additionally, the account isn't subject to any market risk and offers unlimited and free transfers all for no fees.
"Our cash account is another important milestone on our path to deliver our ultimate vision of Self-Driving Money," said Andy Rachleff, CEO of Wealthfront. "In order to optimize and automate all of our clients finances we need to offer ideal short and long-term destinations for their cash. You can expect us to further extend our services into the banking sector this year."
When designing their cash account, Wealthfront saw an opportunity to not only further their vision of Self-Driving Money, but to build a better, more client centric cash management solution. In doing so they have cut fees and pass on a meaningful interest rate to the client.
"Every year the four largest banks in the U.S. make over $300 billion in revenue while paying consumers next to nothing on their cash deposits," said Dan Carroll, co-founder of Wealthfront. "If the $8 trillion in cash sitting at the commercial banks was moved to a service like Wealthfront instead, consumers would have an additional $170 billion in their pockets every year. Imagine how impactful that extra money could be on people's lives."
Anyone who opens a Wealthfront Cash Account will receive free financial advice and answers to over 10,000 financial questions. For instance, Wealthfront can provide recommendations on how much to save and what accounts to save in. The Wealthfront Cash Account is available to clients starting today and will be available for everyone in the coming months. Open an account today or sign up for the waitlist to be the first to know.
The Annual Percentage Yield (APY) for the Wealthfront Cash Account is as of February 14, 2019. The APY may change at any time, before or after the Cash Account is opened.
Cash Account is offered by Wealthfront Brokerage LLC ("Wealthfront Brokerage"), a member of FINRA/SIPC. Neither Wealthfront Brokerage nor its affiliates is a bank. The cash balance in the Cash Account is swept to one or more banks (the "program banks") where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC insurance is not provided until the funds arrive at the program banks. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution. Wealthfront uses more than one program bank to ensure FDIC coverage of up to $1 million for your cash deposits. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the program banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at program banks are not covered by SIPC. This is not an offer, or solicitation of any offer to buy or sell any security, investment or other product.
Wealthfront Software LLC offers a software-based financial advice engine that delivers automated financial planning tools to help users achieve better outcomes. Investment management and advisory services are provided by Wealthfront Advisers LLC, an SEC registered investment adviser, and brokerage related products, including the cash account, are provided by Wealthfront Brokerage LLC, a member of FINRA/SIPC. Wealthfront Software LLC, Wealthfront Advisers LLC and Wealthfront Brokerage LLC are wholly owned subsidiaries of Wealthfront Corporation.
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