Wealthfront Cash Account Review [2024]
By Robert Bruce Remember Apple’s old slogan, “There’s an app for that?”
That was way back in 2009. Fast forward several years, and not only is there an app for that, but there are thousands of apps for that.
Mobile banking accounts are no exception. Nearly 35 million of these apps were downloaded in the final quarter of 2022.
One app like this is Wealthfront – a cash management account started in 2008 that has taken off in recent years.
In this Wealthfront Cash Account review, we’ll take a look at what it offers, the pros and cons, how to open an account, what other reviewers are saying, and some other frequently asked questions.
What is a Wealthfront Cash Account?
The Wealthfront Cash Account is one of the leading cash management accounts, also known as “robo advisors,” on the market. These accounts are an alternative to traditional banking and savings accounts.
With an outstanding 5.00% APY (rate valid at the time of this publication) on all your cash, unlimited fee-free and fast transfers, automated tools, and no pesky account or overdraft fees, your money is set to soar in the Wealthfront Cash Account.
You can instantly organize your cash into categories and funnel money precisely where you want it. From handling everyday expenses to sending checks when needed, boosting your emergency fund, and fueling savings goals and wealth-building investments – it’s all done automatically with cutting-edge software. Plus, pay bills using your account and routing numbers, set up direct deposit for a paycheck, and effortlessly link up with Venmo, Cash App, Apple Pay, Google Pay, and PayPal.
From managing everyday expenses to fueling your emergency fund and long-term wealth-building goals, Wealthfront makes managing your money effortless from the moment your paycheck lands in your Wealthfront Cash Account.
Source: Wealthfront
Wealthfront partners with third-party banks to maintain their customer’s cash deposits and provide FDIC insurance.
That simply means if Wealthfront or any of its partner banks were to fail, your money would be safe because the Federal Deposit Insurance Corporation (FDIC) covers you through their insurance. In Wealthfront’s case, up to $8 million on individual accounts and $16 million on joint accounts.
The Wealthfront Cash Account offers a wide set of features that appeal to many potential investors. For starters, the account allows you to earn a 5% annual percentage yield (APY), which is simply the total amount of compound interest you make throughout the year (rate valid at the time of this publication).
For example, if you deposit $1,000 with an APY of 5%, you’ll have $1,050 in your account after a year. That’s an annual growth of $50 based on interest alone.
To receive the APY, all you need is a $1 minimum balance – and, conveniently, Wealthfront only requires a $1 minimum deposit to get started. While you’re not going on a vacation with a 5% yield on $1, you can at least get an idea of how the APY will work for you when you start depositing large amounts.
The Wealthfront Cash Account won’t surprise you with fees – as it has none – and you make free and fast transfers to other accounts. They allow for direct deposits two days early as well as automatic transfers to retirement and college savings accounts.
Keeping with the alternative banking theme, the Wealthfront Cash Account doesn’t offer a checkbook. They will provide you with an account number and routing number you can use to make online payments, as well as a debit card. You’ll also have access to 19,000 ATMs nationwide at popular retailers like Safeway, CVS, and Walgreens.
How to Sign Up for a Wealthfront Cash Account?
Wealthfront makes it really easy to sign up for a Wealthfront Cash Account.
To register, you’ll visit the Wealthfront website and click on “Get Started” in the top right corner of your screen. From there, you’ll provide some basic information – your name, email address, and phone number. Then, you’ll create your username and password.
Next, you’ll need to link to your current bank account to provide the $1 minimum deposit to get started. The whole process will take less than 10 minutes to get your account set up.
After that, you’ll begin earning 5% APY (rate valid at the time of this publication) on your deposit. It’s that simple.
Source: Wealthfront
Is The Wealthfront Cash Account Legit?
Yes, the Wealthfront Cash Account sure is legit. Wealthfront is a hybrid account that combines features from traditional checking and saving accounts.
Because it partners with third-party banks, such as Green Dot Bank, Wealthfront offers FDIC insurance up to $8 million on individual and $16 million on joint accounts. The account allows you to earn 5% APY (rate valid at the time of this publication) with free, unlimited transfers.
Though Wealthfront doesn’t provide a traditional checkbook, customers are provided with an account and routing number for online transactions, as well as a debit card. You can also access your cash at 19,000 ATMs nationwide.
Is The Wealthfront Cash Account Safe?
The Wealthfront Cash Account is completely safe.
Wealthfront offers up to $8 million of FDIC insurance on individual accounts and $16 million on joint accounts. The company is also regulated by the Security Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
For extra peace of mind, in its privacy policy, the company says it won’t rent, sell, or trade your personal information to anyone.
Pros and Cons of The Wealthfront Cash Account
Like any cash management account, the Wealthfront Cash Account has its ups and downs. Let’s take a look.
Pros
- Earn 5% APY with as little as a $1 minimum balance (rate valid at the time of this publication)
- No monthly maintenance fees
- FDIC insurance protection up to $8 million
- Access to 19,000 ATMs nationwide with no withdrawal fees
- Easy, automated investing tools
Cons
- No checkbook options
- No physical branches
- Out-of-network ATM fees
Wealthfront Cash Account Reviews
Wealthfront receives excellent reviews in both the Apple App Store and Google Play Store.
The app is rated 4.8 out of 5 stars in the Apple App Store with more than 16,000 reviews and 4.8 out of 5 stars on Google Play with more than 6,300 reviews.
One Apple user talks about their great experience with the app in this Wealthfront Cash Account review.
Source: Apple App Store
Another Apple user said the Wealthfront app helped him fund his wedding.
Source: Apple App Store
Though Wealthfront is highly rated in the Google Play Store, this is one of several reviews that complained about the app getting stuck or struggling to recognize street addresses.
Source: Google Play Store
Wealthfront Cash Account Reddit
Reddit users are often known for their outlandish opinions. But when it comes to Wealthfront, they seem to be fairly positive.
These Reddit users were asked about their honest opinions on Wealthfront.
Source: Reddit
More Wealthfront praise from Reddit.
Source: Reddit
But you can’t go to Reddit without finding at least one negative review. That’s just the rules, you know?
Source: Reddit
Is a Wealthfront Cash Account Worth It?
Since the Wealthfront Cash Account is free to download and only requires a $1 minimum deposit to start earning APY, it’s very low risk. You can easily try it out and see if it works for you.
This makes the Wealthfront Cash Account perfect for new investors who may not have a lot to invest and want to learn about investing with little risk. On the other hand, because the account is online-based, users who prefer the traditional bank experience with checks and local branches might choose other investing options.
If you’d like to learn about wine and spirits as alternative investments, check out our Vint vs Vinovest comparison.
And if you’d like to boost your bank balance fast, check out these banks with immediate sign-up bonus.
Commonly Asked Questions About The Wealthfront Cash Account
What are Alternatives to a Wealthfront Cash Account?
Some similarly rated alternatives to the Wealthfront Cash Account include:
And if you’d like to learn about having AI help you with your portfolio, check out our Streetbeat review.
Is The Wealthfront Cash Account a Scam?
No, the Wealthfront Cash Account is not a scam. Wealthfront is a legitimate cash management account that offers FDIC insurance up to $8 million on individual and $16 million on joint accounts. The company is also regulated by the Security Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
What is The Catch With The Wealthfront Cash Account?
There’s no catch here. The Wealthfront Cash Account is one of the leading cash management accounts – you may have heard them referred to as “robo advisors” on the market. The company offers a 5% APY (rate valid at the time of this publication), no transaction fees, a $1 minimum deposit, and up to $8 million of FDIC insurance per individual account.
Is Wealthfront Cash Account Reliable?
The Wealthfront Cash Account has received excellent reviews – both professional and user-based across the internet. It’s rated 4.8 out of 5 stars in the Apple App Store with more than 16,000 reviews and 4.8 out of 5 stars on Google Play with more than 6,300 reviews.
What Kind of Account is Wealthfront Cash Account?
The Wealthfront Cash Account is a cash management account – a hybrid account that combines features from traditional checking and saving accounts – including 5% APY (rate valid at the time of this publication), no transaction fees, a $1 minimum deposit, and FDIC insurance of up to $8 million for individual accounts.
