Wealthfront Cash Account Review [2024]: It's Not a Typical Bank Account (and I Like That)

Wealthfront is an investing platform and robo-advisor primarily designed for automated index investing. On the surface, their Cash Account looks like a place to hold funds you plan to invest. But, on deeper inspection, this account is actually an all-around workhorse that could serve double-duty and replace your current checking and savings accounts, regardless of whether you have investments with Wealthfront. 

Because this isn't not your traditional checking or savings account, it has some features that need a little more explanation. 

Account basics

APY	5.00%2 <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p>
Minimum balance for APY	$1
Minimum deposit to open account	$1
Monthly maintenance fees	None
ATM access	Yes, nationwide network of 19,000 fee-free ATMs
Transactions per month	No limit
FDIC insured	Solo accounts: up to $8 million Joint accounts: up to $16 million

What we like about the Wealthfront Cash Account

If you’re considering opening up a Wealthfront Cash Account, it offers some significant benefits that set it apart and lands it on our list of the best banks:

• Very high APY: When you open an account, you’ll earn 5.00% APY. That’s much higher than the national average of 0.43% (as of 11/18/24). And because it can double as a checking account, you can keep the money you'll use to pay bills in the same account as your emergency fund and earn this high rate on all of it.
• Up to $8 million in FDIC protection: Even though Wealthfront itself isn't a bank, your money in the Cash Account is still insured by the Federal Deposit Insurance Corporation (FDIC). This is coverage offered by the federal government to help you feel secure putting your money into a bank. The coverage can protect your deposits if a bank fails or goes out of business.
  
  FDIC coverage is limited to $250,000 per account, but because Wealthfront distributes the cash you deposit with them across a network of partner banks, you can benefit from up to $250,000 in insurance at each bank that is holding a piece your deposit. In this way, you can be insured up to $8 million for an individual account and up to $16 million for a joint account. Most of us don't need to worry about having this much coverage, but if you do, this is quite handy. (And congrats!)
• Intelligent automated savings: With Wealthfront's Self-Driving Money system, you can easily create savings categories based on your personal goals, and also savings rules for your account to automatically follow. This allows you to teach your account how much you want put aside, how often, and toward which goal.

Other features don't necessarily stand out as unusual, but are still key to making this a really useful account.

• Mobile check deposit: You can make mobile check deposits with the Wealthfront mobile app. 
  
• Free ATM accesss: Use your debit card to get cash from a network of 19,000 fee-free ATMs. These ATMs tend to be located in places like grocery stores and pharmacies so there's no need to make a special trip to a bank if you need cash. But, beware Wealthfront charges a $2.50 fee for using an out-of-network ATM and the bank operating the ATM could charge an additional fee on top. So, try to stick to the free ATMs and save your cash for something more fun than fees. 
• Pay friends using Venmo, PayPal, and more: Link your Cash Account to your Venmo, PayPal, or other payment service providers to quickly pay friends and family.
• Pay bills using routing info: You can also set up automatic bill pay with your Cash Account routing number and avoid late or missed payments on credit card bills, utility bills, and more.

What they could improve

There are some drawbacks you should consider before opening an account:

• No paper checks: A Wealthfront Cash Account can’t replace a traditional checking account if you find yourself in situations where you simply need to write a paper check on the spot to pay for something. The option for a traditional check is not available with this account.
  
  However, Wealthfront recently added the ability to send checks from your account. Instead of writing your own checks, Wealthfront can write them and send them for you. It takes a few extra steps and some extra time, but can work in a pinch.
• No physical locations to visit: Wealthfront is strictly an online-only institution which means no visiting a branch to talk to someone in person. It also means you won't be able to deposit cash. 
• Transferring money between Wealthfront accounts may be limited: For some users, the ability to transfer internally between Wealthfront accounts may feel limiting. For others, it may not present an issue. Currently, Wealthfront supports transfers between Cash Accounts and Taxable Investment Accounts, and it also supports making contributions from Cash Accounts to IRAs. There are some other transfers you cannot make, though, like transferring between Cash Accounts or transfers to and from a 529 College Savings plan.

How to open a Wealthfront Cash Account

To open a Wealthfront account, you need to be at least 18 years old, have a valid U.S. Social Security number, have a permanent U.S. residential address, and currently reside in the United States. You also must have a working U.S. phone number capable of accepting text messages.

Once you enter your personal details, you'll be able to choose a bank or brokerage account to fund your new Wealthfront Cash Account. Major banks like Chase, Wells Fargo, Capital One, and Bank of America are all supported. If your bank isn’t listed, you can still use it to fund your new account by manually entering your information.

How to withdraw money from your account

You can withdraw money from your Wealthfront Cash Account in several ways. For online transfers, log in and select “Transfer Funds” at the top left of your screen. The site will prompt you to enter how much you want to withdraw and where you want to send it. Withdrawals typically take one to three business days to complete.

With the Cash Account debit card, you have access to a nationwide network of 19,000 fee-free ATMs. You can withdraw up to $1,000 each day this way. Or, you can receive up to $2,500 cash back at point-of-sale terminals if the merchant offers this option.

Other account fees

Overdraft fee	$0
Stop payment fee	N/A
ACH transfers	$0
Incoming wire	$0
Outgoing wire	$10

Customer service options

If you need help opening an account or managing it, Wealthfront only offers customer support online and over the phone; unlike most major banks, you cannot visit branches in person. 

You can submit questions through Wealthfront’s secure online form. If you want to call customer service, you can find the contact number by logging into your account.

FAQs about the Wealthfront Cash Account

Alternatives to consider

If Wealthfront doesn’t sound right for you, there are other options.

SoFi®

SoFi, for example, offers a checking and savings account with up to a 4.00% APY with direct deposit.³ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> SoFi also offers automated investing, loans, and other financial products, and a membership that provides assistance with financial planning and other perks. SoFi is a Member, FDIC. ⁴ <p><b>SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a></b></p>

Visit SoFi or learn more in our SoFi Checking and Savings review.

Betterment

Like Wealthfront, Betterment offers a high-yield Cash Reserve account with a variable APY of up to 4.25% (as of Dec. 2, 2024).⁵ <p class="">Current promotional rate; annual percentage yield (variable) is 5.00% APY as of April 2, 2024, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities. </p> ⁶ <p>Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.</p> <p>If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among one or more Program Banks. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity (e.g. individual or joint). In aggregate, funds deposited into Cash Reserve are eligible for up to $2,000,000 (or $4,000,000 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to eight Program Banks). Even if there are more than eight Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $2,000,000 (or $4,000,000 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each Program Bank in such a way that provides up to $250,000 of FDIC insurance for individual accounts, $500,000 of FDIC insurance for joint accounts, and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. In the event you maintain an individual or joint Cash Reserve account and are a beneficiary of a Cash Reserve trust account, Betterment does not provide FDIC insurance based on your status as a beneficiary. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full <a href="https://www.betterment.com/legal/cash-reserve">terms and conditions</a> and <a href="https://betterment-prod-cdn.s3.amazonaws.com/agreements/Betterment_LLC_ADV_2023_09_28.docx.pdf">Betterment LLC's Form ADV Part 2</a>.</p> It also has automated investing and crypto investing.

Learn more in our Betterment review.

Bottom line

By transferring your money into a Wealthfront Cash Account, you can earn more than you would with a traditional savings account while still having the ability to access and spend your money like with a checking account. If you're ready to embrace an online-only bank and ditch the paper checks, we see few downsides to this account. It checks all the boxes for earning potential, convenience, and security.