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The place Wealthfront Money shines:
Stellar 2.32% rate of interest.
Limitless ACH transfers and withdrawals.
Extremely rated cell app.
The place Wealthfront Money falls quick:
No money withdrawals or deposits.
No debit card.
No test deposit or writing.
The underside line
Money administration accounts, or money accounts, usually are a form of hybrid of a checking and financial savings account and are normally supplied by non-bank monetary service suppliers, equivalent to Wealthfront, reasonably than banks. It’s vital to ensure the entire options and limitations of those accounts work in your wants. The excessive rate of interest and lack of charges on the money account supplied by Wealthfront, a high robo-advisor, make it a worthy account to contemplate. Nevertheless — since clients can solely withdraw their cash by transferring it through ACH to an outdoor account — Wealthfront Money might be limiting to clients who need rapid entry to their funds.
» MORE: What Is a Money Administration Account?
Checking and financial savings options
Excessive rate of interest. At 2.32%, Wealthfront has one of many highest rates of interest out there. Consider, nevertheless, that charges on deposit accounts can fluctuate in accordance with the federal funds price.
Free limitless transfers. Not like conventional financial savings accounts — that are federally regulated to permit solely six free withdrawals/transfers per thirty days — the Wealthfront Money account permits clients to switch cash out of their accounts as many occasions as they like.
No charges. Wealthfront doesn’t cost any upkeep, withdrawal or different charges on this account.
FDIC protection as much as $1 million via affiliated associate banks. Wealthfront sweeps clients’ money balances into third-party banks that present FDIC insurance coverage on deposits. The FDIC usually insures as much as $250,000, and Wealthfront makes use of a couple of financial institution to make sure protection of as much as $1 million.
No rapid money withdrawal. It takes 1 – three days in your Wealthfront funds to reach at your financial institution when you provoke an ACH switch.
No debit playing cards. Wealthfront at the moment doesn’t provide debit playing cards for its money administration account however says it plans to make them out there within the “close to future.”
No writing or depositing checks. There’s additionally at the moment no approach for purchasers to jot down or deposit checks with their Wealthfront Money account; the corporate says it plans to help checks sooner or later.
Rate of interest could fluctuate. Financial savings rates of interest are likely to rise and fall together with the federal funds price, so even when an APY is excessive whenever you open an account, there’s an opportunity the speed may drop with out a lot warning. This contains on the third-party banks that maintain Wealthfront’s money account funds, and price fluctuations are handed on to clients.
Different issues to contemplate
No overdraft program. Wealthfront rejects any transaction that may’t be lined by the funds in your account. Whereas meaning no overdraft charges, it additionally means you must watch out about holding monitor of how a lot you’ve got in your account so that you don’t unexpectedly come up quick throughout a switch.
» MORE: Learn NerdWallet’s assessment of Wealthfront’s funding companies
Strong web site. The Wealthfront web site is nicely designed, and it’s straightforward to seek out details about completely different account choices in addition to FAQs and basic details about the corporate.
Excessive app rankings. Each Apple and Android customers give the Wealthfront app excessive rankings.
No branches. Wealthfront Money is an online-only service, so in case you favor face-to-face interplay with customer support reps, you could wrestle with having to speak remotely.
No weekend human telephone help. Wealthfront has prolonged weekday hours for telephone help — 7 a.m. to five p.m. PT Monday via Friday — however it doesn’t provide human telephone help on weekends.
No chat help. If you happen to favor on-line chatting to telephone calls, you’re out of luck at Wealthfront.
No cell test deposit. Since writing and depositing checks isn’t at the moment out there, there’s no solution to deposit checks through cell; this may occasionally change ought to Wealthfront add test functionality.