Just FYI. We know that these are difficult times for everyone and it’s particularly painful to also see the APY on your Cash Account cut. Today, the annual percentage yield (APY) on the Wealthfront Cash Account is decreasing from 2.32% to 2.07%. r/FinancialPlanning: Discuss and ask questions about personal finances, budgeting, income, retirement plans, insurance, investing, and frugality. As a result, we are forced to lower the rate on the Wealthfront Cash Account whenever the Fed lowers rates. Any links provided to other server sites are offered as a matter of convenience and are not intended to imply that Wealthfront Advisers or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise. This is now the rate leader when … Wealthfront Brokerage uses more than one Program Bank to ensure FDIC coverage of up to $1 million for your cash deposits. Just last month it boosted its annual percentage yield (APY) on the account to 2.51 percent. © 2020 Wealthfront Corporation. The APY for the Wealthfront Cash Account represents the weighted average of the APY on the aggregate deposit balances of all clients at the program banks. Some of the offers on this site are from companies who are advertising clients of Personal Finance Insider (for a full list. Wealthfront will choose winners at random until it has refunded $100,000 in paid bills, and you can receive up to a $5,000 refund. Wealthfront’s digital portfolio management makes investing simple. When it comes to earning potential, Wealthfront’s Cash Account previously offered 2.57% APY, but on August 2 the robo-adviser announced the rate would drop … The APY for the Wealthfront Cash Account represents the weighted average of the APY … The Wealthfront Cash Account offers high-interest checking with no account fees. I’ve sent emails about this but the … The cut (which was the second surprise rate cut this month) occurred ahead of the FOMC’s scheduled meeting later this week and was accompanied by news of a $700 billion quantitative easing program. This does not influence whether we feature a financial product or service. Deposit balances are not allocated equally among the participating We expect the federal funds rate to go back up eventually, but we don’t know exactly when that will be. Anyone with a Wealthfront Cash Account can enter the competition, even if you're a brand new customer. FDIC insurance is not provided until the funds arrive at the Program Banks. Press J to jump to the feed. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. APY interest rate substantially higher than nationwide average Unlimited free transfers Although, currently, interest rates are low, this won’t always be the case. Drop 1 lasts from August 3 to August 17, and you … We’ll deliver innovative products that earn our clients more money on all their money and make it easy to manage their financial lives. I actually closed my account immediately, the reason being that Wealthfront raised their APY from 2.52 to 2.57% the same day that Ally lowered it. We personalize, diversify, rebalance low-fee Individual, IRA, Roth IRA & 401(k) rollover accounts. Read more about it here The Annual Percentage Yield (APY) for the Cash Account may change at any time, before or after the Cash Account is opened. Wealthfront offers a high yield Cash Account with an interest rate of 2.57% APY. So what’s the deal? As we’ve written before, a decrease in the fed funds rate means we need to decrease the interest rate we pay on the Wealthfront Cash Account, too. So now let’s connect all of this to Wealthfront and the 2.24% APY interest rate on the Wealthfront FDIC-insured Cash Account. In response, robo-advisors Betterment and Wealthfront lowered the rates on their cash management accounts in the last week in line with the Fed’s rate cut. While we cannot control the fed funds rate (or news headlines or financial markets), we are committed to being transparent in our communications and continuing to build the best products we can. Editor's Note: This post was updated on August 4, 2020, to reflect that Wealthfront is capping reimbursements at $5,000 per person. Take a look at Marcus’s rates who were 0.9% 3-4 months ago but now at 0.5%. products. Wealthfront always intended to drop interest rates significantly. 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