Note: As of May 6, 2022, the Wealthfront Cash Account has a 0.85% APY. Read more about it here .
We’re excited to announce that the APY for the Wealthfront Cash Account is increasing from 0.10% to 0.35% following the Federal Reserve’s decision to raise the target range for the federal funds rate.
This means you’ll now get 3.5 times the interest on your deposits at Wealthfront compared to what you were earning at our previous APY and more than 10 times the interest you’d earn from the average checking account.
Why is the rate going up?
The fed funds rate is the interest rate at which banks lend money to one another. The Federal Open Market Committee has kept this rate extremely low over the last two years because of concerns about the COVID-19 pandemic’s impact on economic activity. Recently, however, the FOMC has signaled that it plans to raise the target range for the fed funds rate several times in 2022, in part because of worsening inflation. On March 16, the FOMC announced the first of those increases.
The partner banks where we broker our deposits pay us a rate based on the fed funds rate. When the fed funds rate increases, our partner banks pay us more for our deposits and we can pass that interest along to you. That’s exactly what we’re doing now.
Building wealth should be effortless
At Wealthfront, we want to help you build long-term wealth on your own terms, so we’ve created powerful, flexible accounts to get you there. You can now earn more interest while still enjoying everything else you love about the Wealthfront Cash Account: checking features like direct deposit, access to a debit card and free ATMs, and our best-in-class automation—all with zero account fees. And when you want to make your long-term savings work even harder, you can transfer excess cash to a Wealthfront Investment Account within minutes.
We’ve partnered with Green Dot Bank, Member FDIC, to bring you checking features.
Checking features for the Cash Account are subject to identity verification by Green Dot Bank. Debit Card is optional and must be requested. Wealthfront Cash Account Visa(Registered TM) Debit Card is issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association. Green Dot Bank operates under the following registered trade names: GO2bank, GoBank, Green Dot Bank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage. Wealthfront products and services are not provided by Green Dot Bank. Green Dot is a registered trademark of Green Dot Corporation. Copyright 2022 Green Dot Corporation. All rights reserved.
Other fees apply to the checking features. Fee-free ATM access applies to in-network ATMs only. For out-of-network ATMs and bank tellers a $2.50 fee will apply, plus any additional fee that the owner or bank may charge. Other eligibility requirements for mobile check deposit and to send a check may apply. Please see the Deposit Account Agreement for details.
Cash Account is offered by Wealthfront Brokerage LLC (“Wealthfront Brokerage”), a Member of FINRA/SIPC. Neither Wealthfront Brokerage nor any of its affiliates are a bank, and Cash Account is not a checking or savings account. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investment management and advisory services–which are not FDIC insured–are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and financial planning tools are provided by Wealthfront Software LLC (“Wealthfront”).
The Annual Percentage Yield (APY) for the Cash Account may change at any time, before or after the Cash Account is opened. 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. Deposit balances are not allocated equally among the participating program banks.
The information contained in this communication is provided for general informational purposes only, and should not be construed as investment or tax advice. Nothing in this communication should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. 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.
Wealthfront, Wealthfront Advisers and Wealthfront Brokerage are wholly owned subsidiaries of Wealthfront Corporation.
Copyright 2022 Wealthfront Corporation. All rights reserved.