Today, we’re happy to announce we’re raising the APY on the Wealthfront Cash Account (again!) from 0.35% to 0.85% following the Federal Reserve’s decision to raise the target range for the federal funds rate.
That means starting today, you’ll earn more than twice as much interest on your Cash Account deposits at Wealthfront—and over 14 times the interest you’d earn from the average savings account. And you’ll still get up to $1 million in FDIC insurance through our partner banks and pay absolutely no account fees.
Why is the rate going up?
The federal funds rate is the interest rate at which banks lend money to one another, and it falls within a target range set by the Federal Reserve. For the last two years, this rate has been very low. However, that’s starting to change. The Federal Reserve has indicated that it plans to raise the target range for the federal funds rate several times in 2022, in part to address significant inflation. The first such increase occurred in March, and a second increase was announced this week.
When the federal funds rate goes up, the partner banks where we broker our deposits pay us more for those deposits. As a result, we can pass more interest along to you. That’s what we’re doing today, and we look forward to increasing the Cash Account APY even more in the future as the federal funds rate continues to go up.
Build wealth effortlessly
We’re excited to pay you more interest on your Cash Account deposits so your savings can grow faster with no extra effort—whether you’re building an emergency fund, saving for a big purchase like a vacation or down payment, or just keeping money handy for your everyday expenses. The Wealthfront Cash Account has best-in-class automation features so you can organize your savings into categories, track your progress against your goals, and invest your money within minutes. It also comes with access to a debit card and 19,000 free ATMs so you can easily access your cash whenever you need it. At Wealthfront, we want to make it easy to build long-term wealth, and our Cash Account is a powerful tool for doing just that.
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.