Wealthfront Money Assessment: On-line Money Administration Account

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The place Wealthfront Money shines:

Stellar 2.32% rate of interest.
Limitless ACH transfers and withdrawals.
No charges.
Extremely rated cellular app.

The place Wealthfront Money falls quick:

No money withdrawals or deposits.
No debit card.
No examine deposit or writing.
No branches.

The underside line

Money administration accounts, or money accounts, sometimes are a type of hybrid of a checking and financial savings account and are often supplied by non-bank monetary service suppliers, reminiscent of Wealthfront, quite than banks. It’s vital to ensure all the 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 think about. Nonetheless — since prospects can solely withdraw their cash by transferring it by way of ACH to an out of doors account — Wealthfront Money may be limiting to prospects who need instant entry to their funds.

» MORE: What Is a Money Administration Account? 

Checking and financial savings options

Upsides

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 30 days — the Wealthfront Money account permits prospects to switch cash out of their accounts as many instances 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 companion banks. Wealthfront sweeps prospects’ money balances into third-party banks that present FDIC insurance coverage on deposits. The FDIC sometimes insures as much as $250,000, and Wealthfront makes use of multiple financial institution to make sure protection of as much as $1 million.

Downsides

No instant 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 supply debit playing cards for its money administration account however says it plans to make them accessible within the “close to future.”

No writing or depositing checks. There’s additionally at the moment no means for purchasers to write down or deposit checks with their Wealthfront Money account; the corporate says it plans to assist checks sooner or later.

Rate of interest could fluctuate. Financial savings rates of interest are inclined to rise and fall together with the federal funds price, so even when an APY is excessive while you open an account, there’s an opportunity the speed might 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 prospects.

Different issues to think about

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 it’s important to watch out about retaining observe of how a lot you may have in your account so that you don’t unexpectedly come up quick throughout a switch.

» MORE: Learn NerdWallet’s evaluate of Wealthfront’s funding providers

Buyer expertise

Upsides

Strong web site. The Wealthfront web site is nicely designed, and it’s simple to search out details about totally different account choices in addition to FAQs and basic details about the corporate.

Excessive app scores. Each Apple and Android customers give the Wealthfront app excessive scores.

Downsides

No branches. Wealthfront Money is an online-only service, so for those who desire face-to-face interplay with customer support reps, it’s possible you’ll battle with having to speak remotely.

No weekend human cellphone assist. Wealthfront has prolonged weekday hours for cellphone assist — 7 a.m. to five p.m. PT Monday via Friday — however it doesn’t supply human cellphone assist on weekends.

No chat assist. In the event you desire on-line chatting to cellphone calls, you’re out of luck at Wealthfront.

No cellular examine deposit. Since writing and depositing checks isn’t at the moment accessible, there’s no option to deposit checks by way of cellular; this will likely change ought to Wealthfront add examine functionality.

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