Wealthfront cash account

[mistermike40]

Wealthfront is FDIC insured. I use it to keep $25K-$50K (from periodic 401k withdrawals) as a cash repository that pretty much keeps up with inflation.

I used to use Marcus by Goldman Sachs (also FDIC insured) but Wealthfront has a substantial 2.57% to 2.15% APY advantage.

[Rianne]

Quote:

Originally Posted by njhowie Plenty of online banks beating CD rates - all FDIC insured. https://www.depositaccounts.com/savings/

OK, then why is Wealthfront special? And do the rates change over time or are they guaranteed?


Didn't see mistermike40 before I posted.

[njhowie]

Quote:

Originally Posted by Rianne OK, then why is Wealthfront special? And do the rates change over time or are they guaranteed? Didn't see mistermike40 before I posted.

Who said that Wealthfront was special, aside from the 2.57% rate?

It's a savings account - just like all savings accounts the rates can change at any time. That is the difference between a CD and a savings account.

And if 2.57% concerns you, then definitely don't look at https://fitnessbank.fit which I mentioned in the earlier reply.

Or DCU https://www.dcu.org/personal-banking...-reg-shar.html - put $1000 there for 6.17% instead of a one year CD.

[Rianne]

Quote:

Originally Posted by njhowie Or DCU https://www.dcu.org/personal-banking...-reg-shar.html - put $1000 there for 6.17% instead of a one year CD.

"2 - A dividend rate of 6.00% will be paid on your daily balance up to $1,000.00. The Annual Percentage Yield (APY) for this tier will be 6.17%. A dividend rate of .25% will be paid on any daily balance over $1,000.00. The APY will then range from 6.17% to .25% depending on the total account balance. Requires a $5.00 minimum balance to open the account and earn the APY."


This is in fine print and I'm not sure if it means, if you go over $1000, it changes to .25% And why are you yelling at me?

[njhowie]

Quote:

Originally Posted by Rianne "2 - A dividend rate of 6.00% will be paid on your daily balance up to $1,000.00. The Annual Percentage Yield (APY) for this tier will be 6.17%. A dividend rate of .25% will be paid on any daily balance over $1,000.00. The APY will then range from 6.17% to .25% depending on the total account balance. Requires a $5.00 minimum balance to open the account and earn the APY." This is in fine print and I'm not sure if it means, if you go over $1000, it changes to .25%

Yes, it's the first $1000 - as my post said to put $1000 there.

Quote:

And why are you yelling at me?

Maybe you have the volume on your speakers or your headphones turned up too loudly?

[Rianne]

Quote:

Originally Posted by njhowie Maybe you have the volume on your speakers or your headphones turned up too loudly?

Ok, felt like you were yelling.

[MRG]

Quote:

Originally Posted by njhowie Maybe you have more insight to the process and how quickly the funds move from Wealthfront to the partner bank? This is the point which brewer is concerned about (the fine print from your linked page):

Not Wealthfront but years ago I was familiar with another provider who was doing a similar thing. The answer was "as long as legally possible".

At that time I did performance and capacity for a bunch of systems in financial services. I was I instructed to make an application, that was responsible for calculating the needed deposits to providers, run behind everything else on a particular system. It ate the machine so badly nothing else could be done. Easy job; next morning I had a call from an irate VP in that area claiming I cost their organization 150k in float because their processes couldn't get enough CPU. I transferred him to my VP who had instructed me to castrate this application. They had a new machine installed faster than anything I'd ever seen.

[DINKFIRE]

Wealthfront just dropped the rate to 2.32% today to account for the Fed rate cut this week. Citi is still offering the 2.36% but probably will change soon.