Emergency Funds and products like WealthFront and Nexus

[ProfessionalOnFire]

I've recently learned about the products that WealthFront and Nexushq.com provide. I wonder what others think about investing cash reserves, emergency funds, etc through these companies. Wealthfront says that their savings accounts earn the highest rate and are FDIC insured. Are these companies safe? I get that your money is FDIC insured by the outside banks they funnel your money to but what if WealthFront goes under? Are you still able to recover your money? Are these companies safe?

 

[jazz4cash]

I don’t know anything about these companies and I tend to be pretty conservative with emergency funds. Old school money market and high yield savings account rates are pretty good right now. What do these newfangled fintech outfits have to offer that would entice me to give them funds I might need in an emergency?

 

[COcheesehead]

Money market rates are higher today than they have been in years. Why put funds into a third party? You want liquidity and access. Another layer adds, well another layer.

 

[jollystomper]

According the the websites mentioned, Wellfront is offering 4.55%, Nexushq is offering 2.5% for cash... why even consider them when money market and short term T-Bills are at higher rates?