Wealthfront’s Cash Account is yet another high-yield savings product. Competition in this field is leading to higher interest rates and lower fees, so now’s the time to jump on board.
The account is FDIC insured up to $1 million, fee-free, and requires a minimum opening deposit of $1, making it accessible to all savers.
Currently, Business Insider readers who sign up for a Wealthfront investment account will receive their first $5,000 managed for free in that account in perpetuity.
High-yield savings accounts with no fees are the way to go for your short-term savings and emergency fund. Mine has already earned me $70 in interest in just three months.
It took me longer in adulthood than I’d like to admit to finally build a habit of saving money, but once I did, it stuck. While I’d love to tell you that I tracked every last penny I spent, the truth of how I boosted my savings is much simpler: automatic deposits, and high interest rates.
I opened a savings account with an online bank that offers high interest rates and no fees, and I set up automatic deposits into that account from my paycheck. This means the money I intend to save never even makes it to my checking account, making it impossible for me to spend it impulsively.
My savings account also had a 2.20% interest rate when I signed up, far higher than the 0.01% rate my old bank offered. At my old bank, my monthly deposits from interest were pennies. With my new high-yield savings account, I get upward of $30 every month. Sure, I’m not going to retire early on those returns, but getting a bonus each month for growing my savings encourages me to keep going.
Thanks to the popularity of online banks like Marcus and Ally and high-yield savings accounts, new options are cropping up everywhere, and competition is driving rates up and pushing fees down. Wealthfront, one of the most popular robo-advisers — online applications that automate investing to make it easy and more accessible — is the latest company to jump on the high-yield-savings bandwagon.
While it’s not called it a high-yield savings account, Wealthfront’s new Cash Account is pretty much identical to its competitors in that arena — and it might be leading the pack in helping you make the most of your money.
How does Wealthfront’s Cash Account work?
The name Cash Account might be confusing to some, but this is essentially a high-yield savings account. That means you can transfer money into and out of the account for free whenever you want, and you’ll get some of the highest rates available for savings accounts, which can make a difference when you’re trying to build up your savings.
You won’t have to pay any fees with this account either, regardless of your balance, and you need to deposit only $1 to get started.
I’m a big advocate of high-yield savings accounts. Three months ago, I switched from …read more
Source:: Business Insider