Wealthfront Cash Brings in $1 Billion
Website PYMNTS.com writes "New Wealthfront Cash Accounts Bring In $1B Since Feb," we learned from StoneCastle Cash Management's Eric Lansky. The article tells us, "Wealthfront's new cash accounts have brought in $1 billion in customer deposits since the company launched the offering in February. The accounts give customers a higher-than-average, 2.24 percent interest rate. Now, because of the company's billion-dollar achievement, Wealthfront is raising the interest rates to 2.29 percent." They quote Wealthfront Founder Dan Carroll from a CNBC interview, "Once we passed $1 billion dollars in deposits, we were able to get cost savings and pass that directly down to our clients.... You really have to go above and beyond to actually earn clients' trust in the banking system." The piece continues, "The rate now surpasses Goldman Sachs' Marcus, which offers a 2.25 percent yield on its savings accounts. In addition, Ally Bank and Barclays have high-yield offerings that earn 2.2 percent. Of course, those more than beat the national average on checking accounts, which is currently at a 0.08 percent interest rate, while money market accounts return an average 0.21 percent. In addition, Wealthfront works with FDIC-insured partner banks -- including East West Bank, New York Community Bank and others -- to hold customers' deposits. Since the firm partners with multiple banks, the deposits are insured up to $1 million." Carroll adds, "As FinTech and client-friendly companies come into the banking space, there's been a rude awakening. Consumers are fed up." See also, PYMNTS.com's article, "Goldman's Digital Roadmap, As Marcus Lands $46B In Deposits", which says, Goldman CFO Stephen Scherr "illuminated some developments tied to the online banking platform, Marcus. Across the U.S. and U.K., he said, the bank has logged $46 billion in deposits -- and said that 'we estimate there are over $4 trillion consumer deposits in the U.S. that are potential customers for online savings accounts, like those offered by Marcus.'"
