BankRate on Wealthfront's 2.57% Rate
Website BankRate.com writes, "Wealthfront boosts cash account APY to 2.57%, a top nationwide rate." They tell us, "At a time when many brick-and-mortar banks continue to offer puny returns on deposits, the Wealthfront cash account yield keeps rising.... [Late last month] Wealthfront raised its cash account yield six basis points to 2.57 percent APY. Just last month it boosted its annual percentage yield (APY) on the account to 2.51 percent. Back in March, Wealthfront was only offering 2.24 percent APY on this account. Keep in mind, however, that the Wealthfront Brokerage account works a little differently than a traditional bank’s savings or money market account." The article explains, "`Wealthfront isn't a Federal Deposit Insurance Corp. (FDIC) bank. But it does work with participant banks. Once your funds are deposited into a Wealthfront cash account, they are swept to a participant bank, and then the funds are eligible for FDIC insurance, according to Wealthfront. East West Bank, Associated Bank, TriState Capital Bank and Citibank N.A. are Wealthfront's program banks.... It's ... important to know which participant bank your money is being swept to, especially if you're in danger of exceeding FDIC limits at a bank due to your funds with Wealthfront and an account that you might already have, or may open in the future, with one of the program banks." The piece adds, "Wealthfront is making an effort to have one of the top APYs around." They quote a statement from Wealthfront, "We have been overwhelmed by the response to the launch of our high-interest cash account and we want to make choosing our cash account a no-brainer and eliminate the need to comparison shop."
