California-based Fintech firm Wealthfront revealed on February 4, 2021 that its customers will now be able to use their service to monitor for and automatically transfer excess funds to a Wealthfront Roth IRA, Traditional IRA or a 529 College Savings Account.
As noted in a release shared with CI, previously, Wealthfront had been monitoring for excess cash and would automatically transfer the balance to a Wealthfront Taxable Investment Account or a Wealthfront Cash Account. The Fintech company confirmed that it has “quickly expanded” its service to include even more account options.
As mentioned in the update:
“This added automation is another important step in Wealthfront’s ultimate vision to build an ecosystem that optimizes and automates all of their clients’ finances, a vision they call ‘Self-Driving Money.’”
Clients may use Wealthfront to keep track of or monitor an outside checking account or a Wealthfront Cash Account, and when that account exceeds the client’s “prescribed balance,” the funds are automatically deposited into the Wealthfront account of their choice.
Wealthfront confirmed that they take recurring transfers into account “when looking for excess cash and integrates them seamlessly with clients’ savings strategies.” Clients are able to set up direct deposit for their paychecks, automatically make bill payments and also send out checks on a recurring or regular basis.
Chris Hutchins, Head of Financial Automation at Wealthfront, noted that their vision for Self-Driving Money is “going to be a complete game changer for people’s finances.”
Hutchins remarked:
“We want to completely remove the burden of managing your money so you can focus on your career, your family or whatever is most important to you.”
Wealthfront’s management noted that they will remain focused on implementing various other automation features, such as the option to transfer excess funds to several different accounts simultaneously and “prioritizing accounts based on a client’s individual goals.” In order to open a Wealthfront Cash Account, you may download the Fintech firm’s app on the App Store or Google Play or by visiting the company’s official website.
As previously reported, Wealthfront describes itself as “a nextgen banking service that manages your savings for you using automation.” The Wealthtech firm aims to offer all of the financial services you would need such as “high-interest” checking that provides an ATM/debit card, “low-cost” investment portfolios managed for you, “one-click” loans and “free” advice and planning tools via an easy-to-use mobile app.
Wealthfront recently began implementing “Self-Driving Money” services in order to automate customers’ savings plans so they don’t have to be concerned about monitoring accounts and moving funds around.