Trading platform Webull has launched “Cash Management” that brings users a 4.1% APY return on parked cash, according to a company statement. Webull states that interest will be accrued daily and paid out each month. The higher returns, in comparison to what banks typically pay for savings/checking, may appeal to investors that seek more income on their cash.
Anthony Denier, CEO of Webull, said they have seen a massive shift in retail investors’ activity due to inflation, ongoing rate hikes, and market volatility. He explained that their next chapter includes giving users a competitive return on their uninvested money.
Webull’s Cash Management will be accessible to all users who have cash accounts on the platform, excluding IRA accounts and New York residents who have signed up for crypto trading. There is no minimum account balance required to use the product, nor will there be additional fees or a cap on how much users can earn or invest. Cash Management accounts are covered by SIPC, providing protection up to $500,000, including a $250,000 limit for cash.
Webull offers trading in both traditional assets as well as crypto. Webull is a FINRA regulated broker-dealer.