Wealthfront Cash Account Offers Up to $8M in FDIC Insurance via Partner Banks

Wealthfront‘s Cash Account offers up to $8 million in FDIC insurance for individuals and up to $16 million for joint accounts.

Thanks to the company’s software-based approach and partnerships with FDIC-insured banks, the Wealthfront Cash Account reportedly “offers some of the highest FDIC insurance available in addition to a high APY.” The Cash Account has “created immense value for clients this year, paying out nearly $600 million in aggregate interest since January 1, 2023.”

Dave Myszewski, Vice President of Product at Wealthfront, said:

“This year rattled consumer confidence in many financial institutions and put a premium on having as much FDIC insurance as possible to keep funds safe. Our combination of smart technology and partnerships with FDIC-insured banks means we can offer some of the highest FDIC protection available. In addition to providing an industry-leading APY and FDIC coverage, we will soon be rolling out more features that make our Cash Account an even better place for your uninvested cash.”

FDIC insurance became increasingly important “for consumers this year and is top of mind when deciding which institution to trust with their funds.”

Today’s increase allows Wealthfront Cash Account clients “to benefit from 32x the FDIC insurance offered by individual banks without the hassle of spreading funds across multiple banks manually.”

A given bank can only provide “up to $250,000 of FDIC insurance per individual.”

Wealthfront is “not a bank, but by sweeping deposits to up to 32 partner banks and keeping the amount held in each bank below the $250,000 limit, the Wealthfront Cash Account enables access to up to $8 million in FDIC insurance coverage.”

Consumers also choose the Wealthfront Cash Account because it “offers a 4.80% APY with no account fees or minimums, plus easy access to funds with unlimited, fee-free withdrawals, $10 wire transfers, and access to a debit card and nationwide network of ATMs.”

When clients are ready to invest, the Cash Account “provides immediate transfers to the company’s Automated Bond Portfolio and Automated Investing Account so money can often be in the market in minutes.”

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