Affiliate links for the products on this page are from partners who compensate us, and terms apply to the offers listed (see our advertising disclosure with our partner list for more details). However, our opinions are our own. Check out how we rate banking products to write unbiased product reviews.
- I don’t have an emergency fund. If I need emergency money, my plan is to sell my investments.
- However, I decided to open a high-interest checking account for short-term growth.
- I can easily access my money when I need it, but the amount I don’t spend still grows.
A few years ago, my husband and I dipped into our emergency fund to invest our extra savings. I saw no need to keep five-figure amounts in an account earning less than 2.00% annual interest, which was the case at the time.
I believed that we should invest our extra money better to earn higher returns, and if we needed the money for an emergency, we could sell investments from our brokerage accounts and pay taxes on any gains.
Fast forward a few years and things have changed. The paltry savings account interest rates of a few years ago have now been replaced by interest rates of 5.00% per annum or even more in some cases. There are also high-interest checking accounts that didn’t exist a few years ago, which I certainly found fascinating.
This is ultimately why I opened a Wealthfront Cash account. While a few years ago I didn’t prioritize earning interest on excess funds we held in checking or savings accounts, today’s higher interest rates have made me change my mind.
Why I opened a Wealthfront Cash Account
My husband and I have been Chase customers for over a decade, and I’ve been happy with our experience so far.
But there is one area where Chase accounts are dramatically lacking – the interest rates offered (or lack thereof). Interest rates on Chase savings accounts can vary slightly depending on your zip code, but are typically around 0.01% per annum
That’s not a lot, so I started looking for an account that would offer more interest on slush funds that we won’t be using right away. I also wanted an account that would allow for easy and seamless money transfers, and I didn’t want to pay account fees.
This led me to the Wealthfront Cash Account, which is essentially a high-yield checking account with no account fees. The Wealthfront Cash Account offers a competitive 5.00% APR on all account balances, which is about what I could earn with any of the best high-yield savings accounts.
What I like about the Wealthfront Cash account
There are several reasons why I chose the Wealthfront Cash account over competing accounts like the Betterment Cash Reserve account or the SoFi Checking and Savings account. It has several features that I like.
Generous prizes without rules
While some high-yield savings accounts offer their best interest rates only on certain account balances or for a limited period of time, the Wealthfront Cash Account offers the same generous interest rate (5.00% APR) on all account balances, at all times and with no restrictions.
This is in contrast to accounts that offer more generous returns but have too many rules, or those that require certain activities to achieve the best possible return.
This account works for me because I can use up my balance and refill it the next month and still earn the same interest rate the whole time. We used some of our short-term savings to buy a car last month, which means my Wealthfront balance is lower than it normally would be. However, I’ve been earning 5.00% APY the whole time with no issues.
Unlimited transfers and free same-day withdrawals
I also wanted to be able to make unlimited transfers and same-day withdrawals, and the Wealthfront Cash account makes that easy. I can transfer money to and from my Chase bank account anytime, and the money was still transferred the same day, or the next morning at the latest.
Some people worry that online banks make it difficult to access their money. However, this is not the case with the Wealthfront Cash Account.
No hidden fees
Another great benefit of the Wealthfront Cash account is the fact that there are no recurring account fees. Not only are there no monthly account maintenance fees, but there are also no minimum (or maximum) balance requirements and unlimited free transfers to and from the account.
Even electronic transfers with the Wealthfront cash account are free, although I have not used this account feature yet.
Useful bill payment features
In addition to these benefits, the Wealthfront Cash account offers typical bill pay features. This means you can use the account to schedule bills and payments, either through an online account management page or through the Wealthfront mobile app.
Ultimately, the competitive APY on all account balances, lack of fees, and inclusion of features I can take advantage of are the reasons I chose the Wealthfront Cash account over other options. It’s definitely nothing special and won’t help me get rich. However, this account does help me earn interest on any excess funds I have throughout the month.
