Anyone else stockpiling cash? Wealthfront has a new cash account which is FDIC insured up to a million (usually it’s 250k). What’s the catch? https://cloud.em.wealthfront.com/cash_signup
SoFi is doing 2.25
Yea that one looks even better, since it has a debit card
Wait no, it looks like it starts at 2.25% but drops to 1.25 unless you direct deposit 3k a month or do 500 in debit card transactions. I guess they really want to be your main bank
I don't get why it's a big deal. Not a terrible product, but bankrate.com lists more than 15 banks offering FDIC insured savings accounts that pay 2.30% or more
It's a checking account
No, it's not. From their FAQ about features they don't have but might add later: "In no particular order, some of the features we’re considering include: debit card, ATM access, direct deposit, bill pay, checks, mobile check deposit." They do allow unlimited withdrawals but really how useful is that if you have to give three days to move the money to another account where you can actually spend it? Is that really a big advantage over a good old fashioned savings account?
Betterment is doing 2.23%
Betterment’s product is garbage. Stay away from it.
Avoid betterment. Their product is variable asset classes that may not deliver that apy.
I think it’s that when you put your money in it, at some point you get tempted to use their product too
The federal money market and prime money market products at Vanguard both have higher SEC 7 day yields. Federal Money Market is partially federal tax exempt. Neither are FDIC insured, if you care about that. Prime money market invests in commercial paper, which was more risky to hold during the last financial crash. If you have $1MM in taxable cash, I hope you’re thinking about munis to avoid federal tax on your income.
I've had a beta account and found it inconvenient. I just checked and see that you still can't do transfers between WealthFront accounts. If I wanted to move some savings to my Roth IRA or taxable investment account I would have to transfer to another bank then transfer it back. I was told they will fix that later.
The catch is you are only protected to $1M. What is the point if they seize almost everything in a bank run?
Very fee people have 1m$ lying around in cash. Most of it is in stock, assests etc
CIT Bank is doing 2.45.
The catch is that’s less than the rate of inflation.
Not really : https://seekingalpha.com/amp/article/4240843-u-s-inflation-hit-0-percent-june-1-percent-year-end-avoid-gold
So housing costs have gone up 1% a year eh?