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Market USA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Market USA Federal Credit Union checking account options

VIP Checking

This checking account earns you a generous APY at two different tier levels
APYMinimum Balance to Earn APY
3.01% (Platinum tier)$0.01
2.01% (Gold tier)$0.01
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account offers the opportunity to earn generous interest rates at two tier levels. In order to earn the rates above, account holders must enroll in e-statements, set up a monthly direct deposit of at least $250, and make 12 Visa debit card purchases per month at a minimum of $5 each.

In order to earn the Platinum Tier-level APY, account holders must additionally make three bill payments of at least $20 each per month through Market USA Federal Credit Union’s bill pay service.

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Regular Checking

This basic checking account offers a mediocre rate with a high balance requirement to earn it.
APYMinimum Balance to Earn APY
0.05%
$1,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

As far as the rate is concerned, this account is far less impressive than the VIP Checking account. With a relatively high balance requirement to even earn this abysmal rate, this account might as well not even offer any interest. The only positives are the absence of deposit and balance requirements — this account also comes with a free Visa debit card, mobile check deposit and no per-check charges.

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Direct Deposit Checking

A non-interest-earning checking account meant for depositing all or part of your pay.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

Balances in this account don’t earn interest. You’ll get a free initial order of checks, but that’s about it.

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Fresh Start Checking

Designed to help those with past checking difficulties rebuild a positive checking history.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This checking account is designed to give those with a bad banking history a second chance to rebuild their checking reputation. Once this account has been open for six months, it will be upgraded to a Direct Deposit Checking account, with eligibility for mobile check deposit and Privilege Pay to cover overdrafts. One thing that sets this account apart from similar second-chance accounts at other banks is that it has no balance requirements or monthly fees. This account does, however, require that you set up a direct deposit to open it. If you don’t have access to direct deposit, you can contact the bank to see if you qualify for a Provisional Checking account.

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Minor Checking

This account offers kids and teens an opportunity to build good financial habits.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This free checking account is a great option for parents or guardians who want to teach financial responsibility to their kids and teenagers. Account holders under 18 must open the account with their parent or guardian as a joint owner. This account has no minimum balance requirements or monthly fees, and account holders also get a Visa Check Card in their name, though their parent or guardian must agree to be responsible for the card’s use. Account holders are also eligible for Privilege Pay, a courtesy pay service for overdrafts.

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How Market USA Federal Credit Union’s checking accounts compare

When you take a look at rates (if the account even offers them), the only true standout at Market Federal Credit Union is its VIP Checking account, which offers an APY that’s even more generous than those on our list of the best online checking accounts. The catch, however, is that you have to qualify for its two tier programs to be able to earn it.

If you can’t meet the requirements outlined above, we say consider one of the accounts on our list instead. The only other Market USA product that offers the chance to earn interest, the Regular Checking account, offers a sub-par rate with a high balance requirement to even earn it. The Fresh Start Checking account is a nice touch: it allows people the chance to rebuild a bad checking history with minimal requirements, even if it doesn’t offer the chance to earn interest.

Market USA Federal Credit Union savings account options

Membership Savings Account

This account is a requirement for anyone wishing to join the credit union.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This is a typical savings account that’s usually a requirement to join a credit union, with a small joining fee of $5. Other than that requirement, this account offers holders the chance to earn interest at four different tier levels, though the rates aren’t very high. As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limit certain transfers and withdrawals to six per month.

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Sub-Savings account

This account can be opened within the Membership Savings Account in order to save for a special occasion or purchase.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account, opened within your main savings account, allows you to earn the same rates while saving for a specific goal like a vacation, college fund or a down payment for a new car. This account has no balance requirements, so simply transfer funds as often as you like, in whatever amount. However, since it’s still a savings account, the Sub-Savings account is also subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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Holiday Club account

This account allows you to set aside funds specifically for the holidays.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account allows you to easily save for the holidays by setting aside funds to be automatically transferred into the Market USA Federal Credit Union account of your choice each fall, unless you choose to simply withdraw them. Like all savings accounts, this account is subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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Vacation Club account

Similar to the Holiday and Sub-Savings accounts, this account allows you to sock away cash specifically for a vacation.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account is similar to the Holiday Club account, in that it offers the same rate and requirements, save for the one about dipping into the account’s savings in the fall. With this account, you can save for a vacation by setting up a direct deposit to transfer a set amount to the account each pay period. This account also has no monthly fee or minimum balance requirement. Since it’s a savings account, it’s subject to Federal Reserve Regulation D requirements, which limit account holders to six withdrawals and transfers per month.

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How Market USA Federal Credit Union’s savings accounts compare

While the Membership Savings account allows account holders to earn interest at four different tiers, even the highest rate doesn’t compare to the accounts on our roundup of the best online savings accounts.

Still, this account is a requirement for joining the credit union, and while it can’t hurt to have it if you’re interested in one of Market USA Federal Credit Union’s other products, we wouldn’t recommend seeking the credit union out for this account alone.

Market USA Federal Credit Union CD rates

Certificates

A variety of CD term lengths, mostly with “just okay” rates.
TermAPYMinimum Opening Deposit
3 months1.31%
$500
6 months1.81%
$500
12 months2.15%
$500
12 month Accumulator1.31%
$100
18 months2.76%
$500
20 months3.00%
$500
24 months2.25%
$500
36 months2.31%
$500
48 months2.36%
$500
60 months2.61%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

Market USA Federal Credit Union offers a wide range of certificate terms. A nice bonus on these certificates, however, is that the rates include a 0.35% premium added to the standard rates if account holders have set up a monthly direct deposit and e-statements.

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How Market USA Federal Credit Union’s CD rates compare

Even with the additional premium added to these CD rates, none of them really compare to those on our list of the best CD rates, save for the 20-month promotional special. Even though the deposit requirements are on the lower end, we would still recommend considering one of the CDs on our list instead.

Market USA Federal Credit Union money market account option

Money Market account

A run-of-the-mill money market account with less-than-stellar rates.
APYMinimum Balance to Earn APY
0.10%
$0.01
0.35%
$2,000
0.45%
$10,000
0.80%
$50,000
  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: $2.50 if minimum balance of $2,000 is not maintained<
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This run-of-the-mill money market rate, similar to that of the credit union’s main savings account, allows account holders to earn interest at four different tier levels, though none of the rates are particularly impressive. Its low monthly maintenance fee is easy to avoid if you maintain a minimum balance of the $2,000 required to open it. Like all savings accounts, this money market account is subject to Federal Reserve Regulation D restrictions, which limit certain transfers and withdrawals to six per month, including three made by check.

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How Market USA Federal Credit Union’s money market account compares

Even the highest tier’s rate on this account doesn’t compare to any on our list of the best money market account rates. Some of the accounts on our list offer rates more than twice as high, with minimum balance requirements that are much lower than what Market USA Federal Credit Union requires. We strongly urge you to consider one of those instead.

Market USA Federal Credit Union IRA options

IRA CD rates

IRA Certificates

The same products as the regular certificates, but opened within an IRA.
TermAPYMinimum Opening Deposit
3 months1.31%
$500
6 months1.81%
$500
12 months2.15%
$500
12 month Accumulator1.31%
$100
18 months2.76%
$500
20 months3.00%
$500
24 months2.25%
$500
36 months2.31%
$500
48 months2.36%
$500
60 months2.61%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

These CDs are virtually the same products as the regular certificates, and come with an additional 0.35% premium added to the rates if you enroll in direct deposit or e-statements.

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How Market USA Federal Credit Union’s IRA CD rates compare

Just like the regular certificates, these IRA certificates just don’t stack up to the ones on our list of the best IRA CDs available. If you’re saving for retirement, take the time to do your research to make sure you’re really getting the most out of the money you’re socking away. Consider one of the CDs on our list instead.

IRA savings account

APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is a standard IRA savings account, with a less-than-impressive interest rate. Like all savings accounts, this one’s subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month.

How to get Market USA Federal Credit Union’s deposit accounts

To open any of Market USA Federal Credit Union’s accounts, customers must first open a Membership Savings account with a minimum deposit of $5, and $5 charity donation. Then, they can open any of its checking, savings, money market or certificate accounts online, over the phone, or in person at a branch.

The credit union’s IRAs can be opened online with the IRA Service Center, or over the phone or at a branch. You’ll need to provide information such as your address, phone, driver’s license and Social Security number.

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Overall review of Market USA Federal Credit Union’s banking products

We’ll be honest with you: the only real standout product at Market USA Federal Credit Union is its VIP Checking account, and that’s only if you qualify for the rewards tiers to earn its generous rates. Otherwise, none of its personal banking products have rates that stack up to or beat out the competition, even if they do have minimal monthly fees and balance requirements going for them.

These accounts aren’t the worst out there, but they’re not the best, either. Take the time to do your research to be able to reap the most benefits from the funds you’re putting away.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Emilia Benton
Emilia Benton |

Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Reviews

Review of Edward Jones CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

What are brokered CDs?

Edward Jones offers brokered CDs, which are a bit different from the standard bank-issued CDs that most investors are familiar with. Bank-issued CDs, as the name implies, are issued by individual banks for their customers. Since Edward Jones is a broker and not a bank, it cannot issue its own CDs. Instead, the firm offers a range of CDs issued by other banks and thrifts but sold via Edward Jones.

For the casual investor, it can be hard at first glance to tell the difference between bank-issued and brokered CDs. However, there are some important distinctions:

  • No early withdrawal penalties: Brokered CDs don’t have early withdrawal penalties. If you need to get out of your CD, you can usually sell it back to another investor through a brokerage firm. This means that brokered CDs carry some additional risk, as the price of these CDs may fluctuate on the open market.
  • Higher APYs: You can often get higher yields on a brokered CD than with a bank-issued CD. Brokers are able to negotiate higher CD rates since they can guarantee a large pool of buyers to CD issuers. In the era of online banking, however, even brokered CDs do not always garner the absolute highest rates.
  • Longer-term options: Brokered CDs often have longer-term options than are available with traditional bank-issued CDs, which are generally short-term investments only.

CD rates from Edward Jones

Edward Jones offers a fairly comprehensive range of CD maturities, ranging from three months to 10 years, although the firm doesn’t offer 6-year CDs, 8-year CDs or 9-year CDs. Rates and availability change frequently, oftentimes daily. The longer-duration CDs offered by the firm aren’t traditionally available at banks.
Edward Jones CD Rates
TermMinimum deposit to earn APYAPY
3 months$1,0001.95%
6 months$1,0002.00%
9 months$1,0002.00%
1 year$1,0001.95%
18 months$1,0001.90%
2 years$1,0002.05%
3 years$1,0002.15%
5 years$1,0002.20%
7 years$1,0002.45%
10 years$1,0002.60%

For all maturities, Edward Jones requires a $1,000 opening deposit, which is the same minimum required to earn the stated APY. As these are brokered CDs, there is no early withdrawal penalty. However, investors are subject to current market prices if they need to get out of a CD prematurely. If interest rates have risen since the date of purchase, you’re likely to get less money back than you originally invested in the CD.

One important difference between Edward Jones CDs and standard bank-issued CDs is that interest does not compound with Edward Jones CDs. All interest is paid directly into a money market or insured bank deposit at Edward Jones, unless you request it to be distributed. Either way, you can’t reinvest your distributions into your existing CD.

Unlike some banks, Edward Jones doesn’t offer any type of hybrid or alternative CD, such as a step-up CD or an adjustable-rate CD. There are also no bonus APR CDs available at the current time, just standard rates. Edward Jones also does not offer special rates for jumbo CDs, which traditionally require a $100,000 deposit. However, you can use the firm’s wide range of CD maturities for certain CD strategies, such as building a CD ladder. You can also buy their brokered CDs in an IRA.

Unlike bank-issued CDs, the brokered CDs offered by Edwards Jones do not automatically roll over into new CDs. At maturity, the banks that issued the CDs pay the proceeds to Edward Jones, which then forwards the money to your account. At that point, you can either select a new brokered CD to purchase, or keep the funds in your Edward Jones money market or insured bank deposit account.

How to get CDs from Edward Jones

You’ll need to open a brokerage account at Edward Jones to buy any CDs. The account minimum to open is $0, but as Edward Jones is a full-service brokerage, you’ll need to go into a branch and visit a financial advisor to open an account. There is no facility to open an account online.

You can open your Edward Jones account as rapidly as you can fill out the paperwork and fund the account. As soon as your deposit clears, you are free to buy a CD through your Edward Jones broker. If you change your mind, you can generally withdraw your funds within 4-6 business days after deposit, although this hold period may extend to 11 business days for new clients. Once you buy a CD, you can sell it at any time on the open market. As noted above, the amount you receive may be less than the amount you originally paid.

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How do CD rates from Edward Jones compare?

Edward Jones CD rates are well above the national average, but they still fall considerably short when compared with the best available rates nationwide.

Unlike with many firms, Edward Jones doesn’t currently have any special-rate CDs, where certain maturities pay dramatically higher rates. Instead, rates at Edward Jones land along a traditional curve, gradually increasing in yield as maturities lengthen.

For example, as of July 3, 2019, the Edward Jones 2-year CD rate of 2.05% is far below the best available 2-year CD rates. Three-year CD rates top out nationally at 3.00%, but Edward Jones pays 2.15%. The pattern continues throughout the maturity curve, with the top 5-year CD rates nationally hitting 3.00% or more, while the 5-year at Edward Jones pays 2.20%.

As such, all rates at Edward Jones fall in the general area of being well-above national averages but still notably short of the best available rates.

Overall review of CDs from Edward Jones

You won’t be wasting your time investing in CDs from Edward Jones, as you’ll be earning rates far above the national averages. You’ll also benefit from the ability to construct a CD or overall investment strategy with the assistance of a full-service advisor. However, if you’re looking for the absolute best CD rates for your money, there are plenty of online banks that can pay you a higher rate.

CD investors who like a wide range of products may be disappointed at Edward Jones, as popular options such as step-up or no-penalty CDs are not currently available. However, Edward Jones CDs do benefit from offering brokered CDs. This provides a range of flexibility that standard bank-issued CDs cannot offer, as you can liquidate your CD position at any time without paying an early withdrawal penalty.

The bottom line is that yield-hungry investors that enjoy managing their own portfolios may be better suited at any number of online competitors. Those looking to incorporate decent-yielding CDs into their overall investment portfolio with the help of a full-service broker might prefer working with Edward Jones.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

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Reviews

Wealthfront Cash Account Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Fintech startups are challenging incumbents in every corner of the financial services industry. Robo-advisor Wealthfront is part of this trend, one of many new investing apps that also offer cash management accounts with high APYs and a mix of features offered by traditional bank accounts.

Cash management accounts combine features like easy access to your money and a decent interest rate, typically found separately in checking accounts and savings accounts, respectively.  Wealthfront admits that its Cash Account won’t replace your checking account, instead touting it as a place to stash your emergency savings or achieve other savings goals and enjoy a high 2.57% APY, all with the FDIC protections of a traditional bank account.

Wealthfront Cash Account Pros

Wealthfront Cash Account Cons

  • Offers a high APY compared to other online savings accounts
  • Charges zero fees, $1 minimum balance requirement
  • Deposits are covered by FDIC insurance up to $1 million
  • Ability transfer funds from Cash Account into Wealthfront's taxable investment account.
  • Takes 1-3 business days to access your funds
  • You cannot make payments from the account

Let’s take a closer look at how Wealthfront’s Cash Account compares to both traditional bank savings accounts, and similar cash management offerings from other fintech startups, so you can determine whether it’s right for your savings.

Wealthfront Cash Account vs. online savings accounts

Wealthfront markets its Cash Account as a place to deposit savings you plan on spending in the next five years, or as a good place for an emergency fund. For longer-term returns on your money, Wealthfront advocates investing in the stock market using its core robo-advisor functionality. As an additional incentive to do so, Wealthfront allows you to transfer money from your Cash Account into one of the company’s taxable investment accounts. However, there is nothing in Wealthfront‘s terms of service that would discourage you from treating this account like any other online savings account.

Here’s how Wealthfront’s Cash Account stacks up against the highest-earning online savings accounts from our best online savings accounts review:

Financial InstitutionAPYMinimum balance
Wealthfront

2.57%

$1 minimum, no monthly fee
Vio Bank

2.52%

$100 minimum, no monthly fee
Customers Bank

2.50%

$25,000 minimum, no monthly fee
Barclays

2.10%

None
Marcus by Goldman Sachs

2.15%

$1 minimum, no monthly fee
Ally

2.10%

None

Judged by APY alone, Wealthfront‘s Cash Account emerges as one of the strongest contenders out there, surpassed only by Vio Bank’s online savings account. Like many online savings accounts, there’s a limit to the liquidity of the money placed in Wealthfront‘s Cash Account.

However, there is no option to withdraw funds or make payments from the account via check or ATM card. Your only way to get money into and out of the account is via ACH transfers to and from a separate checking account that’s held in your name. Transfers take one to three business days, and Wealthfront permits an unlimited number of transfers into and out of your Cash Account (with a daily limit of $250,000).

Wealthfront is not a bank, so it has deals with a network of regional banks that are FDIC insured. After you deposit your money in a Cash Account, your funds are swept into multiple accounts with Wealthfront’s bank partners, giving you FDIC insurance coverage up to $1 million (or $2 million if you have a joint Cash Account). This a big advantage that makes the Cash Account an attractive choice for anyone who wants FDIC coverage beyond the $250,000 limit available with a single online savings account.

Wealthfront Cash Account vs. robo-advisor cash management accounts

Many other robo-advisor firms offer cash management accounts. These accounts take varying forms: Some resemble a personal savings account, others have both savings and checking account features, while some are a type of investment account. Below we compare the Wealthfront Cash Account with cash management offerings from robo-advisors Betterment and SoFi.

Account nameFunctionFeesYield
Wealthfront Cash Account

FDIC-insured savings account

None

2.57% APY

Betterment Smart Saver

Low-risk bond investments

0.25% annual fee

2.14% APY

SoFi Money

FDIC-insured checking/savings hybrid account

None

An average of 2.25% APY

Wealthfront Cash Account vs. Betterment Smart Saver

Betterment‘s Smart Saver account is a low-risk investment account, not a deposit account, so it plays by a different set of rules than Wealthfront‘s Cash Account. For one, as an investment it does not have FDIC coverage. Betterment‘s website claims you could earn returns of 2.14% (which factors in the standard 0.25% Betterment charges for its services) — notice the word “could.” Money placed in the Smart Saver account is invested in a mix of treasuries and corporate bonds—fairly safe investment vehicles—but it still can’t guarantee the 2.14% return in the same way a deposit account can guarantee an APY.

The Smart Saver account does have some bells and whistles that may make it an appealing choice for your savings. These include:

  • Smart Sweep: This feature aims to maximize your investing returns by only maintaining as much cash in your linked checking account as you need for day-to-day spending. It works like this: After giving  access to your checking account, the app analyses how you spend money. Then it sweeps money above and beyond what you need to pay 35 days of expenses — up to $5,000 per sweep — into the Smart Saver investment account. Likewise, if the app thinks you’ll need more money to cover your expenses, it will sweep money from the Smart Saver investment account into your checking account. You can read more details here.
  • Tax relief: While you can’t avoid paying taxes entirely, the fact that 80% of the money placed in the Smart Saver investment account will be invested in U.S. Treasury bonds means that some of the earnings from the Smart Saver account won’t be subject to state and local taxes. You can read more details here.

Like Wealthfront’s account, there is an inconvenient waiting period to withdraw money from the account — four to five business days, which is longer than Wealthfront‘s one to three business days. This longer period accounts for the fact that your money is invested in bonds, making it less liquid than funds placed with Wealthfront in FDIC-insured deposit accounts.

Wealthfront Cash Account vs. SoFi Money

SoFi Money is a checking and savings hybrid account, meaning you earn both a high yield — 2.25% APY vs. Wealthfront‘s 2.57% APY — and enjoy instant access to your money with a debit card and paper checks.

Similarly to Wealthfront, SoFi Money spreads any funds you deposit across multiple FDIC-insured bank accounts — six in this case — providing up to $1.5 million in FDIC insurance vs. Wealthfront‘s $1 million.

SoFi Money may lag behind Wealthfront in terms of APY, but it makes up for this by providing the utility of both a savings and checking account. You can use your debit card to make purchases and withdraw money from ATMs (there is a daily limit of $610) just like you would with any other checking account. You can read more details on SoFi Money in our review.

Who should get a Wealthfront Cash Account?

If you’re looking for an FDIC insured account that provides one of the highest APY’s available, than the Wealthfront Cash Account may be right for you. However, you won’t have easy access to your funds like you would with a hybrid checking/savings account, such as SoFi Money. However the simplicity of the account, and the promise of additional features in the future such as a debit card and ATM withdrawals, could make it a compelling option for your savings.

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James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here