Advertiser Disclosure

Reviews

NEFCU 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.

NEFCU’s checking account option

Go Green Checking account

This account pays a decent bit of interest at three different tiers.
APYMinimum Balance to Earn APY
1.00%$0.01 (rate drops to 0.50% on balances above $25,000)
2.00%$0.01 (rate drops to 0.50% on balances above $25,000)
3.00%$0.01 (rate drops to 0.50% on balances above $25,000)
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None at Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each
  • ATM fee refund: Up to $15 per month on non-NEFCU ATMs
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

This account allows you to earn a decent amount of interest at three different tier levels on any amount up to $25,000. The tier level you qualify for depends on your overall relationship with the credit union. You’ll need a deposit and loan balance of more than $25,000 to get the 2% APR, and the loan balance itself needs to be more than $25,000 to get the 3% rate. This free account also comes with online and mobile banking services, Voice Banking with Amazon and Google devices and a Visa debit card. As an added bonus, you can get up to $15 per month in ATM fee refunds.

How to get NEFCU’s checking account

Once you’ve proven how you qualify for membership and applied to open your Share Savings account with a minimum deposit of $5, you can open this checking account online or in person. To do so, you’ll need to have your government-issued ID and Social Security number handy.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

magnifying glass

How NEFCU’s checking account compares

If you’ve determined you qualify for the second or third rate tiers on this account, it’s definitely worth your while. Between that and the lack of fees and balance requirements, easy-to-navigate online interface and the ability to get ATM fee refunds, you’ve really got a winner here that easily stacks up against those on our list of the best online checking accounts.

NEFCU’s savings account option

Share Savings account

This account is required to open any of the credit union’s other personal accounts.
APYMinimum Balance to Earn APY
0.30% $20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: None on Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each thereafter
  • ATM fee refund: None
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

This savings account is your gateway to opening any other NEFCU personal accounts, as your deposit of $5 represents your share in the credit union. Other than an OK rate and access to mobile and online banking products, this savings account doesn’t offer much else. As a savings account, it is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. Transactions beyond that will face a $10 fee.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

Holiday, Camp or Vacation account

This account allows you to save and designate funds for a special occasion.
APYMinimum Balance to Earn APY
0.30%$20.28
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This sub-savings account is a great way to sock away funds for a special purchase or occasion, earning interest all the while. The fact that it doesn’t come with ATM access makes it easy to avoid touching this money before you intend to. As a savings account, this is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. Additional transactions will include a $10 fee.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

Tuition Builder

This higher-yielding account is designed to put money away for your education.
APYMinimum Balance to Earn APY
1.19% $100
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $100
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This interest-bearing account is meant to serve as a savings fund for expenses such as college tuition and room and board. It comes with a low opening deposit requirement, as well as mobile and online banking capabilities. It can only be accessed from June 1-20 and Dec. 1-30 without otherwise incurring a penalty. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. More than that, and you’ll pay a $10 fee per transaction.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

Dollar Dog Kids account

This account can be opened for a child at any age up to 10 years old, after which it will convert into an Elements Teen Club account.
APYMinimum Balance to Earn APY
1.00%$20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This interest-bearing youth account allows young customers easy access to their money at branch locations, as well as through the credit union’s online and mobile banking platforms. It comes with a free membership card, a complimentary gift at opening and with every subsequent deposit and a fun, an age-appropriate quarterly newsletter. As a savings account, this is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. More than that, and you’ll pay a $10 fee.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

Elements Teen Club account

This account can be opened for children ages 11 to 17, after which it will turn into a Share Savings account.
APYMinimum Balance to Earn APY
1.00% $20.28
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: $20.28
  • Monthly account maintenance fee: None
  • ATM fee: If account holder also has a Go Green Checking account with a debit card, no fees on Allpoint ATMs; first eight out-of-network ATM transactions are free, then $1 each thereafter
  • ATM fee refund: None
  • Overdraft fee: $30, unless you have a debit card and the overdraft is pulled from a safety line or savings account, in which case, it’s $3. If you have courtesy pay enabled, the fee is $10.

The credit union’s teen account is very similar to the kids’ account as far as its requirements, interest rates and perks are concerned. In addition to the characteristics listed above, the teen account also comes with the ability to open a Go Green Checking account with a debit card. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. After that, there’s a $10 fee.

How to get NEFCU’s savings accounts

NEFCU’s Share Savings account can be opened online or in person once you’ve established that you qualify for membership; the Holiday, Camp and Vacation accounts can only be opened over the phone or at a branch location. You’ll just need to provide your Social Security number and government-issued ID. The youth accounts and Tuition Builder must be opened in person with those documents from a parent or guardian, who must serve as a joint owner on the Dollar Dog account, or on the Go Green Checking account with debit card for kids under age 17.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

magnifying glass

How NEFCU’s savings accounts compare

Rates-wise, none of these accounts really stand up to those on our list of the best online savings accounts. While it wouldn’t hurt you to open any of them if you’ve become a member of the credit union for one of its other products, we wouldn’t seek out NEFCU for any of these products alone. Consider one of the accounts on our list instead to get the most bang for your buck.

NEFCU’s CD rates

Certificates

The credit union’s CDs offer decent rates on its longer term lengths.
TermAPY
3 months0.30%
6 months1.25%
7 months2.00%
1 year2.00%
18 month penalty-free2.45%
2 years2.15%
3 years2.50%
4 years2.75%
5 years3.00%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: On maturities of less than 1 year at account opening or account renewal, it’s 90 days’ worth of dividends on the amount withdrawn; on maturities of one year to less than three years at account opening or account renewal, it’s 180 days’ worth of dividends on the amount withdrawn; on maturities of 3 years or more at account opening or account renewal, it’s 270 days’ worth of dividends on the amount withdrawn.

These CDs are pretty run-of-the-mill as far as their opening deposit requirements and early withdrawal penalties are concerned. They renew automatically once the term is completed, but please note that the 7 month term will renew to only 6 months.

How to get NEFCU’s CDs

Once you’ve determined that you qualify to become a member and have opened a Share Savings account with a minimum deposit of $5, you can open a CD online or in person. You’ll need your Social Security number and valid government-issued ID to do so.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

magnifying glass

How NEFCU’s CD rates compare

Compared to the CDs on our list of the best available CD rates, NEFCU’s rates are pretty mediocre. You can easily find CDs with the same requirements and penalties that offer a much more competitive rate. Shop around or consider one on our list instead.

NEFCU’s money market account option

Money Market account

The credit union’s money market account allows account holders to earn interest at five different tier levels.
APYMinimum Balance to Earn APY
0.40%$2,500
0.45%$25,000
1.65%$50,000
1.85%$100,000
2.00%$250,000
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: Varies; see table
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

NEFCU’s money market account allows you to earn a small amount of interest at five different tier levels, while offering the same online and mobile banking capabilities as its other products. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month. After that, you’ll pay a $10 fee per transaction.

How to get NEFCU’S money market account

As with most of the credit union’s other personal banking products, you can open its money market account online after proving you qualify to become a member and opening its Share Savings account with a minimum deposit of $5. To do so, you’ll need to provide your government-issued ID and Social Security number, as well as other personal details.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

magnifying glass

How NEFCU’s money market account compares

When comparing the rates on this account to those on our list of the best money market account rates, NEFCU’s account doesn’t even come close. NEFCU also requires a sky-high minimum balance requirement to earn the highest rate tier. Some of the accounts on our list offer twice these rates on much lower balance amounts, so we strongly advise considering one of those instead.

NEFCU’s IRA options

IRA CD rates

IRA certificates

The same CDs are available to open within an IRA with a lower opening deposit.
TermAPY
3 months0.30%
6 months1.25%
7 months2.00%
1 year2.00%
18 month penalty-free2.45%
2 years2.15%
3 years2.50%
4 years2.75%
5 years3.00%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: On maturities of less than 1 year at account opening or account renewal, it’s 90 days’ worth of dividends on the amount withdrawn; on maturities of one year to less than three years at account opening or account renewal, it’s 180 days’ worth of dividends on the amount withdrawn; on maturities of 3 years or more at account opening or account renewal, it’s 270 days’ worth of dividends on the amount withdrawn.

These IRA CDs are virtually the same as the regular CDs, with the exception of the fact they require a lower opening deposit ($500). This, along with the early withdrawal penalty, are pretty standard as far as IRA CDs are concerned. If you open a 1 year certificate, you’ll have the opportunity to bump up the rate if it increases at one point during your term.

How to get NEFCU’s IRA CDs

Once you’ve determined that you qualify to become a credit union member and have opened your Share Savings account with a minimum deposit of $5, you can open an IRA CD online through the IRA Service Center. Just be sure to have your Social Security number and government-issued ID handy to be able to do so.

LEARN MORE 

NCUA Insured

magnifying glass

How NEFCU’s IRA CD rates compare

The opening deposit requirements and early withdrawal penalties fare pretty similarly in comparison to the accounts on our list of the best IRA CD rates, but that’s where the similarities end — NEFCU’s IRA CD rates don’t even come close. You’ll want to do your due diligence and take your time shopping around when it comes to saving for your retirement, so consider one of the CDs on our list instead.

Liquid Savers IRA

This savings account is available to opened as a traditional or Roth IRA.
APYMinimum Balance to Earn APY
1.50% $4.09
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $4.09
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is NEFCU’s IRA savings account, which can be opened as a traditional or Roth IRA. As a savings account, this one is subject to Federal Reserve Regulation D, which limits certain withdrawals and transactions to six per month. After that, there’s a $10 fee.

How to get NEFCU’s IRA savings account

Just like with the IRA CDs, once you’ve determined that you qualify to become an NEFCU member and have opened your Share Savings account with a minimum deposit of $5, you can open an IRA CD online through the IRA Service Center. You’ll need your government-issued ID and Social Security number to do so.

LEARN MORE Secured

on NEFCU’s secure website

NCUA Insured

Overall review of NEFCU’s banking products

NEFCU’s checking account pays competitive rates, but beyond that, this credit union’s deposit accounts don’t come close to beating out the competition. But even with the checking account, you’ll want to make sure you qualify for those special relationship-based rates after becoming a member. If it turns out that you don’t, it’s safe to say we give all of these accounts a hard pass.

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

Advertiser Disclosure

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.

LEARN MORE Secured

on Edward Jones’s secure website

Member FDIC

magnifying glass

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

Advertiser Disclosure

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.

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.

James Ellis
James Ellis |

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