Lets see if this goes more smoothly than Robinhood’s launch of their ‘checking & savings accounts’. The fact that they’re saying that deposits will have FDIC insurance sounds encouraging to me.
“Our clients hold almost $12 billion in cash and a lot of it is earning next to nothing,” Dan Carroll, Wealthfront’s founder and chief strategy officer, said in an interview.
Based on this quote I’m guessing the 2.44% interest rate is a way to get the money into Wealthfront, then they would look at best ways to “convert” those deposits to robo-funds.
Wealthfront’s new high-yield accounts bring in $1 billion in just a few months. They are also upping their interest from 2.24 to 2.29 percent, making it higher that what Goldman Sach’s Marcus Savings account offers in the US.
Finally they plan on launching a “…direct deposit and a debit card by the end of this year”.