"Robo-adviser" Wealthfront launches cash account in the US

(Alex Sherwood) #1

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.