Wealthfront's savings account has no monthly fees, no minimum balance requirement, and no fees to open or close the account

Wealthfront's Cash Account (their savings product) charges zero dollars per month to hold money there. You will not pay a fee to start the account, to keep it open, or to close it later. There is no minimum amount you must deposit to avoid fees, and no penalty if your balance drops below a certain level.

The account earns interest on whatever you deposit. The interest rate changes based on what the Federal Reserve does with its benchmark rates, so the amount you earn will vary over time. Wealthfront does not charge you a percentage of your balance as a management fee, the way some investment accounts do.

Key Takeaways

  • Wealthfront's Cash Account has no monthly maintenance fee, no minimum balance, and no opening or closing fees.
  • You earn interest on your balance, and the rate adjusts when Federal Reserve rates change.
  • Wealthfront makes money from the interest spread (the difference between what banks pay them and what they pay you), not from charging you directly.
  • If you use Wealthfront's investment advisory services alongside the savings account, those services do charge a separate fee based on your total assets.

How Wealthfront makes money if there are no account fees

Wealthfront earns revenue through what is called the interest spread. Banks pay Wealthfront a certain interest rate for holding customer deposits. Wealthfront then pays you a lower rate. The difference between those two rates is how they cover their costs and make a profit.

This is the standard business model for online savings accounts. You benefit because Wealthfront has lower overhead costs than a traditional bank branch — no physical locations, no tellers, no building rent — so they can pass along a higher interest rate to you than you might find at a brick-and-mortar bank, even though they keep a spread.

Fees if you use Wealthfront's investment services

The Cash Account itself has no fees. However, if you use Wealthfront's robo-advisor service (automated investment management), that service charges a separate fee. Wealthfront charges 0.25% per year of your total assets under management. This means if you have $10,000 invested through their advisory service, you pay $25 per year.

This fee applies only to money you have invested through Wealthfront's advisory platform, not to money sitting in the Cash Account. You can use the Cash Account alone without ever paying this advisory fee.

What happens to your interest rate over time

Wealthfront's interest rate is not locked in. It moves when the Federal Reserve changes its benchmark interest rate, which it does several times per year. When rates go up, you earn more. When rates go down, you earn less. Wealthfront publishes their current rate on their website, and you can check it anytime.

The rate you see when you open the account is not a may provide of what you will earn forever. This is true for all online savings accounts, not just Wealthfront. If earning a specific rate is important to you, read the current rate before you deposit money, and understand that it will change.

Transfers and other transactions

Wealthfront does not charge fees for moving money into or out of your Cash Account. You can link a bank account and transfer funds back and forth without paying per transaction. There is no limit on how many transfers you can make per month, though your linked bank may have its own transfer limits.

If you need to wire money out of the account, Wealthfront does not charge a wire fee. Some banks charge $15 to $30 for outgoing wires, so this is a real advantage if you need to move larger amounts quickly.

Comparing Wealthfront to other savings accounts

Most online savings accounts follow the same fee structure as Wealthfront: no monthly fee, no minimum balance, and no transaction fees. The main difference between accounts is the interest rate they offer. Because rates change frequently and vary based on market conditions, the "best" rate today may not be the best rate next month.

If you already use Wealthfront for investing, keeping your savings in their Cash Account means you see all your money in one place. If you do not use their investment services, you might compare their current savings rate to other banks' rates to see where you earn more. The fee structure will be similar across all of them.

Frequently Asked Questions

Does Wealthfront charge a fee if I don't use the account for a while?

No. Wealthfront does not charge inactivity fees. You can leave money in the Cash Account without touching it, and you will not be charged. You will continue to earn interest on whatever balance remains.

What if I close my Wealthfront account?

There is no fee to close the account. You can withdraw all your money and close it whenever you want. Wealthfront will not charge you for closing it or for the final withdrawal.

Is the interest I earn taxed?

Yes. Interest earned on a savings account is taxable income. Wealthfront will send you a 1099-INT form at the end of the year showing how much interest you earned, and you will report that on your tax return. This is true for all savings accounts, not just Wealthfront.

Can I move my money to another bank without a fee?

Yes. Wealthfront does not charge you to transfer money out to another bank. Your new bank may have its own process for receiving transfers, but Wealthfront's side is free.