@atikovi said in Best Nationally Available High APY Liquid Accounts:
Some of the fine print seems a bit sketchy,
Cash Account is offered by Wealthfront Brokerage LLC (“Wealthfront Brokerage”), a member of FINRA/SIPC. Neither Wealthfront Brokerage nor its affiliates is a bank. The cash balance in the Cash Account is swept to one or more banks (the “program banks”) where it earns a variable rate of interest and is eligible for FDIC insurance. FDIC insurance is not provided until the funds arrive at the program banks. FDIC insurance coverage is limited to $250,000 per qualified customer account per banking institution. Wealthfront Brokerage uses more than one program bank to ensure FDIC coverage of up to $1 million for your cash deposits. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the program banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at program banks are not covered by SIPC.
They aren’t a bank but take your money and put it into “program banks”? What happens if these banks fail? Does FDIC cover you or only Wealthfront? Quite a few banks already offer 2.50% savings, I don’t see any advantages here.
The one thing to pay attention to is what the “program banks” are and if you already have money with them. For example, if they sweep 250k into Citi but you already have a Citi account with 50k in it, you have 300k at Citi but only 250k is FDIC insured.
