I don’t respond much to online ads.
I did have an intriguing one yesterday that advertised a 2.32% APR on savings with no minimum and no hassle access, along with $1,000,000 FDIC insurance. I figured it couldn’t hurt to check out. I was skeptical how they could offer such a high rate of interest without locking me into a holding period or without requiring a large balance.
Five minutes later my account information was collected, the bank account used to fund the initial balance was linked, and I was done. The following day I received an email that my account was open with my desired deposit.
The company is Wealthfront (www.wealthfront.com). In addition to savings accounts, they also offer investment management. This low cost investment management uses a passive approach not to beat the market, but to match the market.
I believe that the higher interest rate on their savings account is a tool they use to attract new dollars and customers to their wealth management platform. It’s a great strategy, although I began to feel a little conflicted about sharing my findings with others, especially clients for prospective clients.
The company is, after all, competition. But as a fiduciary, I have always committed to put the clients interest first before my own, and so I think it only fitting to share with you a great tool to earn higher rates of interest for cash reserve funds without compromising easy access or requiring large initial account balances.
I’ll keep you updated on any points of interest as I experienced them.
Here’s the link to get started:
Please contact me if you have any questions