How To Protect Your Cash Account 

How To Protect Your Cash Account
In this video, we cover how your Wealthfront Cash Account is protected up to 8x more than your other bank accounts. Wealthfront isn’t a bank, so we work with partner banks where we broker your deposits. Every partner bank we work with is FDIC-insured. We can offer you far more FDIC insurance on your Cash Account deposits than you’d get in a regular savings account because we sweep your money to multiple partner banks. At any given time, your cash could be at up to eight partner banks, which is why you get up to 8x the FDIC insurance you’d get in a regular savings account. Previously, we swept your cash to up to four partner banks.
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🕒 TIMESTAMPS 🕒
00:00 -- Intro to FDIC Insurance
01:14 -- How does FDIC Insurance work?
02:00 -- FDIC history
02:48 -- SIPC insurance
04:33 -- How Wealthfront offers $2M FDIC coverage
05:45 -- FDIC example
📝 DISCLOSURE 📝
This communication is for informational purposes only and and should not be construed as investment advice. Cash account is offered by Wealthfront Brokerage LLC, Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Investing involves risk, including possible monetary loss, and past performance doesn't guarantee future performance. Investment management and advisory services, which are not FDIC insured, are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser.
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 uses more than one program bank to ensure FDIC coverage of up to $2 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.