Wealthfront's savings account has no monthly fees, no minimum balance requirement, and no account maintenance charges
Wealthfront does not charge you to open or hold a savings account. There is no monthly fee, no minimum deposit to keep the account open, and no inactivity fee if you leave money sitting untouched. You pay nothing to transfer money in or out, and there is no fee to close the account if you decide to leave.
The account earns interest on your balance. Wealthfront does not take a cut of that interest—you keep all of it. The rate changes based on market conditions and Federal Reserve decisions, just like rates at other banks, but Wealthfront does not reduce your rate to cover operating costs the way some competitors do.
Wealthfront makes money from other parts of its business—primarily from its investment advisory service, which charges a 0.25% annual fee on assets you invest through them. The savings account itself is a loss leader designed to bring customers in and hold their cash while they consider other services.
Key Takeaways
- Wealthfront charges no monthly maintenance fee, no minimum balance fee, and no account closure fee on its savings account.
- You receive the full interest rate Wealthfront advertises; the company does not take a percentage of your earnings.
- Transfers in and out of the savings account are free, whether you move money to another bank or to a Wealthfront investment account.
- Wealthfront's revenue comes from its investment management service (0.25% annually on invested assets), not from savings account holders.
- If you use only the savings account and never invest through Wealthfront, you will never pay the company anything.
How Wealthfront makes money without charging savings account fees
Wealthfront operates the savings account at a loss or at break-even to attract customers. The real business model depends on converting savings account holders into investment clients. If you move money from savings into Wealthfront's robo-advisor investment service, that is when Wealthfront charges you: 0.25% per year on the total amount you have invested.
This structure is common among fintech banks. They offer a free or low-cost savings product to build a customer base, then earn money when those customers use premium services. Wealthfront's 0.25% investment fee is lower than most traditional financial advisors (who typically charge 0.5% to 1%), but higher than some competitors like Vanguard Personal Advisor Services or Fidelity Go.
If you never invest money through Wealthfront and only use the savings account, the company receives nothing from you. This is why Wealthfront can afford to offer no-fee savings accounts—they are betting that some percentage of account holders will eventually move money into investments.
Comparing Wealthfront's savings account to other banks
Most traditional banks charge monthly maintenance fees ($5 to $15) unless you meet a minimum balance requirement or set up direct deposit. Online banks like Ally, Marcus, and Discover also charge no monthly fee and have no minimum balance, just like Wealthfront. The difference is that those banks make money from the spread between what they pay you in interest and what they earn by lending your deposits out—Wealthfront does the same thing.
Where Wealthfront differs is in the interest rate itself. Because Wealthfront is part of a larger investment company, it can sometimes offer rates that match or slightly exceed what pure savings banks offer, depending on market conditions. You should compare the current rate Wealthfront is advertising against rates at Marcus, Ally, and your local credit union before deciding. Rates change frequently and vary by institution.
If you are already a Wealthfront investment customer, the savings account integrates with your investment account, making it easy to move money between savings and your portfolio. If you are not an investor and have no plans to become one, a dedicated savings bank like Ally or Marcus may be simpler because they have no connection to investment services.
Fees you might encounter when using Wealthfront savings
While Wealthfront itself charges no fees on the savings account, your own bank or payment processor might charge you when you transfer money. If you use an external wire transfer to move money out of Wealthfront, your receiving bank might charge an incoming wire fee (typically $15 to $25). This is not a Wealthfront fee—it is your other bank's fee. Wealthfront does not charge for sending the wire.
ACH transfers (the slower, free method) have no fee on either end when you move money between Wealthfront and another bank account you own. If you use a third-party payment app like PayPal or Venmo to move money, those services may charge their own fees, but again, that is not Wealthfront charging you.
If you overdraft your linked checking account while trying to move money to Wealthfront, your checking bank will charge an overdraft fee. Wealthfront does not control that. The only fees that come directly from Wealthfront are the 0.25% annual investment advisory fee (if you invest) and any fees associated with individual investments you hold (like expense ratios on mutual funds or ETFs), which are standard across all brokers.
What happens if you invest through Wealthfront
The moment you move money from your Wealthfront savings account into the robo-advisor investment service, you start paying the 0.25% annual fee. This fee is calculated on your total invested balance and charged quarterly. On a $10,000 investment, you would pay $25 per year. On $100,000, you would pay $250 per year.
This fee covers Wealthfront's automated portfolio management, rebalancing, tax-loss harvesting, and customer support. You do not pay per trade, per fund, or per transaction. The 0.25% is all-in for the advisory service itself. You will still pay the expense ratios of the underlying funds and ETFs in your portfolio (typically 0.03% to 0.20% per year), but those are standard costs you would pay at any broker.
If you decide to stop investing and move all your money back to the savings account, the 0.25% fee stops immediately. You can keep the savings account open indefinitely with no charges, even if you never invest again.
How to avoid unexpected charges
Read Wealthfront's account agreement before you open an account. It clearly states that there are no monthly fees, no minimum balance requirements, and no inactivity fees. The agreement also explains the 0.25% investment fee and when it applies. Wealthfront's website has a fee schedule that is easy to find and understand.
If you link an external bank account to Wealthfront for transfers, make sure you understand your own bank's transfer policies. Some banks limit the number of free ACH transfers per month (though this is less common now). If you exceed that limit, your bank—not Wealthfront—will charge you.
Before you invest, confirm that you understand the 0.25% fee and how it will be calculated. Wealthfront shows you the estimated annual fee in dollars before you invest, so you can see exactly what you will pay. If you decide the fee is too high, you can keep your money in the savings account with no penalty.
Frequently Asked Questions
Does Wealthfront charge a fee to transfer money out to another bank?
No. Wealthfront does not charge for ACH transfers or wire transfers out of your account. However, your receiving bank might charge an incoming wire fee (typically $15 to $25). ACH transfers are free on both ends.
What is the 0.25% fee I see mentioned on Wealthfront's website?
That is the annual advisory fee charged only if you invest money through Wealthfront's robo-advisor service. It does not apply to money sitting in the savings account. If you only use savings, you pay nothing.
Can I close my Wealthfront savings account without paying a fee?
Yes. Wealthfront charges no account closure fee. You can close your account anytime and withdraw your balance. If you have invested money, you will need to move or liquidate those investments first, but closing the account itself costs nothing.
Does Wealthfront take a percentage of the interest I earn?
No. You receive the full interest rate Wealthfront advertises. Wealthfront does not reduce your rate or take a cut of your earnings. The rate itself may be higher or lower than competitors depending on market conditions, but whatever rate is posted is what you get.
Are there any hidden fees I should know about?
No hidden fees on the savings account itself. The only charges you might see are the 0.25% investment fee (if you invest), expense ratios on funds you hold (standard at all brokers), and fees from your own bank or payment processors for transfers or overdrafts. Wealthfront publishes all its fees clearly on its website.