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A cash management account (CMA) provides similar interest rates to a high-yield savings account and the flexibility of a checking account. If you’re looking for somewhere to hold your idle cash where it still earns something, a CMA could be exactly what you’re looking for.
And with Personal Capital Cash™, you can earn over 2% APY with its fee-free cash management account. Plus, you get to leverage the wealth of other tools the platform provides, all without paying a cent.
Our Personal Capital Cash review is covering how this account works, its pros and cons, and some of the best alternatives you can consider.
Features – 8
Fees – 10
Interest Rate – 8
Customer Service – 8
8.5
Total
Personal Capital Cash is a no-fee cash management account that pays over 2% interest for both non-customers and Personal Capital Advisory clients. It also provides perks like unlimited withdrawals and has no minimum balance requirement. However, it doesn’t come with a debit card or check writing abilities.
What Is Personal Capital Cash?
Personal Capital Cash is a cash management account from Personal Capital, an online wealth management company. It provides a fee-free way for you to earn meaningful interest on your extra cash. Plus, it pays even higher interest rates if you’re using Personal Capital’s Advisory service.
It’s not the best cash management account out there if you want check writing abilities or a debit card. But it does provide a competitive interest rate and plenty of other useful tools under Personal Capital’s umbrella.
What Does It Offer?
The main reason to even open a Personal Capital cash account is to earn interest on your idle cash. Currently, it pays 2.60% APY to start and 2.70% APY for Personal Capital Advisory clients. This rate is much higher than your average checking or savings account, and it’s an excellent place to stash your emergency fund or some money you’re not quite ready to invest yet.
You need to invest at least $100,000 to use Personal Capital’s Advisory service, but even the base 2.60% APY is competitive with many other popular cash management accounts.
Other perks of Personal Capital Cash include:
- Aggregate FDIC insurance of up to $1.5 million ($250,000 per program bank)
- No minimum balance requirement
- No annual fees
- Unlimited number of monthly transfers
- Wire up to $1 million without paying fees
- Set up direct paycheck deposit and link your account to your checking account to pay bills
Just note that there’s a maximum deposit limit per transaction of $250,000. There’s also a daily withdrawal limit of $25,000 unless you’re a Personal Capital Advisory client or your account was open and funded more than 60 days before withdrawal, in which case the daily limit is $100,000.
Other Useful Personal Capital Features
Personal Capital Cash is an excellent place to earn interest on extra cash. But Personal Capital is also one of our favorite wealth management tools due to the range of free features it offers like:
- An investment fee analyzer to examine the fees you’re paying with your 401(k) and other account types
- A net worth tracker
- Saving and budgeting tools
- A retirement planner
All of these tools are free as well, and it’s just the advisory service that requires investing at least $100,000. But if you’re looking to invest, you can consider the advisory service and work with a Personal Capital advisor to build a custom investment plan to match your goals and risk tolerance.
Pros & Cons
pros
- No minimum balance requirements
- No account fees
- Still earn 2.60% APY as a non-advisory client
- Personal Capital Cash provides unlimited monthly withdrawals
- Joint accounts are available
cons
- Many high-yield savings accounts and mobile banks pay higher interest rates
- Unlocking the highest APY requires investing with Personal Capital
- No physical branches
- You can’t deposit checks or write cash
- You don’t get a debit card
Best Alternatives
Personal Capital Cash is a leading cash management account because of its high interest rate. And the variety of free tools you get to help you manage your finances is another selling point.
However, Personal Capital Cash doesn’t pay as much interest as some of its competitors. And some other cash management accounts also come with debit cards to make spending your money that much easier.
Wealthfront
APY: 2.55%
Minimum Deposit: $1
Fees: $0
Wealthfront is a popular robo-advisor that also has one of the best cash management accounts, Wealthfront Cash. It currently pays 2.55% APY and has a $1 funding requirement. You don’t pay account fees either like with Personal Capital Cash, and you get up to $1 million in FDIC insurance.
Another advantage is that this account comes with a free debit card to make transacting easier. Plus, you get free ATM withdrawals at 19,000+ ATMs and can receive checks.
Betterment Cash Reserve
APY: 2.25%
Minimum Deposit: $10
Fees: $0
Betterment is another popular robo-advisor that has its own cash management account called Betterment Cash Reserve. This account pays 2.25% APY and doesn’t charge monthly fees. Like Wealthfront, you get up to $1 million in FDIC† insurance and up to $2 million for joint accounts.
There’s no direct debit card for Betterment Cash Reserve. However, Betterment also has a checking account you can use to make spending easier and to also earn cash-back rewards.
Betterment Cash Reserve APY Disclosure – The annual percentage yield (“APY”) on the deposit balances in Betterment Cash Reserve (“Cash Reserve”) is 2.25% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the “Program Banks”) and is current as of September 26, 2022. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
Aspiration Spend & Save
APY: 3.00% or 5.00%
Minimum Deposit: $10
Fees: $5.99-$7.99 per month for Aspiration Plus
Aspiration Spend & Save is another alternative to Personal Capital Cash that also pays a much higher interest ate. This account pays 3.00% APY for regular customers and 5.00% APY if you’re an Aspiration Plus customer. The basic plan uses a pay-what-is-fair model, so you decide what Aspiration costs. The Plus plan costs $7.99 per month or $5.99/month if you pay annually.
Other perks include earning cash back for shopping at eco-friendly companies and free ATM withdrawals at 55,000+ locations.
Bottom Line
If you’re an existing Personal Capital Advisory customer, using its cash management account is a pretty smart move. This lets you earn meaningful interest on your excess cash, and you can always move the money into your investments when the time is right.
But even non-customers can benefit from Personal Capital Cash. And the number of free tools the company provides to help people manage their finances is why we like it so much. Earning over 2% APY is really just the cherry on top.
Of course, don’t leave various online-only high-yield savings accounts out of the running. Banking options like Current and Varo pay higher rates than Personal Capital Cash, although you lose some flexibility by going with a savings account.
Personal Capital Disclosure – Personal Capital Advisors Corporation (“PCAC”) compensates Webpals Systems S. C LTD for new leads. Webpals Systems S. C LTD is not an investment client of PCAC.
†Betterment Cash Reserve Disclosure – Betterment Cash Reserve (“Cash Reserve”) is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients’ funds are deposited into one or more banks (“Program Banks”) where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option. Funds held in your brokerage accounts are not FDIC‐insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC‐insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 (or $2,000,000.00 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to four Program Banks). Even if there are more than four Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000.00 (or $2,000,000.00 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC’s Form ADV Part II.
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