Green Dot Bank and Wealthfront have joined forces to make saving and building wealth easier for their customers.
Their partnership combines the benefits of a high-yield savings account with the investment expertise of a robo-advisor.
With Green Dot Bank's savings account, customers can earn up to 2.00% APY, which is significantly higher than a traditional savings account.
This means customers can grow their savings over time.
Wealthfront's investment platform offers low-cost, diversified investment portfolios that can help customers grow their wealth.
By partnering with Green Dot Bank, Wealthfront's investment expertise is now available to a wider range of customers.
The partnership aims to simplify the process of saving and investing for customers, making it easier to achieve their financial goals.
A different take: Commercial Banks vs Investment Banks
Dive Brief
Wealthfront and Green Dot are taking their partnership to the next level, and here's what it means for you:
Wealthfront has extended its partnership with Green Dot, a digital bank and banking-as-a-service provider.
The two companies first teamed up in 2020 to launch Wealthfront's cash account, which offers features like early direct deposit and bill pay.
See what others are reading: Green Dot
Wealthfront recently boosted the annual percentage yield (APY) on its cash account from 3.3% to 3.8%.
This move shows Wealthfront's commitment to passing on the benefits of federal funds rate increases to its customers.
The partnership extension is a sign that both companies are committed to working together to provide innovative financial solutions.
What is Green Dot Extended Relationship
Green Dot and Wealthfront are continuing their relationship, which was first established in 2020. Wealthfront is leveraging Green Dot's banking-as-a-service tools to offer its Cash Account clients access to checking features.
Wealthfront's Cash Account requires a $1 initial deposit and offers unlimited free transfers, automated savings features, and near-instant transfers into Wealthfront's Investment Accounts. The account also pays a 3.80% APY, a significant improvement over the average of just 0.24% APY offered by large traditional banks.
The Cash Account features competitive with other digital banks, including the ability to receive direct deposits up to two days early, pay bills, send and deposit checks, and use a debit card to access cash at ATMs. This is made possible through Green Dot's banking-as-a-service tools.
Wealthfront's VP of Product, Dave Myszewski, believes that the Cash Account is a best-in-class product that helps clients earn more on their uninvested savings and grow their long-term wealth easily and conveniently.
You might like: Dot Inspections
Frequently Asked Questions
Is Wealthfront Green Dot Bank?
Wealthfront is not a bank, but partners with Green Dot to provide banking services. Our debit card and account numbers are issued through Green Dot.
Which banks does Wealthfront partner with?
Wealthfront partners with several major banks, including HSBC Bank USA, NA, Morgan Stanley Bank, N.A., and Wells Fargo Bank NA, among others. These partnerships enable seamless account linking and management for Wealthfront clients.
Is Green Dot Bank an actual bank?
Yes, Green Dot Bank is a fully licensed and regulated bank with FDIC membership, offering a range of banking services to its customers. As a subsidiary of Green Dot Corporation, it operates primarily as a "branchless bank" with a large retail distribution network.
Is a Green Dot considered a bank account?
Yes, a Green Dot account is considered a bank account, as it is offered by Green Dot Bank, a single FDIC-insured bank. This means your Green Dot account is protected by the FDIC and provides traditional banking services.
Is there a downside to Wealthfront?
Yes, Wealthfront has some downsides, including higher fees for certain features and higher account minimums for advanced investment strategies
Sources
- https://www.bankingdive.com/news/wealthfront-partnership-green-dot-raises-annual-percentage-yield-UBS/639371/
- https://finovate.com/green-dot-and-wealthfront-extend-relationship/
- https://www.pymnts.com/digital-first-banking/2022/green-dot-banking-platform-extends-partnership-with-wealthfront/
- https://ibsintelligence.com/ibsi-news/green-dot-and-wealthfront-extend-partnership-to-simplify-savings-and-help-build-wealth/
- https://riabiz.com/a/2020/12/31/wealthfronts-unlikely-tapping-of-sheila-bair-and-tom-curry-signals-likely-push-to-gain-a-bank-charter-analysts-say
Featured Images: pexels.com
