Personal Capital Cash

9.1

Interest Rate (APY)

9.0/10

Insurance & Security

9.6/10

Account Features

7.8/10

Fees

10.0/10

Pros

  • High APY (0.05%)
  • No fees
  • FDIC insured up to $1.5M
  • Unlimited Deposits & Withdrawals
  • No minimum balance

Cons

  • No Debit Card or ATM access
  • Limited account services

0.09% APY. This is the current national average interest rate on savings accounts. Sounds bad, doesn’t it?

Well, it is.

That’s why there’s been a surge in popularity of high-yield cash accounts offered by many popular robo advisors. These high-yield accounts typically earn between 1.0% and 2.0%. That’s not a typo – that’s around 20x the national average.

And you can open one today.

To put that into perspective, a balance of $10,000 in an account that has a 0.09% APY will earn you $9 annually (keeping the math simple), while an account with a 1.80% APY will earn you $180 the same year. You can see why these accounts are so popular.

What is Personal Capital Cash?

Personal Capital is known for its human-assisted robo advisor and free money management tools. Cash is the company’s high yield savings account with no monthly fees, no minimum balances, and no transaction limits. However, you don’t get a debit card, so you can only transfer your money online.

Personal Capital Cash competes with a handful of other high-yield cash accounts offered by other popular robo advisors and a small few other banks.

Cash’s biggest competitors would be the Cash accounts of Betterment, Wealthfront, Wealthsimple, and M1 Finance. We compare those accounts below.

Competitive Interest Rates

One of the most important factors to consider when looking for a savings account is its APY. You don’t want your rainy day fund going down the drain when your APY doesn’t even keep up with inflation (estimated at 2.0% in 2019). In this regard, Personal Capital’s Cash Account is a worthy competitor at 0.05%. If you’re already a Personal Capital Advisor client, you get a 0.05% APY bump – a little bonus for being loyal.

While it’s not the highest interest rate out of the high-yield cash accounts offered by robo advisors, it’s not the lowest either, and Personal Capital is a very highly regarded brand with some other great features we’ll get into below.

Interest accrues daily and is paid out monthly.

Zero Fees

This is one of the best parts about the Personal Capital Cash account – no fees. It’s very common for banks to charge account holders a monthly fee, transaction fees, or other hidden fees for various services.

But since banks use these fees as part of their revenue, how can Personal Capital afford to offer no fees at all? Well, Personal Capital Cash does not offer some of the standard services that banks offer on savings accounts.

For example, with Personal Capital Cash, there aren’t any physical branches, and you don’t have any ATM services or bank cards (yet). However, you do get unlimited deposits and withdrawals, which can save a lot of money on fees.

Is Personal Capital Cash Safe?

Just like with other bank accounts, money in your Personal Capital Cash account will be insured by FDIC. Here’s the good news; the amount of insurance that you receive with Personal Capital is significantly higher than the amount you receive with most other banks.

For the most part, bank accounts will be insured by FDIC for up to $250,000 for each account that you own. While this is adequate for most people, high-net-worth individuals will need more.

This is where Personal Capital comes in. Your Cash account is insured for up to $1.5 million. If you have a joint account, that amount can increase to $3 million! This is because Personal Capital is in partnership with 6 different program banks.

Each of these banks offer FDIC insurance of up to $250,000. With Personal Capital, the money that you deposit will be stored with one or more of these banks. The money in them earns interest and gains eligibility for FDIC insurance.

Since each bank receives the same amount of your deposit, you get assurance from all of them. For example, if your deposit is shared among three program banks, each of the banks can assure you up to $250,000. Thus, you will have a total assurance of $750,000. High net worth individuals can take advantage of this system.

No Minimum Balance

Personal Capital Cash is a high-yield account. Nevertheless, it is possible to find banks that offer higher rates on their savings solutions. So how is Personal Capital different?

In some cases, the banks that offer a higher rate have a tiered interest rate. This means that your APY will grow based on your account balance. Some banks will also require a minimum balance before you can earn eligibility for a higher interest rate.

Personal Capital Cash does not ask for a minimum opening balance. Regardless of the amount you have, you are still eligible for a Cash account, and you’ll still ge the same interest rate. This is in line with the high-yield cash accounts offered by other robo advisors.

Things to Look Out For

Regardless of the benefits of the Personal Capital Cash account, there are a few things that you should be aware of:

  • High-Yield Cash accounts aren’t technically savings accounts, and the company you have the cash account through isn’t actually holding your money.
  • Although they’re working on it, you won’t be getting a debit card or have access to ATMs with the Cash account.
  • The account operates on bank sweep. This means that your money may be spread between 5 banks, so you get that extra FDIC insurance. The disadvantage is that it can take a few days to carry out deposits, transfers, and withdrawals.
  • To open an account, you need to be at least 18 years old, a US citizen or resident, and not be subject to IRS backup withholdings.

High-Yield Cash Accounts Comparison

Personal CapitalWealthfrontBettermentM1 FinanceWealthsimple
Interest Rate*0.05%0.26%0.30%1.0%1.1%
FeesNoneNoneNone$125/yearNone
Debit CardNoNoComing1% Cash BackNo
Insurance$1.5 million$1 million$1 million$250,000$500,000
Learn MoreLearn MoreLearn MoreLearn MoreLearn More

*Rates are variable and subject to change. Accurate as of March 11, 2020.

How to Sign Up

  1. Go to the Personal Capital Cash website
  2. Enter your email, phone number, and password
  3. Click on “Earn Money Today”
  4. To verify your account, click on Text My Phone or Call Me Instead
  5. Once the security code is verified, go to Banking and click Open an Account
  6. Select “Earn More Now”
  7. Fill out the required contact information and continue
  8. Fill out the required identity information and agree to the terms of service then continue
  9. Once done, review your details before you submit them.

Conclusion

The Personal Capital Cash account is one that we think is worth considering. While it doesn’t earn quite as high of an interest rate as some other robo advisors’ high-yield savings accounts, Personal Capital offers some other very good services such as a free Financial Tools and excellent free Personal Finance Dashboard.

If you’re already a customer of one of the other popular robo advisors that offer a high-yield savings account (such as M1 Finance, Wealthfront, Betterment, or Wealthsimple), we suggest looking into their accounts for the simplicity of having everything in one place.

Otherwise, you can’t go wrong with Personal Capital’s great tools, no fees, and high APY.

Sign up here.


FAQ

What is the Personal Capital Cash Interest Rate?

Currently, the APY is 0.05% for everyone, and 0.05% higher for Personal Capital Advisor clients.

Is Personal Capital Cash Safe?

Yes – due to their six partner banks, Personal Capital is able to offer $1.5 Million in FDIC Insurance. Their platform is very well-known, time-tested, and trusted by many high-net-worth clients.

What are the Program Banks?

The Personal Capital Cash program banks are:

– East West
– MetaBank
– Tri State Bank
– Eagle Bank
– Associated Bank
– Texas Capital Bank

Do I get a debit card with Cash?

Not yet, this is something they are working on for the future.

Where do I login to Personal Capital Cash?

You can log into your Cash account by following this link.

What about their Free Personal Dashboard and Robo Advisor?

You can read our full, constantly-updated Personal Capital review here.