Personal Capital is the latest digital wealth manager to roll out a new “high-yield account” in the form of its Personal Capital Cash and Savings Planner. According to a prepared statement, the account will have “aggregated FDIC insurance that covers balances up to $1.25 million."
Launched in partnership with Institutional Banking at UMB Bank, the account provides 2.35% annual percentage yield for existing Personal Capital clients and 2.30% for non-clients signing up.
The “Planner” portion of the product provides a savings tool to help users in planning their retirement savings, wanting to work on an emergency fund and paying down their debt.
This is just the latest example of checking- and saving-type accounts or offerings that revolve around cash management by digital wealth managers. In May Carson Group announced it had a white-labeled high-interest cash account offering in beta from provider Galileo Processing.
Wealthfront reported in late April that it had attracted $1 billion from its customers into FDIC-insured accounts after rolling out the offering in February. Both Betterment and Robinhood launched cash accounts in December 2018. Betterment rolled out its non-FDIC insured Smart Saver accounts with its “two-way-sweep” feature and Robinhood announced its non-SIPC “Cash Management” feature for brokerage accounts (after initially announcing it as "Robinhood Checking and Savings" the week before).