Regulators Are Questioning This Fintech (Betterment)

  |     |   27 posts since 2018

Scary... Wealthfront is also on its radar. They all use real banks to hold your money.

  |     |   139 posts since 2019
This seemed inevitable.

I've been quite hesitant to join in on these cash management accounts due to the indirect nature of the FDIC "coverage" and no clear understanding of when the money might be in the "real" bank and when it might be with the institution making the offer.

I finally did open a SoFi money account. Mostly to get fee-free withdrawals from VISA tagged ATMs, but also to pay smaller monthly bills that weren't worth losing a whole Regulation D withdrawal over.
  |     |   353 posts since 2017
I have been using sofi money and the investment ap for the last 5 months. I actually have been very pleased with the results. I really like thr ability to invest in stocks on a fractional basis. Easy to build your portfolio with good stocks that way.
  |     |   4 posts since 2019
Several of the large brokerage firms have sweep programs. Fidelity has a cash management account.Up to 750k FDIC, but the APY is lower than Betterment, or Wealthfront. Sofi is only a
few basis points more than Fidelity. All I need to see is the list of banks these firms use in their sweep programs. You have account at one of their program banks, you tell, and it's excluded
for use in your account. Look at their web sites, read what they offer, get a phone number, call
ask questions, and ask for their program banks. Great for a sudden large windfall, if needed.
Call some of their program banks, talk to the VP in charge of deposits, they should know.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.