Personal Capital Cash

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travelogue
Posts: 174
Joined: Sat Aug 12, 2017 4:29 pm

Personal Capital Cash

Post by travelogue » Tue Jun 11, 2019 7:48 am

Looks like Personal Capital has jumped into the cash management pool and now offers a 2.3% APY FDIC insured account.

https://www.personalcapital.com/cash

Of course Wealthfront is already at 2.51%. https://www.wealthfront.com/cash

Gufomel
Posts: 326
Joined: Sat Feb 14, 2015 9:52 pm

Re: Personal Capital Cash

Post by Gufomel » Tue Jun 11, 2019 7:55 am

Maybe now their software will stop telling me that I have too much of my portfolio allocated to cash. All I have in cash is a 6 month emergency fund!

Hockey10
Posts: 477
Joined: Wed Aug 24, 2016 12:20 pm
Location: Philadelphia suburbs

Re: Personal Capital Cash

Post by Hockey10 » Tue Jun 11, 2019 8:14 am

Gufomel wrote:
Tue Jun 11, 2019 7:55 am
Maybe now their software will stop telling me that I have too much of my portfolio allocated to cash. All I have in cash is a 6 month emergency fund!
They always tell me the same thing no matter how much cash I have.

deadlymonkey
Posts: 61
Joined: Wed Jan 30, 2013 5:22 pm

Re: Personal Capital Cash

Post by deadlymonkey » Tue Jun 11, 2019 9:12 am

I like personal capital for their free serivce. I think I do actually have too much cash sitting in savings account getting .1% and have been indecisive about opening a HYSA away from my normal bank. Anyone think this is worth it, pros/cons vs Ally which seems to be the most recommended?

MMLC3
Posts: 46
Joined: Sat Jul 08, 2017 6:49 pm

Re: Personal Capital Cash

Post by MMLC3 » Tue Jun 11, 2019 11:14 am

Hockey10 wrote:
Tue Jun 11, 2019 8:14 am
Gufomel wrote:
Tue Jun 11, 2019 7:55 am
Maybe now their software will stop telling me that I have too much of my portfolio allocated to cash. All I have in cash is a 6 month emergency fund!
They always tell me the same thing no matter how much cash I have.
Same here. Do you guys keep 6 month emergency funds in an investing account? I have it in Ally which gives about 2%. Just curious if there is a better way to do this.

H-Town
Posts: 1692
Joined: Sun Feb 26, 2017 2:08 pm

Re: Personal Capital Cash

Post by H-Town » Tue Jun 11, 2019 11:18 am

travelogue wrote:
Tue Jun 11, 2019 7:48 am
Looks like Personal Capital has jumped into the cash management pool and now offers a 2.3% APY FDIC insured account.

https://www.personalcapital.com/cash

Of course Wealthfront is already at 2.51%. https://www.wealthfront.com/cash
Wealthfront looks like the best deal out there. It's FDIC insured and does not limit withdrawal like saving account does. Aside from the hassle of creating new Wealthfront cash account and moving money there, I don't see a downside to it yet. I saw on their website that they are exploring new features such as ATM, check, bill pay, etc.

wxl31
Posts: 50
Joined: Sat Jun 15, 2013 6:52 am

Re: Personal Capital Cash

Post by wxl31 » Tue Jun 11, 2019 2:14 pm

MMLC3 wrote:
Tue Jun 11, 2019 11:14 am
Same here. Do you guys keep 6 month emergency funds in an investing account? I have it in Ally which gives about 2%. Just curious if there is a better way to do this.
I keep my true emergency cash at Ally. Although these rates may be tempting (2.51% Wealthfront vs. 2.2% Ally), the fact they do not come with debit cards or free ATM withdrawals make them suboptimal for me as a true emergency source of cash.

This is tempting however for an "emergency" fund such as yours (not truly an emergency in the sense that if it takes 3-5 days to physically access the cash, it won't make a difference).

LeftCoastIV
Posts: 20
Joined: Wed May 01, 2019 7:19 pm

Re: Personal Capital Cash

Post by LeftCoastIV » Tue Jun 11, 2019 2:21 pm

H-Town wrote:
Tue Jun 11, 2019 11:18 am
travelogue wrote:
Tue Jun 11, 2019 7:48 am
Looks like Personal Capital has jumped into the cash management pool and now offers a 2.3% APY FDIC insured account.

https://www.personalcapital.com/cash

Of course Wealthfront is already at 2.51%. https://www.wealthfront.com/cash
Wealthfront looks like the best deal out there. It's FDIC insured and does not limit withdrawal like saving account does. Aside from the hassle of creating new Wealthfront cash account and moving money there, I don't see a downside to it yet. I saw on their website that they are exploring new features such as ATM, check, bill pay, etc.
Does it make anyone else nervous that Wealthfront is not actually a bank, but rather shuttles your money into other FDIC institutions? Presumably they are losing money by paying the customer 2.51%, and then turning around and investing that money with another FDIC institution paying less.

https://www.bankrate.com/banking/wealth ... h-account/

"Importantly, Wealthfront isn’t offering a basic savings account — it is not a bank. Rather, Wealthfront is offering a cash management account, which sweeps your deposits into FDIC member institutions. But again, the Wealthfront Cash Account is a fully insured place to park your money. Other fintech firms, like Aspiration, use this model, too."

MittensMoney
Posts: 160
Joined: Mon Dec 07, 2015 10:59 pm

Re: Personal Capital Cash

Post by MittensMoney » Tue Jun 11, 2019 3:13 pm

I moved $5,000 into it, as an emergency emergency fund. Been wanting to move away from Wells Fargo anyway and honestly the set-up and transfer for this Cash account was incredibly simple. Debit card would be a useful addition in the future but considering this money has no particular purpose I don't care at the moment.

isira
Posts: 10
Joined: Fri Nov 16, 2018 10:15 pm

Re: Personal Capital Cash

Post by isira » Tue Jun 11, 2019 11:16 pm

LeftCoastIV wrote:
Tue Jun 11, 2019 2:21 pm
Does it make anyone else nervous that Wealthfront is not actually a bank, but rather shuttles your money into other FDIC institutions? Presumably they are losing money by paying the customer 2.51%, and then turning around and investing that money with another FDIC institution paying less.

https://www.bankrate.com/banking/wealth ... h-account/

"Importantly, Wealthfront isn’t offering a basic savings account — it is not a bank. Rather, Wealthfront is offering a cash management account, which sweeps your deposits into FDIC member institutions. But again, the Wealthfront Cash Account is a fully insured place to park your money. Other fintech firms, like Aspiration, use this model, too."
Many major brokerages that offer cash management also use this model of partnering with several banks, such as Fidelity.

Tdubs
Posts: 534
Joined: Tue Apr 24, 2018 7:50 pm

Re: Personal Capital Cash

Post by Tdubs » Tue Jun 11, 2019 11:36 pm

deadlymonkey wrote:
Tue Jun 11, 2019 9:12 am
I like personal capital for their free serivce. I think I do actually have too much cash sitting in savings account getting .1% and have been indecisive about opening a HYSA away from my normal bank. Anyone think this is worth it, pros/cons vs Ally which seems to be the most recommended?
Ally has a checking account, which is why I stick with it. So does Redneck Bank with better rates but more rule and account limits. Personal Capital doesn't move the needle enough.

bjs2025
Posts: 16
Joined: Tue May 28, 2019 8:17 am

Re: Personal Capital Cash

Post by bjs2025 » Wed Jun 12, 2019 8:07 am

MMLC3 wrote:
Tue Jun 11, 2019 11:14 am
Hockey10 wrote:
Tue Jun 11, 2019 8:14 am
Gufomel wrote:
Tue Jun 11, 2019 7:55 am
Maybe now their software will stop telling me that I have too much of my portfolio allocated to cash. All I have in cash is a 6 month emergency fund!
They always tell me the same thing no matter how much cash I have.
Same here. Do you guys keep 6 month emergency funds in an investing account? I have it in Ally which gives about 2%. Just curious if there is a better way to do this.
I have my emergency fund in my personal credit union making pretty much zero return. Is Ally the consensus "best" option to open an online savings and let it sit? And also liquid?

MnD
Posts: 4273
Joined: Mon Jan 14, 2008 12:41 pm

Re: Personal Capital Cash

Post by MnD » Wed Jun 12, 2019 8:23 am

My prediction is once they have your cash and all your contact information, they will market the heck out of you (phone/email/on-screen) to "put your cash to work" in their investment advisory service at 0.79% of assets management fee. Note that they pay a bit more on cash through this service for their advisory clients. No different than how their "free" portfolio aggregator software is a lead generator/marketing device for their advisory service. I like PC but you have to be good at saying no both externally to their marketing attempts and internally through having confidence in your ability to manage your own investments.

None of these external account cash offers do a thing for me because I have adopted a simplification model and can do as well or better long-term managing my cash in my primary investment accounts. Any chance I have I get rid of financial accounts, especially far-flung single purpose ones the better.

lepa71
Posts: 270
Joined: Sat Mar 05, 2016 5:12 pm

Re: Personal Capital Cash

Post by lepa71 » Thu Jun 13, 2019 9:02 pm

MnD wrote:
Wed Jun 12, 2019 8:23 am
My prediction is once they have your cash and all your contact information, they will market the heck out of you (phone/email/on-screen) to "put your cash to work" in their investment advisory service at 0.79% of assets management fee. Note that they pay a bit more on cash through this service for their advisory clients. No different than how their "free" portfolio aggregator software is a lead generator/marketing device for their advisory service. I like PC but you have to be good at saying no both externally to their marketing attempts and internally through having confidence in your ability to manage your own investments.

None of these external account cash offers do a thing for me because I have adopted a simplification model and can do as well or better long-term managing my cash in my primary investment accounts. Any chance I have I get rid of financial accounts, especially far-flung single purpose ones the better.
I think you are putting too much into it. Some banks pay 0.1% so it makes sense for somebody to at least try to get more from emergency funds.
As for PC bugging you, just tell them you don't want it. I haven't gotten a call from them in a couple of years now. PC cash is also FDIC insured and your money market is not.

bmh33
Posts: 8
Joined: Sun Feb 05, 2017 1:24 pm

Re: Personal Capital Cash

Post by bmh33 » Fri Jun 14, 2019 7:36 am

Has anyone that is using this tried to transfer funds out of the account? If so, how long did it take?

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