Personal Capital Cash

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travelogue
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Personal Capital Cash

Post by travelogue »

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
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Re: Personal Capital Cash

Post by Gufomel »

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
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Re: Personal Capital Cash

Post by Hockey10 »

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
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Joined: Wed Jan 30, 2013 4:22 pm

Re: Personal Capital Cash

Post by deadlymonkey »

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
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Re: Personal Capital Cash

Post by MMLC3 »

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
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Re: Personal Capital Cash

Post by H-Town »

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.
Time is the ultimate currency.
wxl31
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Re: Personal Capital Cash

Post by wxl31 »

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
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Re: Personal Capital Cash

Post by LeftCoastIV »

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
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Re: Personal Capital Cash

Post by MittensMoney »

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
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Re: Personal Capital Cash

Post by isira »

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
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Re: Personal Capital Cash

Post by Tdubs »

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
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Re: Personal Capital Cash

Post by bjs2025 »

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
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Re: Personal Capital Cash

Post by MnD »

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.
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LmG7119
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Re: Personal Capital Cash

Post by LmG7119 »

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
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Re: Personal Capital Cash

Post by bmh33 »

Has anyone that is using this tried to transfer funds out of the account? If so, how long did it take?
fipharm
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Re: Personal Capital Cash

Post by fipharm »

Would anyone recommend opening one of these up? I currently use Synchrony and I never had any issues with them but Wealthfront Cash vs. Personal Capital Cash seem like good options to consider.

If we had to choose between the two options, Wealthfront Cash vs. Personal Capital Cash . . it would be Wealthfront due to the higher interest rate 2.51% vs. 2.30%. I figure they both have comparable perks (no fees, unlimited withdrawals, etc.) so you would just go with the higher interest rate.

Aside from the people saying Wealthfront and Personal Capital will continue to bother you and try to get you to use their wealth management services (just say no to them and move on?) . . . what would be the cons of moving from an HYS into a cash account?
LmG7119
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Re: Personal Capital Cash

Post by LmG7119 »

Does it just make sense to put it to Vanguard Federal Money Market Fund (VMFXX)? It yields 2.32% right now as well. I understand that Personal Capital Cash is FDIC insured but...
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whodidntante
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Re: Personal Capital Cash

Post by whodidntante »

lepa71 wrote: Thu Jun 20, 2019 12:03 pm Does it just make sense to put it to Vanguard Federal Money Market Fund (VMFXX)? It yields 2.32% right now as well. I understand that Personal Capital Cash is FDIC insured but...
Yes. Absolutely. All day.
LmG7119
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Re: Personal Capital Cash

Post by LmG7119 »

whodidntante wrote: Thu Jun 20, 2019 12:10 pm
lepa71 wrote: Thu Jun 20, 2019 12:03 pm Does it just make sense to put it to Vanguard Federal Money Market Fund (VMFXX)? It yields 2.32% right now as well. I understand that Personal Capital Cash is FDIC insured but...
Yes. Absolutely. All day.
Does it matter if it is a 6-month cash reserve? Maybe not all of it but just 80% of it. What would be pros for personal capital cash than?
FederalFIRE
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Re: Personal Capital Cash

Post by FederalFIRE »

MnD wrote: Wed Jun 12, 2019 8:23 am 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.
+1 for this. Their "Investment Checkup" feature is entirely designed to try and drive business to their services. My three-fund portfolio always comes up as having a better expected return at a lower risk than their recommended portfolio (based on their own software) but says that I should increase my allocation in alternatives. Makes no sense, but to someone who is blindly following the PC recommendation without understanding why could easily be drawn to the PC advisory services for wrong or unnecessary reasons.

All that said, I love PC for keeping track of everything in one spot and getting quickly available updates of Net Worth and all my accounts on demand and for free. But I plan to keep my relationship with them free. I'll look at other services for high yield savings if I'm in the market.
FederalFIRE
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Re: Personal Capital Cash

Post by FederalFIRE »

whodidntante wrote: Thu Jun 20, 2019 12:10 pm
lepa71 wrote: Thu Jun 20, 2019 12:03 pm Does it just make sense to put it to Vanguard Federal Money Market Fund (VMFXX)? It yields 2.32% right now as well. I understand that Personal Capital Cash is FDIC insured but...
Yes. Absolutely. All day.
Yup. This is where I am with cash position. The FDIC insurance is of very little value to me in the broader context of my total portfolio value vs. cash.

That said, in retirement I could see the appeal of one of these "virtual" high yield accounts that can get much higher FDIC insurance. The ability to have $1M cash at 2.3% with FDIC coverage at a single point of entry would be appealing as part of a retirement withdrawal strategy.
kguske
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Re: Personal Capital Cash

Post by kguske »

SoFi Money and SoFi Relay might be good alternatives to PC Cash and Financial Tools, respectively. SoFi Money pays less interest (2.25%), but has checking account features (free bill pay, even free paper checks) - so no need to move money around like Wealthfront and PC Cash.

I haven't evaluated Relay yet - PC Financial Tools sets a high bar, but it looks like they might have some new competition. Yes, SoFI also offers commission-free trades and loans, so you'll still get a sales pitch, but for different products.
Jefferson
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Re: Personal Capital Cash

Post by Jefferson »

Have you tried asking your regular bank for a higher rate? I was getting 0.10% at local bank. I told them I was going to move $200K to Ally. The next day, local bank moved my rate to 2.05%. (Permanent rate; not one of those six-month intro rate deals.)

It’s worth asking.
bloom2708
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Re: Personal Capital Cash

Post by bloom2708 »

I note as of 7/20/2022 that Personal Capital Cash (FDIC Insured Savings account) is paying 1.4%.

Marcus (by Goldman) is 1.2%, so this is a decent rate. At one point I had my Emergency Fund at Personal Capital Cash, but they dropped the rate to near zero.
deltaneutral83
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Re: Personal Capital Cash

Post by deltaneutral83 »

bloom2708 wrote: Wed Jul 20, 2022 11:42 am I note as of 7/20/2022 that Personal Capital Cash (FDIC Insured Savings account) is paying 1.4%.

Marcus (by Goldman) is 1.2%, so this is a decent rate. At one point I had my Emergency Fund at Personal Capital Cash, but they dropped the rate to near zero.
How long does it take to get it back from PC? couple business days?
JayDee37
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Re: Personal Capital Cash

Post by JayDee37 »

Ally is currently at 1.25%.
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whodidntante
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Re: Personal Capital Cash

Post by whodidntante »

Treasury bills are trading at over 3% YTM right now and the duration risk is about as minimal as it can be. Plus those are exempt from state taxes, which is useful for those of us who live in a state where "the People's Republic of" is a suitable prefix.
LmG7119
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Re: Personal Capital Cash

Post by LmG7119 »

whodidntante wrote: Wed Jul 20, 2022 11:57 am Treasury bills are trading at over 3% YTM right now and the duration risk is about as minimal as it can be. Plus those are exempt from state taxes, which is useful for those of us who live in a state where "the People's Republic of" is a suitable prefix.
Really?!?!?!
bloom2708
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Re: Personal Capital Cash

Post by bloom2708 »

deltaneutral83 wrote: Wed Jul 20, 2022 11:53 am
bloom2708 wrote: Wed Jul 20, 2022 11:42 am I note as of 7/20/2022 that Personal Capital Cash (FDIC Insured Savings account) is paying 1.4%.

Marcus (by Goldman) is 1.2%, so this is a decent rate. At one point I had my Emergency Fund at Personal Capital Cash, but they dropped the rate to near zero.
How long does it take to get it back from PC? couple business days?
Yes 1-2 days. You initiate the transfer from your Personal Capital dashboard.
Zeno
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Re: Personal Capital Cash

Post by Zeno »

bloom2708 wrote: Wed Jul 20, 2022 1:00 pm
deltaneutral83 wrote: Wed Jul 20, 2022 11:53 am
bloom2708 wrote: Wed Jul 20, 2022 11:42 am I note as of 7/20/2022 that Personal Capital Cash (FDIC Insured Savings account) is paying 1.4%.

Marcus (by Goldman) is 1.2%, so this is a decent rate. At one point I had my Emergency Fund at Personal Capital Cash, but they dropped the rate to near zero.
How long does it take to get it back from PC? couple business days?
Yes 1-2 days. You initiate the transfer from your Personal Capital dashboard.
This is all very informative, thank you.
Last edited by Zeno on Thu Jul 21, 2022 8:54 pm, edited 1 time in total.
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whodidntante
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Re: Personal Capital Cash

Post by whodidntante »

lepa71 wrote: Wed Jul 20, 2022 12:57 pm
whodidntante wrote: Wed Jul 20, 2022 11:57 am Treasury bills are trading at over 3% YTM right now and the duration risk is about as minimal as it can be. Plus those are exempt from state taxes, which is useful for those of us who live in a state where "the People's Republic of" is a suitable prefix.
Really?!?!?!
Yep. Taxes are my largest expense by far, so I don’t like to pay more than I need to.
LmG7119
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Re: Personal Capital Cash

Post by LmG7119 »

do you like to drive on roads and bridges? I bet you don't like to pay for construction of those either.
nobody wants to pay more than they need to.
bloom2708
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Re: Personal Capital Cash

Post by bloom2708 »

Zeno wrote: Wed Jul 20, 2022 1:20 pm This is all very informative, thank you. I have just now explored the "Open Cash Account" link on the PC App. I also read the disclosures.

I'm exceedingly comfortable with online banking and aggregators such as PC. I love PC, and am still amazed it is free. It is a powerful tool.

All this said, I'm still not entirely comfortable sending them cash. The disclosures confirm they are merely a pass-through entity and it isn't clear if there is complete visibility on where the cash ends up. It clearly ends up at a bank. Is all of that transparent? What happens if PC goes out of business tomorrow and one's cash is sitting in a bank, the identity of which may or may not be disclosed? Could I go directly to that bank and withdraw the cash? Do I have an account at the recipient bank?
All good questions. I guess any online entity could go out of business. If Lehman Brothers can, Goldman Sachs probably can.

I had cash at PC Cash for about 1 year before rates went to zero. I didn't sense anymore risk than with Ally or Capital One savings accounts.

1.4% isn't setting records, but my local bank is .01% currently. They won't raise rates because they don't have to. Stinks.
Zeno
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Re: Personal Capital Cash

Post by Zeno »

bloom2708 wrote: Wed Jul 20, 2022 1:45 pm I had cash at PC Cash for about 1 year before rates went to zero. I didn't sense anymore risk than with Ally or Capital One savings accounts.

1.4% isn't setting records, but my local bank is .01% currently. They won't raise rates because they don't have to. Stinks.
Thank you very much.
deltaneutral83
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Re: Personal Capital Cash

Post by deltaneutral83 »

bloom2708 wrote: Wed Jul 20, 2022 1:45 pm
Zeno wrote: Wed Jul 20, 2022 1:20 pm This is all very informative, thank you. I have just now explored the "Open Cash Account" link on the PC App. I also read the disclosures.

I'm exceedingly comfortable with online banking and aggregators such as PC. I love PC, and am still amazed it is free. It is a powerful tool.

All this said, I'm still not entirely comfortable sending them cash. The disclosures confirm they are merely a pass-through entity and it isn't clear if there is complete visibility on where the cash ends up. It clearly ends up at a bank. Is all of that transparent? What happens if PC goes out of business tomorrow and one's cash is sitting in a bank, the identity of which may or may not be disclosed? Could I go directly to that bank and withdraw the cash? Do I have an account at the recipient bank?
All good questions. I guess any online entity could go out of business. If Lehman Brothers can, Goldman Sachs probably can.

I had cash at PC Cash for about 1 year before rates went to zero. I didn't sense anymore risk than with Ally or Capital One savings accounts.

1.4% isn't setting records, but my local bank is .01% currently. They won't raise rates because they don't have to. Stinks.
I also use PC, can you go from outside MM to PC cash, or does it have to be from checking account to PC cash?
bloom2708
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Re: Personal Capital Cash

Post by bloom2708 »

deltaneutral83 wrote: Wed Jul 20, 2022 8:21 pm I also use PC, can you go from outside MM to PC cash, or does it have to be from checking account to PC cash?
I have my local bank linked in Personal Capital. When I go to Transfer it recognizes my Checking Account.

Like most, it appears to use checking accounts for transfers. Perhaps because some savings account limit the number of transfers.

So, you would likely have to transfer from Saving to Checking and then to Personal Capital Cash.

On a side note, my routing number for PC Cash goes to UMB, NA from Kansas City. Then it lists 4-5 Program Banks who must pay the interest.
bloom2708
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Re: Personal Capital Cash

Post by bloom2708 »

Personal Capital Cash rate is 2.02% as of 8/9/2022.
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