Personal Capital Cash

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travelogue
Posts: 182
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: 483
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: 1694
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: 25
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: 550
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: 17
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: 4281
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: 272
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?

fipharm
Posts: 11
Joined: Sun Jan 27, 2019 8:54 pm

Re: Personal Capital Cash

Post by fipharm » Thu Jun 20, 2019 12:02 pm

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?

lepa71
Posts: 272
Joined: Sat Mar 05, 2016 5:12 pm

Re: Personal Capital Cash

Post by lepa71 » 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...

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whodidntante
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Joined: Thu Jan 21, 2016 11:11 pm

Re: Personal Capital Cash

Post by whodidntante » 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.

lepa71
Posts: 272
Joined: Sat Mar 05, 2016 5:12 pm

Re: Personal Capital Cash

Post by lepa71 » Thu Jun 20, 2019 12:14 pm

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
Posts: 199
Joined: Thu Jan 17, 2019 11:40 am

Re: Personal Capital Cash

Post by FederalFIRE » Thu Jun 20, 2019 4:26 pm

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
Posts: 199
Joined: Thu Jan 17, 2019 11:40 am

Re: Personal Capital Cash

Post by FederalFIRE » Thu Jun 20, 2019 4:29 pm

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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Location: Fort Lauderdale
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Re: Personal Capital Cash

Post by kguske » Sun Jun 23, 2019 6:19 am

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
Posts: 90
Joined: Wed Feb 21, 2018 1:37 pm

Re: Personal Capital Cash

Post by Jefferson » Sun Jun 23, 2019 9:17 am

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.

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