The Truth: Wealthfront HYSA Cash Account Review 2024 | Pros, Cons 😨

[@alexisidro]

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[@cannotbeshaken7889]

I'm proud of you for explaining to people that FDIC doesn't cover everything with these Fintech companies, or Neobanks. I know what happened with Yotta is rare, but everyone should know about it, and the possibilities. Your the only one I've seen mention it, so good for you!

[@yoshimikunnakamura3319]

I use wealthfront, capital one, and fidelity and I feel good with this set up

[@thomwoodard4358]

So they say that they’re FDIC insured, but they’re not actually FDIC insured if the middle company between the bank and the FinTech company goes bankrupt, i.e. the situation that occurred with Yotta and Synergy. So here’s my main question for Wealthfront: does Wealthfront use a middleman or do they work directly with the banks? If there is a middleman then what that company’s name? Do we know if they are in good financial health?

[@alexisidro]

That’s a good question for them

[@limbogt747]

It's called green dot bank

[@lockmenorah8643]

Do you mean that due to the collapse of Yotta's middleman, users were unable to withdraw money for two months, but they didn't actually lose their money? Were they able to withdraw it after the two-month closure?

[@alexisidro]

It seems people got their money back. I saw a few reports from clients saying so.

[@alexisidro]

Not sure how long they were NOT able to access their money, but it was a problem for a bit.

[@GraysonVoisinet]

@@alexisidro in short, there could be uncommon issues people can face like locked out from their bank account, when you compare to an actual bank; but they are resolved in the end; it is not as if they were actual scammers who just ran away with people's money; that would literally be a federal crime

[@SteveSabbai]

​@@alexisidrocan you link those reports? I tried looking for that but could not find anything about it. Thanks.

[@joshuas830]

Wym wealthfront does not 😢offer high yield savings ? I looked it up it and claims it does 5.0% and fdic . Im confused.

[@alexisidro]

They offer cash accounts. It’s the same thing in their context

[@SteveSabbai]

Which HYSA do NOT have Fintechs? A collapse might be "rare" but I would rather deal directly with a bank instead of using a middleman.

[@alexisidro]

Most HYSAs are not from FINTECHs. Some that come to mind are Laurel Road, Marcus, SoFi, CIT, etc. I've made lots of reviews here! What are your savings goals?

[@GraysonVoisinet]

@@alexisidro But they have lower rates

[@Doingmybest700]

Thanks so much for this video! Yotta also claimed to be FDIC insured and look what happened there…

[@alexisidro]

Yes, it was very unfortunate for many people. Sad

[@cannotbeshaken7889]

Has everyone gotten their money back now, from Yotta?

[@Doingmybest700]

I ended up opening a HYSA account with capital one, too.

[@alexisidro]

How do you like them so far?

[@Doingmybest700]

@@alexisidro I like it so far! Just haven’t withdrawn or done anything else besides letting my money sit there atm. Probably going to open an account with ally as well as Amex too 🤣.

[@x.grover.x9786]

I feel like the middle man aspect reinfoces other options like amex agains this for secutiry. If interest rate changes, do all buisnesses tend to change thier rates on equivalent levels. I feel like its safe to asume well established buisnesses would fluctuate thier rate less than the smaller less established ones. Is this assumption valid? So buisnesses like the one in this video may end up having lower than apy than amex and others it currently beats for apy?

[@alexisidro]

I actually noticed the opposite in some instances, where Capital One, AMEX, Ally, and Discover started lowering their rates before other newer banks. It's best to just keep looking to see what is available and making sure your bank is giving you the best, and highest possible available rates (sometimes for some banks, you have to call for them to upgrade you to the new rate, kind of weird). What are you saving towards? What are your challenges I can help with?

[@michaeltaylor1572]

What’s the main bank you said you use with 5.4%

[@alexisidro]

I personally use Marcus.

[@mentertainment5063]

@@alexisidroI was on the fence between Amex hysa and Marcus hysa. I just made a wealthfront but I am afraid of the Yotta situation and want a more secure bank

[@alexisidro]

What will you do?

[@chachabooom5]

@@alexisidrothere are so many, how do you choose? I’m used to traditional brick and mortar but their rates are ridiculous.

[@alexisidro]

I suggest you download my free guide to passive income with high yield savings account. I go over everything you need to know, and it will help you find the best bank for you. It's for beginners, and the information will help you ease your anxiety (you're not alone. That's why I made the guide :)) alexisidro.com/HYSAGuide

[@redscorpion9325]

FDIC should get sued,don’t say you back these Companies and when something happens,they don’t back them up financially.People join Fintech or other Banks or Banking Partners because they’re FDIC insured

[@alexisidro]

It’s crazy! I agree, affected people should have gotten help from them.

[@cannotbeshaken7889]

FDIC doesn't say they insure these companies. They have nothing to do with it. The fault lies with these Fintech, and Neobanks like wealthfront. They are the one's misleading you. They put FDIC insured on their websites and they can get away with it because it's not entirely false. You are indeed insured, they just don't make it clear of what you're NOT insured on. Your insured if one of the banks they deal with fails. But you're not insured if something happens on their end, or with one of their middle men.

[@andresmattos7541]

You americans want to sue for everything and nothing.

[@redscorpion9325]

@@andresmattos7541If they lied to you about being FDIC Insured and they go Bankrupt and then most of your money is in their Bank or Fintec then yea you should be able to sue.People could have $50K to 1 Million in a Bank so why would they not sue if these companies don’t want to give their money back,in this case it’s justified to sue because they have People’s money and trying to run off with it

[@SteveSabbai]

After watching this video, I'm considering taking all my money out of my HYSA and putting it back into my regular Brick and Mortar bank. I don't know...

[@alexisidro]

I understand. What makes you uncomfortable?

[@SteveSabbai]

I took all my money out of my Fintech (Wealthfront) and put it in a Real Bank (HYSA). I used Wealthfront for around six months. I never had any problems with them. Adding money, withdrawing money, contacting customer service and using the website was flawless. But, the Yotta incident made me not to trust any Fintechs.

[@ia6980]

I agree

[@christianjohnson4330]

Hey Alex! I am leaning more towards the main bank that you use Marcus for a hysa, but how are you getting rates of 5.4%? Right now I only see their rates are at 4.40%. Thanks again great video!

[@alexisidro]

Marcus used to offer 1% extra APY for 3 months when you used a referral link (if you refer other people, you could take it all the way up to 15 months). Now the bonus is down to 0.25% extra. It's not as high, but it's still something. Feel free to use my link alexisidro.com/Marcus if you'd like the extra 0.25% for 3 months!

[@ia6980]

Wow, so gotta bring funds back from WF

[@averageguy1261]

Alex, thanks for the down to earth videos. The "recommend to my mom" part made me a subscriber.

[@alexisidro]

Awesome! Thank you! What did you find the most helpful?

[@averageguy1261]

@@alexisidro I've always been hesitant to do online banking, you break it down where everyone can easily understand what they're getting into.

[@cannotbeshaken7889]

@@averageguy1261 Just be careful and think about it. Wealthfront and other Fintech companies put your money into insured banks, but those banks are not responsible for keeping records on your money. So, if wealthfront or any of their intermediary companies fail, and they didn't have good record keeping, or their records were lost, etc.. Then your out of luck. Look into what just happened with Yotta. People still don't have their money back, and may never get it back. Your only FDIC insured if the problem is a bank failure.