Personal Capital, Latest To Join Boom In Basic BankingPersonal Capital, Latest To Join Boom In Basic Banking

Personal Capital is the latest digital wealth manager to roll out a new “high-yield account” in the form of its Personal Capital Cash and Savings Planner. According to a prepared statement, the account will have “aggregated FDIC insurance that covers balances up to $1.25 million."

Launched in partnership with Institutional Banking at UMB Bank, the account provides 2.35% annual percentage yield for existing Personal Capital clients and 2.30% for non-clients signing up.

The “Planner” portion of the product provides a savings tool to help users in planning their retirement savings, wanting to work on an emergency fund and paying down their debt.

This is just the latest example of checking- and saving-type accounts or offerings that revolve around cash management by digital wealth managers. In May Carson Group announced it had a white-labeled high-interest cash account offering in beta from provider Galileo Processing.

Wealthfront reported in late April that it had attracted $1 billion from its customers into FDIC-insured accounts after rolling out the offering in February. Both Betterment and Robinhood launched cash accounts in December 2018. Betterment rolled out its non-FDIC insured Smart Saver accounts with its “two-way-sweep” feature and Robinhood announced its non-SIPC “Cash Management” feature for brokerage accounts (after initially announcing it as "Robinhood Checking and Savings" the week before). 

Want The Daily Brief delivered directly to your inbox? Sign up for WealthManagement.com's Morning Memo newsletter.