Personal Capital, one of the largest digital wealth managers, has introduced a high-yield FDIC-insured savings account that is available to current clients and non-clients.
Personal Capital Cash has no minimum balance and an annual percentage yield (APY) of 2.30% for non-clients. Clients get 2.35%, which is 20 basis points above the 10-year Treasury yield as of the market close on Monday.
Its offering is much higher than the yield paid on most savings accounts and competitive with a growing number of banks that are also offering high-yielding savings accounts requiring no minimums or a $1 balance. These include Citibank (2.36%), HSBC (2.30%), and First National Bank of Omaha, Marcus by Goldman and Synchrony — all three yielding 2.25%, according to Bankrate.com.
Personal Capital Cash also offers FDIC insurance coverage up to $1.25 million, which is five times the usual FDIC limit for each depositor at an individual bank, because the firm is partnering with five banks for these accounts, according to a spokesperson.
UMB Institutional Banking, however, is Personal Capital’s partner in the launch of Personal Capital Cash. Other banks were not identified in a statement from the company.