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.
In addition to Personal Capital Cash, Personal Capital has also launched a new tool on its dashboard to help individuals boost their savings, called Savings Planner. The planner calculates, analyzes and tracks an individual’s annual savings goals for retirement and an emergency fund by taking into account everything from monthly expenses to taxable versus tax-deferred accounts.
“Too many financial companies are trying to tell Americans that saving is simple — that they can just make coffee at home instead of buying that latte,” said Personal Capital CEO Jay Shah. “But we know better … Personal Capital is creating complete, clear solutions to help people feel confident about their money decisions.”
Personal Capital manages $8.56 billion in over 52,300 discretionary accounts, according to its latest Form ADV filing with the Securities and Exchange Commission, dated April 9.
— Check out Many Investors Are Confused About Financial Advice: Personal Capital on ThinkAdvisor.