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That's pretty standard for a lot of these new-tech-wave style brokerage psuedo-banks. Betterment, Wealthfront, etc which also have a form of savings accounts (d

That's pretty standard for a lot of these new-tech-wave style brokerage psuedo-banks. Betterment, Wealthfront, etc which also have a form of savings accounts (don't believe they offer checking accounts like rh is doing here) are SIPC only as well.

elithrar 8y ago
Wealthfront doesn’t offer a “savings” account. Betterment has their Smart Saver[1], which offers a 2.09% rate and attempts to position it as vastly better than FDIC-insured accounts by comparing to some terrible “national average” instead of the ~2% rates that Ally, Capital One & others offer. It’s still an investment account with the risk, tax implications & liquidity challenges that such an account has. Their misleading marketing around this is driving me away from them. [1]: https://www.google.com/amp/s/www.betterment.com/resources/short-term-investing-savings-account-alternative/amp/ https://www.google.com/amp/s/www.betterment.com/resources/sh...
- SnowingXIV 8y ago
  Yeah, most of these firms use pretty bad metric comparisons for their marketing efforts to inflate how much better it is when in reality it's par for the course with Ally and others. Now that doesn't mean it's bad. Having used it there aren't that many challenges (I'd argue less because information is clear and the interface is nice to work with) and it's all bonds and the risk is low. Unless you have an argument bonds are risky compared to cash sitting against inflation. It's still all SIPC insured. > Smart Saver’s built-in portfolio is the Betterment Portfolio Strategy’s allocation at 0% stocks, 100% bonds. The one big downside could be is if you need cash _now_ it can take a few days (5?) before being able to use it.
- eeeeeeeeeeeee 8y ago
  Yep, I use Bettement for index funds and their “smart saver” idea is absolute trash. It’s a shady marketing term that is likely going to hurt a lot of people eventually. I don’t even really understand the appeal when most high yield savings accounts give you 2% now (I use Amex FSB).

elithrar 8y ago

Wealthfront doesn’t offer a “savings” account. Betterment has their Smart Saver[1], which offers a 2.09% rate and attempts to position it as vastly better than FDIC-insured accounts by comparing to some terrible “national average” instead of the ~2% rates that Ally, Capital One & others offer. It’s still an investment account with the risk, tax implications & liquidity challenges that such an account has. Their misleading marketing around this is driving me away from them. [1]: https://www.google.com/amp/s/www.betterment.com/resources/short-term-investing-savings-account-alternative/amp/ https://www.google.com/amp/s/www.betterment.com/resources/sh...

SnowingXIV 8y ago
Yeah, most of these firms use pretty bad metric comparisons for their marketing efforts to inflate how much better it is when in reality it's par for the course with Ally and others. Now that doesn't mean it's bad. Having used it there aren't that many challenges (I'd argue less because information is clear and the interface is nice to work with) and it's all bonds and the risk is low. Unless you have an argument bonds are risky compared to cash sitting against inflation. It's still all SIPC insured. > Smart Saver’s built-in portfolio is the Betterment Portfolio Strategy’s allocation at 0% stocks, 100% bonds. The one big downside could be is if you need cash _now_ it can take a few days (5?) before being able to use it.
eeeeeeeeeeeee 8y ago
Yep, I use Bettement for index funds and their “smart saver” idea is absolute trash. It’s a shady marketing term that is likely going to hurt a lot of people eventually. I don’t even really understand the appeal when most high yield savings accounts give you 2% now (I use Amex FSB).