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Personal Capital Cash Review: Online Cash Management Account

Personal Capital Cash offers a high APY and no fees but limited ways to move money, and no cash withdrawals or deposits.
Sept. 3, 2019
Banking, Personal Finance
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4.0 NerdWallet rating

 

Where Personal Capital Cash shines:

  • High 1.80% annual percentage yield.
  • No fees.
  • No minimum balance.
  • FDIC insured through third-party bank.
  • High mobile app ratings.

Where Personal Capital Cash falls short:

  • No branches.
  • No cash withdrawals or deposits.
  • No debit card.
  • No check writing or deposits.

The bottom line

Cash management accounts — also known as cash accounts — combine features that are commonly found in checking and savings accounts but are typically offered by non-bank financial service providers, like Personal Capital, an automated investment management service. Personal Capital Cash has the benefit of a high APY with no fees or minimum balance, but keep in mind you currently can’t withdraw or deposit cash, and there is no face-to-face customer service.

» What Is a Cash Management Account? Check out NerdWallet’s guide to this banking product. 

Checking and savings features


4.0/5.0

Upsides

High APY. Customers receive a stellar 1.80% APY on their money in a Personal Capital Cash account. The rate goes up to 2.10% APY for customers who also use Personal Capital’s advisory services.

No fees. Personal Capital Cash doesn’t charge any fees for its service, including monthly fees.

No minimum balance. Personal Capital Cash has no minimum balance requirements after the $1 it takes to open your account and start earning interest.

FDIC insurance through third-party banks. Like most cash management accounts, Personal Capital Cash uses third-party partner banks to federally insure customers’ deposits. Personal Capital sweeps its customers’ cash balances into one or more third-party banks, where those funds have Federal Deposit Insurance Corp. coverage up to $250,000 per third-party bank.

No withdrawal limits. Unlike traditional savings accounts at banks, cash management accounts aren’t subject to federal regulations that restrict the number of withdrawals a customer can make each month. Personal Capital Cash doesn’t have limits on the number of withdrawals customers can make.

Downsides

No cash withdrawals or deposits, and no check writing. Personal Capital Cash currently only supports electronic transfers to deposit into and withdraw from the account. Direct deposits and wire transfers are also supported.

No debit card. A debit card is not available with Personal Capital Cash, but the company says it’s working to make it available, along with bill pay.

No joint accounts. There are no joint account offerings, but Personal Capital says it’s also working to make this feature available.

Other things to consider

No overdraft program. If a customer tries to make a transfer that exceeds available funds, Personal Capital will decline it. This means customers avoid hefty overdraft fees, but there’s also no cushion if they come up short during a transfer.

Customer experience


4.0/5.0

Upsides

Budgeting tools and net worth tracking available. Personal Capital built its business on helping customers budget and track their net worth via its online platform, so its site and app have robust tools to help with these tasks.

High mobile app ratings. The Personal Capital app — which includes its hallmark net worth tracking service — has very high app ratings in both the Apple and Google Play app stores.

Solid website. The Personal Capital website is well-designed and easy to navigate, and prospective customers can easily find information on how to open a Personal Capital Cash account.

Downsides

No weekend human phone support. Phone support has extended weekday hours (5 a.m. to 6 p.m. PT) but is available only Monday through Friday.

No chat support. Customer support is available only via phone and email.

No branches. Personal Capital Cash is an online-only financial service, so customers don’t have access to face-to-face service.

No mobile check deposit. The only way to deposit money into your account is through electronic transfer, so if you need to make a check deposit, you’ll need to deposit it into a linked bank account and then transfer it into your Personal Capital Cash account.

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