1. What is Wealthfront High Yield Savings?

Wealthfront's High Yield Savings Account offers competitive interest rates with daily compounding, helping your money grow faster than traditional savings accounts.

2. How Does the Calculator Work?

The calculator uses the daily compounding formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal investment ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.045 for 4.5%)
• \( t \) — Time in years

Explanation: The formula accounts for daily compounding, which means interest is calculated and added to your balance every day.

3. Importance of Daily Compounding

Details: Daily compounding means you earn interest on your interest every day, leading to faster growth compared to monthly or annual compounding.

4. Using the Calculator

Tips: Enter your initial deposit in dollars, the annual interest rate as a decimal (e.g., 0.045 for 4.5%), and the time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does Wealthfront's rate compare to traditional banks?
A: Wealthfront typically offers 10-20x higher interest rates than average bank savings accounts.

Q2: Is there a minimum balance required?
A: No minimum balance is required to earn the APY with Wealthfront.

Q3: How often is interest paid?
A: Interest is compounded daily and credited to your account monthly.

Q4: Are there any fees?
A: Wealthfront charges no account fees for their High Yield Savings Account.

Q5: Is my money safe in a Wealthfront account?
A: Funds are FDIC insured up to $5 million through partner banks.