Webull Cash Management Account Review: Competitive Interest Rate, $0 Minimum Balance Requirements
- Pros and Cons
- Features
- How Webull Works
- Is Webull Trustworthy?
- Webull Cash Management Account vs. Betterment Cash Reserve Account
- Webull Cash Management Account vs. Wealthfront Cash Account
- Frequently Asked Questions
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The bottom line: The Webull Cash Management Account might be worth considering if you already invest with Webull and want to earn a high interest rate on uninvested cash. But if you'd like to open a joint account or you want to explore other options, go through our best savings accounts for more picks.
Webull Cash Management Account: Pros and Cons
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Compare Today's Savings Rates
Webull Cash Management Account: Features
Webull Cash Management Account Start banking Webull, FDIC Insured
Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star Feesno monthly service fee
Annual Percentage Yield (APY)4.10%
Minimum Deposit Amount$0
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly fees
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum balance requirements
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Unlimited withdrawals
- con icon Two crossed lines that form an 'X'. No joint accounts
- con icon Two crossed lines that form an 'X'. Can't deposit cash
- Covered by SIPC, providing protection for up to $500,000 ($250,000 limit for cash)
- Interest accrued daily, deposit the 15th of each month
- Webull is not a bank. Webull is not FDIC insured
You might like the Webull Cash Management Account if you currently invest with Webull and would like to earn a competitive interest rate on cash that isn't being invested. The Webull Cash Management Account pays 4.10% APY, which is more than the average savings account.
The account also doesn't require a minimum opening deposit and has no monthly service fee.
You can also earn an additional 1.70% APY for 30 days with a special promotion available until May 31, 2023. This offer is available for current Webull customers and new users. You'll get a 1.70% APY Booster Card when you sign up for Webull, open a cash account, activate cash management, and deposit any amount.
How Webull Works
Webull is an online investment platform that recently launched the Webull Cash Management Account. Here's how it works: You'll open a brokerage account, activate cash management, and your cash balances that aren't invested will still earn some interest.
The Webull Cash Management Account is accessible to any Webull users who have cash accounts (excluding IRA accounts) on the investment platform. If you're a New York resident who signed up for crypto trading, you won't be eligible for this account.
Since the Webull Cash Management Account isn't a bank account, your money is not FDIC insured. That said, Webull is a member of the Securities Investor Protection Corporation. SIPC insurance protects consumers if a brokerage fails. The SIPC covers up to $500,000 per account holder ($250,000 for cash).
The Webull app is rated 4.4 out of 5 stars in the Google Play Store and 4.7 stars in the Apple Store.
To contact customer support, call or send a message through the Webull app 24/7.
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Is Webull Trustworthy?
For our Webull Cash Management Account review, we've included ratings from the Better Business Bureau, which reviews how companies deal with customer complaints. Bear in mind, BBB ratings are not necessarily the be-all and end-all. To see if a company may be suitable for you, also speak with current customers or read online customer reviews.
The BBB gave Webull an F rating. On the BBB website, Webull has received over 200 complaints, it hasn't responded to 125 complaints filed, and it has 16 unresolved complaints. Government action has been also taken against the business.
According to a desist and refrain order by the California Department of Financial Protection and Innovation, the DFPI tried to reach out to Webull regarding a consumer complaint that was filed with them, but Webull didn't respond. As a result, Webull has to pay a penalty of $5,000.
In March 2023, Webull was also required to pay a fine of $3 million because the Financial Industry Regulatory Authority claimed Webull wasn't utilizing reasonable due diligence when approving customers for options trading between December 2018 and July 2021.
How Webull comparesBetterment Cash Reserve Account
Webull Cash Management Account Review vs. Betterment Cash Reserve Account Review
Betterment is an online investment platform where you can bank and invest.
You may prefer Betterment over Webull if you want to explore several different account options. Betterment has the Betterment Cash Reserve Account and Betterment Checking Account. Betterment also has joint accounts, while Webull doesn't.
The Webull Cash Management Account may appeal to you if you already invest with Webull and are eligible for the promotional rate offer. You'll be able to keep your money all in one place instead of at different investment platforms.
Webull Cash Management Account Review vs. Wealthfront Cash Account Review
Wealthfront is another investment platform. The Webull Cash Management Account and Wealthfront Cash Account both pay higher interest rates than the average savings account.
The Wealthfront Cash Account allows you to get cash at select ATMs. At Webull, you can only withdraw money through a bank or brokerage transfer.
Another thing to keep in mind is that Wealthfront also has joint accounts, but Webull doesn't.
You might find the Wealthfront Cash Account worthwhile if you already invest with them and are looking for a place to keep uninvested cash.
Webull: Frequently Asked Questions
Is the Webull Cash Management Account FDIC insured? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.No, the Webull Cash Management Account is not FDIC insured. Webull is not a bank, and the cash management account is not a bank account. However, as a brokerage firm, Webull is an SIPC member. SIPC insurance works similarly to FDIC insurance. If a brokerage shuts down, money will be returned to you. Up to $500,000 per account holder ($250,000 in cash) is protected in an account.
How can you withdraw money from a Webull Cash Management Account? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You can make withdrawals through an ACH transfer, wire transfer, or brokerage transfer via the Automated Customer Account Transfer Service (ACATS).
Sophia Acevedo, CEPF Banking Reporter Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Business Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:- Are banks open today? Here's a list of US bank holidays for 2023
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Betterment Cash Reserve Account New Customer Offer: Earn 5.50% APY when you open your first cash account with $10 deposit. Terms apply. A tooltip *Current promotional rate; annual percentage yield (variable) is 4.75% as of 7/31/23, plus a .75% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you'll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through clients’ brokerage accounts at Betterment Securities. **The national average savings account interest rate is reported by the FDIC (7/17/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. Start SavingEditorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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