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How Wealthfront’s new high-yield savings account works

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It took me longer in adulthood than I’d like to admit to finally build a habit of saving money, but once I did, it stuck. While I’d love to tell you that I tracked every last penny I spent, the truth of how I boosted my savings is much simpler: automatic deposits, and high interest rates.

I opened a savings account with an online bank that offers high interest rates and no fees, and I set up automatic deposits into that account from my paycheck. This means the money I intend to save never even makes it to my checking account, making it impossible for me to spend it impulsively.

My savings account also has a 2.20% interest rate, far higher than the 0.01% rate my old bank offered. At my old bank, my monthly deposits from interest were pennies. With my new high-yield savings account, I get upward of $30 every month. Sure, I’m not going to retire early on those returns, but getting a bonus each month for growing my savings encourages me to keep going.

Thanks to the popularity of online banks like Marcus and Ally and high-yield savings accounts, new options are cropping up everywhere, and competition is driving rates up and pushing fees down. Wealthfront, one of the most popular robo-advisors — online applications that automate investing to make it easy and more accessible — is the latest company to jump on the high-yield-savings bandwagon.

While it’s not called it a high-yield savings account, Wealthfront’s new Cash Account is pretty much identical to its competitors in that arena — and it might be leading the pack in helping you make the most of your money.

How does Wealthfront’s Cash Account work?

The name Cash Account might be confusing to some, but this is essentially a high-yield savings account. That means you can transfer money into and out of the account for free whenever you want, and you’ll get some of the highest rates available for savings accounts, which can make a difference when you’re trying to build up your savings.

You won’t have to pay any fees with this account either, regardless of your balance, and you need to deposit only $1 to get started.

I’m a big advocate of high-yield savings accounts. Three months ago, I switched from a traditional bank to a high-yield savings account with a popular online bank, and I’ve already made $70 in interest. Seeing that money deposited in my account feels like receiving a reward. And building in rewards for saving money can rewire your brain to build new savings habits.

Wealthfront describes its vision for the account as being “self-driving money,” which is just a fun way of saying it will help you automate your finances.

Read more: Most traditional investment advice fails to take women’s pay gaps and longer lifespans into account — Ellevest is changing that

Lots of companies doing this are relatively new but wildly successful in the financial technology, or fintech, industry. New online banks offer fee-free checking and savings accounts that can be set up in minutes and even be configured to split direct deposits from your employer among various accounts. Mobile banking makes it easy to automate bill payments and paying off debt. And robo-advisors like Wealthfront even automate your investments for you.

This self-driving-money revolution is essentially taking what wealthy folks have always had in the form of spendy financial planners — the ability to “set it and forget it” with their money and still experience good returns — and making that available to the masses.

Wealthfront says the Cash Account is now open to current Wealthfront investing members as well as new Wealthfront clients.

The best features of Wealthfront’s Cash Account

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  • 2.32% annual percentage yield (as of August 29)
  • No fees
  • $1 minimum opening deposit
  • FDIC-insured up to $1 million

This account is fee-free, which is a must, as monthly service fees — even when you can waive them by maintaining a minimum daily balance — can end up eating into your savings and canceling out any interest you earn. It’s suitable for both seasoned savers and folks who are just getting started, since you have to maintain a minimum balance of only $1 to open an account and earn interest.

Wealthfront

Finally, holders of the Cash Account are insured by the FDIC for up to $1 million, which is significantly higher than the $250,000 limit available at traditional banks. Wealthfront’s achieves this by spreading cash deposits across four different banks. If you already have a savings account at one of those banks, you won’t qualify for more than $250,000 in total FDIC insurance from that particular bank.

Biggest flaws

Wealthfront isn’t your traditional brick-and-mortar bank, but an online-only investment service that is expanding into new services with the Cash Account. You don’t have to worry about your money — online banks have been around for a while now, and as long as they’re FDIC-insured, they’re safe. But people who prefer to do their banking in person or aren’t as comfortable with online banking might prefer to bank elsewhere.

Some savings accounts come with an ATM card so you can easily access your funds, like in case of an emergency. Wealthfront’s Cash Account does not, and since it doesn’t offer checking-account options, the only way to withdraw your money is by transferring it to an outside bank account, meaning it would be about one to three days before you receive your money, or even longer if you’re transferring the funds to a bank account that hasn’t been verified and linked to your Cash Account.

I like having a savings account that doesn’t offer immediate access to my funds, as it discourages me from dipping into my savings for unnecessary purchases. If I ever need money for an emergency, I can always use my credit card. If you’re worried about not having quick access to cash in an emergency, you could always keep a small portion of your savings in an account linked to your checking account.

The best way to use Wealthfront’s Cash Account

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Use Wealthfront’s Cash Account for:

  • Your emergency savings fund
  • Short-term savings goals
  • Money you don’t need to access regularly

Don’t use Wealthfront’s Cash Account for:

  • Your retirement fund
  • Long-term savings goals
  • Money you need to access regularly

Like other high-yield savings accounts, Wealthfront’s Cash Account offers the best returns you can get on money you can access easily. It’s also a low-risk place to park your cash.

This makes it a great option for your short-term savings goals and emergency fund. I like to use savings accounts for money I might need to access in the next five years.

For longer-term savings goals, I prefer options with higher returns. Certificates of deposit lock up your money for a specified period (usually one to six years) but have higher interest rates. As for your retirement savings, even the best high-yield savings accounts won’t come close to competing with the average returns from a long-term investment strategy or a tax-advantaged retirement account like an IRA or a 401(k).

Finally, you don’t want to keep money you plan to use regularly in a savings account — keep that in your checking account. Not only do checking accounts offer easier access to your money, but most savings accounts allow only six easy withdrawals a month before you start racking up fees.

Recap

Wealthfront is shaping up to be one of the best options for your savings with its new Cash Account. It offers one of the highest interest rates, with no fees and with a minimum-balance requirement that anyone can maintain.

Given that switching my bank accounts helped me drastically improve my savings habits, I’d definitely recommend high-yield savings accounts, whether with Wealthfront or another low-fee online bank. By the end of this year, I’ll have earned enough interest to cover a flight to Europe, which makes cutting back on shopping to boost my savings a lot more rewarding.

Learn more and open a Wealthfront Cash Account here »



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Why Facebook created an AI bot that can beat humans at Hanabi

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  • The impact of artificial intelligence on the workforce is a hotly debated subject. In the world of gaming, however, AI is already replacing humans.
  • Facebook AI researchers say they built a bot that can exceed human performance in Hanabi, a cooperative game that requires players to interpret the actions and intentions of other players. 
  • The achievement signals a jump in the capability of the technology to replicate the cognitive skills of humans, as opposed to the method of training the models through rewards and punishments that was used for other models. 
  • Click here for more BI Prime stories.

Opinions are split on the magnitude of the impact that artificial intelligence will have on the workforce. In the gaming world, however, it’s already displacing top human players.

Last month, Lee Se-dol — one of the top South Korean players in Go, a complex Chinese board game that dates back 2,500 years — announced he would retire because it became impossible to beat AI-powered bots. This comes after Se-dol lost a series of matches in 2016 to a bot developed by Google-owned AlphaGo.

Now, Hanabi may be next. Facebook researchers have built a bot they say can outperform the most skilled players at the cooperative card game that requires individuals to play off the hands of other participants because they are unable to view their own cards.  

While other models have exceeded at games like Go, chess, and poker, researchers were able to scale those projects through a technique known as “reinforcement learning,” a process that uses a series of rewards and punishments to train behavior — similar to how one might approach raising a puppy.

Project leads at the social media giant’s research lab say their latest bot signals a significant improvement because it can replicate cognitive skills to put itself in the perspective of other players in the game, a trait known as “theory of mind.”

“These techniques that we are developing that can cope with things like theory of mind will play an important part as we extend to other domains like natural language processing,” AI researcher Noam Brown told Business Insider.

Employing AI to cooperate, instead of compete, against humans

Facebook AI Research is a group of about 300 employees that is wholly focused on academic studies into the technology. While some of the projects might dovetail off of Facebook’s AI goals, Brown and fellow researcher Adam Lerer say they independently choose what problems to tackle.

The group aims to answer “long-term research questions that we think of as barriers to the advancement of artificial intelligence,” said Lerer.

“You can’t always predict what is going to be the next big thing, so you have to give the freedom to the researchers … even if there’s not a five-year plan for turning this into a product” that can be monetized, Brown added.

Hanabi posed a unique challenge because unlike chess, for example, the bot is not going strictly head-to-head against a human. The nature of the game requires players to cooperate with other participants and interpret their intentions based on gameplay to win.

A player is unable to view their hand — just the hands of the other participants — and only narrow hints are provided throughout gameplay. So one player may seek to gain an advantage by suggesting one hidden card is a certain color because he or she wants that color played next. 

Hanabi was proposed as a key challenge for AI by researchers at Google’s DeepMind for that reason. 

The model had to reason “about the intent and the beliefs that other people have that lead them to take the actions that they do.” Lerer said. The team had to build a “conversational agent that can reason about what a person is saying without having to explicitly tell them everything.”

The project is so promising because it signals that AI could eventually be able to cooperate alongside humans to tackle complex challenge, as opposed to just replacing them in tasks like monitoring shelves in Walmart for restocking.



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How China spooks Uighurs without them even entering the country

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  • China is waging a widespread, coordinated mass crackdown on its Uighur Muslim minority.
  • Though the brutal campaign is most active in the western Chinese region of Xinjiang, the Uighurs’ homeland, many Uighurs abroad say they have also been targeted by Chinese agents.
  • Members of the Uighur diaspora described receiving mysterious automated calls, eerie Facebook comments, and being threatened by Mandarin Chinese speakers in real life.
  • Uighurs abroad have also discovered their relatives in Xinjiang vanished by Chinese authorities days after they spoke out for the Uighurs.
  • Visit Business Insider’s homepage for more stories.

China’s unprecedented oppression of Uighur Muslims goes beyond the borders of Xinjiang, the western Chinese region where most of the ethnic minority live, former residents told Business Insider.

Under President Xi Jinping, China is waging a widespread counterterrorism campaign on Xinjiang, also known to Uighurs as East Turkestan. It is a paranoid move in response to a spate of ethnic riots between Uighurs and Han Chinese, the dominant ethnic group in the country, ten years ago.

The Communist Party sees Uighurs’ religion — Islam — as a threat, and often conflates it with religious extremism.

For this reason, China apparently feels the need to control the Uighur diaspora outside the country in case they return home and carry out attacks.

Xinjiang police streets

Police patrol on a scooter as an ethnic Uighur boy stands in his doorway in the old town of Kashgar, Xinjiang, in June 2017.
Kevin Frayer/Getty Images


Leaked classified documents, published by the International Consortium of Investigative Journalists last month, showed a concerted effort by regional officials to keep a close eye on Uighurs with foreign citizenship, wherever they are.

“For those still outside the country for whom suspected terrorism cannot be ruled out, the border control reading will be carried out by hand to ensure that they are arrested the moment they cross the border,” one government bulletin said.

“For those … whom suspected terrorism cannot be ruled out, they should first be placed into concentrated education and training for examination,” it added, referring to tightly-secured detention camps in the region, where former inmates say they are physically and psychologically tortured.

A sample of classified Chinese government documents leaked to a consortium of news organizations, is displayed for a picture in New York, Friday, Nov. 22, 2019. Beijing has detained more than a million Uighurs, ethnic Kazakhs and other Muslim minorities for what it calls voluntary job training. The confidential documents lay out the Chinese government's deliberate strategy to lock up ethnic minorities to rewire their thoughts and even the language they speak. (AP Photo/Richard Drew)

Copies of Chinese government documents that were leaked to a the International Consortium of Investigative Journalists displayed in November 2019.
Associated Press


‘Family and friends suffer the consequences’

Several members of the Uighur diaspora told Business Insider they’ve also been spooked by China without even having to step foot in the country.

Rushan Abbas, a Uighur activist living in Herndon, Virginia, discovered last September that her sister had been disappeared by Xinjiang authorities six days after she spoke out against China’s human rights record. She still has no idea of her whereabouts.

“The Chinese government is basically holding her hostage for my speaking out about the horrific blatant human rights abuses of the Chinese government,” Abbas told Business Insider last month.

“My sister’s story is not unique. China harasses Uighurs in the diaspora’s relatives back home, presenting them with heartbreaking choice: Keep silent about the horrific violations of human rights, or let your family and friends suffer the consequences for your choice for speaking out,” she said.

“I am an example of that.”

bahram sintash father qurban mamut xinjiang uighur

Bahram Sintash (right) and his father, Qurban Mamut, during Mamut’s February 2017 visit to Washington, DC.
Courtesy of Bahram Sintash


An entire business gone

Abbas is not the only foreign Uighur who has been punished in Xinjiang for their actions outside the region.

Bahram Sintash, a Uighur-American living in Chantilly, Virginia, has been campaigning for his father’s release from the Xinjiang camps since October 2018. He has called on the Chinese government to reveal the whereabouts of his father, a retired magazine editor, through social media, protests, and speaking to journalists.

Sintash has been living in the US since 2008, but continued to visit his family in Xinjiang until 2015, when his Chinese visa was inexplicably revoked. That same year, he had opened a company in Urumqi, Xinjiang’s capital city, to provide fitness supplements and workout plans to Uighurs in the region.

Sintash requested anonymity for his company to protect its former employees. But he said the business flourished, and had earned close to a million dollars.

That success came to an end in October 2018 — exactly two days after Sintash spoke to Radio Free Asia about his father’s disappearance for the first time.

bahram sintash father qurban mamut

Sintash’s father Qurban Mamut in Washington, DC, during a February 2017 visit.
Courtesy of Bahram Sintash


Multiple police officers went to the company’s office in Urumqi, took photos of every corner of the office, and told employees to leave as soon as possible, Sintash told Business Insider.

Shortly after the raid, police officers further questioned his colleagues, shut down his office, storage warehouse, and corporate social media accounts, he said.

“The police warned my partners to stop communicating with me and told them I was the enemy of the country living overseas,” Sintash said.

“I couldn’t get my money back from the region,” he added. “I can no longer contact any business partners or my teammates or my customers.”

xi jinping

Chinese President Xi Jinping at the Great Hall of the People, Beijing, in November 2018.
Thomas Peter/Getty


Sintash said he learned the news of his company’s collapse not from any official correspondence from Xinjiang authorities, but from one of his customers.

There’s no other way to verify it: His mother blocked him on WeChat last year for fear of getting in trouble with authorities, and all his phone calls to regional authorities about his father have gone unanswered.

Mysterious automated calls and Facebook messages

As some Uighurs lose touch with their family on the phone, others have received menacing messages from Chinese-speaking agents.

china uighur protest

A protester wears a mask painted with Xinjiang or East Turkestan’s flag and tears of blood in Brussels in April 2018.
Emmanuel Dunand/AFP/Getty


Guly Mahsut, a Uighur Canadian living in Ottawa, reported receiving multiple automated calls from Mandarin Chinese-speaking agents in recent weeks.

A female caller had identified herself as the Chinese embassy and told her to pick up some documents. Mahsut told Business Insider that even as she kept blocking the numbers calling her, she kept receiving the same automated calls from other numbers.

It’s not clear how the caller got Mahsut’s phone number, what documents she is referring to, and why Mahsut was receiving these calls. Earlier this year she publicly questioned China’s claim that it had released most inmates from Xinjiang’s detention centers, telling Agence France-Presse she knew of a cousin and two friends still in the camps.

Listen to one of the recordings Mahsut received below, accompanied with a rough translation of the message verified by Business Insider:

The Chinese Embassy in Ottawa told Business Insider this call was a “telecommunications fraud,” calling the caller “law breakers [who] use technical means to disguise phone numbers as embassies and consulates.” It added that the alleged scam is “not targeted at a specific group of people.”

Some 30 members of the Uighur diaspora in Norway have received dozens of automated calls from phone numbers connected to the Chinese embassy in Oslo, Al Jazeera reported last month.

One of the Uighurs, a naturalized Norwegian citizen, said she started receiving the calls after attending an anti-China rally on October 1.

The Chinese embassy in Oslo denied the calls in a similar manner to the London embassy, saying they were part of a scam.

Uighurs living in the US and France also told The Daily Beast and Foreign Policy last year that they had been asked for personal information including license plate numbers, bank details, ID photos, and marriage certificates — and threatened harm to their families in Xinjiang if they did not comply.

xinjiang uighur pray

Uighur men pray before a meal during the Corban Festival, also known as Eid al-Adha, in Turpan, Xinjiang, in September 2016.
Kevin Frayer/Getty


Sintash, the fitness company owner, has also received messages in Chinese threatening to harm his family.

bahram sintash facebook comment blurred

A Facebook comment that Bahram Sintash received from a Chinese-speaking account in January 2019.
Facebook


In January 2019, he received a comment in simplified Chinese on Facebook, in response to a comment he had left in the Uighur language on another person’s page.

“You are a good son of the Chinese Communist Party. Your father has been released now,” the comment read, without providing any evidence.

“I reckon you can keep selling your white powder [crying-eyes emoji],” the comment continued, in what Sintash took to mean his fitness supplements. “Strongly support you.”

The account was registered under a Chinese name, and its profile photo was of a young Chinese woman.

The entire account has since been deleted. Business Insider last saw the post in February, and has preserved screenshots of the comment.

“What I understood [from the comment] was: ‘Keep obeying the Chinese Communist Party and shut your mouth. Your father is in our hands,'” Sintash told Business Insider.

“I felt threatened by the CCP.”

Trolling people is not a new Chinese tactic. The country’s propaganda department pays some two million people to publish pro-government posts and attack critics on social media, a Harvard University report found in 2016.

These commenters are known as the “wumao dang,” which translates to “50 cent party” in Chinese — a reference to the amount of money in yuan they are allegedly paid per post. That’s about $0.07.

‘Your mother has died’

Another bizarre run-in with Chinese speakers took place in late October, when Sintash and other Uighur activists staged a protest outside the Capital One Arena in downtown Washington, DC.

As Sintash and 13 others held up signs and chanted slogans, a Han Chinese man — the largest ethnic group — went up to them and said: “Your mother has died” five times.

Video shows the group looking at the man, puzzled, as he walked away.

“He was a pro-CCP Chinese citizen who could’ve said anything to define [himself] … but he chose to tell us ‘your mother has died,'” Sintash said.

“I was shocked at the time. I never expected someone to deliver such an evil message while in the United States.”

Those words were particularly jarring to Sintash, who hadn’t spoken to his mother or anyone else in his family since February 2018. To this day, he still has no idea who that man was.

China phone

A man on his phone in Tiananmen Square, Beijing.
Feng Li/Getty


Will these threats stop Uighurs from speaking out for their families trapped in China? Probably not.

“They cannot control us,” Sintash said. “China looks for people who are weaker mentally. I am different … I have the US behind me.”

“I never cared about politics in the past,” he added. “What China is doing to the people in the region — we have to speak up. We have to stand up.”



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Report: Pensacola naval base shooter used loophole to buy gun

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  • The Saudi national who fatally shot three people at a Florida naval base on Friday bought his gun legally even though people designated as “nonimmigrant aliens” are not typically allowed to do so, NBC News reported.
  • But the Bureau of Alcohol, Tobacco, Firearms and Explosives says there are exceptions for those with a valid hunting license or permit, and those from “a friendly foreign government entering the United States on official law enforcement business.”
  • NBC News cited sources that said the shooter had a license and bought his weapon from a dealer in Pensacola.
  • The gunman, whom news outlets have identified as Mohammed Said Alshamrani, was a second lieutenant in the Saudi Air Force who was in the US as an aviation student.
  • Visit Business Insider’s homepage for more stories.

The Saudi national who fatally shot three people at a Florida naval base on Friday bought his gun legally even though so-called “nonimmigrant aliens” are not typically allowed to do so, NBC News reported Saturday.

The gunman, whom news outlets have identified as Mohammed Said Alshamrani, was a second lieutenant in the Saudi Air Force who was in the US as an aviation student.

Though non-citizens who hold US visas are typically barred from buying guns, NBC News reported that he exploited a loophole that allowed him to purchase one legally.

The Bureau of Alcohol, Tobacco, Firearms and Explosives says anyone admitted to the US under a nonimmigrant visa is typically “prohibited from shipping, transporting, receiving, or possessing a firearm or ammunition,” but there are exceptions for those with a valid hunting license or permit, and those who were admitted for “lawful hunting or sporting purposes.”

nas pensacola aerial

An aerial photo of NAS Pensacola and its surrounds.
Google Maps


NBC News cited sources that said the shooter had such a license and bought his weapon from a dealer in Pensacola.

The Washington Post also highlighted another ATF regulation allowing non-citizens to possess firearms if they’re from “a friendly foreign government entering the United States on official law enforcement business.”

US Defense Secretary Mark Esper said Saturday he could not confirm whether the attack was an act of terrorism, and that investigators needed to continue working to determine the motive.

Yet a number of disturbing details have come to light since the shooting, including that the gunman reportedly hosted a dinner party not long before the attack, in which the guests watched mass shooting videos.

The SITE Intel Group also conducted an analysis of what is believed to be the shooter’s Twitter page, which reportedly featured anti-American posts and echoed Osama Bin Laden.



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