I don't have an emergency fund, but I opened a high-yield checking account for my short-term savings goals

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• I don't have an emergency fund — if I need emergency funds, my plan is to sell my investments.
• However, I decided to open a high-yield checking account for short-term growth.
• I can easily access my money whenever I need to, but any money I don't spend still grows.

A few years ago, my husband and I drained our emergency fund in favor of investing our extra savings. I didn't see a need to keep five figures in an account earning less than 2.00% APY, which was the case around that time.

I felt we were better off investing our extra cash for greater returns. And if we needed to use money for an emergency, we could sell investments from our brokerage accounts and pay taxes on any gains.

Fast-forward a few years, and things have changed quite a bit. The paltry interest rates on savings accounts from a few years back are replaced with rates of 5.00% APY or more in some cases. There are also high-yield checking account options available that didn't exist a few years ago, which I definitely found intriguing.

Ultimately, this is why I opened a Wealthfront Cash Account . While I didn't prioritize earning interest on excess funds we kept in checking or savings a few years ago, today's higher rates got me to change my mind.

Why I opened a Wealthfront Cash Account

My husband and I have banked with Chase for more than a decade, and I have been happy with our experience so far.

But there's one area where Chase accounts come up dramatically short — the interest rates they offer (or lack thereof). Interest rates on Chase savings accounts can vary slightly by ZIP code but tend to be around 0.01% APY.

That's not much to work with, so I set out to find an account that offers more interest on slush funds we're not going to use right away. I also wanted an account that offers easy and seamless money transfers, and I didn't want to pay any account fees.

This led me to the Wealthfront Cash Account, which is essentially a high-yield checking account without any account fees. The Wealthfront Cash Account offers a competitive 5.00% APY on all account balances, which is about what I could earn with any of the best high-yield savings accounts .

What I like about the Wealthfront Cash Account

There are several reasons I chose the Wealthfront Cash account over competing accounts like the Betterment Cash Reserve account or the SoFi Checking and Savings account . It has several features I like.

Generous rates without any rules

Where some high-yield savings accounts only offer their best rates on specific account balances or only for a limited time, the Wealthfront Cash Account offers the same generous rate (5.00% APY) on all balances all the time without any limitations.

This stands in contrast to accounts that offer more generous returns with too many rules or those that require qualifying activity to achieve the best possible yield.

This account works for me since I can drain my balance down only to replenish it the next month and still earn the same rate the whole time. We used some of our short-term savings to buy a car last month, which means my Wealthfront balance is lower than it normally is. However, I continued earning 5.00% APY all along without any hiccups.

Compare Nationally Available High-Yield Cash Management and Checking Accounts

*New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn up to 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the up to 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

Unlimited transfers and free same-day withdrawals

I also wanted access to unlimited transfers and same-day withdrawals, and the Wealthfront Cash Account makes this part easy. I can transfer money to and from my checking account with Chase at any time, and the money has always been moved within the same day or the next morning at the latest.

Some people worry that online banks make accessing their money difficult, but this isn't the case with the Wealthfront Cash Account.

No hidden fees

Another big plus of the Wealthfront Cash Account is the fact there are no regular account fees . Not only are there no monthly maintenance fees to be aware of, but there are no minimum (or maximum) balance requirements and unlimited free transfers to and from the account.

Even wire transfers made with the Wealthfront Cash Account are free, although I have not used this account feature yet.

Useful bill-pay features

In addition to these benefits, the Wealthfront Cash Account offers typical bill-pay features. This means you can use the account to schedule bills and payments, either through an online account management page or through the Wealthfront mobile app.

In the end, the competitive APY on all account balances, lack of fees, and inclusion of features I can use are the reasons I chose the Wealthfront Cash Account over other options. It's definitely not fancy, and it's not going to help me get rich. However, this account helps earn interest on excess funds I wind up with throughout the month.