Competitive Analysis

Competitive Analysis

ICM CMA
• Yield: 190+ to 250+ bps. Yield is obtained by linking cash management accounts (CMAs) to specified SEC-registered securities (e.g., government money market funds and/or short bond funds); CMAs may be linked to mutual funds, ETFs, and/or FDIC-insured high-yield savings account. Each CMA can have up to 5 subaccounts, each mapped to a distinct specified security.
• Transaction/Saving Account: The distribution partner specifies the subaccounts linked to the CMA, and CMAs can have different product configurations for different distribution channels. Typically, the core transaction account is linked to a government money market fund, and savings will be linked to ultrashort, short, and/or core bond funds (noting that for certain demographics such as community groups, goals-based savings accounts may be linked to target date funds or similar products). All of the subaccounts are linked to provide immediate liquidity (noting liquidity may be restricted for goals-based savings).
• Fee: ICM does not charge fees to the distribution partner(s) and end client; there is no cost to enrolling, no cost for account maintenance, and no account minimum. The distribution partner may impose a charge to the end client (e.g., enrolling and/or AUM fees).
• Unlimited Transactions: The CMA client can engage in unlimited transactions via the investment debit card, ATM, P2P, and online bill pay. Furthermore, the CMA is integrated into Apple Pay and Google Pay.
• ATM Access/Debit Card: The CMA clients have unlimited access to 55,000 Allpoint ATMs (fee for out of network ATM); Allpoint is the largest ATM network (with more ATMs than Chase, Wells Fargo, Bank of America, and Citi combined), and Allpoint ATMs are in seven of the ten largest retailers (e.g., Walgreens, CVS, Costco, and Target).
• FDIC: The distribution partner may link a CMA subaccount to a high-yield savings account. The current rate is 190 bps and the FDIC limit per individual is $2,000,000.
• Branded / Mobile App: ICM builds a customized Apple/Android app, desktop portal and investment debit card that is branded to the distribution partner (or co-branded, for example to an asset manager and community organization).
• Direct Deposit: Yes; clients can fund their accounts via direct deposit and/or ACH.
• Instant Access to Funds: Yes
• Online Bill Pay: Yes

PERSONAL CAPITAL CASH
• Yield: The current rate is 180 bps, increasing to 185 bps for clients with more than $1,000,000 (noting rates vary with Fed Funds movements).
• Spending/Saving Account: High-yield savings is the only account available.
• Fee: No cost associated with the account.
• Unlimited Transactions: The Personal Capital Cash account is a high-yield savings account which falls under Reg D, which caps transactions at 6 transactions per month.
• ATM Access/Debit Card: No.
• FDIC: FDIC coverage is provided by Personal Capital’s program banks. An account is opened at UMB Bank and then distributed to program banks resulting in FDIC coverage up to $1,500,000.
• Branded: No branding opportunities for distribution partner.
• Direct Deposit: Yes.
• Instant Access to Funds: No; access to funds take approximately 2 business days. When funds are transferred to the Personal Capital Cash account, there is a 60 day hold on funds and funds can only be transferred back to the originating bank account.
• Mobile App: Yes
• Online Bill Pay: No

MARCUS (by Goldman Sachs)
• Yield: The current rate is 190 bps (noting rates vary with Fed Funds movements).
• Spending/Saving Account: High-yield savings is the only account available.
• Fee: No
• Unlimited Transactions: Marcus is a high-yield savings account which falls under Reg D, which caps transactions at 6 transactions per month.
• ATM Access/Debit Card: No.
• FDIC: The current maximum per individual is $250,000.
• Branded: No.
• Direct Deposit: Yes.
• Instant Access to Funds: No; access to funds take approximately 3 business days.
• Mobile App: No.
• Online Bill Pay: No.

BETTERMENT EVERYDAY
• Yield: The current rate is 179 bps. Clients who sign up for Betterment Everyday Checking (not available now, terms are unspecified) receive a teaser rate of 204 bps on savings (noting rates vary with Fed Funds movements). It is unclear how long this promotional rate will last.
• Spending/Saving Account: High-yield savings is the only account currently available. Betterment Checking is not yet available.
• Fee: No.
• Unlimited Transactions: Yes; Betterment’s current offering is a high-yield savings account, but by using multiple program banks it offers unlimited transactions.
• ATM Access/Debit Card: No.
• FDIC: Yes; FDIC coverage limit is $1 million via program banks. There are a total of 10 program banking partners.
• Branded: No.
• Direct Deposit: No.
• Instant Access to Funds: No; access to funds take approximately 2-4 business days.
• Mobile App: Yes.
• Online Bill Pay: No.

MAXMYINTEREST
• Yield: 100-208 bps. MaxMyInterest recently launched a checking account to complement the existing savings account. Checking account yield is 100 bps and savings account yield is up to 208 bps.
• Spending/Saving Account: MaxMyInterest now has checking and savings. MaxMyInterest checking is essentially an aggregator for cash and is then outsourced to partner banks. Radius Bank provides the account for MaxMyInterest Checking.
• Fee: Minimum fee is $48 a year. MaxMyInterest charges 2bps per quarter, 8 bps a year, and/or at least $12 per quarter.
• Unlimited Transactions: Yes on checking, no on savings (Reg D).
• ATM Access/Debit Card: No.
• FDIC: Yes; FDIC coverage on checking is up to $250,000, and $2,000,000 for savings via program banks.
• Branded: No branding opportunities for distribution partner.
• Direct Deposit: No.
• Instant Access to Funds: No; access to funds take approximately 2-4 business days.
• Mobile App: No.
• Online Bill Pay: No.

GALILEO MONEY+
• Yield: 64-150 bps (noting rates vary with Fed Funds movements).
• Spending/Saving Account: Galileo now has checking and savings.
• Fee: Galileo charges 10bps, Bancorp (issuing bank) charges 10bps, and the financial advisor has the option to collect 20 bps or more. The multiple fees substantially reduce the interest paid to the client.
• Unlimited Transactions: Yes on checking, no on savings (Reg D).
• ATM Access/Debit Card: Yes (fee for out-of-network ATM).
• FDIC: Yes; $2,500,000 per individual across both checking and savings.
• Branded: Yes; financial advisors have the opportunity for custom branding.
• Direct Deposit: Yes.
• Instant Access to Funds: Yes; access to funds via debit card, ATM, and P2P transfer (but not online bill pay).
• Mobile App: Yes.
• Online Bill Pay: No.

FLOURISH
• Yield: 190 bps (noting rates vary with Fed Funds movements).
• Spending/Saving Account: High-yield savings is the only account currently available.
• Fee: No.
• Unlimited Transactions: Yes; Flourish’s current offering is a high-yield savings account, but by using multiple program banks it offers unlimited transactions.
• ATM Access/Debit Card: No.
• FDIC: Yes; $2,000,000 per individual.
• Branded: No.
• Direct Deposit: No.
• Instant Access to Funds: No; access to funds take approximately 2-4 business days.
• Mobile App: No.
• Online Bill Pay: No.

FIDELITY CMA
• Yield: 94bps.
• Spending/Saving Account: Yes.
• Fee: No.
• Unlimited Transactions: Fidelity offers unlimited transactions, as funds are swept into a liquid FDIC cash account.
• ATM Access/Debit Card: Yes.
• FDIC: Yes; assets in FDIC cash sweep program are insured up to $1,250,000.
• Branded: No.
• Direct Deposit: Yes.
• Instant Access to Funds: Yes; Fidelity offers direct access to funds via ATM, debit card, and online bill pay.
• Mobile App: Yes.
• Online Bill Pay: Yes.

WEALTHFRONT
• Yield: The current rate is 207 bps (noting rates vary with Fed Funds movements).
• Spending/Saving Account: High-yield savings is the only account currently available.
• Fee: No.
• Unlimited Transactions: Yes; Wealthfront’s current offering is a high-yield savings account, but by using multiple program banks it offers unlimited transactions.
• ATM Access/Debit Card: No.
• FDIC: Yes; $1,000,000 per individual.
• Branded: No.
• Direct Deposit: No.
• Instant Access to Funds: No; access to funds take approximately 2-4 business days.
• Mobile App: Yes.
• Online Bill Pay: No.