this post was submitted on 30 Aug 2026
1374 points (99.6% liked)

Work Reform

17538 readers
137 users here now

A place to discuss positive changes that can make work more equitable, and to vent about current practices. We are NOT against work; we just want the fruits of our labor to be recognized better.

Our Philosophies:

Our Goals

founded 3 years ago
MODERATORS
 
you are viewing a single comment's thread
view the rest of the comments
[–] jtrek@startrek.website 1 points 2 weeks ago (1 children)

Well that's concerning. They say it's all insured via the partner banks ( https://www.wealthfront.com/blog/wealthfront-fdic-insurance/ ) but you can just put anything on a website.

[–] scytale@piefed.zip 3 points 2 weeks ago* (last edited 2 weeks ago)

It’s technically true (“insured via”) but customers get into a false sense of security. We don’t know how they manage the money in their partner banks behind the scenes. If they operate like Yotta (in the linked article) did, then good luck getting your money back if Wealthfront suddenly closes. And the worst part is you can’t claim insurance with Wealthfront because they aren’t actually insured (the partner banks are) and they don’t actually have any of your money.

Of course I’m not claiming Wealthfront has the same setup. But I’d rather just deal directly with an FDIC-insured bank than have that uncertainty. Besides, Wealthfront’s rates aren’t any better than other banks right now anyway.