Personal Capital is the modern-day ” fin-tech” company to try to draw belongings from lower- yielding financial institution deposit options with competitive yields. A press release entitled, “Personal Capital Reinvents the Piggy Bank With Personal Capital Cash™ and Savings Planner,” tells us, “Today Personal Capital, main virtual wealth manager, released Personal Capital Cash, presenting a new excessive- yield account with aggregated FDIC coverage that covers balances as much as $ 1. 25 million, and Savings Planner, a savings tool to help people plan annual retirement savings, an emergency fund, and pay down debt.” ( See the object, “Fin- Tech Invasion Targets Low Bank Deposit Rates,” in the June issue of our Money Fund Intelligence publication.)
It explains, “Now everyone can open an account via Personal Capital Cash and not using a minimum stability, instantly from their cellular device, and an annual percent yield ( APY) 23 times larger than the country wide average you’ll get with an average financial savings account, with the flexibility of an infinite wide variety of withdrawals and aggregated coverage protection up to five instances greater than what maximum banks offer.”
Personal Capital CEO Jay Shah remarks, “We have extra than 2 million registered customers who mixed maintain more than $ 41 billion in coins or money marketplace debts… If those oldsters are earning the countrywide fee on that money, that quantity to more than $ 900 million in lost hobby yearly. We saw that and right now knew we needed to do some thing. So we constructed Personal Capital Cash to put that money again within the hands of American purchasers.”
The release tells us, “With the business enterprise’ s holistic approach to monetary planning, Personal Capital released a brand new tool on its dashboard in addition to the brand new excessive- yield account: Savings Planner. Savings Planner calculates, breaks down, and tracks annual financial savings goals for retirement and an emergency fund via taking into account the whole thing from month-to-month prices to taxable as opposed to tax-deferred money owed.”
Shah provides, ” Saving, whether or not it’ s for retirement, a brief- term goal, or in case of an emergency, can motive tension. Personal Capital is creating the whole, clean solutions to assist people in sensing they assured approximately their cash choices.”
Finally, the release says, “Today, Personal Capital Cash launched with 2. 30% APY for non- clients and 2. 35% APY for Personal Capital clients. Personal Capital Cash became launched by Personal Capital in partnership with Institutional Banking at UMB Bank. UMB’ s Institutional Banking crew provides huge scale banking services and insured deposit account answers for the dealer- dealers, non- bank financial establishments, and fintech corporations. To open an account, go to www. personal capital. com/ cash or download our iOS or Android apps.”
For extra of our recent coverage of fin- tech’ s and coins, see the following Crane Data News and Link of the Day stories: “Inv News on Fin- Techs Invading Cash Mgmt” ( five/ thirteen/ 19), “Wealthfront Cash Brings in $ 1 Billion” ( 4/ 29/ 19), “Wealthfront Cash Targets Deposits” ( 2/ 20/ 19), “Barron’ s Hits Fin- Tech Money Markets” ( 1/ 2/ 19), “SIPC Concerns About Robinhood” ( 12/ 17/ 18) and “Robinhood Stealing Millennial’ s Cash” ( 12/ 14/ 18).
In other information, the Investment Company Institute released its state-of-the-art “Money Market Fund Holdings” precis on Monday ( with statistics as of May 31, 2019). This monthly replace reviews the combination day by day and weekly liquid property, local publicity, and maturities ( WAM and WAL) for Prime and Government money marketplace finances. ( See our June 12 News, “June Money Fund Portfolio Holdings: Repo, CP Up, T- Bills Down, Again.”)
The MMF Holdings release says, “The Investment Company Institute ( ICI) reviews that, as of the final Friday in May, high cash market funds held 27. 2 percentage in their portfolios in every day liquid property and forty-two. Five percentage in weekly liquid property, while the government cash market budget held fifty-eight. Six percentage in their portfolios in daily liquid assets and seventy seven. four percentage in weekly liquid belongings.” Prime DLA decreased from 27. 7% in April and Prime WLA accelerated from forty-two. 2% the previous month. Govt MMFs’ DLA reduced from fifty-eight. 7% in April and Govt WLA expanded from 77. 2% from the previous month.
ICI explains, “At the quit of May, the high budget had weighted common adulthood ( WAM) of 35 days and a weighted common existence ( WAL) of 70 days. Average WAMs and WALs are assets- weighted. Government cash marketplace funds had a WAM of 29 days and a WAL of ninety-three days.” Prime WAMs decreased through at some point from the preceding month and was elevated using 2 days. Govt WAMs were similar to their April levels, and Govt WALs increased via someday the remaining month.
Regarding Holdings By Region of Issuer, ICI’ s release tells us, “Prime cash market funds’ holdings because of the Americas rose from $ 291. Fifty-Eight billion in April to $ 294. Eighty-Two billion in May. Government money marketplace finances’ holdings as a result of the Americas rose from $ 1, 816. Eighty-two billion in April to $ 1, 888. fifty-eight billion in May.”
The Prime Money Market Funds via Region of Issuer table indicates Americas- related holdings at $ 294. Eight billion, or 44. 6%; Asia and Pacific at $ 126. 1 billion, or 19. 1%; Europe at $ 234. 9 billion, or 35. Five %; and, Other ( consisting of Supranational) at $ five. 8. 6 billion, or 1. zero%. The Government Money Market Funds through Region of Issuer table suggests Americas at $ 1. 889 trillion, or 79. 2%; Asia and Pacific at $ 123. 9 billion, or five. 2%; Europe at $ 366. 1 billion, or 15. 4%, and Other ( Including Supranational) at $ 5. 6 billion, or 0. 2%.”