Betterment Cash Reserve
Betterment Cash Reserve is a high-yield cash account that acts as an alternative to a traditional savings account. The account currently earns up to 5.50% APY after meeting activity requirements for the three months for new customers, then earn 4.75%, which is far above the national average, according to FDIC data. New customers must sign up for a Cash Reserve account using an offer link and make a deposit within 14 days. This APY boost will apply through Dec. 31, 2023.
Cash Reserve has a $10 minimum deposit requirement, but there’s no monthly maintenance fee or minimum balance requirement. There’s also an option to open joint Cash Reserve accounts.
Betterment customers can separate their savings into savings goals. There’s even an option to automate savings by setting up automatic deposit rules.
Deposits to Betterment’s Cash Reserve are FDIC insured up to $1 million. Joint accounts are eligible for coverage up to $2 million. Like most cash management accounts, Betterment partners with several banks to sweep deposits into multiple bank accounts to provide this extra protection. Betterment partner banks include:
- The Bancorp Bank
- Barclays Bank Delaware
- Citibank, N.A.
- Cross River Bank
- HSBC Bank USA, N.A.
- State Street Bank and Trust Company
- Wells Fargo Bank, N.A.
Cash Reserve accounts don’t come with a debit card. Deposits and withdrawals are limited to only a couple of options—electronic transfers and wire transfers. There’s no fee for incoming wire transfers, but your bank may charge you for sending one.
Because Betterment isn’t a bank, its accounts aren’t subject to typical savings deposit transaction limits. Betterment customers can move money in and out of their Cash Reserve account as much as they want. Transfers usually take one to two business days.
Betterment Checking
Betterment’s other cash management product is its checking account. Betterment Checking is a mobile-first checking account. The account comes with a complimentary contactless Visa debit card. Betterment doesn’t have an ATM network but provides unlimited ATM fee reimbursem*nts worldwide. You’ll even get foreign transaction fees waived when you use your debit card outside of the U.S.
Betterment Checking is also available as a joint account. Deposits are FDIC insured up to $250,000 per depositor. Checking accounts are provided through a partnership with nbkc bank.
Another perk to Betterment Checking is cell phone insurance. If you pay your cell phone bill with your Betterment debit card, your phone is covered against damage and theft up to $600 per claim (limit of two claims per 12-month period, with a $50 deductible per claim).
When you open a Betterment Checking account, you may consider opening a Cash Reserve account as well. You aren’t required to use it and can close it at any time. Betterment Cash Reserve and Betterment Checking can be used together as a complete cash management solution.
Betterment doesn’t offer online bill pay through your account or its mobile app. However, you can use your account’s debit card or routing number and account number to pay bills through any vendor’s bill pay program.
