Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.
Betterment has strong checking and cash reserve accounts. However, Betterment won’t be a good fit if you need to deposit cash, or need to deposit checks but don’t qualify. See how the Betterment Cash Reserve Account stacks up against the best high-yield savings accounts . Betterment Cash Reserve Overview Betterment is primarily known as an online investment platform, but it also has a Betterment Checking Account and Betterment Betterment Cash Reserve Account . If you have both accounts, you can link them to take advantage of what Betterment calls the “two-way sweep.” With the two-way sweep, Betterment assesses whether there’s any extra money in your checking account by looking at your balance and spending habits. Then it sweeps any excess money into cash reserve to help you save more and earn interest. The two-way sweep also uses your cash reserve account as overdraft protection. If you overdraw from your checking account, money moves from cash reserve to cover the overdraft. The Betterment app ranks as one of our top banking mobile apps . It has 4.8 out of 5 stars in the Apple store, and 4.6 out of 5 stars in the Google Play store. To contact customer support, call or email Monday through Friday, 9 a.m. to 6 p.m. ET. Your deposits in Betterment Checking Account are FDIC insured for up to $250,000 through NBKC Bank, or $500,000 for joint accounts. Deposits in Betterment Cash Reserve Account are FDIC insured for up to $4 million by multiple partner banks. Betterment Cash Reserve Pros and Cons Pros Can bank and invest with the same company Reimburses foreign transaction fees Reimburses ATM fees Offers a cash-back checking account Has a high-yield savings account Automatic savings tools and savings buckets Cons Cannot bank in person Can’t deposit cash Need to qualify to use mobile check deposit $2,000 paper check deposit limit Betterment Cash Reserve Account Review
Betterment Cash Reserve Account
Icon of check mark inside a promo stamp
It indicates a confirmed selection.
Perks
Earn 4.00% APY (Annual Percentage Yield) with $10 minimum deposit. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$10
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Competitive APY
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
$10 minimum deposit
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No minimum balance requirements
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No monthly service fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No transaction limits
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
FDIC insured for up to $4 million
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Create savings goals
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
The “two-way sweep” moves extra money from checking to cash reserve to help you save
Cons
con icon
Two crossed lines that form an ‘X’.
No physical branch locations
con icon
Two crossed lines that form an ‘X’.
Mobile check deposit is limited to certain customers
con icon
Two crossed lines that form an ‘X’.
You can only deposit up to $1,500 in paper checks per day
con icon
Two crossed lines that form an ‘X’.
No way to deposit cash
Insider’s Take
Betterment has strong checking and cash reserve accounts. However, Betterment won’t be a good fit if you need to deposit cash, or need to deposit checks but don’t qualify.
Betterment Cash Reserve Account
review
External link Arrow
An arrow icon, indicating this redirects the user.”
Product Details
By linking to a Betterment Checking Account (Member FDIC), you can set up the “two-way sweep,” which helps you save automatically, earn more interest, and set up overdraft protection
You can use mobile check deposit if a) you’ve been a Betterment customer for at least 30 days, and b) you have received at least $500 in direct deposits in the last month
Interest compounds daily, pays monthly
FDIC insured through partner banks
Show Pros, Cons, and More
chevron down icon
An icon in the shape of an angle pointing down.
Betterment Cash Reserve is essentially a high-yield savings account. But unlike most savings accounts, it doesn’t limit how many transactions you can make each month. Betterment Cash Reserve pays a high interest rate. You can also create buckets to save for different goals, such as “Travel Account” or “Emergency Fund.” Betterment Checking Account Review
Betterment Checking Account
Start banking
Betterment, FDIC Insured
Icon of check mark inside a promo stamp
It indicates a confirmed selection.
Perks
Reimburses all ATM and foreign transaction fees worldwide. Member FDIC.
Fees
no monthly service fee
Annual Percentage Yield (APY)
None
Minimum Opening Deposit
None
Pros
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No minimum opening deposit
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No monthly service fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Reimburses all ATM fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Reimburses all foreign transaction fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
No overdraft fees
Check mark icon
A check mark. It indicates a confirmation of your intended interaction.
Earn cash back rewards
Cons
con icon
Two crossed lines that form an ‘X’.
No physical branch locations
con icon
Two crossed lines that form an ‘X’.
You won’t earn interest without a Cash Reserve account
con icon
Two crossed lines that form an ‘X’.
Mobile check deposit is limited to certain customers
con icon
Two crossed lines that form an ‘X’.
You can only deposit $1,500 in paper checks per day
con icon
Two crossed lines that form an ‘X’.
No way to deposit cash
Insider’s Take
Betterment Checking Account is best if you mainly use direct deposits; it could be a good fit if you deposit paper checks, depending on whether you’re eligible and how much you need to deposit.
Product Details
No ATM network, but all ATM and foreign transaction fees are reimbursed
By linking to a Betterment Cash Reserve Account (Member FDIC), you can set up the “two-way sweep,” which helps you earn more interest and set up overdraft protection
Earn cash back rewards, powered by Dosh
You can use mobile check deposit if a) you’ve been a Betterment customer for at least 30 days, and b) you have received at least $500 in direct deposits in the last month
FDIC insured through NBKC Bank
Show Pros, Cons, and More
chevron down icon
An icon in the shape of an angle pointing down.
Betterment Checking is a good account for travelers because it reimburses 100% of foreign transaction fees and ATM fees . You can also earn cash back with thousands of retailers. The percentage you’ll earn will depend on a) which business you shop at, and b) whether there are any new cash back promotions — but you can typically expect to earn 2% to 20% cash back. Betterment Trustworthiness and BBB Rating The Better Business Bureau gives Betterment a F rating . The BBB cites a high volume of customer complaints and Betterment’s failure to resolve several of the complaints for the F rating. A BBB considers how a company responds to customer complaints, whether it advertises honestly, if it’s transparent about business practices, and more. In 2023, the U.S. Securities and Exchange Commission charged Betterment $9 million . The SEC claimed that Betterment was dishonest with clients about its tax-loss harvesting service and failed to give proper notice about contract changes. Betterment Alternatives Betterment vs. Wealthfront You’ll probably like Betterment if you want separate checking and savings accounts. Wealthfront has a hybrid checking/savings account, the Wealthfront Cash Account . On the bright side, Wealthfront does let you create savings buckets to organize and plan your saving. You’ll earn interest on your entire balance with Wealthfront. With Betterment, you’ll only earn interest on your cash reserve balance. Betterment vs. Acorns Acorns actually doesn’t have a savings account. But it does have checking, retirement, and brokerage accounts, plus investment accounts for kids. Depending on which accounts you want, you’ll pay between $1 and $5 per month. You may prefer Acorns if you want more account options, but Betterment if you want a regular checking and savings account. Why You Should Trust Us: How We Rated Betterment Betterment technically isn’t a bank, it’s an investment platform, but it does offer alternative banking products so we used Personal Finance Insider’s bank account ratings methodology to assess accounts. The exact factors we evaluate vary depending on the type of account — for example, we look at overdraft fees for checking accounts and interest rates for the cash reserve account We rated accounts on a scale from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person’s overall banking experience. Feature Insider rating (out of 5) Checking 4.25 Cash reserve 4.25 Trustworthiness 2 Total 3.5 Betterment Cash Reserve FAQs
What is the APY on the Betterment Cash Reserve Account?
Chevron icon
It indicates an expandable section or menu, or sometimes previous / next navigation options.
The current APY on the Betterment Cash Reserve account is 4.00%.
Is the Betterment Cash Reserve Account safe?
Chevron icon
It indicates an expandable section or menu, or sometimes previous / next navigation options.
The Betterment Cash Reserve Account is FDIC insured up to $2 million dollars for individuals, and up to $4 million for joint accounts. FDIC insurance is offered through Betterment’s partner banks.Â
window.addEventListener(‘message’, onGoBankingResize, false); function
onGoBankingResize(e) { { if (e.origin ===
‘https://products.gobankingrates.com’ && e.data) { if (e.data.source &&
e.data.id && undefined !== e.data.height) { var id = ‘iframe[data-indent=”‘ +
e.data.id + ‘”]’; var chosenFrame = document.querySelector(id); if
(chosenFrame) { var height = e.data.height + ‘px’; chosenFrame.style.height =
height; } } } } }
Laura Grace Tarpley, CEPF
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) was a former expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider’s “The Road to Home” series, which won a Silver award from the National Associate of Real Estate Editors. She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.
Read more
Read less
Evelyn He
Compliance and Operations Associate
Evelyn He is a compliance and operations associate for Business Insider’s Personal Finance team. Evelyn ensures content accuracy and editorial independence so readers get the most up-to-date and objective financial advice, enabling them to make informed financial decisions. Experience As part of the compliance team, Evelyn helps fact check Personal Finance stories and works to make sure that the language is clear, precise, and compliant with government regulations and partner guidelines. Previously, Evelyn worked as a compliance specialist for Apellis Pharmaceuticals and a legal assistant at the law firm Morrison Mahoney. Expertise Evelyn is an expert in the following areas: Compliance Quality assurance Affiliate marketing Search engine optimization (SEO) Content strategy Education Evelyn earned a bachelor’s degree in business administration from UMass Amherst and a master’s in marketing from Boston University. Evelyn has two dogs, Money and Tibber.
Read more
Read less
Top Offers From Our Partners
Barclays Tiered Savings
Earn up to 4.50% APY and earn a $200 bonus when you open a new Tiered Savings account with qualifying activities (offer expires 3/8/25).
A tooltip
To qualify for this bonus offer, you must be a new Barclays Tiered Savings customer (current and previous Barclays customers with a Savings or CD are not eligible), open an account 11/7/2024 through 3/8/2025, fund your new Tiered Savings account with at least $25,000 within the first 30 days of opening the account, and maintain the balance of at least $25,000 for 120 consecutive days. After you maintain the $25,000 balance for 120 consecutive days, the $200 bonus will be added to your account in approximately 60 days. Offer expires 3/8/2025.
.rich-tooltip-wrapper { display: none; }
Start Saving
