Betterment Brand summary
- Higher APY than many competitors, reaching up to 0.30%
- No limits or fees when you want to move your money
- Guidance from Betterment’s app to help you meet financial goals
- No physical branches
- You can’t set up a direct deposit for your paycheck
Most products are fee free; foreign transaction fees
FDIC insured and SSL/AES encrypted account
Early morning, evening and weekend service with multiple communication options and a dedicated fraud team
Excellent user friendly site with transparency of rates and full online banking capabilities
Excellent mobile app with all mobile banking features enabled, including digital check deposits
Advantages Over Traditional Banks
Betterment’s service is centered around its investment accounts, with its Checking and Cash Reserve accounts designed to work in conjunction with each other to help you set and meet financial goals. With no fees on the Cash Reserve and a variable APY linked to the Federal Fund Reserve, this could be a good way to make the most of your money while keeping it accessible.
Additionally, although Betterment is not a bank, it is a fiduciary. This means it’s required by law to put its clients’ interests first, which not all financial advisors are. In short, this means that Betterment’s advice is focused on helping you rather than increasing its profits. Whilst this is most pertinent to its investment advice, it also applies to the spending and saving guidance offered through its app.
Cutting-Edge Banking Services
Betterment’s app analyzes your Checking account activity, as well as that of any external accounts that you sync up. It will notify you if you have spare cash that you could move into your Cash Reserve to make extra interest. It will even make predictions about your future spending. This can help you build your savings and move into investment if this is something that’s right for you. The Cash Reserve account also gives the option to divide your money into separate buckets so you can build savings for particular goals.
Traditional Banking Services
You can set up a joint Cash Reserve account to build and access savings with a partner. You can access your money via an ATM if you have a Betterment Checking account, and the good news is there are no ATM fees. That said, other traditional banking services are limited.
Interest Rates and Fees
|Interest rates||A flexible APY, up to 0.30%|
Betterment has a comprehensive FAQ section on its app where you can find the answers to most common questions, as well as phone support from 9 am-6 pm EST. You can also engage with a support chatbot, which can send an email to the support team on your behalf.
The Betterment app is available on Android and iOS. It covers the full range of the company’s solutions—focusing on investment—but also allows you to manage your Checking and Cash Reserve accounts. And you can get guidance on meeting your financial goals.
Your money is insured up to $1,000,000 by the Federal Deposit Insurance Corporation (FDIC) or up to $2,000,000 for a joint Cash Reserve account. Betterment’s app uses industry-standard encryption, and data is stored on secure servers.
Betterment’s Cash Reserve account could be a good choice if you’re looking for a cash savings solution with a better-than-average APY of up to 0.30%, plus support from the app in setting and meeting financial goals. The Cash Reserve account’s true potential is probably best met when used in conjunction with the Checking account, so you can take advantage of the app’s spending analysis and easy transfers. And if your goal is investment, Betterment can help you take the next steps. Although it doesn’t have physical branches or the same range of products as a traditional bank, for an easy way to manage and grow your money, Betterment Cash Reserve could be the right choice for you.
Information to complete this review was gathered directly from the Betterment website.