Betterment Cash Reserve Review: A High APY for Savers Who Invest With Betterment
Review
Updated
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Betterment Cash Reserve might be for you if: You want a high-yield savings account to go along with your Betterment brokerage account. This cash management account from Betterment offers one of the highest APYs we've seen. And it has no minimum balance, unlimited withdrawals, and $2 million of FDIC insurance coverage ($4 million for joint accounts).
In this Betterment Cash Reserve review, we'll cover the bases to see whether this savings account is for you.
Betterment Cash Reserve
The Betterment Cash Reserve account offers some unusual perks, like $2 million in FDIC insurance, alongside more standard savings account benefits, like a high APY. Its lack of fees only adds to its appeal. But the fact that it's only available to Betterment investors may encourage some to look at other homes for their cash.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
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We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 3.80%
Rate info
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
3.60%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 8, 2025. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
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N/A
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Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Open Account for Barclays Tiered Savings
On Barclays' Secure Website.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.00%
Rate info
Balances less than $250,000 earn 4.00%, and balances greater than $250,000 earn 4.20%.
Min. to earn: $0
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N/A
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Open Account for Barclays Tiered Savings
On Barclays' Secure Website. |
Here at The Ascent, we pride ourselves as real users of most of the products across our site. Our Technology Leader, Tim White, uses the Betterment Cash Reserve himself.
I've been a Betterment investing customer since 2014, and I jumped on the Cash Reserve as soon as it came out. I wanted to be able to park money I was going to use in the next year in a risk-free place. At 20x the interest of my local bank account, it was a no-brainer. And after the bank crashes in 2023, I was super-glad that Betterment spreads your money across a bunch of partner banks. That way you end up being FDIC insured for way more than a single bank would allow.
The Betterment Cash Reserve account is a high-yield cash account that helps Betterment customers grow their savings with the safety of FDIC insurance.
| Account | APY | Minimum Deposit |
|---|---|---|
| Betterment Cash Reserve | 4.00% | $10 |
The Betterment Cash Reserve offers a 4.00% APY, which is one of the best APYs of any bank savings account or brokerage cash management account that we know of. This account is a great choice to keep savings and earn a high rate of interest, with the safety of FDIC insurance. And unlike some high-yield savings accounts and money market accounts, Betterment Cash Reserve doesn't require a minimum balance (after a $10 initial minimum deposit).
The Betterment Cash Reserve account does not charge fees -- no account maintenance fees, no monthly service fees, and no other fees charged on your Betterment Cash Reserve balance.
The Betterment Cash Reserve does not require a minimum balance to remain open. However, there's a bit of inconsistency in how Betterment describes this: you might need $10 to earn APY, or $10 to open the account -- but no minimum amount after opening. Either way, whether it's $0 or $10, this is one of the smallest minimum balance requirements of any account that offers such a high APY.
The Betterment Cash Reserve account lets you have unlimited withdrawals. Not every savings account allows for this; some banks enforce Regulation D, which can limit savings account customers to six "convenient withdrawals" per month. A good savings account should not force you to lock up your money -- unlimited withdrawals make the Betterment Cash Reserve account an even better deal.
The Betterment mobile app is available for iOS and Android, and it gets exceptional reviews:
Not every high-yield savings account has such a well-reviewed mobile app and some banks get more complaints about their Android apps. The high ratings of Betterment's mobile app are a good sign that using the Betterment Cash Reserve account on the go will be easy and stress free.
The Betterment Cash Reserve account gives you a few easy ways to access your money.
You can deposit money into your Betterment Cash Reserve account with:
Here are your options for withdrawing money from your Betterment Cash Reserve account:
Betterment is not accredited by the Better Business Bureau, and it gets a grade of "D-" on BBB.org. Some complaints on BBB.org about the Betterment Cash Reserve account include disputes about introductory bonus APY "boots," difficulties withdrawing money, and disagreements about verifying external accounts.
Reviews of Betterment are also mostly negative on Trustpilot, with a 2.2 star rating. Betterment Cash Reserve customers complained on Trustpilot about problems with passwords and logins, and difficulty linking external accounts.
Online reviews are not always indicative of the typical customer experience; many large financial institutions get negative reviews on BBB.org and Trustpilot. Betterment has more than 900,000 customers and most are not posting negative reviews online. The high ratings for the Betterment mobile app might be a better representation of what it's like to be a Betterment Cash Reserve customer.
Competitive APY: Betterment Cash Reserve's APY of 4.00% is significantly higher than the national average and in line with the best high-yield savings accounts.
Limited-time 0.50% APY bonus for new customers: When you sign up for a new Betterment Cash Reserve account on Betterment's website, open a new account, and make a qualifying deposit within 14 days, you'll receive an extra 0.50% APY for three months. Terms apply.
Unlimited monthly withdrawals: You won't incur any fees for making too many monthly withdrawals from your Betterment Cash Reserve account. Though less common now than in the past, there are still many savings accounts that charge customers for taking money out more than six times per month.
No maintenance fee or minimum balance requirement: Betterment requires at least $10 to open your account, but after this, you don't need to maintain any minimum balance or pay a monthly maintenance fee to own this account.
Accessibility: The Betterment Cash Reserve account is currently only available to those who have a Betterment investment account. That could make this account a less attractive choice for people who just want a standalone high-yield savings account, without having to sign up for an investment platform.
ATM card: This account doesn't provide you with any way to access your cash directly. You must transfer your funds to a checking account before you can withdraw them. Transferring to accounts at external banks could take one to two business days.
Yes -- and not only is the Betterment Cash Reserve FDIC insured, but it's "extra" insured. Betterment works with several program banks to hold the cash in its Betterment Cash Reserve accounts, so it can offer eight times the usual amount of FDIC insurance, for a total of $2 million of coverage for individuals (or $4 million of coverage for joint accounts). Bottom line: with the Betterment Cash Reserve account, your cash is well-protected against bank failure.
You invest with Betterment (or want to open an investment account with Betterment) and want to earn a high yield on your short-term cash savings.
At Motley Fool Money, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
Learn more about how Motley Fool Money rates bank accounts.
If you have some extra cash, whether it's an emergency fund or just some "sideline" cash that you're waiting to invest in stocks or other assets in your brokerage account, the Betterment Cash Reserve can give you higher yields.
The Betterment Cash Reserve works similarly to a savings account, with FDIC insurance and a variable APY (4.00% APY). But it's connected to Betterment's robo-advisor platform, so you can also easily move the money to buy stocks or purchase other securities through a Betterment investment account.
Betterment Cash Reserve could be considered a type of savings account, because it's FDIC insured like a bank. But it's also a brokerage cash management account, because you can use the money to buy securities through Betterment's investment platform. It gives you the best of both of these types of accounts, with a high APY.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
