Review
Updated
Betterment, which is best known for its robo-advisor investment platform, offers both checking and savings accounts to its customers. The checking and savings accounts offer some unique features, including ATM fee reimbursement and an above-average interest rate. Read our full review of Betterment's banking products to determine if it might be a good fit for you.
Betterment
Rating image, 4.75 out of 5 stars.
4.75/5
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.
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Betterment offers both checking and savings accounts that can be solid offerings for customers who aren't concerned with being able to visit a local bank branch. With high APYs, unlimited ATM fee reimbursement, and some unique checking account features like cash back rewards, Betterment is a solid mobile-first banking platform.
Pros
- High APY
- ATM fee reimbursement
- Cash back debit card
- $2 million FDIC insurance limit
Cons
- No banking branches
- Limited customer service
- No CDs are offered
Betterment savings account review
Betterment is technically not a bank. But it partners with chartered financial institutions to offer banking products under its brand name, and they are rather competitive offerings, even in the world of online banking. We'll start with the Betterment Cash Reserve savings account.
Betterment Cash Reserve savings account
The Betterment savings account is known as the Cash Reserve, and is designed to provide a high-yield deposit platform for customers who already use Betterment for their investments (more on that in a bit). To be perfectly clear, the account is only available to customers who use Betterment to invest.
The Betterment Cash Reserve account offers an APY that is much higher than the national average (5.00%-5.50% at current). It has no monthly maintenance fees and no minimum balance requirements. Unlike most savings accounts, customers can make unlimited withdrawals (most savings accounts cap withdrawals at six per month).
It's also worth mentioning that Betterment's Cash Reserve account (but not the checking account) offers as much as $2 million in FDIC insurance coverage ($4 million for joint accounts), far greater than the standard $250,000 FDIC limit. It does this by partnering with other banks to offer coverage from several different financial institutions at the same time.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
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 |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
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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Rating image, 4.75 out of 5 stars.
4.75/5
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 |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
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 |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Alternatives to Betterment CD rates
To be sure, Betterment's savings account offers a very competitive APY that is comparable to what online banks are offering for 1-year CDs as of this writing. But Betterment doesn't offer CDs at this time, so if that's what you're looking for, it's a smart idea to check out some of our top CD providers.
Rates as of April 25, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
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| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Betterment checking account review
As mentioned earlier, Betterment is not a bank, but rather a company that offers banking products through partners. And in partnership with NBKC Bank, Betterment offers the Betterment Checking account to its customers.
Betterment Checking
Betterment Checking is designed as a mobile-first (branchless) checking account product. It has no monthly maintenance fees, no overdraft fees, and no foreign transaction fees, as well as no minimum balance. It offers a Visa debit card to customers and is one of the few mobile-first accounts that offers ATM fee reimbursement worldwide. The account is available in both individual and joint varieties.
There are numerous mobile payment options, and account holders can get access to paper checks in addition to their debit card and various mobile payment methods. The Visa debit card that comes with the account is actually a rewards card that allows users to earn cash back at many retail brands. And while Betterment Checking doesn't offer the $2 million in FDIC insurance like the brand's savings account, it is an FDIC-insured account up to a maximum of $250,000.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
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 |
0%
Min. to earn: N/A
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Rating image, 4.75 out of 5 stars.
4.75/5
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 |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
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Rating image, 4.25 out of 5 stars.
4.25/5
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 |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
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Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
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Betterment customer service and experience
Betterment's customer support isn't quite as robust as many branch-based banks, but as far as mobile-first banking is concerned, it's pretty solid. Customer support is available by phone Monday through Friday from 9 a.m. to 6 p.m. ET, and there is a virtual assistant chat service available 24/7 that should be able to handle most basic questions.
Alternatives to Betterment
It's important to carefully consider your options when choosing a bank, as no two banks offer the exact same products, services, and features. With that in mind, here are a couple of alternatives you might want to consider before deciding whether Betterment is the right bank for you.
Axos Bank
If your goal is to find an online-based bank that pays a high APY and offers both checking and savings accounts, Axos Bank could be a good fit for you. The Axos Bank Rewards Checking account has a high APY, unlimited domestic ATM fee reimbursements, and no monthly or overdraft fees, and the bank also offers a high-yield savings account as well as a full suite of other banking products.
Capital One
Capital One is a good option for customers who want some of the features of online banking, but also want the convenience of a branch-based financial institution. In particular, the Capital One 360 Checking has no fees, a modest APY (rare on branch-based checking accounts), excellent mobile banking tools, and hundreds of branch locations customers can visit. Plus, Capital One is a full-service bank, with lending products, credit cards, and much more available for its customers.
Is Betterment right for you?
Betterment's banking products can be a great choice for Betterment's robo-advisor customers who want a mobile-first experience and aren't terribly concerned with in-person support or being able to make cash deposits. Betterment's savings and checking accounts can be a great way to maximize the APY earned from your rainy-day savings, but they are only available if you use (or are willing to use) Betterment for your investments.
Other products by Betterment
Betterment's banking products are a relatively new addition to the company's ecosystem. It is best known for its investment platform, so let's touch on that briefly.
Betterment robo-advisor
- Betterment's core product is its Automated Investing platform, which is a robo-advisory service. For a reasonable management fee, Betterment invests customers' money in ready-made portfolios with no minimum balance and a user-friendly mobile platform.
- Betterment's automated investing product is also available for retirement savings with IRA and 401(k) offerings for both individuals and employers.
- Betterment offers an automated cryptocurrency investment platform for investors interested in digital assets.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Our Banking Expert
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
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