Review
Updated
As a part of its suite of financial products, the popular robo-advisor Betterment offers Betterment Checking, a mobile checking account. Betterment Checking is an online bank account that offers traditional banking features like a Visa® Debit Card, direct deposits, cash back rewards, and FDIC insurance. Read our full review to see if it is right for you.
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Ratings Methodology
Rates as
of Apr 26, 2024
Betterment Checking
Member FDIC.
Rating image, 3.50 out of 5 stars.
3.50/5
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.
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Rating image, 3.50 out of 5 stars.
3.50/5
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.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
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APY
0%
Min. To Earn APY
$0
- No monthly fees, ATM and foreign transaction fees reimbursed
- Cash back rewards
- Robust mobile app
- Wide range of financial services
- No APY
- No physical locations
Betterment Checking is a no-fee account, with generous debit card cash back rewards, and 100% of foreign transaction and ATM fees are reimbursed. It also offers a robust mobile app to help you manage your finances and take advantage of its popular robo-advisor platform. However, it may not be a good fit for those who want to speak to someone face to face and have the need to deposit cash.
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.
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| 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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Full Betterment Checking review
Top perks
Both the Betterment Checking account and the Betterment Visa® Debit Card are issued by NBKC bank. While checking accounts are made available through Betterment Financial LLC, it is not a bank.
No monthly fees, ATM and foreign transaction fees reimbursed: There are no fees with Betterment Checking, including overdraft fees. In addition Betterment reimburses 100% of foreign transaction fees and ATM fees, making it ideal for frequent travelers. There are also no minimum balance or deposit requirements with the account.
Cash back rewards: Debit cards are not known for their rewards, but Betterment Checking allows you to earn cash back when using the Betterment Visa® Debit Card. There are thousands of retailers where you can get automatic cash back rewards, such as Costco, Adidas, and Aeropostale. The rewards are deposited back into your Betterment Checking account, in as little as one day after making the qualifying purchase.
Robust mobile app: With the mobile app you can lock your card, change your PIN, get balance information, and more. The app offers investing and cash management tools, and you can easily transfer funds between accounts.
Wide range of financial services: Betterment was founded in 2010 and now has close to 800,000 customers, with over $34 billion assets under management. It is a popular robo-advisor with automated investing technology. Customers can easily transfer between their investment accounts and its Betterment Cash Reserve account, which is Betterment's version of a high-yield savings account. The Cash Reserve is now FDIC insured for up to $2 million ($4 million for joint accounts) once funds are in its program banks. Betterment Cash Reserve also has an APY of 5.00%-5.50%, one of the highest available.
What could be improved
No APY: Currently, the Betterment Checking account offers no APY.
No physical locations: Betterment is an online-only financial institution with no physical branches, so you can't talk to anyone face to face. You can use Betterment's virtual assistant 24/7; however, customer representatives are only available Monday through Friday between 9 a.m. and 6 p.m. ET. If talking to a bank representative in person is important to you, or you need personalized assistance 24/7, this account may not be a fit.
Fees
| Betterment Checking | Monthly Maintenance | ATM Withdrawal | Overdraft | Stop Payment | Insufficient Funds |
|---|---|---|---|---|---|
| Fees | $0 | $0 | $0 | $0 | $0 |
Data source: Betterment.com
How to access your money
You can easily set up and fund your Betterment Checking account. It only takes a few minutes to open an account online. If you already have a Betterment investing or Cash Reserve account, you can create a Betterment Checking account by signing into your account.
Deposit options
These are your options for depositing money into your Betterment Checking account:
- Connect a bank account to use as the funding account
- Transfer directly from another bank account
- Transfer from another Betterment account
- Direct deposit
- Deposit paper checks with your mobile device
Right now, Betterment does not currently support the following account funding options:
- Depositing via a wire transfer
- Depositing cash through an ATM
- Depositing paper checks through an ATM
Withdrawal options
You can withdraw your funds from your Betterment Checking account in any of these ways:
- Withdrawals to a connected funding account
- Withdraw cash from an ATM
- Use your debit card to make a purchase from a merchant
- Transfer to another Betterment account
Electronic transfers and mailed checks may take a few days to get to you, so plan accordingly and initiate the withdrawal before you need the funds.
Betterment Checking is right for you if:
Betterment Checking is ideal for international and frequent travelers, as they can get 100% of their foreign transaction fees and ATM fees reimbursed. It is also good for beginning investors who want to use the Betterment investment platform, or those who want a robust mobile app and to earn rewards for using their debit cards.
If Betterment Checking isn't right for you, check out our full list of Best Checking Accounts.
Keep reading about Betterment
Our checking account methodology
At The Motley Fool Ascent, we rate checking accounts on a five-star scale (1 = poor, 5 = best). We evaluate all checking accounts across four main criteria: brand and reputation, APY and rewards, fees and minimum requirements, and perks.
Our scores are weighted as:
- Brand and reputation: 30%
- APY and rewards: 30%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
Our Banking Expert
David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.
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