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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
no monthly service fee
4.00%
$10
- Competitive APY
- $10 minimum deposit
- No minimum balance requirements
- No monthly service fees
- No transaction limits
- FDIC insured for up to $4 million
- Create savings goals
- The "two-way sweep" moves extra money from checking to cash reserve to help you save
- No physical branch locations
- Mobile check deposit is limited to certain customers
- You can only deposit up to $1,500 in paper checks per day
- No way to deposit cash
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- 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
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
no monthly service fee
None
None
- No minimum opening deposit
- No monthly service fees
- Reimburses all ATM fees
- Reimburses all foreign transaction fees
- No overdraft fees
- Earn cash back rewards
- No physical branch locations
- You won't earn interest without a Cash Reserve account
- Mobile check deposit is limited to certain customers
- You can only deposit $1,500 in paper checks per day
- No way to deposit cash
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.
- 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
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
The current APY on the Betterment Cash Reserve account is 4.00%.
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.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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