Betterment Savings account review March 2021 | finder.com
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Betterment Everyday Cash Reserve review

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A savings account with unlimited withdrawals and no monthly fees but only one way to access funds.

finder.com’s rating: 4.6 / 5.0

★★★★★

Betterment Cash Reserve, formerly called Betterment Everyday Cash Reserve, is a high-yield savings account with unlimited withdrawals and FDIC-insured funds up to $1 million. But there’s only one way to withdraw funds with your Betterment Cash Reserve account.

0.40%

APY

$0

Fee

$10

Minimum deposit to open

Details

APY0.40%
Fee$0
Minimum deposit to open$10
Minimum balance to earn interest$0
Interest compoundingDaily
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Expert review

Cassidy Horton

Review by


Cassidy Horton is a writer for Finder, specializing in banking and investments. She has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. Cassidy enjoys educating people about financial services, exploring the Pacific Northwest and watching endless reruns of The Office.

Expert review

If you already invest with Betterment and are in the market for a high-yield savings account that has no monthly fees and up to $1 million in FDIC insurance, the Betterment Everyday Cash Reserve account may be right for you.

You can make unlimited monthly withdrawals, unlike traditional savings accounts that limit you to six transactions a month. But the only way to withdrawal money is through an ACH transfer, so you’ll need to have a checking account at another bank to access your funds.

How do I open a Betterment Everyday Cash Reserve account?

Open a Betterment Everyday Cash Reserve account online using the steps below:

  1. Click Apply now.
  2. From the official Betterment website, select Save from the menu.
  3. Select Get started, then Let’s do this.
  4. Enter your email address, then select Let’s do this again.
  5. Create a password and select Continue.
  6. Enter your legal first and last name, then select Continue.
  7. Enter your phone number and select Continue.
  8. Agree to the account’s terms and conditions.

Eligibility

You must meet the following requirements to open a Betterment Everyday Cash Reserve account:

  • At least 18 years old
  • US resident
  • Social Security number

Required information

Have the following information on hand when you open your account:

  • Government-issued ID
  • Social Security number
  • Date of birth
  • US residential address
  • $10 opening deposit

What are the benefits of a Betterment Cash Reserve account?

Betterment is a robo-advising platform, so its savings account was created with investors in mind. The Betterment Everyday Cash Reserve account has several unique perks including:

  • No withdrawal limits. Unlike traditional banks that limit savings account withdrawals to six, Betterment allows you to make unlimited withdrawals.
  • No fees or minimum balance. You’ll never pay overdraft or monthly maintenance fees and you can keep as little or as much money as you’d like with this savings account.
  • FDIC-insured funds up to $1 million. Regular bank accounts are FDIC-insured up to $250,000, but individual Betterment Everyday Cash Reserve accounts are insured for up to $1 million while joint accounts are insured for up to $2 million.
  • Competitive rates. Earn 0.4% APY on your total account balance, which is higher than traditional banks that usually offer rates around 0.1%.
  • Low opening deposit. You only need $10 to open this savings account.
  • Create separate stashes. This account lets you create separate buckets of cash for specific goals and set up auto-deposits for each one.

What should I look out for?

While the Betterment savings account has some attractive perks, there are also some drawbacks to watch out for.

  • No business accounts. You can’t set up a Betterment Everyday Cash Reserve account for your business.
  • No direct deposits. This savings account doesn’t support direct deposits, so you’ll have to link an external bank account if you want to transfer funds.

But if you find its lack of deposit and withdrawal methods restricting, shop around for other high-yield accounts.

Is Betterment Everyday Cash Reserve safe?

Yes. Funds deposited into an individual Betterment Everyday Cash Reserve account are insured for up to $1 million, while funds kept in a joint account are insured for up to $2 million.

Betterment Cash Reserve account reviews and complaints

There aren’t many customer reviews of Betterment Cash Reserve online. The company isn’t accredited with the Better Business Bureau (BBB) as of March 2021, and it only has eight customer reviews on the site. You’ll find one customer review on Trustpilot with an average 3.4 out of 5-star rating.

Reddit has a few threads, but most are from more than a year ago when the company was offering 2.14%+ APYs. Users liked the competitive APYs but noted that rates had already started to drop even back before COVID started.

Compare Betterment Everyday Cash Reserve to similar accounts

We gathered a quick comparison of similar accounts to help you decide if Betterment Everyday Cash Reserve is right for you. For more options, select “Compare accounts” to compare even more savings accounts.

How do I deposit or withdraw my money?

There are only two ways to deposit funds and one way to withdraw them with the Betterment Everyday Cash Reserve account.

Deposits

  • ACH transfer from an external bank
  • Wire transfer

Withdrawals

  • ACH transfer to an external bank

Frequently asked questions

Savings account ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top savings accounts and rate them one to five stars based on factors that are most important to you. These factors include: interest rates, monthly fees, minimum deposits, customer service and account features.

Read the full methodology of how we rate savings accounts.

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