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Betterment Cash Reserve review
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.
0.10%
APY
$0
Fee
$10
Minimum deposit to open
Details
| Annual percentage yield (APY) | 0.10% |
|---|---|
| Fee | $0 |
| Minimum deposit to open | $10 |
| Minimum balance to earn interest | $0 |
| Interest compounding | Daily |
Review by
Cassidy Horton
cassidy.horton@findercrew.comCassidy Horton is a writer for Finder, specializing in banking and kids’ debit cards. She’s been featured on Legal Zoom, MSN, and Consolidated Credit and has a Bachelor of Science in Public Relations and a Master of Business Administration from Georgia Southern University. When not writing, you can find her 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 savings account that has no monthly fees and up to $1 million in FDIC insurance, the Betterment 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.
Also, it’s worth noting that although Betterment considers Cash Reserve a high-yield savings account, the APY is closer to that of a standard savings account. By comparison, TAB Bank and Vio Bank offer high-yield savings accounts that earn 0.65% APY and 0.57% APY respectively. That’s far more interest than you’ll earn with Betterment.
How do I open a Betterment Cash Reserve account?
Open a Betterment Cash Reserve account online using the steps below:
- Go to the provider’s site and follow the steps to apply.
- From the official Betterment website, select Save from the menu.
- Select Get started, then Let’s do this.
- Enter your email address, then select Let’s do this again.
- Create a password and select Continue.
- Enter your legal first and last name, then select Continue.
- Enter your phone number and select Continue.
- Agree to the account’s terms and conditions.
Eligibility
You must meet the following requirements to open a Betterment 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 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 Cash Reserve accounts are insured for up to $1 million while joint accounts are insured for up to $2 million.
- 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 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.
- APY isn’t competitive. This account earns 0.1% APY on your balance, which isn’t competitive with the best high-yield savings accounts.
If you want to avoid deposit and withdrawal restrictions and earn a stronger APY, shop around for other high-yield accounts.
Is Betterment Cash Reserve safe?
Yes. Funds deposited into an individual Betterment 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 Cash Reserve to similar accounts
We gathered a quick comparison of similar accounts to help you decide if Betterment Cash Reserve is right for you. For more options, select “Compare accounts” to compare even more savings accounts.
Betterment Cash Reserve
★★★★★
| Find out more |
|---|
|
Fee $0 |
|
APY 0.10% |
|
Minimum deposit to open $10 |
|
Minimum balance to earn interest $0 |
American Express® High Yield Savings
★★★★★
| Go to site |
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Fee $0 |
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APY 0.50% |
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Minimum deposit to open $0 |
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Minimum balance to earn interest $1 |
Aspiration Spend & Save Account
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| Go to site |
|---|
|
Fee $0 per month or $7.99 per month for Aspiration Plus ($5.99 per month if you pay annually) |
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APY
|
|
Minimum deposit to open $10 |
|
Minimum balance to earn interest $0 |
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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 Cash Reserve account.
Deposits
- ACH transfer from an external bank
- Wire transfer
Withdrawals
- ACH transfer to an external bank
Frequently asked questions
How do I contact Betterment customer service?
There are two ways to chat with a Betterment customer service representative:
- Call 718-400-6898 weekdays from 9 a.m. to 6 p.m. ET or weekends from 11 a.m. to 6 p.m. ET.
- Email support@betterment.com
Can I transfer money between my Betterment Cash Reserve account and my Betterment investing account?
Yes. You can fund any investing goal in your Betterment investing account using funds from your Betterment Cash Reserve account. It usually takes two business days for the funds to clear your savings account and appear in your investing account.
What is Betterment’s routing number and SWIFT code?
You can’t make wire transfers or direct deposits into a Betterment Cash Reserve account, so it doesn’t have a routing number or SWIFT code.
How do I close my account?
Email customer support at support@betterment.com to begin the account closing process.
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★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
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