Betterment Overview
Betterment's Cash Reserve is a high-yield savings product designed to offer consumers a smarter way to grow and protect uninvested cash. Unlike traditional banks, Betterment isn’t a bank itself but works through a network of FDIC-insured partner banks to offer users expanded protection, competitive rates, and flexible access. There are no monthly fees, no required minimum balances, and the account integrates seamlessly with Betterment’s broader financial tools, making it a strong option for savers seeking digital-first, goal-oriented banking experiences.
Pros & Cons
Pros:
- No monthly fees or minimum balance
- FDIC insurance up to $2M ($4M joint)
- Competitive high-yield returns
- Unlimited withdrawals
- Integrated financial tools
Cons:
Betterment at a Glance
Fees: No monthly fees; no minimum balance
Security: FDIC insured up to $2M through partner banks; AES 256-bit encryption; 2FA supported
Online Experience: Transparent, easy-to-use interface with digital tools for savings goals and fund tracking
Mobile App: Available on iOS and Android; supports digital transfers, savings automation, account monitoring
Customer Support: Weekday and weekend support with email, chat, and scheduled calls; no 24/7 support
Suitable For?
Betterment Cash Reserve is suitable for a variety of users:
- Individuals seeking a higher-yield alternative to traditional savings accounts
- Users with large balances needing higher FDIC protection
- Digital-first customers who prefer app-based money management
- Anyone who wants flexibility and integration with investment tools
Features/Highlights
Advantages Over Traditional Banks
Betterment Cash Reserve eliminates common banking friction points. There are no maintenance fees, no minimum balance requirements, and users earn a high interest rate that consistently exceeds national averages. Additionally, because Betterment operates through multiple partner banks, customers receive FDIC insurance coverage well beyond the standard $250,000 per bank limit.
Cutting-Edge Banking Services
The Betterment app allows users to:
- Set up and automate savings goals
- View real-time transfers and interest accrual
- Allocate funds into savings buckets
- Schedule recurring deposits
- Instantly move funds between Betterment accounts
Traditional Banking Services
While Betterment does not offer ATMs, checks, or physical branches for Cash Reserve, it does provide:
- Fast ACH transfers to external bank accounts
- Support for joint accounts
- Easy connectivity to linked checking accounts for funding
Interest Rates and Fees
Interest: 3.25% Annual Percentage Yield as of late 2025
Fees:
Feature | Fee |
Monthly Maintenance | $0 |
Minimum Balance | None |
Overdraft Fees | Not applicable |
External Transfer Fees | $0 |
Customer Service and Online Experience
The website and app experience are intuitive, visually appealing, and transparent. Users can open an account online within minutes. While live chat is not available 24/7, support is accessible through scheduled calls, email, and weekday/weekend availability. The Help Center also provides an extensive library of FAQs.
Mobile App
Betterment’s app is available on iOS and Android and offers:
- Full Cash Reserve management
- Biometric login
- Automated saving features
- Goal tracking dashboards
- Notifications and transfer history
Security
Betterment prioritizes security through:
- AES-256-bit encryption
- Two-factor authentication (2FA)
- Biometric app login
- FDIC insurance through program banks (up to $2M individual, $4M joint)
Application Process
Opening a Cash Reserve account includes:
- Creating a Betterment Securities account
- Providing personal info and verifying identity
- Linking an external bank account
- Funding the account through ACH transfer
Betterment Summary
Betterment Cash Reserve offers a compelling alternative to traditional savings. With no fees, flexible access, enhanced FDIC coverage, and integration into a smart digital platform, it’s a practical option for savers wanting more control, safety, and returns. Though it lacks branch support, it shines in convenience, transparency, and digital efficiency.
Physical Address
Betterment LLC
8 W 24th St, 6th Floor
New York, NY 10010
Disclaimer
Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More.
Annual percentage yield (variable) is 3.25% as of 12/12/25, plus a 0.65% boost (“APY Boost”) for new clients with a qualifying deposit. $10 min deposit for base APY. Terms apply; if the base APY changes, the Boosted APY will change.
AI was used in the creation of this content, along with human validation and proofreading.
Having explored the features and benefits of this product, you might be curious about how it stacks up against its competitors. We encourage you to visit our comprehensive comparison chart for a broader perspective. This chart offers a detailed juxtaposition of this product with other leading brands, highlighting differences in features, pricing, and customer ratings. It’s an invaluable resource for contrasting your options and making an informed decision that best suits your needs. Don’t miss out – take a moment now to view our comparison chart and see how your chosen product compares in the wider market.
