Betterment leads the segment between human advisors and robo advisors with its investment options alongside interest rates and personal financial services. Although its savings and checking account choices are limited Betterment provides this service without any fees. Users can benefit from higher APY rates in the savings account above those found nationwide thus enhancing their savings potential.
Betterment launched as a financial services company in 2010 with the purpose of establishing seamless investing for all people while moving into personal banking services. Betterment takes the first position among GOBankingRates’ Best Neobanks of 2025 and places in second place on the Best High-Yield Savings accounts of 2025 ranking.
Betterment checking account
People should evaluate their financial objectives when picking a daily bank account but Betterment Checking provides numerous advantages for consideration. Here are some key takeaways:
The checking account offers free check-writing services without minimum deposit requirements ensuring accessibility to all users.
Users receive a Visa debit card free of charge while the account provides worldwide ATM fee reimbursements automatically.
Betterment uses its reimbursement program to provide customers with 3% savings versus fees incurred by other accounts that do not offer this benefit.
Customers gain rewards as cash through purchasing at particular vendors and their account displays current promotional offers.
Annual Percentage Yield (APY)
The annual percentage yield for Betterment Cash Reserve deposit balances stands at 4.00%. The APY for Cash Reserve equals the average value of all participating bank interest rates which is updated as of December 27th 2024. The payment yield changes every day. Different amounts of deposits reside among the banking institutions which participate in the Program. Each account with Betterment Cash Reserve needs at least $10 but the service does not have balance requirements. The Annual Percentage Yield (APY) becomes lower when customers decide to exclude banks from receiving their deposits. The annual percentage yield from APY applies exclusively to Cash Reserve deposits while checking accounts under Betterment Checking receive no benefit from this rate. Betterment Cash Reserve operates as an individual service along with Betterment Checking and the two programs exist separately from each other.
The Betterment Cash Reserve service operates through Betterment Securities brokerage platforms to deliver its features. Betterment LLC is not a bank. The client money in Cash Reserve gets deposited into one or more FDIC-insured banks known as Program Banks which offer variable interest rates and FDIC insurance coverage (with specific requirements met). Betterment offers Cash Reserve as a service to enable clients to generate interest on their securities buying funds that remain in Betterment LLC and Betterment Securities. Customers should not consider Cash Reserve as an investment solution for extended periods.
Betterment high-yield cash account
The high-yield cash account known as Cash Reserve from Betterment serves both investing and saving purposes. Here are some key features:
The SIPC provides protection for brokerage funds while customers’ Program Bank deposits are insured by FDIC up to $250K per account holder per institution before reaching a maximum aggregate coverage of $2M ($4M for joint accounts).
Program Banks normally receive and disburse client funds that are neither FDIC insured nor protected by SIPC. All accounts that exist in a bank fall under FDIC insurance coverage no matter if they are Cash Reserve funds or not. Extra insurance coverage is available to trust and corporate accounts. Clients must monitor their Program Bank deposit amounts to prevent surpassing the FDIC insurance maximum limits.
Who provides what service
Advisory services regarding traditional investments such as ETFs originate from Betterment LLC which operates as an SEC-registered investment adviser. Betterment LLC operates a product called Betterment Cash Reserve that is accessible to customers. Clients of Betterment LLC need not hold any specific amount in their investment accounts. The service imposes specific financial restrictions on accounts which do not reach a minimum balance threshold. The complete disclosure exists in separate documentation.
Betterment Securities operates as an SEC-registered broker-dealer and FINRA /SIPC member to provide brokerage services to Betterment LLC clients alongside Apex Clearing Corporation who is also an SEC-registered broker-dealer and member FINRA/SIPC.
The Betterment Financial LLC company operates Betterment Checking as its banking service. The checking account and Betterment Visa Debit Card are issued through nbkc bank, Member FDIC. Betterment Financial LLC along with Betterment LLC and their affiliated entities do not operate as banking institutions.
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