Betterment caters to novice investors, focusing on automated investment strategies. However, it also offers a free checking account and a high-yield savings account.
TL;DR
- Betterment offers a savings account with up to 4.65% APY for new customers, exceeding many other high-yield options.
- The Cash Reserve account provides unlimited withdrawals and up to $2 million in FDIC insurance through partner banks.
- Betterment is ideal for those seeking investment services alongside a dependable checking and savings account.
- It is not suitable for those needing a full suite of banking products or preferring in-person branch services.
While not a comprehensive banking institution, meaning individuals seeking personal loans, credit cards, and similar services may not find all their requirements met, Betterment excels at providing essential financial tools.
Here’s everything you need to know about banking with Betterment.
All rates and fees are current as of Aug. 29 2025, and are subject to change.
Betterment at a glance
Betterment
| Checking accounts: | $0 monthly fees and no minimum deposit |
| Savings accounts: | $0 monthly fees and $10 minimum deposit |
- Year Founded: 2008
- Company Headquarters: New York City, NY
- CEO: Sarah Levy
Pros
- Checking account with no maintenance fees
- Savings account offers up to 4.65% APY (new customer offer; terms apply)
- Savings account offers up to $2 million in FDIC insurance
Cons
- Few account options
- No customer support on the weekends
- No brick-and-mortar branches
Who is Betterment good for?
Betterment remains a financial institution prioritizing investments. It's an excellent choice for individuals aiming to invest in retirement, bonds, and cryptocurrency accounts, while also seeking a dependable checking and/or savings account.
For those aiming to gain interest on surplus cash, it's also highly advisable. Betterment's Cash Reserve product provides a superior yield compared to numerous other high-yield options available, even surpassing some of the best certificates of deposit. This is contingent on you utilizing the introductory promotion for new clients. While the standard APY is decent, it doesn't reach the same exceptional levels.
Finally, those with a lot of savings to stash may appreciate how Betterment’s Cash Reserve account works. As Betterment is not itself a bank, but spreads customers’ money across a network of partner banks, it’s able to provide up to $2 million in FDIC insurance. If you’re keeping your money with just one bank, you’re typically capped at $250,000 per depositor per eligible category.
Who shouldn’t use Betterment?
Betterment doesn't offer account types frequently found at other financial institutions, such as CDs, money market accounts (MMAs), vehicle loans, home loans, and more. If you prefer to manage all your banking needs in one place, Betterment might not be suitable.
Additionally, Betterment is entirely online. This means you won’t be able to hop over to a local branch to service your account. If you’re not comfortable with a 100% digital experience, don’t go with Betterment.
Betterment rates and products
Betterment provides two banking options: a checking account and a Cash Reserve account, which operates much like a savings account. Both are free of charge and don't necessitate a minimum balance.
| Betterment product | APY |
|---|---|
| Checking account | None |
| Savings account | Normally 4.00%; Up to 4.65% for new customers |
| Checking account | |
|---|---|
| APY | None |
| Savings account | |
| APY | Normally 4.00%; Up to 4.65% for new customers |
Bank details checked Aug. 29, 2025.
Checking account
Betterment’s checking account is comparatively bare bones. It doesn’t currently offer a welcome bonus; it doesn’t earn interest; it doesn’t allow for wire transfers. But it also has no monthly maintenance fees and no minimum opening deposit. It even waives ATM fees and foreign transaction fees worldwide.
Bank details checked Aug. 29, 2025.
Savings account
Betterment refers to its high-yield savings product as a Cash Reserve account. At present, it provides a noteworthy variable 4.00% APY. However, an even more attractive feature is the introductory 4.65% APY available to new clients until January 15, 2026. This represents one of the top yields available for any deposit account.
The savings account from Betterment includes other notable features, like the ability to make unlimited withdrawals, unlike many banks that limit savings account withdrawals to six per month.
Bank details checked Aug. 29, 2025.
Other services Betterment offers
Betterment primarily aims to assist you in increasing your wealth through investment. Beyond its checking and savings options, Betterment provides these additional services:
- Automated investing: Betterment uses technology to build you a custom variety of stocks and bonds. It does most of the boring part for you—all you need to do is set goals.
- Retirement planning: Betterment will work with you to find the best way to prepare for your future with various investment options. You can open a traditional, Roth, or SEP IRA.
Online banking
For Betterment's checking and savings accounts, online banking is the sole method available. As it's an entirely digital service, conducting transactions in person isn't possible.
Betterment provides what seems like a solid online banking service, featuring capabilities such as automatic deposits and personalized savings objectives.
The Betterment platform and customer support
Betterment offers access to your checking and savings accounts via its website or its mobile app, which has earned a rating of 4.8 stars on the Apple App store and 4.7 stars on the Google Play store, based on over 89,000 combined reviews.
For account assistance, reach out to customer support at 718-400-6898, available Monday through Friday, 9 a.m. To 8 p.m. ET; they don't offer weekend service.
Is Betterment secure?
Betterment employs all necessary measures to safeguard your funds, such as encrypting data transmitted online, hashing passwords, and implementing multi-factor authentication. Additionally, it requires unique passwords for any third-party applications, like tax software, that you connect to your Betterment profile.
Funds kept with Betterment are FDIC insured up to $250,000 for checking accounts and $2 million for savings accounts (the latter is possible because Betterment can spread funds stored in a Cash Reserve account across multiple program banks).
Betterment user reviews
Customers often pen online reviews out of annoyance. Users are more inclined to leave feedback after a negative encounter than a smooth one.
That said, Betterment receives an average rating of 1.7 out of 5 stars with just over 40 reviews on Trustpilot. Negative reviews tend to center around investment fees, slow transfers of funds, and limited customer support.
Commenters on Reddit generally express a favorable view, highlighting the unlimited ATM fee reimbursements, straightforward products, and the ease of using a debit card abroad without incurring transaction charges.
Compare Betterment alternatives
If you're uncertain whether Betterment offers all you require, consider these alternative financial institutions. Capital One and SoFi are frequently chosen by individuals who prefer online banking services (though Capital One does maintain a few physical branches and cafe spots).
 Betterment |  Capital One |  SoFi® (Member FDIC) |
|---|---|---|
| Checking account top APY | Checking account top APY | Checking account top APY |
| Does not earn interest | 0.10% | 0.50% |
| Savings account top APY | Savings account top APY | Savings account top APY |
| 4.65% | 3.50% | Get up to 3.60%.1 Get a 0.70% Boost on Savings APY to up to 4.30% for up to 6 months on new accounts with eligible Direct Deposit. Terms apply.2 |
| CD top APY | CD top APY | CD top APY |
| N/A | 4.05% | N/A |
| Checking account monthly fee | Checking account monthly fee | Checking account monthly fee |
| $0 | $0 | $0 |
| View offer at MoneyLion | View offer at MoneyLion | View offer at SoFi |
Bank details checked Aug. 29, 2025
Is Betterment right for you?
Betterment might suit you if you're just looking for checking and savings accounts. It's especially fitting if you want a substantial return from a high-yield savings option.
Betterment is also likely good for individuals or couples looking to insure their deposits without having to manually spread money across separate bank accounts. For its Cash Reserve account, Betterment offers FDIC insurance up to $2 million per individual and $4 for joint accounts—that’s because it can store the savings with multiple program banks.
Frequently asked questions
Is Betterment a bank?
Betterment operates as an online investment service, though it does collaborate with NBKC Bank for its banking offerings.
Betterment checking accounts earn interest?
No, Betterment checking accounts do not earn interest.
Betterment Cash Reserve does have withdrawal limits.
Betterment Cash Reserve accounts don't impose any limits on withdrawals. You're free to withdraw funds as often as you wish throughout the month.
Yes, you can send money to other people using Betterment.
Betterment allows you to send funds to others via third-party applications, such as Cash App. This functionality isn't directly provided by Betterment itself.
Betterment's customer service is available from 9 AM to 6 PM ET, Monday through Friday.
Betterment is available by phone at 718-400-6898. Customer service is available from Monday to Friday between 9 a.m. And 8 p.m. Eastern Time.
SoFi disclaimer
1:
The annual percentage yield (APY) can fluctuate and is subject to modification without notice. The rates shown are accurate as of 11/12/25. No minimum balance is necessary to earn interest. Any applicable fees might decrease your returns. For more details on rates and other information, please visit https://www.sofi.com/legal/banking-rate-sheet.
2: 0.70% Savings APY Boost
You can achieve an Annual Percentage Yield (APY) of up to 4.30% on SoFi Savings, which includes a 0.70% APY Boost (added to the existing 3.60% APY as of 11/12/25) for a duration of up to six months. This offer requires enrollment in SoFi Plus between September 18, 2025, and January 31, 2026. Please note that rates are variable and may be altered. Conditions apply at sofi.com/sofi-plus. SoFi Bank, N.A. Is a member of the FDIC.