Betterment checking and cash reserve review: Get cash back and high interest rates

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• Betterment is an investing platform, but it also has checking and cash reserve accounts.
• Betterment Checking Account refunds all ATM and foreign transaction fees, so it’s good for travelers.
• Betterment Cash Reserve Account pays a high interest rate and has savings tools.
• See Insider’s picks for the best high-yield savings accounts »

Table of Contents: Masthead Sticky

This post was last reviewed and updated on August 20, 2021.

Overall bank rating

Feature	Insider rating (out of 5)
Checking	4.25
Cash reserve	4.25
Trustworthiness	4
Total	4.16

Pros and cons

Pros	Cons
Can bank and invest with the same company Reimburses foreign transaction fees Reimburses ATM fees Offers a cash-back checking account Has a high-yield savings account Automatic savings tools and savings buckets	Cannot bank in person Can’t deposit cash Need to qualify to use mobile check deposit Cannot deposit a check of more than $1,500

Checking

Betterment Checking Account

Betterment Checking Account is a good account for travelers, because it reimburses 100% of foreign transaction fees and ATM fees.

You can also earn cash back with thousands of retailers. The percentage you’ll earn will depend on a) which business you shop at, and b) whether there are any new cash back promotions – but you can typically expect to earn 2% to 20% cash back.

Cash Reserve

Betterment Cash Reserve Account

Betterment Cash Reserve Account is essentially a high-yield savings account. But unlike most savings accounts, it doesn’t limit how many transactions you can make each month.

Betterment Cash Reserve Account pays a good interest rate, although you can find slightly higher rates at other online high-yield savings accounts. You can also create buckets to save for different goals, such as “Travel Account” or “Emergency Fund.”

How Betterment works

Betterment is primarily known as an online investment platform, but it also has a Betterment Joint Checking Account and Betterment Cash Reserve Account.

If you have both accounts, you can link them to take advantage of what Betterment calls the “two-way sweep.”

With the two-way sweep, Betterment assesses whether there’s any extra money in your checking account by looking at your balance and spending habits. Then it sweeps any excess money into cash reserve to help you save more and earn interest. The two-way sweep also uses your cash reserve account as overdraft protection. If you overdraw from your checking account, money moves from cash reserve to cover the overdraft.

The Betterment app ranks as one of our top banking mobile apps. It has 4.8 out of 5 stars in the Apple store, and 4.6 out of 5 stars in the Google Play store.

To contact customer support, call or email Monday through Friday, 9:00 a.m. to 6:00 p.m. ET.

Your deposits in Betterment Checking Account are FDIC insured for up to $250,000 through NBKC Bank, or $500,000 for joint accounts. Deposits in Betterment Cash Reserve Account are FDIC insured for up to $1 million by multiple partner banks.

Is Betterment trustworthy?

The Better Business Bureau gives Betterment a B+ in trustworthiness. The BBB cites 61 complaints filed against the business as the reason for the grade. A good BBB score indicates a company responds effectively to customer complaints, advertises honestly, and is transparent about business practices.

A strong BBB grade doesn’t guarantee you’ll have a smooth relationship with a company, though. You may want to ask friends and family about their experiences with Betterment or read online reviews. You could also look at any recent controversies.

In 2018, the Financial Industry Regulatory Authority fined Betterment $400,000 for a) failing to maintain its books in accordance with FINRA regulations, and b) dishonestly calculating customer reserves information to financially benefit the company.

FINRA fined Betterment in 2018, but Betterment’s dishonest activity took place from 2012 to 2015. You may decide you’re comfortable using Betterment now that several years have passed.

How Betterment compares

Savings APY Betterment Cash Reserve Account	Savings APY Wealthfront Cash Account	Savings APY No traditional savings account
Monthly fee $0	Monthly fee $0	Monthly fee $1 – $5
Betterment Checking Account	Wealthfront Cash Account	Acorns Spend Account

Betterment vs. Wealthfront

You’ll probably like Betterment if you want separate checking and savings accounts. Wealthfront has a hybrid checking/savings account. On the bright side, Wealthfront does let you create savings buckets to organize and plan your saving.

You’ll earn interest on your entire balance with Wealthfront. With Betterment, you’ll only earn interest on your cash reserve balance. Betterment’s rate is much better than Wealthfront’s rate right now, but keep in mind that rates can change without notice.

Betterment vs. Acorns

Acorns actually doesn’t have a savings account. But it does have checking, retirement, and brokerage accounts, plus investment accounts for kids. Depending on which accounts you want, you’ll pay between $1 and $5 per month.

You may prefer Acorns if you want more account options, but Betterment if you want a regular checking and savings account.

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