Betterment Review 2025: Cash Reserve High-Yield Cash Management Account and Checking

<strong>Best FDIC Insurance</strong>

4.1 _/5

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Our take: Betterment’s Cash Reserve and Checking accounts deliver competitive rates, no fees, and generous FDIC protection. It’s a great fit for online savers, though limited customer support could be a drawback.

Cash Reserve high-yield cash management account

• High-yield savings account with competitive interest rate
• Not a bank, but partners with two dozen banks to provide up to $2 million in FDIC protection
• $0 fees—pay no monthly or maintenance fees
• Unlimited withdrawals
• No minimum balance, and money grows with as little as $10 in the account
• Optimize cash by setting up savings goals and automating deposits

• Online only institution with no branches
• No online or weekend customer service
• Variable APY is subject to change

APY (variable)	3.75% – 4.40% (new customer offer with qualifying deposit)
Opening deposit	$10
Min. balance	None
FDIC or NCUA insured	FDIC through partner banks

Checking account

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• ATM fees and foreign fees are automatically reimbursed
• Comes with tap-to-pay Visa debit card
• Partners with two dozen banks to provide up to $250,000 in FDIC protection
• No overdraft fees or minimum balance requirements

• Mobile check deposit only available for certain, established accounts
• No interest earned on account balance

Joint account available	Yes
Mobile check deposit	Only qualified accounts
ATM fees	Refunded
Bill pay offered	No

Table of Contents

1. What is Betterment?
   1. Is Betterment a bank?
2. Betterment Cash Reserve
3. Betterment Checking
4. How Betterment compares to other accounts
   1. Betterment vs. SoFi®
   2. Betterment vs. Synchrony

What is Betterment?

Launched in the wake of 2008’s Great Recession, Betterment was created to make it easier and more affordable for people to receive investment advice. Over the years, the company has evolved, and Betterment Cash Reserve is a new way to manage money.

A high-yield savings account, Betterment Cash Reserve can be combined with the company’s mobile-first checking account. For those who are comfortable banking online, the two accounts come with appealing features.

Our LendEDU Betterment Cash Reserve review gives the high-yield savings account a rating of 4.1 out of 5. Other Betterment products have not yet been reviewed.

Is Betterment a bank?

No, Betterment is a fintech company, which is short for financial technology.

While Betterment is not a bank, it does partner with two dozen banks that hold its customers’ money. By spreading deposits across multiple institutions, the company can offer up to $2 million in FDIC insurance—$4 million for joint accounts—to Cash Reserve accountholders.

FDIC coverage, provided by the Federal Deposit Insurance Corporation, is capped at $250,000 per depositor per institution.  

Betterment Cash Reserve

<strong>Best FDIC Insurance</strong>

4.1 _/5

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High-yield cash management account

Betterment Cash Reserve offers a competitive APY and can be a good choice for anyone who is comfortable managing money online. It can be especially valuable for those with large savings since it offers $2 million ($4 million for joint accounts) in FDIC coverage. However, online reviews cite poor customer service as a concern.

APY	3.75% – 4.40% (new customer offer with qualifying deposit)
Opening deposit	$10
Min. balance	None
FDIC or NCUA insured	FDIC through partner banks
Checking account available	Yes
Mobile check deposit	No
ATM card	No
BBB rating	A–, accredited, 1.73/5 customer rating
Trustpilot rating	1.5/5

No one account is right for everyone, but here are some reasons why the Betterment HYSA stands out.

Competitive high-yield interest rate

The Betterment interest rate is not the highest available on the market right now, but it is close. What’s more, new customers who make a qualifying deposit will receive a 0.65% boost in their APY through Jan. 15, 2026.

Additional FDIC protection

Is Betterment FDIC insured? Its customers’ money is thanks to a network of two dozen partner banks.

By spreading deposits across these banks, Betterment provides up to $2 million in FDIC protection to its Cash Reserve customers. Joint accounts qualify for $4 million in FDIC coverage.

No minimum balance

You only need $10 to open a Betterment Cash Reserve account and start earning interest. With no ongoing minimum balance requirement, that makes this account a great choice for new savers.

No fees

The fact that this is a totally free account is another reason for the high rating on this Betterment savings account review. You won’t have to worry about paying monthly or maintenance fees here.

Unlimited withdrawals

Some banks limit the number of withdrawals a customer can take from a savings account each month. But Betterment allows unlimited withdrawals from the Cash Reserve account.

Goal setting

Betterment lets you create multiple goals for your money, whether that be saving for a vacation or for a rainy day. Then, you can use the company’s automated tools to set aside money to reach those goals.

Betterment Checking

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Checking account

The Betterment checking account is a mobile-first account. It’s a good choice for fee-free checking, but you won’t get many bells and whistles. Accounts come with a Betterment debit card and can be funded with direct deposit. However, mobile check deposit is only available to qualifying customers.

FDIC or NCUA insured	FDIC insured through partner banks
Joint account available	Yes
Mobile check deposit	Only for qualified accounts
ATM fees	Refunded
Bill pay offered	No

Betterment Checking is a separate account that can be opened with or without a Cash Reserve account. It’s a basic account, but for someone who wants a free place to directly deposit a paycheck, this can be a good choice for the following reasons.

No fees

Like the Cash Reserve account, there are no ongoing fees with Betterment checking. There are also no overdraft fees since the company will decline any charge that might exceed your available balance.

What’s more, this checking account will refund any ATM fees you incur as well as the 1% fee Visa charges for foreign transactions.

FDIC protection

As mentioned earlier, Betterment is not a bank, but it does partner with banks to hold its customers’ money. That means up to $250,000 in Betterment checking accounts are protected by FDIC insurance.

Convenient payment options

You’ll receive a Visa tap-to-pay card as your Betterment debit card. The company says its checking customers can also use paper checks or mobile payment options such as Apple Pay and Google Pay.

How Betterment compares to other accounts

Betterment vs. SoFi®

Betterment offers a boosted APY through January 15, 2026, and provides up to $2 million in FDIC insurance—or $4 million for joint accounts—through its network of partner banks. Customers can open savings and checking accounts separately, allowing for more flexibility.

By contrast, SoFi’s boosted APY is available only for the first six months after account opening. It offers up to $3 million in FDIC insurance through partner banks but requires users to open both savings and checking accounts together.

Betterment vs. Synchrony

Synchrony stands out for its simplicity, offering a 3.80% APY on its high-yield savings account with no fees, minimums, or balance requirements. It even includes an optional ATM card, which makes cash access quick and convenient.

Betterment, meanwhile, takes a more all-in-one approach. Its Cash Reserve account offers a boosted APY through January 15, 2026, along with up to $2 million in FDIC insurance ($4 million for joint accounts). While it lacks an ATM card, users can get unlimited ATM fee reimbursements when they also open a Betterment checking account.

To see how the Betterment APY compares to other banks, see our rundown of the best high-yield savings accounts and best checking accounts.