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Overall star rating: 4.2/5.0
Like most cash management account providers, Betterment is not a bank. It’s an online brokerage that helps customers invest their money. Betterment (paid non-client promotion*) sweeps customers’ funds into accounts at program banks, where they benefit from Federal Deposit Insurance Corp. insurance. Betterment has two complementary accounts: Betterment Cash Reserve and Betterment Checking.
Betterment Cash Reserve offers a solid annual percentage yield with no fees and no minimum balance requirement to open and maintain an account. There is, however, a $10 minimum balance in order to earn interest.
Betterment Checking has a debit card available and reimburses ATM fees worldwide. This account also has no monthly fees or minimum balance requirement.
Best for: Betterment customers who want a place to stow their cash while it isn’t invested and want to earn a high interest rate.
*Paid non-client promotion
NerdWallet doesn’t invest its money with this provider, but they are our referral partner – so we get paid only if you click through and take a qualifying action (such as open an account with or provide your contact information to the provider). Most importantly, our reviews and ratings are objective and are never impacted by our partnerships. Our opinions are our own. Here is a list of our partners and here’s how we make money.
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**See more from Betterment
Betterment says: "Annual percentage yield (variable) is 3.25% as of 12/12/25, plus a 0.75% boost (“APY Boost”) on balances up to $1M for new clients with a qualifying deposit. $10 min deposit for base APY. Terms apply (betterment.com/boost); if the base APY changes, the Boosted APY will change. Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More (https://www.betterment.com/cash-portfolio)."
Betterment says: "Checking account is FDIC insured up to $250K through nbkc bank, Member FDIC. FDIC insurance only covers the failure of an insured bank. Betterment is not a bank. All ATM fees and the Visa 1% foreign transaction fee are reimbursed. The Betterment Visa Debit Card is issued by nbkc bank, Member FDIC."
» See how Betterment compares on NerdWallet's full list of best cash management accounts
Checking and savings features
Upsides:
Strong APY for Cash Reserve. The APY on Betterment Cash Reserve is currently a high 3.25%.*** New customers can earn 4.00% after they fund their accounts, which they must do within 14 days of opening it. While not a bank account itself, this account has a rate that’s higher than most traditional brick-and-mortar bank accounts.
***Betterment says: Annual percentage yield (variable) is 3.25% as of 12/12/25, plus a 0.75% boost (“APY Boost”) on balances up to $1M for new clients with a qualifying deposit. $10 min deposit for base APY. Terms apply (betterment.com/boost); if the base APY changes, the Boosted APY will change. Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More (https://www.betterment.com/cash-portfolio).
No monthly fees or minimum balance. Both the Betterment Cash Reserve and Betterment Checking products have no monthly fees or minimum balances to open or maintain an account.
Customers can withdraw cash, and ATM fees are reimbursed. Betterment reimburses all ATM fees incurred worldwide on its Betterment Checking account.
Debit cards are available. Customers can use a Betterment Visa debit card to access their funds in Betterment Checking.
» What is a cash management account? Check out NerdWallet’s guide to this financial product
Cash Reserve accounts receive FDIC coverage up to $4 million through affiliated partner banks. The FDIC typically insures up to $250,000 per depositor, per institution and per account ownership category. Betterment sweeps customers' funds into multiple partner banks to ensure coverage of up to $4 million (and up to $8 million for joint accounts).
Downsides:
Mobile check deposit only available when certain requirements are met. To deposit a check, you must have the latest version of the Betterment mobile app, have been a Betterment customer for at least 30 days, and have received direct deposits of at least $500 in the past month.
Things to consider:
APY can fluctuate without notice. As with savings accounts at regular banks, the APY you open your account with is not guaranteed.
» Looking for more information about Betterment? Check out NerdWallet’s review of its investment services
Customer experience
Upsides:
High-quality website. The Betterment website is well-designed, and information on its different products is easy to find. There is also a robust Frequently Asked Questions section on the site that provides additional information on how Betterment’s products work.
High app store ratings. The Betterment mobile app is highly rated in both the Apple App Store and the Google Play store.
Downsides:
No branches. Betterment is an online-only service provider, so customers can receive help only through remote means of communication such as phone and mail.
Limited live phone support hours. Phone support is available Monday through Friday, 9 a.m. to 8 p.m. ET.
AD
on Wealthfront's website
Wealthfront Cash Account - Paid non-client promotion 
APY
Up to 4.30%
Min. balance for APY
$1
on Betterment's website
Betterment Cash Reserve – Paid non-client promotion 
APY
4.00%
Min. balance for APY
$0
