Betterment Checking and Cash Reserve Review: Online Cash Management Account
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Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Overview
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Betterment has two cash management accounts that are paired like traditional savings and checking accounts: Betterment Cash Reserve and Betterment Checking. Like most cash management account providers, Betterment is a brokerage, not a bank. To provide insurance on customer funds, Betterment works with partner banks that are able to insure funds through the Federal Deposit Insurance Corp.
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. The rate is up to 4.00% annual percentage yield** on Betterment Cash Reserve for new account owners once they fund their account (with a qualifying deposit within 14 days of opening the account); 3.25% after promotion ends and for current customers.
Betterment Checking has a debit card available and reimburses ATM fees worldwide. This account also has no monthly fees or minimum balance requirement.
**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; 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. FDIC insurance provided by Program Banks, subject to certain conditions. Up to $8M (jt.)/$4M (ind.) applies to eligible cash."
"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."
Solid annual percentage yield.
No monthly fees or minimum balance to open or maintain an account.
ATM fees reimbursed worldwide for checking account.
Offers a debit card.
High federal insurance limit on eligible cash through partner banks.
No interest on checking account.
No branches.
Mobile check deposit only available when requirements are met.
Product reviews
Cash management
Solid APY for Cash Reserve. The APY on Betterment Cash Reserve is currently a solid 3.25%. New customers can earn 4.00% for three months 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.
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 and foreign transaction 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
FDIC coverage up to $4 million on eligible cash 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.
» Looking for more information about Betterment? Check out NerdWallet’s review of its investment services
Customer experience & overdraft fees
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 only receive help through remote means of communication such as phone and mail.
Limited live phone support hours and no chat support. Phone support is available Monday through Friday, 9 a.m. to 8 p.m. ET. The site has no online chat support.
Overdraft fees
No overdraft fees or coverage program. If a customer doesn’t have enough funds to cover a transaction, the transaction won’t go through.
Rating methodology
NerdWallet’s overall ratings for cash management accounts are weighted averages of account features and customer experience. Factors we consider, depending on the category, include rates and fees, ATM access, availability of cash withdrawal and limits, user-facing technology, customer service, overdraft programs and innovation. The stars represent ratings from poor (one star) to excellent (five stars). The ratings are incremented in tenths of a star.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for banks and credit unions and our editorial guidelines.