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Betterment Everyday Checking and Cash Reserve: Online Cash Management Account Review

Sept. 13, 2019
Banking, Checking Accounts, Personal Finance, Savings Accounts
Betterment Everyday Checking and Savings: Online Cash Management Account Review
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.
4.5 NerdWallet rating

 

Where Betterment Everyday shines:

  • Strong 1.78% APY on Betterment Everyday Cash Reserve
  • No monthly fees or minimum balance
  • ATM fees reimbursed worldwide
  • FDIC insured through third-party bank
  • Offers debit cards for Everyday Checking account

Where Betterment Everyday falls short:

  • No interest on checking
  • No branches
  • No check deposit or writing
  • Limited human phone support hours and no chat support

The bottom line

Like most cash management account providers, Betterment is not a bank. It’s an online nonbank financial service provider that helps customers invest their money. The Betterment Everyday product sweeps customers’ funds into accounts at program banks, where it benefits from FDIC insurance. The Betterment Everyday product has two accounts that work together: the Betterment Everyday Cash Reserve account and the Betterment Everyday Checking account.

» What is a cash management account? Check out NerdWallet’s guide to this financial product

Betterment Everyday Cash Reserve offers a high annual percentage yield with no fees and no minimum balance requirement.

Betterment Everyday Checking — which is currently being rolled out to people on the product’s waitlist and is to be available en masse by the end of 2019 — has a debit card available and reimburses ATM fees worldwide. This account also has no monthly fees or minimum balance requirement.

Checking and savings features

4.5/5.0

Upsides:

High APY for Cash Reserve. The APY on Betterment Everyday Cash Reserve is currently a high 1.78%. While not a bank account itself, this account has a rate that’s higher than most online savings and traditional brick-and-mortar bank accounts.

No monthly fees or minimum balance. Both the Betterment Everyday Cash Reserve and Betterment Everyday Checking products have no monthly fees or minimum balances.

Customers can withdraw cash, and ATM fees are reimbursed. Betterment reimburses all ATM fees incurred worldwide on its Betterment Everyday Checking account, though it’s not yet available to everyone.

Debit cards are available. Customers can use a Betterment Visa debit card to access their funds in Betterment Checking.

No limit on the number of savings withdrawals. There is no limit on the number of withdrawals that can be made from Betterment Everyday Cash Reserve, unlike with traditional bank savings accounts, which have a federal limit of six free withdrawals a month.

Downsides:

No check deposits or check writing. With Betterment Everyday Cash Reserve, the only way to deposit and withdraw funds is through online transfer to or from a linked checking account.

APY can fluctuate without notice. The program banks that Betterment partners with are subject to the changing federal funds rate, which is the set rate at which banks loan money to one another. This means that the APY that Betterment offers customers moves up and down in conjunction with the rates of its program banks. Essentially, 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

4.0/5.0

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.

Twitter support available. Betterment provides Twitter support to its customers on its @BettermentHelp channel.

Downsides:

No branches. Betterment is an online-only service provider, so customers can receive help only through remote means of communication like phone, mail, email and Twitter support.

Limited human phone support hours and no chat support. Phone support and email is available Monday through Friday, 9 a.m. to 6 p.m. ET, but only email is available on weekends. The site has no online chat support.

» See how Betterment compares on NerdWallet’s full list of Best Cash Management Accounts.

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