Cash Reserve

Yes, any cash in Cash Reserve is covered up to $2 million in FDIC insurance once deposited into our program banks†. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each program bank in such a way that provides up to $250,000 of FDIC insurance ($500,000 for joint accounts) per program bank. In the event you maintain an individual or joint Cash Reserve account and are a ...

Yes. Any cash in Cash Reserve is covered up to $2,000,000† in FDIC insurance once deposited into our program banks. Read more about special considerations here.

Yes. A joint Cash Reserve account offers up to $4,000,000† in FDIC insurance once funds are deposited into our program banks. This is separate from any cash held in an individual Cash Reserve account, which offers up to $2,000,000† in FDIC insurance once deposited into our program banks. Learn more about special considerations.

Generally, the program banks that participate in Betterment Cash Reserve pay interest rates that are tied to the federal funds rate, which is the rate at which banks can loan money to each other, and is set by the Federal Reserve. The interest rate you receive on Cash Reserve will typically change as a result of the Federal Reserve changing its target federal funds rate. When the federal funds target rate increases or decreases, the rate we can offer through Cash Reserve can also fluctuate with ...

Your annual percentage yield, or APY, is variable and can change. As of September 20, 2024, the APY we are offering for Cash Reserve is 4.50%*. Interest will be paid into your account by the first business day of each month, unless that day is a bank holiday, then it will be paid by the following business day. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients’ brokerage accounts at Betterment ...

No matter where you bank, the prevailing interest rate environment will have an impact on your interest rate. The amount banks are willing to pay on deposits is heavily influenced by the Federal Reserve, which sets the rate at which banks can loan money to each other. This is known as the Federal Funds Rate. It’s the rising tide that raises all rates, and the receding tide that can also bring them all down. The Federal Reserve sets a target range for the Federal Funds Rate, rather than aiming ...

Cash goals and investing portfolios are available for business or LLC accounts. What if I already have a business or LLC account account set up with Betterment? If you already have a Betterment business or LLC account, you can open a new cash goal in the account by logging in and clicking “Add New” on the home page. If you’re choosing to invest, you’ll next be able to select your portfolio. Go on to finish setting up your goal, and once that's all set, you'll be able to make your initial ...

Trust cash goals are available. If you don’t have an account with Betterment yet, sign up now. Our team of trust specialists will provide you with instructions for opening a trust account. For more details, please email our trust team at trusts@betterment.com If you already have a Betterment trust account, you can open a new cash goal in your trust account by logging in and clicking “Add New” on the home page. Read more

You must reside in the U.S. full-time to use Betterment’s services. You must also be 18 years old, as we are not able to provide services to minors.

A joint Cash Reserve account can be created with any other Betterment customer, as permitted under your state’s laws. If you want to create a joint Cash Reserve account with someone who is not a Betterment customer, they must first open an individual Betterment account (but there is no obligation that the individual account be funded if they only wish to use the joint Cash Reserve account).

No. Credit checks are not required in order to use our cash management products. However, we will collect your personal information upon signup. We are mandated to collect your personal information by our regulators and the IRS, so there is no way around this requirement.

No. We know that everyone’s needs are different, and we want to provide you with the flexibility to make your own decision on which of our cash management and investing products serve you best.