In this Betterment Everyday Cash Reserve review, we’ll explain how the account works, explore the best ways to use it, and determine if it is a good fit for your savings needs. Enjoy!

Betterment Everyday Cash Reserve is a straightforward way to help you save and reach your financial goals. It boasts one of the top interest rates of any high-yield savings account and gives you more bang for your buck than traditional banking options.

Still, since it’s a relatively new product, you might not be familiar with Betterment’s Everyday Cash Reserves account. Although the company primarily focuses on robo-advisor investment services, they’re no stranger to helping account holders save their money.

The Betterment Everyday Cash Reserve account is an upgrade to the Smart Saver account which was previously offered. With the old account, they put your money into low-risk investments, and your cash wasn’t FDIC-insured. However, they’re transitioning all of their current Smart Saver accounts to the new and improved Everyday Cash Reserve, and they’re hitting the ground running.

There’s no risk because your money is now FDIC-insured. They don’t have a minimum balance requirement and you earn up to 1.83% APY on your money!

With interest rates like that, it’s no secret that moving your money to Betterment Everyday is a smart move. After all, why wouldn’t you want to earn more from your money by doing nothing at all?

But first, you should know what you’re getting into. Here’s an in-depth look at what you need to know before opening a new account.

Betterment Everyday Cash Reserve at a Glance Betterment is an investment platform that helps you automate the investing process and save significant amounts of money in fees. In this Betterment review, we'll explain what it is, explore how Betterment works, and help you decide whether it is a good fit for your retirement investing plans.

  • Grow your money with high-interest savings
  • FDIC-insured up to $1,000,000
  • Internet banking made easy across the U.S.
  • Partners with well-known banks to maximize savings

Betterment Everyday Cash Reserve: Pros and Cons

Betterment Everyday Cash Reserve: Best FeaturesBetterment Every Cash Reserve: Where They Fall Short
Super-high interest rateLow name recognition
FDIC-insured up to $1,000,000Joint accounts not offered yet
Unlimited withdrawals
Transfers take just 1 to 2 business days
No monthly fees
Low initial deposit requirement

Save More with Betterment Everyday Cash Reserve – Earn up to 1.83% APY on your money when you open an Everyday Cash Reserve account. Get started here.

Who Is Betterment?

Betterment has been around since 2008 and most people recognize them for their robo-advisor investment services. However, the Everyday Cash Reserve account is a recent option and it’s outstanding.

Betterment isn’t a bank, but they are registered with the SEC as an investment adviser. So, can they have a savings account? Good question. Betterment partners with some top-notch banks in the industry to offer an option for a great savings account. As of September 30, 2019, Betterment Everyday Cash Reserve program banks include:

  • Barclays
  • Citibank
  • ConnectOne Bank
  • Georgia Banking Company
  • Seaside National Bank & Trust
  • Third Coast Bank SSB
  • Valley National Bank
  • Wells Fargo Bank, N.A.

Even though Betterment partners with these banks to provide you with a first-rate savings account, you never have to deal with any of them yourself. Betterment takes care of all of that on the backend so you can focus on your money. Plus, your deposits are FDIC-insured up to $1,000,000 which is above and beyond the typical $250,000 you see at a single bank.

To take their banking offerings to the next level, they plan to release a fee-free checking account soon. Sign up for the waitlist to get notified when it becomes available.

Betterment Everyday Cash Reserve Highlights

The new Everyday Cash Reserve account from Betterment has no fees on your account balance and offers superior interest rates up to 1.83% APY. New accounts can be opened with a $10 minimum deposit.

If you’re struggling to save, knowing your cash can earn more interest is an incentive to step it up a notch. Just $5,000 in the account will earn almost $100 of interest in a year, which is basically $100 in free money.

Even better, unlike other high-yield savings accounts, the Everyday Cash Reserve account offers unlimited withdrawals.

At most banks, federal law doesn’t let you make more than six withdrawals per month on a savings account. However, the structure of the Everyday Cash Reserve account is different, so it doesn’t fall under the six withdrawal rule.

That means you can transfer money in and out of the account as many times as you want without worrying about penalties or paying extra fees. Though keep in mind you want to save money, not spend it.

Adding money is easy when you link a bank account to your Betterment account. Once your money is there, it’s protected by the FDIC for up to $1,000,000. This is an important consideration because the previous Betterment Smart Saver accounts weren’t FDIC-insured. They were investment accounts, not savings accounts.

Betterment’s Everyday Cash Reserve is a true savings account. Your cash isn’t invested but can still grow as it earns interest. Since it’s FDIC-insured, there’s no risk at all to keep your savings at Betterment.

How to Use a Betterment Everyday Cash Reserve Account

Everyone has different money needs, and Betterment Everyday Cash Reserve is extremely flexible. With no restrictions on how often you can transfer money back and forth, the account has unlimited potential.

Vacation Fund – Taking out a loan to pay for your vacation or putting it on your credit card is never a good idea. Instead, set up a separate account to reach your travel goals. You’ll be free to enjoy a fantastic escape without the guilt of creating more debt.

Emergency Fund – Keeping your emergency fund in a separate account is a smart choice whether you’re still building it or already have the recommended 3 to 6 months’ worth of living expenses. By keeping the money separate, you aren’t tempted to spend it on things it wasn’t meant for.

Down Payment – Buying a house or a car? Those don’t come cheap. Have a special place to stash your money when saving for a down payment. Your cash will grow faster with the higher interest rate, too.

Big Purchases – Savings accounts are the perfect way to save for big purchases. If you’ve got your eye on a boat or are thinking of splurging on new furniture, set aside a little cash each week to make your dreams a reality.

Benefits of Using Betterment Everyday Cash Reserve

  • Excellent Interest RateBetterment Everyday Cash Reserve pays the same interest no matter how much (or how little) money you have in your account. You earn 1.83% APY on all balances.
  • Unlimited Withdrawals – Most savings accounts let you take out money a maximum of 6 times per statement cycle, but you don’t have to worry about that with this account. With Betterment, there’s no limit to how many transfers you make.
  • Low Initial Deposit Requirement – Betterment Everyday Cash Reserve helps you make the most of your money, and you only need a minimum deposit of $10 to build your savings.
  • No Fees – There are no fees on your account balance and no minimum balance to maintain.
  • FDIC-insured – Any money you put into your Everyday Cash Reserve account is covered up to $1,000,000 in FDIC insurance.

Build Savings with Betterment’s Everyday Cash Reserve – Start building your savings with Betterment’s Everyday Cash Reserve account. Earn up to 1.83% APY no matter your balance. Learn more here.

Where Betterment Everyday Cash Reserve Falls Short

With no fees, unlimited withdrawals, and the high interest rate, Betterment Everyday Cash Reserve is tough to beat. Nothing in life is perfect, however, and there are a few spots where Betterment Everyday could improve.

The most obvious downside is the low name recognition. Betterment got its start as an investing platform and is branching out to offer more products. If you’re not into investing, there’s a good chance you’ve never heard of Betterment.

Still, their Everyday Cash Reserve is a stellar product. As word spreads, the company will give bigger banks a run for their money.

Betterment used to require that you sign up for their waitlist for their new checking account product to get their high interest rate on their Cash Reserve account, but they removed that requirement in December, 2019. So, now anyone can get the stellar interest rate.

Is Betterment Everyday Cash Reserve Right for You?

Online banking has a lot of benefits over brick and mortar banks including lower fees and higher interest rates. Still, some people prefer to do their banking in person. If that sounds like you, Betterment Everyday Cash Reserve might not be a good fit.

However, having an online account is easy to set up and to manage. Betterment Everyday Cash Reserve streamlines the process even further by allowing unlimited transfers in and out of the account.

If you’re on the fence, consider giving online banking a shot.

An Everyday Cash Reserve account is a great place to store your emergency fund. It’s also a good place to stash cash for your vacation fund or other savings goals. As a bonus, you’ll earn a great interest rate with no extra work or risk.

How to Open the Everyday Cash Reserve Account

Betterment makes opening an Everyday Cash Reserve account easy. You only need a few minutes to get it set up. Before you start, it’ll be helpful if you have your driver’s license and Social Security number close by.

  1. Open an Everyday Cash Reserve account here.
  2. Enter your email address and pick a password, then fill in your personal information.
  3. Connect an existing bank account to deposit at least $10 to your new account.

Betterment Everyday Savings Review Pin - picture of woman hugging piggy bank

Frequently Asked Questions

Is Betterment a bank?

No. Betterment is an investment firm registered with the SEC. Money deposited into Betterment Everyday Cash Reserve is held at partner banks.

Are Betterment Everyday Cash Reserve accounts FDIC-insured?

Yes. Because Betterment Everyday Cash Reserve spreads your deposit between multiple banking partners, your deposits are insured by the FDIC for up to $1 million.

What is the minimum opening deposit requirement?

To open a Betterment Every Cash Reserve account, a minimum deposit of just $10 is required.

Does Betterment Everyday Cash Reserve have a minimum balance requirement or charge fees?

No. There are no minimum balance requirements and fees are not charged on your balance.

How often can I withdraw my money?

Although savings accounts at traditional banks limit you to six transactions per month, Betterment Everyday Cash Reserve provides unlimited withdrawals.


Betterment Everyday Cash Reserve Review: The Bottom Line

With a super-low opening deposit of $10, anyone can take advantage of what Betterment Everyday Cash Reserve has to offer. The biggest benefit is the 1.83% APY.

Betterment also offers a checking account with no account fees, overdraft fees, or minimum balance requirements. That’s hard to beat.

Even if you stick to the Everyday Cash Reserve account, you still come out ahead. You can move your emergency fund there to earn more interest right away. When you’re ready, adding money for your vacation fund or other financial goals is easy to do with the click of a button.

Open Your Account – Get started with Betterment’s Everyday Cash Reserve Account and earn up to 1.83% APY. Get started here.