Betterment Cash Reserve
Editor reviewed3.25% APY with a 0.75% new-customer boost and multi-million FDIC sweep
Rates verified July 23, 2026Open accountTracked since2026
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The Bottom Line
APY
3.25%
Biggest pro
High aggregate FDIC via sweep
Biggest con
Base rate trails Wealthfront
At a glance
Rates verified July 23, 2026- APY
- 3.25%
- APY note
- +0.75% new-customer boost on up to $1M with qualifying deposit, advertised through 1/15/27; confirm terms at signup
- Minimum deposit
- $10
- Monthly fee
- None
- FDIC
- Pass-through via program banks; advertised up to $4M individual / $8M joint (verify exact current figure)
- Institution
- Betterment (deposits swept to program banks)
- ATM access
- No
Is it worth it?
$325 a year on a $10,000 balance
At 3.25% APY, $10,000 earns about $325 in the first year, versus roughly $38 at the 0.38% FDIC national average. That is about $287 more for moving the same money. APY is variable and shown as of the date above.
What is Betterment Cash Reserve?
Betterment Cash Reserve is Wealthfront's quieter rival: a solid rate with a fat new-money boost and high aggregate FDIC coverage, minus the instant access. The honest verdict: strongest for savers already using Betterment's robo-investing and its goal-based buckets.
The account pays 3.25% APY variable per the official page as of July 2026, plus a promotional 0.75% boost for new customers on balances up to $1M with a qualifying deposit, advertised through January 15, 2027 (confirm current boost terms at signup). Opening takes $10, there is no minimum balance for the rate, and no monthly fee. Deposits sweep to program banks for pass-through FDIC coverage; Betterment has advertised up to $4M individual or $8M joint (verify the exact current figure on their disclosure page). Goal-based buckets and two-way sweep automation pair with the robo-investing platform.
The catches: the base rate trails Wealthfront, withdrawals are not instant (1 to 2 day transfers), and ATM access only comes via Betterment's separate Checking product.
Pros & Cons
Pros
- High aggregate FDIC via sweep
- Strong goals UX
- No monthly fee and just $10 to open
Cons
- Base rate trails Wealthfront
- No instant withdrawals
- ATM access only via separate checking product
Key details
3.25% APY variable+0.75% new-customer boost on up to $1M with qualifying deposit (advertised through 1/15/27)Goal-based bucketsTwo-way sweep automation with robo-investingHigh aggregate FDIC coverage via program bank sweepNo monthly fee
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Betterment Cash Reserve FAQ
What is the current APY on Betterment Cash Reserve?
3.25% APY variable per the official page as of July 2026. A promotional 0.75% boost for new customers applies on up to $1M with a qualifying deposit, advertised through January 15, 2027; confirm the current boost terms at signup.
Is Betterment Cash Reserve FDIC insured?
Yes, via pass-through sweep to program banks. Betterment has advertised coverage up to $4M individual or $8M joint; verify the exact current figure on their disclosure page. Betterment itself is not a bank.
What are the minimums and fees?
$10 minimum to open, no minimum balance for the rate, and no monthly fee.
Source: betterment.com