Betterment Cash Reserve

Betterment Cash Reserve is a cash-management account, not a bank account in its own right. Betterment itself is not a bank; your money is swept to program banks that hold the deposits. It sits as Wealthfront's quieter rival: a solid variable rate, a large new-money boost, and high aggregate FDIC coverage, with the trade-off of slower access. It is most useful to savers already inside Betterment's robo-investing platform, where goal-based buckets and two-way sweep automation coordinate cash against investing goals. As a reference point, this is the account for someone who values integration and coverage over instant liquidity. The concrete terms are straightforward. The account pays 3.25% APY variable, per the official page as of July 2026. New customers can add a promotional 0.75% boost on balances up to $1M with a qualifying deposit, advertised through January 15, 2027; because promotional rates change, confirm the current boost terms at signup. Opening takes $10, there is no minimum balance to earn the rate, and there is no monthly fee. On coverage, deposits sweep to program banks for pass-through FDIC insurance, with Betterment advertising up to $4M for individual accounts and $8M for joint accounts. That aggregate figure depends on the sweep spreading balances across multiple program banks, so the advertised caps assume that distribution rather than coverage at Betterment directly. Liquidity is where you pay for the rest. Withdrawals are not instant; transfers out run 1 to 2 days, so this is not the account to lean on for same-day cash needs. There is also no ATM access from Cash Reserve itself. ATM use requires Betterment's separate Checking product, which is a different account you would open alongside it. The honest flags are worth stating plainly. The base 3.25% rate trails Wealthfront, so once the new-customer boost lapses after January 15, 2027, the standing base rate is the number that actually matters for a long-term saver. Because the APY is variable, it can move up or down after you open, in either direction, independent of the promotional window. And the account is at its strongest when paired with Betterment's investing and Checking products; used on its own, its rate and access are less compelling than a standalone high-yield account with instant transfers. The short version: strongest for savers already using Betterment's robo-investing and its goal-based buckets, weaker as a pure cash account chosen on rate and liquidity alone.