For Cash Reserve (“CR”), Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your CR balance. * The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 4.75% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of July 31, 2023. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.
See Betterment's Form ADV Part II and Terms and Conditions for additional information, including details on the deposit allocation methodology.
** The national average savings account interest rate is reported by the FDIC (as of July 17, 2023) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000.
Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.
Funds held in your brokerage accounts are not FDIC-insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC-insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details. If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among one or more Program Banks. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity (e.g. individual or joint). In aggregate, funds deposited into Cash Reserve are eligible for up to $2,000,000 (or $4,000,000 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to eight Program Banks). Even if there are more than eight Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $2,000,000 (or $4,000,000 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. 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 for individual accounts, $500,000 of FDIC insurance for joint accounts, and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. In the event you maintain an individual or joint Cash Reserve account and are a beneficiary of a Cash Reserve trust account, Betterment does not provide FDIC insurance based on your status as a beneficiary. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC's Form ADV Part 2.
§ App store rating is as of 10.06.2023 and is based upon all ratings and reviews received by Apple App Store® since the Betterment app was launched September 10, 2010. Current rating can be found on Betterment’s App Store and is subject to change. App Store rating is calculated and generated by Apple based on the average of all total app reviews. Count of total ratings and reviews reflects the combined total of App Store rating and Google Play store ratings. No compensation was exchanged for reviews or ratings. Rating may not be representative of the Betterment client experience, advisory services, or investment performance. For more information, see more reviews at the App Store and Google Play Store.
The reported customer count of 800,000+ is as of Aug. 30, 2023.
Betterment's reported assets under management (AUM) of $40+ Billion is as of Aug. 30, 2023.
This experience and any marketing of the experience are provided by Betterment LLC. To the extent that there is marketing related to Betterment Checking, it is provided by Betterment Financial LLC.
The articles and client support materials available are educational only and not investment or tax advice.
We want you to know a few things:
Who Provides What Service?
Investment Advice: Advisory services for traditional investments (e.g., ETFs) and digital assets are provided by Betterment LLC, an SEC-registered investment adviser. Betterment LLC also offers the Betterment Cash Reserve product. Betterment LLC does not require clients to maintain a minimum investment account balance. However, accounts below a certain balance may have certain restrictions. For more information, please see additional disclosure.
Traditional Investment Brokerage Services & Custody: Brokerage services are provided to clients of Betterment LLC by Betterment Securities, an SEC-registered broker-dealer and member of FINRA /SIPC, and Apex Clearing Corporation, a third-party SEC registered broker-dealer and member FINRA/SIPC.
Digital Asset Trading Services & Custody: Digital asset trading services and custody are provided by Gemini Trust Company, LLC. For further details regarding the custody of assets, including cash, held at Gemini Trust Company, please see your Gemini user agreement.
Betterment Checking: Betterment Checking is made available through Betterment Financial LLC. Checking accounts and the Betterment Visa Debit Card provided by and issued by nbkc bank, Member FDIC. Neither Betterment LLC nor Betterment Financial LLC, nor any of their affiliates, is a bank.
Let’s Talk About Risk:
Investing involves risk and there is the potential of losing money when you invest in securities and digital assets. Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature
Investments in securities and digital assets are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value.
Furthermore, investing in digital assets is highly speculative and volatile, and only suitable for investors who are able to bear the risk of potential loss and experience sharp drawdowns. Digital assets are not legal tender and are not backed by the U.S. government. Digital assets are not subject to SIPC protections.
Before investing, consider your investment objectives and Betterment LLC's fees and expenses. Betterment LLC's internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see Betterment’s Form CRS, Form ADV Part II and other disclosures.
Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Betterment LLC is not registered.
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Market Data by Xignite. Fund data © 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
