Betterment Review October 2024: An online fintech offering investing products, checking, and high-yield savings

Betterment LLC was organized in the state of Delaware in 2009. The company’s headquarters are located at 450 West 33rd Street, New York, NY. As of July 2024, Betterment reported assets under management of more than $50 billion. While its primary focus is investment products, the fintech offers online checking and high-yield savings accounts. Accounts are online-only, as the company does not have branch locations.

NBKC Bank backs the fintech’s checking account, while its high-yield cash reserve product is backed by 16 program banks.

All rates and fees are current as of October 23, 2024, and are subject to change.

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Betterment

Checking accounts:	Starting at $0 per month
Savings accounts:	Open with as little as $10

Betterment rates and products

Betterment could be a great choice for people looking for a free checking account. The fintech only offers two deposit accounts, with a high-yield cash reserve account to go with its checking product. Betterment also has several investing options, including automated investing tools, bond investing, individual retirement accounts (IRAs) and 401(k) accounts, and Crypto investing. The fintech does not offer money market accounts (MMAs) or CDs.

Checking accounts 

Betterment offers just one free checking account. It has no monthly fees or minimum deposit requirements. The account is backed by NBKC Bank and insured by the FDIC up to $250,000 per depositor. It does not earn interest, and Betterment does not offer a new account sign-up bonus.

The account’s perks include reimbursement of all ATM and foreign transaction fees and cashback rewards. Betterment also doesn’t charge overdraft fees.

Savings accounts

Bettermen’s Cash Reserve account is an excellent high-yield savings account. It earns a variable rate, which is currently 4.50% APY. While a $10 minimum opening deposit is required, no minimum balance is required after the initial deposit. 

The fintech uses 16 program banks to back this account, which allows Betterment to extend FDIC insurance coverage up to $2 million for individual accounts and $4 million for joint accounts. There are no limits to the amount of monthly withdrawals or transfers with this account, and Betterment does not charge a monthly fee. 

Be sure to check out our primer on high-interest savings accounts for more information.

Betterment savings rates compared to current top rates*

While Betterment is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:

Investment services

Betterment offers a wide range of investment products and services to help you earn passive income and save for retirement. It offers automated investing tools and access to CFPs, giving you as much or as little guidance as you want for your investment journey. 

Through its investing product, you can have an expert-built stock and bond portfolio created for a $4 monthly fee. This fee switches to a 0.25% annual fee with recurring monthly deposits or transfers of $250 or more or by reaching a balance of $20,000 or more across your investing accounts. 

A premium option is also available once you have $100,000 in assets with Betterment. This option includes access to CFP and customer support, an additional preferred cash reserve rate boost, and 20% off of estate planning with Trust & Will. This service comes with a 0.65% annual management fee.

Investment products and services include:

• Automated investing
• Bonds investing
• IRA and 401(k) accounts
• Crypto investing

Other services Betterment offers 

While Betterment doesn’t offer the same products and services as a full-service bank, it does offer other non-deposit services, including:

• Investment products: As noted above, one of Betterment’s biggest strengths is the wide range of investing products and services
• Rewards: Betterment offers cash back rewards on debit card spending
• Retirement planning: The fintech offers automated technology that can help you decide how to plan your investing to set yourself up for future retirement.

Online banking

You can track your deposit and retirement accounts through the fintech’s all-in-one online banking platform. You can see your net worth, connect outside accounts, add shared accounts, view account performances, track your savings process, and see money movements through online banking.

In addition, you can manage your recurring deposits through online banking. You will be alerted if suspicious transactions occur, and you can lock and unlock your debit card through your account.

Betterment allows you to transfer funds peer-to-peer (P2P) using third-party apps, such as Venmo, Cash App, and Zelle. 

The Betterment platform and customer support 

Betterment deposit and investment accounts can be accessed via online banking with desktop and mobile applications. The mobile app is highly rated, receiving 4.8 stars out of 5 based on more than 51,000 ratings on the Apple App Store and 4.7 stars out of 5 based on nearly 15,000 reviews on the Google Play Store.

You can contact customer support via online chat with a virtual assistant, by mail, or by phone. You can call them at 718-400-6898, Monday through Friday, from 9 a.m. to 8 p.m. Eastern time. 

Is Betterment secure?

Betterment uses standard security features to keep your deposits and information safe. The fintech uses transport layer security (TLS) to help encrypt all transactions and communications. The company also requires that you set up two-factor authentication (2FA) for your account. 

You can also choose biometric authentication for your mobile device, such as thumbprint or facial recognition. The account will also log you out automatically after a certain amount of time to prevent unauthorized access. Betterment also lists several other legitimate internet domains the company operates, which you might see while using the primary website.

The fintech’s checking account is backed by NBKC bank and insured by the FDIC up to $250,000 per depositor. The high-yield cash account is backed by 16 program banks for up to $2 million in FDIC insurance for individual accounts and $4 million for joint accounts. 

Betterment user reviews

Online reviews of Betterment are generally negative, although they are very limited. The company earned 1.7 stars out of 5 on Trustpilot out of around 30 reviews and 1.0 stars out of 5 on WalletHub out of around five reviews.

Positive reviewers were pleased with the automated investing tools. Negative reviewers had issues signing up for an account, had problems with accounts being locked, and weren’t crazy about being unable to contact the backing bank (NBKC bank) for issues with their checking account. 

Compare Betterment alternatives

*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 10/8/2024. There is no minimum balance requirement. Additional information can be found at

Is Betterment right for you?

If you are looking for a solid online company that offers investing products to go with checking and high-yield savings accounts, Betterment could be an excellent choice. The lack of other banking products and physical locations may cause some people to consider alternatives. The automated investing tools and high-yield savings are the standout product offerings here. If you’re looking for those products, consider opening a Betterment account.

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