Cash Management: Tools to Help You Save and Spend
You may not think it, but cash sitting idle is risky. The risks: Inflation and your own pocketbook. Our cash management tools help you save more each paycheck and spend when you're ready.
Automate your deposits to fit your savings habit.
Start saving every payday with auto-deposit for each of your goals, or effortlessly move your extra cash using Two-Way Sweep. We’ll analyze your checking account, help you find extra cash, and sweep it into Smart Saver, currently yielding 2.18%.* If your cash balance falls low, we can sweep money back to your checking account for you.
Withdraw the tax-smart way. We aim to keep your tax bill low.
Withdrawals from your investments are straightforward and take just 4-5 business days. For every withdrawal, we help lower transaction taxes by selling your investments in the order that causes the least tax burden.
When you're retired, we'll help manage your retirement cash flow.
When you reach retirement, we help guide your cash flow. We advise you on how much is probably safe to withdraw, then you can schedule your personal retirement payday.Learn more
Frequently asked questions
We're an advisor. That makes our approach to managing your cash different. Let us help answer your questions.
Our cash management suite is integrated into every customer’s Betterment experience.
The short answer is this: Sign up for Betterment, and we'll guide you to link your checking account. What you'll find is that without giving Betterment a dime, you can sync your accounts get a sense of your full financial picture, and get our cash analysis to help identify your extra cash.
Once you set your financial goals, our advice will suggest that you set up auto-deposits to meet them. One goal we'll prompt you to set up is Smart Saver, our investing alternative to your savings account. When you use Smart Saver, you have the choice to turn on Two-Way Sweep. Learn more about Smart Saver and Two-Way Sweep.
Smart Saver is an important part of how we can help you manage and invest your cash because it's the account at Betterment you can use to earn a yield that might be higher than you have on your current savings account. That being said, the only cash management tool that requires using Smart Saver is Two-Way Sweep.
You don't need to set up or fund Smart Saver to sync external accounts, get cash analysis, set auto-deposits, or take advantage of tax-smart withdrawals. Read more about Smart Saver.
Honestly, the important thing is that you save at all. Most Americans don't save enough—for emergencies and certainly not for retirement. The trouble we see with many banks is that they often don't help you identify and save for your goals, and on average, savings accounts earn next-to-no interest—so you can often lose value to inflation, which we assume to average ~2% per year.
Whether at a bank or at Betterment, we suggest that you develop a consistent savings habit, find a high-yield home for your extra cash, and save toward concrete goals. When you're ready to spend, make sure you do it safely and tax-efficiently. Check out more of our savings advice.
Explore your first goal
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.
* 2.18% yield is the asset-weighted blend of the 30 Day SEC Yield as of 4/1/2019 (a standardized calculation that reflects the dividends and interest earned after deduction of the fund’s expenses) of the ETFs that comprise this portfolio net of Betterment’s management fee (0.25% for its Digital plan). The ETFs were chosen with an aim to limit risk and produce income. Yield is an important number in evaluating a low-risk, all-bond portfolio, but is distinct from actual investment returns, which may vary. 20X the average savings account is calculated by taking the FDIC’s national average savings account interest rate for deposits under $100,000 of 0.10% (as of data available 4/1/2019) compared to 2.18%, the expected yield of a Betterment Smart Saver portfolio. Click here for more information.