Cash Reserve

An account option for holding cash at Betterment

Account details

Are individual high-yield cash accounts covered by FDIC insurance?

Yes. Any cash in Cash Reserve is covered up to $1,000,000† in FDIC insurance once deposited into our program banks. Read more about special considerations here.

Read More

What is the interest rate on my cash?

Your annual percentage yield, or APY, is variable and can change. As of , the APY we are offering for Cash Reserve is 0.10% *. Interest will be paid into your account by the first business day of each month, unless that day is a bank holiday, then it will be paid by the following business day. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients’ brokerage accounts at Betterment Securities.

Read More

Is a joint Cash Reserve account covered by FDIC insurance?

Yes. A joint Cash Reserve account offers up to $2,000,000† in FDIC insurance once funds are deposited into our program banks. This is separate from any cash held in an individual Cash Reserve account, which offers up to $1,000,000 in FDIC insurance once deposited into our program banks. Learn more about special considerations.

Read More

Why does the Cash Reserve interest rate fluctuate?

No matter where you bank, the prevailing interest rate environment will have an impact on your interest rate. The amount banks are willing to pay on deposits is heavily influenced by the Federal Reserve, which sets the rate at which banks can loan money to each other. This is known as the Federal Funds Rate. It’s the rising tide that raises all rates, and the receding tide that can also bring them all down. The Federal Reserve sets a target range for the Federal Funds Rate, rather than aiming ...

Read More

How does the Cash Reserve interest rate compare to other institutions?

Generally, the program banks that participate in Betterment Cash Reserve pay interest rates that are tied to the federal funds rate, which is the rate at which banks can loan money to each other, and is set by the Federal Reserve. The interest rate you receive on Cash Reserve will typically change as a result of the Federal Reserve changing its target federal funds rate. Since the launch of our high-yield cash account on July 23rd, 2019, the Federal Reserve has decreased the target federal fund ...

Read More

Eligibility

Who is eligible to use Cash Reserve?

You must reside in the U.S. full-time to use Betterment’s services. You must also be 18 years old, as we are not able to provide services to minors.

Read More

Who can I open a joint Cash Reserve account with?

A joint Cash Reserve account can be created with any other Betterment customer, as permitted under your state’s laws. If you want to create a joint Cash Reserve account with someone who is not a Betterment customer, they must first open an individual Betterment account (but there is no obligation that the individual account be funded if they only wish to use the joint Cash Reserve account).

Read More

Can I open a Cash Reserve for my trust?

Accounts for trusts are not available through Cash Reserve or Checking at the present time. We’ll be sure to monitor customer requests for accounts for trusts, as it’s something we may be able to offer in the future.

Read More

Will you run a credit check when opening Cash Reserve?

No. Credit checks are not required in order to use our cash management products. However, we will collect your personal information upon signup. We are mandated to collect your personal information by our regulators and the IRS, so there is no way around this requirement.

Read More

Can I open a Cash Reserve for a company or LLC?

Company and LLC accounts are not available through Cash Reserve or Checking at the present time. We’ll be sure to monitor customer requests for company and LLC accounts, as we may be able to offer them in the future.

Read More

Am I required to use both Checking and Cash Reserve?

No. We know that everyone’s needs are different, and we want to provide you with the flexibility to make your own decision on which of our cash management and investing products serve you best.

Read More

Getting started

How can I open a Cash Reserve?

Ready to save? If you don’t have an account with Betterment yet, sign up now. If you already have a Betterment investing account, log in now.

Read More

Are there any minimum balance requirements for Cash Reserve?

There are no minimum balance requirements to use Cash Reserve or Checking. This means that the minimum balance is $0. You can have as little or as much cash in Cash Reserve and Checking as you want—we won’t judge. One thing to note is that the smallest deposit amount you can make into Cash Reserve is $10. This is due to ACH transaction limitations.

Read More

Who will be the primary account holder of a joint Cash Reserve account?

The account holder who opened the joint account is designated as the primary account holder. To see who the primary account holder is, log in and navigate to Settings > Accounts. We aren’t able to transfer primary ownership of a joint account once it’s been created. However, remember that a joint account is legally owned by both parties associated with the account. The IRS requires only the primary account holder be listed on tax statements. The primary account holder, which is the person ...

Read More

In offering Cash Reserve, is Betterment a bank?

Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients’ brokerage accounts at Betterment Securities. Checking accounts and the Betterment Visa® Debit Card provided and issued by nbkc bank, Member FDIC.

Read More

Can I open a joint Cash Reserve account?

Joint Cash Reserve accounts and joint cash goals are available. If you don’t have an account with Betterment yet, sign up now. If you already have a Betterment investing account, log in now. The sign up flow will prompt you to determine whether you will be the only person using Cash Reserve, or whether you would like a joint account. Please note that Cash Analysis and Two-Way Sweep are currently only available on individual Cash Reserve accounts.

Read More

Are there any fees on Cash Reserve?

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.

Read More

What are cash goals?

Betterment now enables you to hold funds for specific goals in cash held in Cash Reserve. By creating separate buckets of cash for your financial goals, you can see all of your money in one place and save purposefully.

Read More

What is Cash Reserve?

Cash Reserve is our newest way to help you save. As part of our cash management suite, Cash Reserve is a high-yield cash account that is available now, and you can use it alone or alongside other investment goals you already have with Betterment. Benefits: Earn a variable rate of 0.10% APY* FDIC insurance covering up to $1,000,000 at our program banks† Access your cash in 1-2 business days No limits on withdrawals No minimum balance No fees on your balance Cash Reserve is only available to ...

Read More

How is a joint Cash Reserve account different than just having a beneficiary?

Two customers with a joint Cash Reserve account have equal ownership of the assets in the account. Each owner can transfer, deposit, and withdraw money. Upon the death of one of the joint Cash Reserve account owners, the entire interest in the account is transferred to the surviving account owner. On the other hand, a beneficiary does not have access, control, or ownership over the account while the account owner is alive. Upon the death of both of the joint account holders, the assets are ...

Read More

What are Betterment's cash management products?

Betterment provides you with cash management solutions that helps you spend and save confidently. Cash Reserve: A High-Yield Cash Account A high-yield cash account Earn a variable rate of 0.10% APY* For individual Cash Reserve: FDIC insurance covers up to $1,000,000 at our program banks† For joint Cash Reserve: FDIC insurance covers up to $2,000,000 at our program banks† Access your cash in 1-2 business days No limits on withdrawals No minimum balance No fees on your balance Cash Reserve is ...

Read More

Managing my account

Can I transfer between my individual Cash Reserve and joint Cash Reserve accounts?

You can transfer between your joint and individual Cash Reserve accounts, or between your cash goals within your Cash Reserve account, up to 5 times per day. Your funds are generally available same-day, but sometimes may take longer, particularly if you have recently deposited funds into your Cash Reserve account. Note that bank holidays do not count as business days. You can see a list of bank holidays here. Transaction Timeline Table

Read More

Can we connect more than one checking account to a joint Cash Reserve?

You can connect up to three funding accounts as a funding source for your individual or joint Cash Reserve accounts or joint cash goals. However, we recommend that you connect checking accounts as funding sources rather than savings accounts, because savings accounts typically limit the number of monthly withdrawals you can make. No matter how many funding accounts you have connected, you’ll always be able to fund your goals with Checking.

Read More

How can I close my joint Cash Reserve account?

Either joint account holder can close the joint account. Log in and navigate to Settings > Accounts. Click the three dots towards the right of the account you are looking to close, and select “Close Account”. There are no trading fees or penalties for closing accounts.

Read More

Is there a limit to how much I can deposit into my joint Cash Reserve?

There is no overall limit to how much you can deposit in a joint Cash Reserve account. However, please note that the largest deposit you can make per day via ACH is $300,000.

Read More

Do both joint account owners need to approve actions in Cash Reserve?

Most actions do not require consent from both account owners. These include closing the account, deposits, withdrawals, most types of transfers, changes to the connected checking account, and beneficiary changes.

Read More

Program Banks

Can I opt out of holding my cash in a specific bank using Cash Reserve?

Yes, you may opt out of holding cash at a specific bank. To opt out of a specific bank, please email us. If you already have cash at one of our program banks, you can still choose to opt out of that specific bank. Regardless of the number of program banks participating, the total amount of FDIC insurance available to you through Cash Reserve will be lower by $250,000 for each bank you opt out from. If you have non-Betterment funds deposited at a program bank already and elect not to opt out, ...

Read More

Tax information

Will I receive any tax forms due to my earned interest in Cash Reserve?

Yes, we will provide you with a 1099-INT tax form by January 31st of each year if you earned $10 or more in interest during the previous calendar year. You’ll be able to download it directly within your account, and we’ll email you to let you know when it’s available.

Read More

Transfers

What is the account number and routing number for Cash Reserve?

Betterment’s high-yield cash offerings are not like a savings account that you can obtain at a traditional bank in that it will not have its own routing and account number. We are not offering direct deposits of your paycheck to Cash Reserve at this time. However, you are still able to wire or transfer funds directly from another connected funding account, or connect a funding account within your Betterment account in order to initiate a transfer into your Cash Reserve or cash goal. Read more ...

Read More

Can I use Two-Way Sweep?

You’ll be able to deposit into Cash Reserve by making a one-time deposit, by setting up auto-deposits, or by using Two-Way Sweep. Two-Way Sweep is a way to effortlessly manage your cash by moving it to and from your checking account and your Cash Reserve accounts when you need it. Please note that Two Way Sweep is not available for goals that can be held in Betterment cash or an Investing portfolio strategy. This feature can only be accessed through a Cash Reserve goal.

Read More

How long do transfers take between my cash accounts?

Cash transfers between your joint and individual Cash Reserve accounts, or between your cash goals within your Cash Reserve account, can generally be completed on the same day. However, please note that some transfers may take longer, particularly if you have recently deposited funds into your Cash Reserve account.

Read More

Can someone wire funds to my Cash Reserve account?

We allow our customers to generate wire transfer instructions directly from within their Betterment account. To wire funds into your Cash Reserve or cash goal, click here and select your high-yield cash account or goal. From there, we’ll generate instructions for you and if you’d like, we can even email you the instructions once you click “Email me instructions” at the bottom of the page. Please note, we do not charge a fee for incoming wire transfers, but your bank may charge you a fee for ...

Read More

Is there a limit to withdrawals from Cash Reserve?

Unlike transfers from a savings account at a typical bank, Cash Reserve and cash goals have no transfer limits on how many times you can move money from your accounts.

Read More

How long do withdrawals take from Cash Reserve?

Unlike withdrawals from a savings account at a typical bank, Cash Reserve and cash goals have no withdrawal limits on how many times you can move money from your account. When you withdraw from your Cash Reserve or cash goals, the cash will be transferred to your connected checking account generally within 1 to 2 business days, depending on when you put in your request. If the withdrawal request is placed before 1 PM ET, it will generally appear in your checking account in 1 business day. If ...

Read More

What happened to Smart Saver?

Smart Saver was a low-risk investment account that was designed to earn a higher yield than a typical savings account through the use of short-term treasury bonds. We’ve replaced this offering with our high-yield cash offering, Cash Reserve. If you had “free time” on your Smart Saver account, that free time won’t correspond to Cash Reserve. We know that it might not seem ideal to you to lose the free time, but our hope is that our new cash management tools will fit your needs by helping you ...

Read More

How long do deposits into Cash Reserve take?

Deposits into Cash Reserve and cash goals from your connected checking account generally take 1 to 2 business days to complete, depending on when you put in your request. If the deposit request is placed before 10 PM ET, it will generally appear in your high-yield cash account in 1 business day. If the deposit request is placed after 10 PM ET, it will generally appear in your high-yield cash account in 2 business days. Transactions can be subject to processing delays in certain circumstances. ...

Read More

How can I fund my Cash Reserve account?

You can connect up to three funding accounts as a funding source for your individual or joint Cash Reserve accounts and cash goals. Because savings accounts typically limit the amount of monthly withdrawals you can make, Betterment recommends your funding source to be a checking account. For security reasons, we allow you to use up to three different external bank accounts to deposit and withdraw from your investing accounts and Cash Reserve every 90 days. External bank accounts associated with ...

Read More

Can I transfer money to and from my investing goals from Cash Reserve?

You can transfer between an investment goal and your individual or joint high-yield cash account, or vice versa, up to 5 times per day. These transactions generally take 1-2 business days to complete. Within accounts held at Betterment, we generally only allow transfers involving individual or joint investing accounts if you are listed as married to the account owner. Note: This requirement does not apply if you created the joint account and are the primary account owner. Confirm spouse details ...

Read More

Can I access Cash Reserve with a debit card?

We’ll provide a Betterment Visa Debit Card to you if you open Checking, which will allow you to access funds in Checking. You will not be able to access your Cash Reserve with the debit card. Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients’ brokerage accounts at Betterment Securities. Checking accounts and the Betterment Visa® Debit Card provided and issued by nbkc bank, Member FDIC.

Read More