Earn Rewards: Sign up now and earn a special reward after your first deposit. See offer details

<title>Dismiss</title>

Betterment

Save, invest, retire

GET — On the App Store

View
<title>Dismiss</title>

A Broken “Investment”

The email introduced a new product – a “Breakable” Certificate of Deposit.  With this product, you can put your money in a Certificate of Deposit…

Articles by Mary
By Mary Biggins Published Jun. 01, 2011
Published Jun. 01, 2011
1 min read

The email introduced a new product – a “Breakable” Certificate of Deposit.  With this product, you can put your money in a Certificate of Deposit and receive one penalty free withdrawal for the term of the deposit.

I must admit, prior to learning about Betterment, I was a champion Certificate-of-Deposit-saver.  Back then (i.e. 3 months ago!), CDs were an easy way to “invest” my money.  Now, I can’t wait for these CDs to be up so that I can put that money in my Betterment account!

Still intrigued by the email, I clicked through to learn more. The fine print:

  • Minimum Balance to Open: $10,000
  • Annual Percentage Yield: 0.25%

So, if I put $10,000 into a Breakable Certificate of Deposit, I would see a return of $25 for 1 year.  That doesn’t really sound like my money is “working” very hard for me.

Seems like this “Breakable” Certificate of Deposit is … Broken!

Recommended Content

View All Resources

Cash Reserve Has A Variable APY: What That Means For You

Interest rates change over time, but at Betterment, we are always working hard to help give you one of the best rates possible so you can make the most of your money.

6 Ways to Retain Top Talent with Financial Wellness

Beyond just handing over a paycheck, supporting your employees’ financial wellness plays a crucial part in employee happiness, performance, and retention.

Saver’s Credit: Understanding the Retirement Savings Contribution Credit

The Saver’s Credit is an excellent incentive for your employees to contribute to your retirement plan. Here’s how to answer the most frequently asked questions.

How would you like to get started?

Manage spending with Checking

Checking with a Visa® debit card for your daily spending.

Save cash and earn interest

Grow your cash savings for general use for upcoming expenses.

Invest for a long-term goal

Build wealth or plan for your next big purchase.

Invest for retirement

Set up traditional, Roth, or SEP IRAs to save for the golden years.

See details and disclosure for Betterment's articles and FAQs.