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…
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!
Cash Analysis Methodology
Betterment's cash analysis aims to provide smart feedback when we think you have extra cash that could be earning you more value if it were in a higher yield account.
The Difference Between Vanguard and Betterment
I’ve been asked a lot in the last few months in the transition from my old role at Vanguard to my new role as Chief Growth Officer at Betterment – what’s the difference between the two companies?
How Does Betterment Calculate Investment Returns?
Understanding and using time-weighted and money-weighted returns within your Betterment dashboard.
Explore your first goal
Our high-yield account built to help you earn more on every dollar you save.
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.