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

<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: June 1, 2011

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

Jon Stein on “How I Built This:” Reflecting On Our Story

Jon Stein joins NPR’s Guy Raz for an episode of “How I Built This” to look back at how Betterment started, what mistakes were made, and how they turned into learnings for the robo-advisor we are today.

High-Yield Savings Accounts: The Ultimate Guide

High-yield savings accounts can offer higher interest rates than traditional counterparts. Learn everything you need to know about them in this guide.

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.

Explore your first goal

Cash Reserve

Our high-yield account built to help you earn more on every dollar you save.

Safety Net

This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.

Retirement

Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.

General Investing

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.

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