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Introducing Betterment Everyday™: Our New Cash Management Suite

Betterment redefined investing with automated guidance built for you. Now, we’re reshaping another part of your financial life: your cash management. Meet Betterment Everyday™.

Articles by Jon

By Jon Stein
CEO & Founder, Betterment  |  Published: October 22, 2019

We’re excited to announce Betterment Everydayーa cash management suite that can help you earn more money today so you can be more financially secure tomorrow.

Betterment Everyday Cash Reserve, available now, can help you earn a variable rate up to APY,* is FDIC insured up to $1mm† once deposited at our program banks, and has no account minimums.

Betterment Everyday Checking, available later this year, will feature ATM reimbursements‡, no account minimums or monthly maintenance fees, and connect advice on everyday cash flow to your long-term goals.

When I started Betterment, the goal was to help people answer a basic, but universal, question: “What should I do with my money?”

In my early career as a bank consultant, working for large banks across the United States, I noticed fundamental conflicts in the financial industry that made great financial advice inaccessible to most Americans. In creating Betterment, I sought to change the industry and to build the most customer-centric smart money manager.

That desire for change evolved into our mission: To help you make the most of your money so that you can live better. And we focused all of Betterment’s efforts on that mission. We listened diligently to our customers. Developed personalized retirement guidance. Built our suite of Tax Smart tools. Incorporated personal choice into our investment options. Built and evolved our mobile app.

Across our work, we listened and learned from you.

We heard that while investing is a major challenge, it’s often not your first one—instead, it’s saving. For many of our customers (whose average age is 37), having more money tomorrow means managing your money better today.

You want tools that make you confident you’re doing the smart thing: Increasing financial security for you and your family by setting savings goals and creating a plan to achieve them. To not worry about whether you are incurring unnecessary fees that might take advantage of you at inconvenient times. Ultimately, we believe that managing your everyday cash is essential to realizing your long-term goals.

This is why we’ve built Betterment Everyday—a cash management suite for your money today that can help you save and earn more for tomorrow, all in one place.

Betterment Everyday: A Solution That Helps You Save

The problems we see in the banking industry today are the same fundamental flaws we saw in investing when we started Betterment: Companies aren’t customer-centric. Rather than suggesting what’s right for customers, they’re instead encouraged to do what makes the company the most money (which can often be a poor financial decision for the customer). Instead of investing for the long term, trade on the short term, some say. Instead of saving for your goals, spend what you make and borrow money later, others say.

We’ve designed Betterment Everyday to meet you where you are in your financial journey and to encourage saving that grows over time.

  • Our first step—available today—is Betterment Everyday Cash Reserve, a high-yield cash account that can help you earn a variable rate of *, is FDIC-insured for up to $1,000,000† once deposited at our our program banks, has no minimum balance, and only requires a $10 deposit to get started.
  • Then, coming soon, we’ll roll out Betterment Everyday Checking—meant to help you manage the heartbeat of your financial life, your everyday cash flow. With this checking account, users will receive a Betterment Visa Debit Card and all ATM fees, worldwide, will be reimbursed‡; you won’t see any monthly maintenance fees or minimums and you’ll get access to advice on your full financial life.

The same reason that we don’t put our own ETFs into portfolios is the same reason Betterment is not a bank—because we can offer you value and help you build a better life as your advisor and advocate. We want to help you make the most of your money, and a high yield cash account is an important part of that.

As we launch Checking, we’re taking a similar approach. No checking fees, and all ATM fees reimbursed‡ worldwide.

A partner that works for youーeveryday.

We’re pushing the boundaries of how finance serves you, helping you save more with less hassle, so that ultimately, you can live better. We’re on the path to building your self-driving wallet.

When I think about what the future holds for my two young daughters and children across the United States, I can’t imagine that they’ll ever have to spend time figuring out how to intelligently allocate their paychecks across various accounts—I want them to have easy access to the right answers, from a trusted advisor. I want them to know that they’re on-track to meet goals important to them—and if not, how to get on track. I believe that technology will help make smart money management accessible to all Americans.

To get there, come join us. Tell us what you want to do with your money. We can make it easy, then help you automate the most frequent, distracting, and tedious (but nevertheless valuable) tasks—just as we have with investing.

As we launch Betterment Everyday, we’re starting to bring our role as your financial advisor into your everyday life, turning your daily choices and transactions into saving for the future. We’re building the framework for where we believe the industry can (and should) move. We believe the future is smart money management, and we’re helping lead the way.

Months ago, I described why the financial industry fails to help people save: We place the responsibility to save more money on the customer, rather than taking on that challenge as investment managers and banks. Ultimately, I believe institutions that survive into the future will be accountable for what real people struggle to do: Automate their savings.

We are striving for a future of smarter financial behaviorーfor a stronger middle class, empowered to thrive and pursue happiness, with the true peace of mind that comes from having a smart money manager always working for you. Betterment Everyday brings us a significant step closer to that goal.


Betterment Everyday Cash Reserve

*The annual percentage yield (“APY”) on the deposit balances in Betterment Everyday Cash Reserve (“Cash Reserve”) is X.XX% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the “Program Banks”) and is current as of XX/XX/20XX. This APY is variable and subject to change daily. See Current APY. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Everyday Checking. Cash Reserve and Betterment Everyday Checking are separate offerings and are not linked accounts.

See Betterment’s Form ADV Part II and Terms and Conditions for additional information, including details of the deposit allocation methodology.

Betterment Everyday Cash Reserve (“Cash Reserve”) is offered by Betterment LLC. Clients of Betterment LLC may participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients’ funds are deposited into one or more banks (“Program Banks“) where the funds earn a variable interest rate and are eligible for FDIC insurance.  Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities with through Betterment LLC and Betterment Securities.  Cash Reserve should not be viewed as a long-term investment option. 

Funds held in your brokerage account are not FDIC-insured but are protected by SIPC. Funds in transit to or from Program Banks are generally not FDIC-insured but are protected by SIPC, except when those funds are held in a sweep account following a deposit or prior to a withdrawal, at which time funds are eligible for FDIC insurance but are not protected by SIPC. See Betterment Client Agreements for further details.  Funds deposited into Cash Reserve are eligible for up to $1,000,000.00 of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 each at  up to four Program Banks). Even if there are more than four Program Banks, Clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $1,000,000. The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured.  For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full terms and conditions and Betterment LLC’s Form ADV Part II.

Betterment Everyday Checking

‡ Checking accounts and the Betterment Visa Debit Card provided by and issued by nbkc bank, Overland Park, Kansas, Member FDIC. Funds deposited into Checking will be eligible for up to $250,000 of FDIC insurance. Betterment Everyday Checking made available through Betterment Financial LLC. Neither Betterment Financial LLC, nor any of their affiliates, is a bank. Betterment Financial LLC does not charge foreign transaction fees for the use of the Betterment Visa Debit Card outside of the United States. However, Visa charges a foreign transaction fee of 1%. Betterment Financial LLC does not reimburse this 1% transaction fee on foreign ATM transactions or on any other foreign transactions or purchases. Checking accounts do not earn APY (annual percentage yield). Betterment Everyday Cash Reserve and Betterment Everyday Checking are separate offerings and are not linked accounts.

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