Betterment
Betterment Cash Reserve
Betterment's high-yield cash bucket with aggressive new-money boosts
Insurance: Up to $4 million FDIC insurance ($8M joint) via sweep across program banks; Betterment is not a bank
Features
- ▸New-client APY boost (recently +0.75% for 3 months) on balances up to $1M
- ▸Recurring-deposit and tenure-based boost offers for existing clients
- ▸Goal buckets with separate targets inside one Cash Reserve account
- ▸Unlimited withdrawals, no minimum balance after the $10 opening deposit
- ▸Two-way sweep can automate moving excess checking cash into Cash Reserve
- ▸Sits alongside Betterment's robo-advisor portfolios for one-click investing
Pros
- +Multi-bank sweep delivers $4M+ FDIC coverage automatically
- +Boost offers are frequent and stack to meaningfully above 4% for stretches
- +Goals-based buckets are well executed
- +Natural fit if your investments already live at Betterment
Cons
- −Base 3.25% relies on boosts to stay competitive with rate leaders
- −Withdrawals are standard ACH speed, not instant like Wealthfront
- −Boost terms and conditions churn constantly — read the fine print on each offer
Our Take
Cash Reserve is Betterment playing Wealthfront's game competently. The structural FDIC coverage is excellent and the boost offers are real money, but the base rate and withdrawal speed both trail Wealthfront's Cash Account. Pick it if Betterment is already your investing home; pick Wealthfront if the cash account itself is the product you are shopping for.
Best for: Betterment investors who want boosted yield and big FDIC coverage on idle cash
Open at Betterment →Last verified 2026-06-11
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