Betterment review
Updated September 28, 2026 · VaultCue Editorial Team · Facts checked September 26, 2026
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Our verdict
Betterment suits US savers who want a cash-management account that pays a variable rate without a monthly fee. Its Cash Reserve pays 3.5% on a variable basis, needs $10 to open, and holds cash across a sweep network of FDIC-insured program banks.
Key facts
- Best for
- US residents parking cash in a no-fee, sweep-protected cash account.
- Headline rate
- 3.5%↗
- Rate type
- Variable↗
- Minimum deposit
- $10↗
- Deposit protection
- FDIC up to USD 250,000↗
- Access terms
- Cash Reserve: no minimum balance ($10 minimum deposit), unlimited withdrawals, sweep cash held at FDIC-insured program banks up to $8M (joint)↗
- Monthly fee
- $0↗
- Account kind
- Cash management↗
- Legal entity
- MTG LLC↗
- Headquarters
- United States↗
- Founded
- 2008↗
- Support channels
- Phone, Help-centre, Email, Chat↗
- Pricing model
- No monthly fee
- Official website
- betterment.com
Facts checked September 26, 2026, 5 sources
Pros and cons
Pros
- No monthly fee on the Cash Reserve account, at $0 a month
- Headline rate of 3.5%, variable, above the cash-management median of 3.41%
- Only $10 to open, with unlimited withdrawals
- Cash sweeps to FDIC-insured program banks, with protection listed at FDIC up to USD 250,000
Cons
- The rate is variable, so the 3.5% headline can move with the policy rate
- A minimum of $10 is still needed before the sweep starts earning
- Protection on sweep balances depends on the program banks holding the cash, with FDIC up to USD 250,000 stated per depositor
Who it suits
- US savers keeping an emergency buffer in a cash-management account
- Anyone who wants a sweep structure rather than a single bank balance
- People who pay a monthly fee elsewhere and want $0 instead
Who should look elsewhere
- Readers wanting a fixed rate, because variable applies here
- People outside the US, since Betterment is based in the United States
- Balances that need a guaranteed rate for a set term
How Betterment compares
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Where Betterment is available
- Available
- United States
- Licence in United States
- SEC (investment adviser), checked September 26, 2026
- Licence in United States
- FINRA (broker-dealer, Betterment Securities), checked September 26, 2026
- Licence in United States
- SIPC (SIPC member 51906), checked September 26, 2026
Countries from the brand (Source, checked September 26, 2026)
Frequently asked questions
What rate does the Betterment Cash Reserve pay?+
The Cash Reserve pays a headline rate of 3.5%, and the rate type is variable. Because it is variable, the figure can rise or fall with policy rates rather than being fixed for a set term. Treat the headline as a starting point rather than a promise.
Is there a monthly fee on the account?+
There is no monthly fee. The monthly fee is $0, and the pricing model is a no-monthly-fee one, which is the most common model in this ranking. You keep the full amount you deposit earning interest.
How much do I need to open the account?+
The minimum deposit is $10. That is a low entry point compared with the savings-account median minimum of €0.17, so you can start small and build the balance over time.
How is my money protected?+
Cash held in the Cash Reserve is swept to a network of FDIC-insured program banks, so the protection is FDIC up to USD 250,000 per depositor. The legal entity behind the account is MTG LLC, and the brokerage side is covered by SIPC under SIPC member 51906. Betterment is also registered with the SEC as an investment adviser and with FINRA through Betterment Securities.
Can I take money out whenever I want?+
Withdrawals are unlimited, with no minimum balance to maintain. That makes the account work for cash you may need on short notice rather than money you plan to lock away for a term.
Who regulates Betterment?+
Betterment is a US business, headquartered in the United States, and it is registered with the SEC as an investment adviser. It is also a FINRA member through Betterment Securities, and the brokerage entity MTG LLC is listed as a SIPC member under SIPC member 51906.
How do I get help if something goes wrong?+
Support runs through phone, help centre and email, which covers phone, live chat, email and a help centre. A help centre is the most common channel in this ranking, and phone support is also widespread, so reaching a person is straightforward.
How does the rate compare with other cash accounts?+
The 3.5% headline is above the cash-management median of 3.41% and near the upper quartile of 3.59%. Most cash-management accounts use a variable rate, and this one sits at the stronger end of that group.
When was Betterment founded?+
Betterment was founded in 2008 and is a US firm. It grew out of the robo-adviser model, and the Cash Reserve is the cash-management arm of that platform.
Sources
- sipc.org/list-of-members checked September 26, 2026
Backs: Legal entity, Licences
“reportingFileNumber=51906; name=MTG LLC”
- en.wikipedia.org/wiki/Betterment_(company) checked September 26, 2026
Backs: Founded
“Betterment was founded in 2008 in New York City by Jon Stein, a Columbia Business School MBA graduate, and Eli Broverman”
- betterment.com/cash-reserve checked September 26, 2026
Backs: Access terms, Account kind, Deposit protection, Headline rate, Minimum deposit, Rate type
“Unlimited withdrawals. No fees. ... No minimum balance. ... you can grow your money with us for as little as $10.”
- betterment.com/contact checked September 26, 2026
Backs: Headquarters, Support channels
“Betterment LLC 450 West 33rd Street, FL 11 New York, NY 10001”
- betterment.com/pricing checked September 26, 2026
Backs: Pricing model, Monthly fee
“No monthly management fees on cash.”
Compiled from 5 source pages, checked September 26, 2026. We did not open an account.
Not confirmed yet: Term.
Related by the facts
Betterment
US residents parking cash in a no-fee, sweep-protected cash account.