Our objectives are aligned with yours: we want to grow your money, so we created Cash Reserve for you.
The takeaway: Cash Reserve is our high-yield cash account offering FDIC insurance at our program banks (up to $250,000 of coverage for each insurable capacity—e.g., individual or joint—at up to eight Program Banks). It’s different from the savings accounts that you might find at traditional banks. Funds deposited into Cash Reserve are eligible for FDIC insurance once the funds reach one or more program banks. 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. Our high-yield Cash Reserve account offers a competitive APY rate, allowing you to secure and grow your money during volatile times. Here’s how variable rates work: Our Cash Reserve account offers FDIC insurance up to $2 million ($4 million for joint accounts) with our program banks. That’s 8X the standard FDIC insurance.* Here’s how FDIC insurance works: Plus, we don’t charge fees on your Cash Reserve account: Betterment LLC only receives compensation from our program banks. Betterment LLC and Betterment Securities do not charge fees on your Cash Reserve balance. Why it matters: Similar to how our approach to investing is grounded in diversifying assets, Cash Reserve diversifies savings across multiple institutions. In addition to a competitive variable rate and above-average* FDIC insurance, this approach could help mitigate loss and risk in the unlikely scenario that one of our program banks fails. You can’t eliminate risk, but you can help reduce it by using technology and creative thinking.