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Betterment checking account basics
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| APY | Not an interest-bearing account |
| Joint accounts available? | Yes |
| Minimum deposit to open account | $0 |
| Monthly maintenance fees | $0 |
| ATM access | Yes, use any ATM worldwide with fees refunded |
| Transaction limits |
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| FDIC insured | Yes; Betterment partners with nbkc bank (FDIC Cert. #35014) to insure accounts up to $250,000 |
| Rewards | Cashback rewards offered at a number of retailers, including Costco, Adidas, and Sam's Club |
Editor's note
The Betterment checking account doesn't earn interest, but this isn't uncommon even for the best checking accounts, and it does earn rewards. If you're looking for an account with a high annual percentage yield (APY), though, we recommend looking into interest checking accounts and high-yield savings accounts.Who is Betterment checking best for?
We might recommend a Betterment checking account for you if:
- You travel frequently and are looking for a checking account you can use in different countries.
- You want a simple checking account with fee-free ATM access.
- You already invest with Betterment or want to.
This is a no-stress checking account that's well set up for everyday use, and this is the best checking account we've found for international travel. If you enjoy traveling, you won't have to worry about pesky ATM fees in other countries or even foreign transaction fees. Even in countries where I won't use as much cash, I still want to avoid foreign transaction fees when I make a debit card purchase in a different currency. With Betterment, those fees are reimbursed. Plus, we've found the app to be user-friendly and secure, making it easy and safe to manage your money wherever you are.
This account has no minimum deposit requirement, no monthly maintenance fees, and no overdraft fees. While not having these fees is pretty common for online checking accounts these days, it's nice that Betterment takes it a step further with ATM fee reimbursements and no minimum deposit.
As a customer, I also value that Betterment offers a range of accounts for my different financial needs. While the checking account is great for travel, I can also access my Roth IRA and savings account from the same app. Having the option of a one-stop shop for all of your financial needs is a huge perk that not all online financial institutions offer.
Betterment checking benefits
The Betterment checking account offers the following key benefits.
- ATM and foreign transaction fee reimbursement. Use your Betterment debit card at any ATM worldwide where Visa cards are accepted, and Betterment will reimburse any ATM-associated fees. It will also reimburse the 1% fee Visa charges for foreign transactions, purchases, and ATM transactions. Translation? You get to shop or withdraw cash without paying fees.
- Excellent mobile app. Like many of the best checking accounts, Betterment also offers an easy-to-use mobile app for both Apple iOS and Android devices.
- No sneaky fees. In addition to reimbursing ATM fees and foreign transaction fees, Betterment has also eliminated overdraft and account minimum fees. If a transaction would cause your account to go into overdraft, Betterment will simply block the transaction from happening, without charging any penalty. You'll also never need to worry about keeping a minimum balance in your account.
- No minimum deposit to get started. You won't need to come up with a minimum deposit or account balance to start using this checking account.
- Cashback rewards. The Betterment checking account offers instant cashback rewards when you use your debit card at certain retailers like Sam's Club and Costco. The rewards can change at any time but often offer up to 5% back on select purchases. To see what rewards are available at a given time, navigate to the "Earn Rewards" section of the app or website.
- Contactless debit card. Just tap your Betterment Visa debit card on any contactless pay terminal for faster transactions.
Betterment checking disadvantages
The Betterment checking account offers a great overall experience that sets it apart from many accounts, but there are potential downsides you should be aware of if you're trying to decide whether it's right for you.
- Relatively low transaction limits. While limits vary across different financial institutions, the $510 daily ATM withdrawal limit and $2,000 daily limit on debit card transactions are relatively low when compared to some big banks. However, Betterment may temporarily adjust these to accommodate specific purchases.
- Availability of physical checks. Having the ability to write a physical check can be convenient. While Betterment does offer paper checks, you can't order them directly from the company. Instead, you will have to obtain a verification letter from Betterment and then order the checks from a verified merchant, like Costco, Walmart, or Vistaprint.
- No physical locations. Betterment operates entirely online and does not offer any physical branches. If you are someone who prefers in-person customer service for support, Betterment is probably not the best choice for you.
- Cash back limitations. While any cash back on checking is nice, rewards with fewer restrictions would be better. You'll only qualify for cashback rewards with certain retailers rather than on almost all purchases, like the Discover Cashback Debit account offers.1 <p>Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf</a>.</p>
Betterment Checking fees
| Overdraft fee | $0 |
| Stop payment fee | $0 |
| ACH transfers | $0 |
| Incoming wire | $0 |
| Outgoing wire | N/A, Betterment does not support outgoing wire transfers from checking accounts |
Betterment Checking vs. Betterment Cash Reserve
Betterment offers two banking accounts for everyday use: Betterment Checking and Betterment Cash Reserve. These are distinct accounts that aren't linked or opened together, though they share some similarities, like a lack of monthly maintenance fees and minimum balances.
Cash Reserve is a high-yield cash management account, not technically a checking account, that's meant to serve as a sort of holding place for money you may want to invest. You can transfer funds easily between a Betterment investing account and a Cash Reserve account, making it ideal for money you don't necessarily plan to spend but probably want to use to purchase securities.
Betterment Cash Reserve also differs from the brokerage's checking account in a few key ways:
- It earns interest instead of cash back — up to 4.25% (as of Dec. 2, 2024) APY, to be exact.
- It requires an opening deposit of at least $10, and you have to invest with Betterment to qualify (which is not the case for the checking account).
- It offers extended FDIC coverage of up to $2 million through a network of program banks.
How to open a Betterment checking account
If you decide that a Betterment checking account is right for you, setting up an account is relatively straightforward. You must be at least eighteen years old and live in the United States full-time to complete your new account registration.
To begin setting up your account, you will need to complete the following steps:
- Navigate to the Betterment checking page and select "Get started."
- Choose the "Checking" option.
- Fill out your information as Betterment leads you through the setup process.
When I set up my own Betterment account, I was able to go through the process in about ten minutes. Betterment first asked me for personal information like my address, phone number, date of birth, and Social Security number. It then prompted me to set up security questions and asked me a series of other questions such as my employment status, tax filing status, and investing experience.
You should plan on having as much of this basic personal information ready as you can. It is also helpful to have the information for the bank account from which you would like to pull your initial deposit. The company can also accept initial deposits via direct deposit, mobile check deposit, or from peer-to-peer payment platforms such as Venmo, PayPal, and Zelle.
How to withdraw money
You can withdraw money from your Betterment checking account by using an ATM to withdraw cash or by transferring funds to an account at a different financial institution.
Be aware that while ATM transactions will immediately change your account balance, electronic withdrawals can take longer to process.Therefore, you shouldn't assume your account balance reflects your actual available money, and you also shouldn't rely on Betterment if you need to access a large amount of money quickly.
For example, transfers to an external linked bank account may take up to two business days to be completed. There are other situations in which transactions can take up to six business days. Check the Betterment Transaction Timetable for more details so you have an accurate understanding of your account balance and the time it will take to withdraw your money.
Betterment customer service
To get help with your Betterment checking account, you can call the company's customer line directly at 718-400-6898. Customer service is available Monday to Friday between 9:00 a.m. and 8:00 p.m. Eastern.
You can also use Betterment's virtual assistant 24/7 for any basic questions you may have. I have asked the virtual assistant for help with depositing checks and finding account features, and I find it to be a generally easy-to-use and helpful tool.
Like many financial services offered today, Betterment operates entirely online, which means you won't be able to visit a physical branch for support.
FAQs
Is a Betterment checking account worth it?
Yes, for many customers a Betterment checking account is worth it, especially because of the lack of fees that so many traditional banks charge. Betterment checking offers an easy, affordable, and hassle-free debit card solution, which might make it one of the best checking accounts for someone comfortable with an online-only banking experience.
Can I direct deposit to Betterment?
Yes, you can get direct deposits with your Betterment account. To do this, contact your employer and complete the paperwork to set up direct deposit into your Betterment checking.
Does Betterment offer other types of accounts?
In addition to the Betterment checking account, the company also has other account types available. It has a cash management product called the Betterment Cash Reserve2 <p>Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC 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 through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.</p> <p>If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among one or more Program Banks. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity (e.g. individual or joint). In aggregate, funds deposited into Cash Reserve are eligible for up to $2,000,000 (or $4,000,000 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to eight Program Banks). Even if there are more than eight Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $2,000,000 (or $4,000,000 for joint accounts). 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. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each Program Bank in such a way that provides up to $250,000 of FDIC insurance for individual accounts, $500,000 of FDIC insurance for joint accounts, and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. In the event you maintain an individual or joint Cash Reserve account and are a beneficiary of a Cash Reserve trust account, Betterment does not provide FDIC insurance based on your status as a beneficiary. 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 <a href="https://www.betterment.com/legal/cash-reserve">terms and conditions</a> and <a href="https://betterment-prod-cdn.s3.amazonaws.com/agreements/Betterment_LLC_ADV_2023_09_28.docx.pdf">Betterment LLC's Form ADV Part 2</a>.</p> account, which comes with a higher-than-average variable APY of up to 4.25% (as of Dec. 2, 2024)3 <p class="">Current promotional rate; annual percentage yield (variable) is 5.00% APY as of April 2, 2024, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities. </p> , so if you're looking to earn interest on your money, this could be a great option. Betterment also offers investment accounts and retirement accounts, which could make it a good option for you to grow with over time.
Bottom line
The Betterment checking account is a great option for anyone looking for an easy-to-use, everyday checking account. Although Betterment checking doesn't offer the in-person support some people may want, it does a great job offering convenient services such as mobile banking and reimbursed ATM and foreign transaction fees.
With all these features in mind, the Betterment checking account is comparable to those of the best banks. It is a good fit for anyone who wants the freedom of a debit card without minimum balance requirements, as well as for frequent travelers looking to use their debit card abroad without racking up tons of fees.
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2025 award winner Best Checking and Savings Combo
SoFi Checking and Savings Benefits
- Earn up to 3.80% APY4 <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits5 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p>
- No account, overdraft, or monthly fees6 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
- Get your paycheck up to two days early7 <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
- Access additional FDIC insurance up to $3 million8 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
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Author Details
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