Betterment Review: Fee-Free Checking and Savings With Exceptional APYs
Written by
Caitlyn Moorhead
Edited by
Melanie Grafil
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Excellent neobank and high-yield savings offerings
Betterment combines no-fee checking and savings accounts with above-average APYs, making it a standout choice for savers and investors alike.
In the world of human advisors vs. robo advisors, Betterment has pioneered the latter regarding investment options, interest rates and personal finances. Its checking and savings account options may be limited, but they are completely fee-free. The savings account APY is higher than the national average, which makes it an attractive option for maximizing savings.
Betterment is a financial services company that began in 2010 with the mission to simplify investing for everyone and expand into personal banking. These factors demonstrate why Betterment tops the list of GOBankingRates’ Best Neobanks of 2025 and ranks second among the Best High-Yield Savings Accounts of 2025.
Betterment Checking Account
Though you should always assess your financial goals before deciding which daily bank account to open, Betterment Checking has much to offer. Here are some key takeaways:
- This is a no-fee checking account with check-writing privileges, but no account minimums or opening deposit amounts, so it’s easy to open and maintain.
- It comes with a free Visa debit card and automatically reimburses ATM fees worldwide.
- Betterment also reimburses customers for foreign transaction fees on purchases made abroad, which saves you 3%, on average, compared to accounts that charge the fee.
- Customers earn cash rewards for purchases made at select merchants and can track available offers in their accounts.
Best For
High-Yield Savings Accounts
Neobanks
Account Perks
Low Monthly Fees
Investment Options
$0 Fees
Betterment Checking offers a no-fee account with worldwide ATM fee reimbursements, foreign transaction fee savings and cash-back rewards, making it ideal for mobile-first users.
Fees
No monthly service fee
APY
N/A
Min Opening
$0
Pros
- No monthly fees or minimum balance requirements
- ATM fees are reimbursed worldwide
Cons
- Doesn’t earn interest
- No physical branches for cash deposits
Why We Like Betterment
The mobile-first Betterment Checking has your daily spending covered with no fees and a Visa Debit Card.
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Betterment High-Yield Cash Account
Cash Reserve is Betterment’s high-yield cash account suitable for investors and savers alike. Here are some key features:
- The account can be opened with as little as $10.
- This account comes with a variable annual percentage yield of .
- There are no minimum balance requirements or monthly service fees.
- Customers can make unlimited withdrawals from the account penalty-free — no more keeping track of how often you’ve accessed your money.
- Individual Cash Reserve accounts are insured up to $2 million or up to $4 million for joint accounts.
- GOBankingRates has rated Cash Reserve as one of the Best High-Yield Savings Accounts of 2025.
Best For
High-Yield Savings Accounts
Neobanks
Account Perks
Low Monthly Fees
Investment Options
High-Yield Cash Account With APY
Betterment’s Cash Reserve offers a competitive APY, no fees or withdrawal limits and up to $4 million in FDIC insurance, making it a top choice for secure savings growth.
Fees
No monthly service fee
APY
Min Opening
$10
Pros
- Federally insured by a third-party bank
- Unlimited withdrawals
- No minimum balance or monthly maintenance
Cons
- No check deposit option
Why We Like Betterment
With a high APY, no fees and strong FDIC insurance coverage, Betterment’s Cash Reserve offers peace of mind and a simple way to grow your savings.
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Betterment Investing Services
Betterment’s investing products include options that suit your risk tolerance and investment goals. Here’s everything you need to know:
- Betterment’s products and services include classics such as automated investing and crypto investing.
- It also can help you start retirement planning with traditional and Roth IRAs.
- Automated and crypto investing come with services like automated rebalancing and multiple portfolio options that relieve you of having to select funds or coins for your portfolio.
- Where Betterment falls short is with investing fees. Customers pay either $4 per month or an annual fee of 0.25% of the account balance, which is steep for small investors. Crypto customers pay a 1% fee in addition to trading expenses.
- For an additional 0.40% annual fee, customers with a balance of at least $100,000 have access to a Certified Financial Planner — a bargain considering that CFPs typically charge $200 to $400 per hour.
Best For
High-Yield Savings Accounts
Neobanks
Account Perks
Low Monthly Fees
Investment Options
Simplified Investing and Money Management
Betterment offers automated and crypto investing, retirement planning and access to CFPs, making it ideal for hands-off investors despite its higher fees.
Fees
$4 per month or 0.25% annually
APY
N/A
Min Opening
$0
Pros
- Good for setting up retirement savings outside of your employee-matched 401(k)
- Automated rebalancing and multiple portfolio options offered through automated investment advisors, as well as auto-transferred funds for your core portfolio.
Cons
- High advisory fees
- Human financial advisors are only included if you have a balance of $100,000 or more.
Why We Like Betterment
Having an investment platform where you can also conduct your daily banking transactions gives you the tools for better money management and growth.
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Banking Experience
Betterment has no physical branches, so it’s best for customers who already use a mobile app to monitor balances, transfer funds and track purchases. The company currently does not offer bill pay services, so customers have to set up automatic payments with vendors if they do not want to write checks.
What’s more, mobile check deposit is restricted. The app has a rating of 4.7 out of 5 stars on Google Play and 4.8 out of 5 stars on the Apple App Store.
Since Betterment is not a bank, it doesn’t offer customers a full range of banking products, such as CDs and loans. As a mobile-first account, customers have to do all their banking through the mobile app or an ATM. In some cases, the only way to deposit money is through a transfer and not a mobile check deposit.
How Does Betterment Compare?
Take a look at how Betterment compares to similar neobanks.
SELECTED BANK
MOST COMPARABLE
MOST COMPARABLE
Fees
Fees
Fees
No monthly service fee
No monthly service fees
None
APY
APY
APY
N/A
N/A
Min Opening
Min Opening
Min Opening
$0
$25 to $100
$0
SELECTED BANK
MOST COMPARABLE
MOST COMPARABLE
Fees
Fees
Fees
No monthly service fee
No monthly maintenance fees
None
APY
APY
APY
Up to
Min Opening
Min Opening
Min Opening
$10
$0
$0
Betterment vs. SoFi
SoFi offers home, personal and student loans as well as investment and financial planning services, a checking account and a savings account. The checking and savings accounts are fee-free accounts, and customers have access to ATMs on the Allpoint Network and perks like early paycheck deposits and mobile bill pay. Like Betterment, customers receive cash back on select purchases made with the SoFi debit card. While SoFi’s savings account has a slightly lower APY than Betterment offers, it has no restrictions on who can use mobile check deposit — a big plus in terms of convenience.
Betterment vs. Chime
Like Betterment, Chime* offers fee-free checking and savings accounts1 with no minimum balances and no foreign transaction fees. Chime also offers a Credit Builder Visa® Credit Card2 for customers who need to build their credit score. After meeting the requirement of having a Chime Checking Account, customers can open a High-Yield Savings Account with Chime. However, the APY3 on the High-Yield Savings Account pales in comparison to Betterment’s.
Betterment vs. Varo Bank
Both Betterment and Varo Bank are ranked among the Best Neobanks 2025 by GOBankingRates. Though Betterment slightly edged out Varo by placing 2nd over Varo’s 3rd, Varo does, neither neobank has minimum balance requirements or monthly fees. Varo also allows you to build credit with the zero-interest Varo Believe card.
Final Take
The bottom line is that over the years, Betterment has tweaked its core robo-advisory product, experimenting with different pricing strategies and capabilities. However, it has always relied on Nobel Prize-backed research in developing its algorithm and focused on keeping costs as low as possible for customers.
Betterment is No. 2 on GOBankingRates’ list of Best Neobanks of 2025 and No. 8 for Best High-Yield Savings Accounts 2025 is best for customers who travel abroad frequently and can take advantage of the foreign transaction fee reimbursement.
Betterment FAQ
Here are the answers to some of the most frequently asked questions about Betterment.- Can you use Betterment as a bank?
- Yes. Although Betterment is primarily a robo-advisor and not a bank, it also offers a checking account and savings account through partner banks. Partner banks include Barclays Bank Delaware, Citi, HSBC and Wells Fargo.
- Is there a fee to withdraw from Betterment?
- Bettement’s checking and savings accounts are fee-free with unlimited withdrawals. However, Betterment customers pay a fee for investing and crypto services which can be on the high side.
- Can I Zelle with Betterment?
- You can use instant debit card transfers and deposits between third-party apps like Venmo, Cash App, and Zelle®, and your Checking account via your Betterment Visa debit card. However, when using Zelle, the sender or receiver must have access to Zelle through their bank or credit union.
- Is Betterment FDIC insured?
- Betterment is federally insured through third-party banks. However, Betterment partners with well-known and trusted banks throughout the country. These banks include Bancorp, Barclays, Citi, HSBC and Wells Fargo. Money deposited into checking and savings accounts is protected by FDIC insurance.
- Does Betterment have ATMs?
- No, Betterment doesn't have its own ATM network, but it does offer unlimited ATM fee reimbursements worldwide.
- Does Betterment reimburse ATM fees?
- Yes, as Betterment doesn't have its own ATM network, it does offer unlimited ATM fee reimbursements worldwide.
Allison Hache, Daria Uhlig, Cynthia Bowman and John Csiszar contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 19, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
1There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.
2The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
3The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of Dec. 12, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank, N.A. or Stride Bank, N.A.
To determine rankings GOBankingRates looked at the following factors from all banks: (1) minimum deposit to open an account; (2) monthly savings fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (3) minimum needed to earn APY; (4) savings APY; and (5) the average mobile app rating between the Google Play (Android) and Apple stores. All factors were then scored and combined, with the lowest score being the best. Factors (2) and (3) weighed 1.5 times, factor (4) weighed 4 times; and factor (5) weighed 0.5 times. To be considered for the HYSA, the product offered had to have an APY above 0.45%. All products and offerings had to be available as of Nov. 1, 2024, to be considered. Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 19, 2024.
Neobanks are fintech firms that offer apps, software and other technologies to streamline mobile and online banking. These fintechs generally specialize in particular financial products, such as checking and savings accounts. To determine rankings for the Best Neobanks of 2025, GOBankingRates analyzed the following factors: (1) monthly checking fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (2) minimum needed to earn APY; (3) savings APY; (4) products/services offered (credit cards and investment services); (5) the average mobile app rating between the Google Play (Android) and Apple stores; and (6) number of extra benefits and perks unique to neobanks. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighed 0.5 times, and factors (3) and (6) were weighed 2 times. All products and offerings had to be available as of Nov. 1, 2024, to be considered. Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 19, 2024.
