Cash Reserve

Cash Reserve is a no-fee, 100% cash account designed to protect your money from market volatility. Given its relatively low returns compared to potential market gains

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Betterment Cash Reserve Overview

Cash Reserve is a no-fee, 100% cash account designed to protect your money from market volatility. Given its relatively low returns compared to potential market gains, we generally recommend this account for funds you intend to spend within the next year. Key features of Cash Reserve include a 4.00% annual percentage yield (APY variable), FDIC insurance up to $2 million at our Program Banks ($4 million for joint accounts), subject to certain conditions, and fast access to your money. Betterment is not a bank. 

FDIC Insurance and Deposit Structure

Funds deposited into Cash Reserve become eligible for FDIC insurance once they are transferred to one or more Program Banks, with up to $250,000 of coverage per depositor per bank for each insurable capacity (e.g., individual or joint accounts) at up to eight Program Banks. If a client chooses to exclude certain Program Banks from receiving deposits, their total FDIC insurance coverage may be reduced. Cash Reserve provides Betterment clients an opportunity to earn interest on cash intended for future securities purchases through Betterment LLC and Betterment Securities. However, it should not be considered a long-term investment option.

How Cash Reserve Works

Cash Reserve is offered through Betterment LLC and managed via brokerage accounts at Betterment Securities. While Betterment LLC is not a bank, client funds in Cash Reserve are deposited into one or more FDIC-insured Program Banks, where they earn variable interest and qualify for FDIC insurance, subject to certain conditions. This account is designed to provide clients with a secure, interest-earning option for cash that may later be used to invest through Betterment. However, it is not intended for long-term investing.

SIPC and FDIC Protection

Funds held in brokerage accounts are protected by SIPC (Securities Investor Protection Corporation), while funds deposited into Program Banks are FDIC-insured up to $250,000 per depositor per bank, with a maximum aggregate coverage of $2 million ($4 million for joint accounts) once deposited into multiple Program Banks. Funds in transit to or from Program Banks are generally not FDIC-insured but remain covered by SIPC. FDIC insurance limits apply to all accounts a client holds at a bank, not just their Cash Reserve funds. Certain trust and corporate accounts may be eligible for additional FDIC insurance. Clients are responsible for monitoring their deposits across multiple banks to avoid exceeding FDIC insurance limits.

For more details, refer to Betterment’s Cash Reserve Terms & Conditions and Form ADV Part 2. Additional information on FDIC insurance can be found at FDIC.gov.

Who it’s for

Anyone depositing money to be spent soon

Cash Reserve

Cash Reserve is a no-fee, 100% cash account designed to protect your money from market volatility. Given its relatively low returns compared to potential market gains
  • Edited 6 days ago

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Disclosure:

Let’s Talk About Risk:

Investment Advisory Services offered through National Christian Financial Advisors, Inc. (NCFA). Investing involves risk and there is the potential of losing money when you invest in securities. Past performance does not guarantee future results. National Christian Financial Advisors, Inc. (NCFA) does not guarantee any specific outcome or profit.

Investments in securities are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value. 

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National Christian Financial Advisors, Inc. (NCFA) is minority owned and operated Independent Registered Investment Advisory Firm

Disclosure:

Let’s Talk About Risk:

Investment Advisory Services offered through National Christian Financial Advisors, Inc. (NCFA). Investing involves risk and there is the potential of losing money when you invest in securities. Past performance does not guarantee future results. National Christian Financial Advisors, Inc. (NCFA) does not guarantee any specific outcome or profit.

Investments in securities are: Not FDIC Insured • Not Bank Guaranteed • May Lose Value. 

The annual percentage yield (“APY”) on the deposit balances in Betterment Cash Reserve (“Cash Reserve”) is 4.00% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the “Program Banks”) and is current as of December 27, 2024. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.

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