There are two service tiers available to clients. The higher tier provides access to human advisers, a premium cash management account, and extensive portfolio customization options. Whatever plan you select, you will have full access to premium services like tax-loss harvesting and rebalancing of your portfolio to reduce its taxable value. Considering all it offers, Betterment is an excellent robo-advisor at a competitive price.

Fundamentals of Your Account

Strengthening the Financial Cushion

Betterment Cash Reserve offers a competitive interest rate on cash balances as an alternative to a standard savings account. According to FDIC statistics, the current APY1 on the account is 4.00%, which is higher than the average for savings accounts.

There is also no minimum balance requirement or monthly service fee2 associated with Cash Reserve. You may also set up a joint Cash Reserve account if you choose. Clients of Betterment have the option of creating distinct savings targets with their money.

Setting up guidelines for automatic deposits is another way to streamline the saving process. Funds deposited in Betterment's Cash Reserve are eligible for FDIC3 insurance up to $1,000,000. Coverage amounts to up to $2,000,000 for joint accounts.

Verification of Enhancements

The checking account offered by Betterment is the firm's second offering in the cash management space. Betterment Checking is a mobile-first checking account. A contactless Visa debit card is provided at no additional cost.

Betterment doesn't have its own ATM network, but it will repay your ATM fees no matter where you are. All associated international transaction fees will be covered when you use your debit card outside the United States.

You can open a Betterment Checking account with a co-signer. Each depositor is eligible for up to $250,000 in FDIC insurance. With the help of NBC bank, we can offer to check accounts for our customers.

Advances in Savings and Retirement Plans

Betterment provides investing accounts that may be used to save for a wide range of long-term objectives. To its customers, the robo-advisor offers two kinds of investing services: Betterment Digital and Betterment Premium.

The yearly charge for Betterment Digital is 0.25 percent of your account value. There is no required minimum balance to participate in the plan. However, the entry-level investment is $10. ETFs are used to construct internationally diversified stock and bond portfolios at a cheap cost.

Wealthfront Cash Account Features

The interest rate on the Wealthfront Cash Account is quite competitive. Every dollar in your account will accrue interest at 4.05% per year. You receive a 0.50% APY bonus for three months when you recommend a friend.

You may link your Wealthfront Cash Account to PayPal, Cash App, and Venmo. You can access over 19,000 ATMs nationwide with your debit card, pay bills online, and receive direct payments up to two days early.

You can consolidate your savings, checking, and investments into one convenient location with the help of your Wealthfront Investing account. If you were paid two days early, you might put that money to use and start accruing interest right now.

A Guide to Using WealthFront

Wealthfront is an online-only investment and banking platform. A high-yield checking account, the Wealthfront Cash Account, is also available. Banks can legally offer FDIC insurance up to $250,000 per depositor or $500,000 per couple.

Wealthfront, on the other hand, is a banking platform that facilitates investments. It uses a four-bank system to ensure your assets are safe, up to $2 million per individual account and $4 million per couple. The Wealthfront website is straightforward, and the Wealthfront mobile app has garnered high user-rated ratings.

Are Wealthfront's Reliability and BBB Rating Worth It?

The BBB's trustworthiness rankings measure companies' reliability. The BBB evaluates a company based on its business practices, advertising practices, and how they address customer complaints.

Wealthfront gets an F rating from the BBB because the company has received seven customer complaints, 2 of which remain unresolved. Even if a firm has a high BBB rating, that doesn't guarantee a problem-free experience working with them. Call out existing clients or check online customer reviews to discover if Wealthfront suits you.

Wealthfront vs. Betterment

You'll choose Betterment if you want to set up separate checking and savings accounts with the same business. Unlike the Wealthfront Cash Account, the Betterment Checking Account does not offer interest. Yet the savings account it uses earns interest.

You may maximize your interest earnings with Betterment's "two-way sweep" option. Your Betterment Checking Account will be reviewed regularly to see whether you have any spare funds based on your typical spending patterns.

Betterment automatically transfers the surplus to a savings account where it accrues interest if this is the case. However, interest will only be accrued on your Betterment funds if you use them solely as a checking account, not a savings account.