New Account Options With Betterment Earn Up To 2.69%
High interest saving accounts are in high demand. Consumers are sick and tired of leaving their money in accounts that earn almost no interest. The national average is currently at 0.1% annual interest for savings accounts per the FDIC. Citi Bank recently released their new Accelerate Savings Account – a high interest savings account with rates up to 2.36%. Many other banks are following suit. This new offer from Betterment is one of the best high interest offers around. Customers will earn up to 2.69% (includes 0.25% promotion interest boost). Let’s take a look at the details.
Interest Rate Analysis
The base level interest rate for the Betterment Everyday Savings Account is 2.43%. At this time, potential clients who sign up for the Betterment Checking Account Wait List will receive an additional 0.25% interest rate boost. This will bring their total interest rate to 2.69%. This offer will be good through at least the rest of the 2019.
The interest rate boost will apply to cash deposits in to your Betterment Savings Account. If you qualify for the interest rate boost you will be enjoying some of the highest interest rates we have seen for a savings account. Even without the rate boost, customers will still be receiving a very high interest rate – among the best available.
Account Features – Checking and Savings
One of the primary features of Betterment is to provide all of your financial services in one place. To open a savings account you will need to have an minimum balance of $10. At this time, the checking account services are set to be released soon. Signing up via their wait list will allow customers access tot he interest rate boost for their savings account. Once available the checking account will function similarly to other checking accounts. The Betterment Visa Debit Card will be available once the service goes fully live.
Using the Betterment App customers will have access to all of their Betterment Accounts. You will be able to view your balances for retirement and investment accounts along with your banking accounts.
Fee Structures With Betterment
High yield interest aside, The Betterment Checking and Savings account feature huge benefits when it comes to their fee structures. As mentioned above, there is a $10 balance minimum to maintain an active savings account. There are no maintenance fees for your checking and savings account. Additionally, customers are not charged overdraft fees. Finally, your ATM expense fees are reimbursed.
Additional Betterment Services
Betterment falls in to the category of web-based personal finance solutions – much different than traditional credit unions and banks. There are several popular competitors in this space including Mint, Robinhood, and Wealthfront. These services all aim to provide easily, internet based solutions to money management. Each of them have some relative pros and cons when comparing them to one another. One of the primary appeals of Betterment is that is focuses is on nearly all major financial services. It will soon provide all common financial services with the introduction of the Betterment Checking Account.
Investing With Betterment
Betterment provides a robo-investing service that charges an management fee of 0.25%. This fee is very much in line with what many major funds charge. The appeal of robo-investing is that it controls the management aspect of your account. Customers do not need to worry about allocating their investment. Your funds will be invested based on their assessment of your investment needs. Dividends are automatically reinvested. Furthermore, your account is periodically re-balanced to match the market environment.
In addition to the traditional investment account, Betterment customers can also open retirement accounts. Accounts offered include traditional IRAs, Roth IRAs, and SEP IRAs. Similar to the investment tools, your account will be managed for you. Your account allocations will be based on the retirement goals based on your age and income.
Safety Net Account
The Safety Net Account is a unique service provided by Betterment. This account allows customers to invest money in much safer investments so that the money will be more secure. Instead of heavy investment in stocks, much more of your money will be deposited in to bonds. This provides additional safety in the event of a market downturn to protect your Safety Net Funds.
Additional Personal Banking and Personal Finance Resources
- Citizens One Personal Loans
- Zero Card and Zero Banking (Coming Soon)
- Citi Flex Plan and Citi Flex Loan
- Best Checking Account Bonuses For 2019
Final Thoughts – Betterment Everyday Checking and Savings
If you are looking for new banking services the Betterment Everyday Accounts are great options. Customers who are interested in the high interest rate should sign up for the checking account wait list to ensure they have access to the 0.25% interest rate boost. Betterment offers no fee checking and savings services with a very low minimum deposit of only $10.
The best thing about these account services is that if you are pleased with Betterment you have the option to expand to their other services. Whether you are looking to create a Safety Net fund or need investment services you will have all of these services available with Betterment.