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To earn the 2.69% APY on your high-yield savings account, you have to join the waitlist for Betterment's checking account.
- Betterment, the online investing adviser, has debuted a high-yield savings account that earns up to 2.69% APY.
- You need a minimum deposit of $10 to open a Betterment Everyday Savings account, which has no monthly fees, allows unlimited transfers, and offers FDIC insurance up to $1 million.
- To earn the 2.69% APY, you have to join the waitlist for Betterment's checking account. Otherwise, the interest rate is 2.43%.
- Up until now, robo-adviser Wealthfront was leading the pack with one of the best rates among high-yield accounts at 2.57% on all balance tiers.
High-yield savings keeps getting better.
On Tuesday, the online investing platform and virtual financial adviser Betterment debuted a high-yield savings account, rivaling those of its online competitors.
Betterment's Everyday Savings account earns an annual percentage rate (APY) of up to 2.69% on all balance tiers, with a minimum deposit of $10. The account has no monthly fees, allows unlimited transfers, and is FDIC insured up to $1 million.
To earn the 2.69% APY on Betterment's savings account, you need to join the waitlist for its checking account, which is set to become available later in 2019. The Betterment Everyday Checking account will have no maintenance or overdraft fees and no minimum balance. The account comes with a Visa debit card, and Betterment will reimburse all ATM fees for accountholders.
If you don't join the waitlist for a Betterment checking account, you'll earn 2.43% on your savings balance. Any savings account with an interest rate above 2% is worth consideration, especially if there are no fees and the account otherwise meets your preferences.
Betterment
Savers can access Betterment's Everyday Savings account via the mobile app.
When you activate the two-way sweep feature, Betterment will automatically transfer any excess cash from your checking account into your high-yield account, so long as your checking balance doesn't dip below the limit you set.
Up until now, robo-adviser Wealthfront was leading the pack with one of the best rates among comparable high-yield accounts, earning 2.57% on all balances. You need just $1 to open a Wealthfront Cash Account, which also allows unlimited transfers and offers FDIC insurance on up to $1 million.
If you're still keeping your money for a rainy day in a regular savings account that earns 0.1% interest, you might consider moving it into a high-yield savings account. Most financial planners recommend storing money for emergencies and short-term goals in high-yield savings accounts because there's zero risk of losing money, it's easily accessible, and it grows while it's sitting there.
However, it's important to keep in mind that interest rates are not set in stone. Rates are subject to change at any time, depending on the government's interest-rate benchmark.
Betterment's only savings-like product up until now was Smart Saver. Technically a taxable investment account, Smart Saver is comprised of a two-fund bond portfolio with an expected annual yield of 2% to keep up with inflation. Bonds are relatively low risk compared to stocks, but the money is not insured like it would be in a savings account. Betterment has suggested using Smart Saver to invest cash you don't need readily available, particularly if you plan to put it into higher risk investments soon.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
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