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Written by Edward Canty on May 6, 2020
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Betterment Checking Review: Best Account In 2020?

Betterment Checking
  • Low Minimum
  • Fee Reimbursement
  • Mobile Banking Features
4.2

Summary

With Betterment checking you can open an account with any amount of money. There are no fees, and you get reimbursed for ATM fees and foreign transaction fees. Also, your cash-on-hand can be optimized if you use a variety of Betterment’s other features.

However, you will have to adhere to daily transaction limits at $2,000 for debit card transactions and $500 for ATM withdrawals. Used alongside another bank account, Betterment Checking offers an appealing service as an online checking account.

The Betterment Checking account is ideal for people who enjoy digital banking and those who need access to cash and would like to avoid ATM fees.

Pros

All ATM and foreign transaction fees reimbursed

FDIC insured up to $250,000

Tap to pay debit card

Cons

No mobile check deposit

$2,000 daily transaction limit

 

Most people know Betterment as an online robo-advisor that helps you manage your investments and can assist in financial planning.

But now, Betterment has changed the game in offering a checking account to its users. They have already built their money management business to tens of billions. Now, they are venturing into other financial services to better serve customers! 

In a nutshell, this is a great checking account for those who do banking online. Betterment checking reimburses you for ATM fees, and there are no account minimums, foreign transaction fees, or overdraft charges. However, there are no paper checks, cash ATM deposits or things like that. Think "electronic only."

Betterment is known for its distinct approach to investing, low fees, financial planning and no initial deposit requirements. 

By offering a checking account, there are a variety of ways a user can utilize the Betterment platform. In this article, we will dig deeper into the features offered by Betterment Checking. 

What Is Betterment Checking?

Betterment Checking is the very new FDIC insured checking account launched by the online investment company Betterment in April 2020.

Betterment is partnering with NBKC Bank to offer a new type of checking account to its users. 

The Betterment checking account will reimburse all ATM and foreign transaction fees without any monthly maintenance fees. The checking account is offered in all 50 states and Washington, DC. 

The new Betterment Checking account is FDIC insured up to $250,000 per person. The emphasis here is on no fees. Betterment brings the international transactions at the palm of your hand with an easy-to-use mobile app and a reimbursement of all foreign transaction fees. 

The Betterment platform is still evolving and soon to be launching new features; such as mobile check deposits, joint checking accounts, simplified account statements and physical checkbooks.

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Betterment Checking Key Features

No Account Minimum: Betterment checking has $0 account minimums and charges no account maintenance fees. 

ATM Fees: Betterment checking will reimburse you for all ATM fees. 

FDIC Insurance: Betterment Checking offers FDIC insurance up to $250,000 per person.

No Fees: Betterment Checking prides itself in keeping fees to a minimum. 

Contactless Debit: Betterment Checking allows you to pay with a contactless debit card, which you can use wherever Visa is accepted. 

Click here to sign up for Betterment Checking!

Betterment Checking Additional Features

Account Management and Security 

Activating your card, temporarily locking your card, or resetting your PIN can all be easily done through the Betterment mobile app.

Your Betterment account also features security measures including custom aggregated app passwords (so you can aggregate your Betterment accounts into other products like budgeting through Mint or tax prep through TurboTax without giving them your real password), 2-Factor Authentication, and Biometric account login on both iOS and Android.

Smart Deposit

By analyzing your costs, the Smart Deposit feature will decide whether you have excess or too little money in your checking account. This way you can ensure you are optimizing the use of your cash and investing any excess reserves. 

Betterment can automatically move that money into the high yield savings account Betterment Cash Reserve.

RateAs Of
0.40%9/10/2020

Another use for the app is to keep an eye on your cash cushion. If cash analysis sees that you are coming up short, it will send money from savings to checking to top you off.

Easy To Use Mobile App

Betterment has created a faster and easier to use mobile and web application. You can check your account details with just a tap on your screen. This allows you to keep track of your financial life all in one place. 

Easy Switching Between Betterment Accounts

With Betterment Checking, you can easily transfer your money to any other Betterment accounts, including Cash Reserve and brokerage accounts.

With this easy to use feature, you can get your direct deposit into Checking, automate your extra cash and deposit your reserves to your Cash Reserve account. Then, you can invest a portion of your cash reserves using the robo-advisor. 

You can use each Betterment product individually, however they are all designed to work together and integrate!

Click here to sign up for Betterment Checking!

Pros of Betterment Checking

  • No Fees: Betterment Checking has the main focus of eliminating unnecessary fees for customers. 
  • Unlimited ATM Reimbursements: Betterment checking provides ATM reimbursements.
  • No Account Minimums: There are no account minimums or maintenance fees.
  • Contactless Visa Debit Card: You can request a Visa Debit Card to transact with your Betterment Checking account. 
  • Computerized Locking System: You can lock down your account with the click of a button from the mobile app.

Cons of Betterment Checking

  • No Physical Checks: Betterment checking does not provide you with any kind of physical checkbook.
  • Daily Transaction Limits: Betterment checking has a $2,000 daily limit for debit transactions and a $500 daily limit for ATM withdrawals. 
  • Withdrawal Limits: Betterment checking withdrawals are limited to $2,000 per transaction.
  • No Joint Accounts Betterment does not offer joint checking accounts on their platform. You can, however, open a regular joint investment account. 
  • 1 Account Only: Betterment does not allow you to have more than one checking account under your name at one time.
  • No Business Accounts: It does not offer any sort of company or LLC account at the moment.
  • No Wire Transfer Funding: Betterment Checking does not receive funds via wire transfer.

Upcoming Features 

Betterment is continuing to add new features to all of their products. Here are some features in the pipeline for Betterment Checking:

  • Mobile Check Deposits: Forget those long waiting hours or frequent visits to the nearest branches or ATMs. Simply capture a photo of your check and deposit it into your account!
  • Physical Checks: Customers will eventually gain access to physical checkbooks.
  • Joint Accounts: With joint accounts for Investments and Cash Reserve, you and your partner will be able to access the same accounts. It will simplify the process of management of your shared assets.

Betterment Checking: Summary

Betterment has added another great feature to its platform by offering a checking account to its users. If you are okay with web-based banking, then the Betterment checking account may be a great option. 

With Betterment checking you can open an account with any amount of money. There are no fees, and you get reimbursed for ATM fees and foreign transaction fees. Also, your cash-on-hand can be optimized if you use a variety of Betterment’s other features.

However, you will have to adhere to daily transaction limits at $2,000 for debit card transactions and $500 for ATM withdrawals. Used alongside another bank account, Betterment Checking offers an appealing service as an online checking account.

The Betterment Checking account is ideal for people who enjoy digital banking and those who need access to cash and would like to avoid ATM fees.

Click here to sign up for Betterment Checking!

betterment review
Article written by Edward Canty
Ed is a financial planner and personal finance enthusiast. At his day job, Ed helps clients plan for retirement, manage their investments, and navigate their tax situation. In his free time, Ed enjoys golfing, traveling, and wrenching on his old BMW.

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