Betterment launches Cash Reserve account with high yield and checking features

Betterment has introduced a Cash Reserve account that offers a 4.75% annual percentage yield (APY) with a $10 minimum deposit. This account is FDIC insured up to $4 million through partner banks and has no monthly service fees. The Cash Reserve account can be linked to a Betterment Checking account, allowing for a "two-way sweep" feature. This automatically transfers excess funds from checking to savings and provides overdraft protection by covering overdrafts with cash reserve funds. However, Betterment does not allow cash deposits and has restrictions on mobile check deposits. The company has faced criticism, receiving an F rating from the Better Business Bureau due to unresolved customer complaints and a recent $9 million charge from the SEC for misleading clients.