Betterment emerged in 2010 as a pioneer in automated investing, challenging traditional financial advisors with a tech-driven approach. While not a full-service bank, it offers fee-free checking and high-yield savings accounts, alongside automated and crypto investing tools. This makes it a strong contender among emerging “neobanks,” even earning a nomination for GOBankingRates’ Best Neobanks of 2026. However, its fees and limited banking features require careful consideration.
Checking and Savings: Fee-Free Convenience
Betterment’s checking account stands out with zero monthly fees, no minimum balance, and check-writing capabilities. It includes a free Visa debit card with worldwide ATM fee reimbursements and protection against foreign transaction fees (saving users roughly 3% on international purchases). Customers also benefit from cash rewards on select purchases.
The high-yield Cash Reserve account allows deposits as low as $10, with a variable APY. It provides unlimited penalty-free withdrawals and insures deposits up to $2 million for individuals, $4 million for joint accounts.
Investing Options: From Automation to Crypto
Betterment’s core strength lies in its investment services. The platform facilitates automated investing, retirement planning (with traditional and Roth IRAs), and even crypto investments. Automated rebalancing and diversified portfolios simplify the investment process for beginners.
However, fees are a significant drawback. Customers pay either $5 monthly or 0.25% annually on account balances. Crypto investors face an additional 1% fee on top of trading costs. The Premium plan, available to those with $100,000+ in assets, offers access to Certified Financial Planners at a 0.65% advisory fee—a potentially cost-effective option for high-net-worth individuals seeking personalized guidance.
Banking Experience: Mobile-First Limitations
Betterment operates without physical branches, making it ideal for mobile-savvy users. Its app boasts high ratings (4.7 on Google Play, 4.8 on Apple App Store) but lacks features common in traditional banking, such as bill pay. Mobile check deposit is also restricted, requiring customers to transfer funds instead.
The platform doesn’t offer CDs or loans, further limiting its banking capabilities. All transactions are handled through the app or ATMs.
Betterment vs. Competitors: A Comparative Look
Betterment stacks up against other neobanks in several key areas:
- SoFi: Offers a broader range of financial products (loans, financial planning) and ATM access through the Allpoint Network. SoFi’s savings APY is slightly lower, but it provides unrestricted mobile check deposits.
- Chime: Matches Betterment’s fee-free model, with no minimums or foreign transaction fees. Chime also offers a credit-building credit card, but its savings APY lags behind Betterment’s.
- Varo Bank: Another finalist for GOBankingRates’ award, Varo offers similar fee-free banking and includes a zero-interest credit card.
The Verdict: Best for Frequent Travelers, But Fees Matter
Betterment excels in providing high-yield savings and convenient banking features for those who travel often (due to its fee reimbursements). However, its investment fees and limited banking options (no bill pay, restricted check deposits) make it less suitable for users seeking a comprehensive banking experience. The platform’s strength lies in its automated investing tools, but high fees may deter small investors.
