Betterment
Framework category: yield venue
Robo-advisor with managed portfolios plus a Cash Reserve sweep into FDIC program banks.
Primary use
Hands-off managed investing for taxable, IRA, and Roth accounts, plus a high-yield cash sweep for liquid balances.
Redundancy role
Core yield venue at the robo-advisor layer. Pairs naturally with Wealthfront or M1 for issuer-level redundancy across managed cash and managed investing.
Historical yield range
Cash Reserve APY has historically been quoted around 3.25% variable (May 2026), with promotional offers boosting APY by 0.25% to 0.75% for limited periods. Investing accounts have no fixed APY; expected return depends on portfolio mix and market performance. Rates change weekly; verify before deploying.
Integration notes
Regulatory: Betterment LLC and brokerage via Betterment Securities (SIPC member); Cash Reserve is swept to FDIC-insured program banks; Betterment is not a bank. Fees: no trading commissions on managed portfolios; ETF expense ratios about 0.04% to 0.17%. Cash Reserve interest paid monthly. No lockup on managed accounts; transfers settle in 2 to 3 business days.
Watch-outs
Market losses on invested assets; APY is variable and can change; FDIC coverage has per-bank/per-capacity limits; SIPC does not protect against market losses; promotional APYs are temporary.