betterment savings reddit

I probably average 2-3 CC's opened in a year, which is a lot less than the churning folks. Wealthfront Review Wealthfront also came onto the scene in 2008, but its current iteration didn’t exist until about 2011, giving Betterment a three-year head start in the robo-advising space. Barclays just dropped their rate to 2.10%, so guaranteed* 2.69% for 2019 and potentially 2.41% after that sounds pretty great. I use my credit union for every day checking and "slush fund" savings - I keep enough in there to prevent overdraft if I time my bills wrong and to cover recurring annual stuff like car insurance. Customers. [–]brotherhood4232​ 2 points3 points4 points 1 year ago (0 children). If I can easily invest my money into and out of the exact same account, I will never have to transfer money again. Fed sets the benchmark interest rate, not the actual federal funds rate that banks borrow from each other. What is the difference between the two? I invested $20K, then it dropped by $2K. Every month I put half in a HYSA and half in a Betterment "Major Purchase" account which is set to 50/50 stocks/bonds. I'm going to follow along in this thread for the rest of the day, for sure. The key to making this weird system convenient seems to be this Two-Way Sweep thing which looks like it aims to automatically maintain a target dollar amount in your checking account, and automating all deposits/withdraws to the Savings platform so you never have to withdraw money and wait two days when you may need it for everyday expenses. I'm pretty sure M1 plans on making transfers between your various accounts instantaneous in addition to providing asset-backed, low-rate (~4%) loans which are immediately available in your checking account. Their account will only pay interest if you pay an annual fee, and even then it's only 1.5%. For most, this would be a headache, but I can manage and track this just fine. And the ability to harvest and monetize user data. Married (and unmarried) people sharing accounts isn’t some weird edge case. Direct Link to offer 1. All your deposits, withdraws, and support claims will go through Betterment who then deals with the banks. Not going to move again. Now this account comes out at 2.69%. A more common comparison would be 2.1 or 2.15 (ally and Goldman) and those accounts are headed downwards (they already started decreasing). [–]moblon​ 1 point2 points3 points 1 year ago (0 children). Betterment’s savings and checking accounts are signs that the robo-advisor is moving towards a complete, digital-only solution to manage all aspects of your financial life. To be clear, I'm genuinely impressed by your ability to manage all of that. Check out SoFi money. FAQ says they might consider them eventually. Money immediately shows up in my Betterment account, but transaction is listed as "pending.". If they drop rate too much, I'll move again. That's probably the most reasonable answer. REDDIT and the ALIEN Logo are registered trademarks of reddit inc. π Rendered by PID 646 on r2-app-0ef4cec1abfcb3569 at 2020-12-25 21:09:17.953644+00:00 running 6abf2be country code: US. Dang. Are savings accounts from Betterment LLC federally insured? Betterment vs. Wealthfront – Similarities. They're not paying for cash, they're paying for customers. M1 Finance vs. Betterment – Summary and Conclusion. I'll start with a base contribution and then in 2 years I'll combine my former car payment with my base contribution, and again after my emergency savings goal is hit, etc. [–]rtyuuytr 0 points1 point2 points 1 year ago (3 children). In summary, swipe fees are something for business owners to worry about, not customers. Anyone actually open the savings account? But maybe that's just my old and curmudgeony biases showing. Its probably 2.6899999. They're hoping that once they've lured people in with a checking/savings account, they could be persuaded to use their investment products. It's a bit non-traditional, but it's a 60/40 bonds/stock fund and the average yield is ~5%. Banks take your deposits and invest them. Betterment lowers high-interest savings account to 2.41% APY two weeks after debut, highlighting that online banks will reduce rates as the Fed does. [–][deleted] 4 points5 points6 points 1 year ago (0 children). New Account Options With Betterment Earn Up To 2.69% High interest saving accounts are in high demand. M1 Finance and Betterment are both built for passive, long-term, buy-and-hold investing. are typically linked to what the Fed does. Market was up and I was considering consolidating my accounts with Betterment anyway - to leverage their ‘tax-coordinated’ accounts feature, so I caved. [+]Jandrey117​ 0 points1 point2 points 1 year ago (2 children), I was wondering, what did you mean by the swipe fees? That's why they're able to offer $1 mil in FDIC insurance--it's $250k insured per partner bank. Robinhood tried this same thing but quickly backtracked. [+]Werewolfdad​ comment score below threshold-6 points-5 points-4 points 1 year ago (5 children), Seems like a stretch, but i guess it makes sense if they're burning VC cash, [–]D14DFF0B​ 17 points18 points19 points 1 year ago (1 child). A savings account with unlimited withdrawals and no monthly fees, but only one way to access funds. [–]Creek0512​ 1 point2 points3 points 1 year ago (2 children). Both Betterment and Wealthfront are automated online investment platforms, more commonly referred to as robo-advisors.Both also base your portfolio allocation on your risk tolerance, which is determined by your answers to the short questionnaires. In 2018, they came out with a product known as Betterment Smart Saver. The minimum on it is only $300. So I'm trying to plan as if I'll have to withdraw when the market is down. I've searched around Reddit but didn't find anything - does anyone know if they will have billpay or actual checks? I am a bot, and this action was performed automatically. Thursday, 11:30am PT: Receive email and push notification from Betterment that my transaction is complete. The article Betterment Offers 2.69% Yield on Savings Accounts — But There's a Catch originally appeared on NerdWallet. Consider that their promo bonus for signing up for the checking account waitlist also happens to be extra 0.25% APY, so it's basically them waiving their fee for the rest of 2019. [–][deleted] 3 points4 points5 points 1 year ago (0 children). I'm not sure if I'll receive interest for yesterday or not, since the transaction was pending but the money was in the account. Smart Saver vs. a Savings Account. Consumers are sick and tired of leaving their money in accounts that earn almost no interest. This caused me to open additional savings accounts, but I see no reason to close down the Chase account. Lost interest for one business day would be about a $. I have Schwab checking, Schwab brokerage, Vanguard brokerage, Vanguard tIRA, Vanguard rIRA, Wealthfront, 401k website, Chase personal checking for my brick & mortar cash transactions, Chase personal savings, Chase business checking, and two CD accounts at a local bank that I'm looking to close but that won't be until 2021. [–]Nesfwer 0 points1 point2 points 1 year ago (2 children), [–]rtyuuytr 0 points1 point2 points 1 year ago (1 child). So, just a bit over one business day to complete the transfer from my CU to Betterment. Please contact the moderators of this subreddit if you have any questions or concerns. [–]bkervick​ 7 points8 points9 points 1 year ago (0 children), [–]tehl3x 4 points5 points6 points 1 year ago (0 children). College loan payments are going to end me. Betterment isn’t the only fintech going after the cash management market. I've also botched it a few times and ended up paying a little over $100 in various fees. I'm curious if it's similar to Wealthfront in that you can't initialize any ACH transfers from external accounts. [–]Malforus​ 0 points1 point2 points 1 year ago (0 children). Edit #2: Pulled the trigger, got this as part of the welcome email: "Also, because you joined the waitlist, we're boosting your Betterment Everyday Savings rate to 2.68% APY*. [–]400lb-hacker​ 0 points1 point2 points 1 year ago (2 children). I've wanted to get into it forever, but I'm turned off by the headache of repeatedly opening and closing accounts, moving money around, etc. ", [–]Seref15​ 40 points41 points42 points 1 year ago* (3 children), They're using 5 banks at the moment for the Savings platform: https://www.betterment.com/legal/everyday-savings-program-banks/. I regularly open and close those too. Betterment has a savings vehicle named Betterment Everyday – their foray into the banking world. If you think you can manage a 4-5 day delay in accessing your emergency funds (if your idea of an emergency is more "I got laid off and need to pay my next three months of bills," and not "I need to be out of the country and change my identity by tomorrow"), then it's a pretty good balance of yields and stability. I also use Betterment for investing, and just transferred my emergency fund from Barclays. [+]Werewolfdad​ comment score below threshold-7 points-6 points-5 points 1 year ago (1 child). Here's a link to the PF Wiki for helpful guides and information. I started a transfer of some savings funds, I'll report back on how long it takes! Scam alert: Ignore any private messages or chat requests. I'm gonna be honest, I'm just guessing here, haha. [–]Werewolfdad​ 7 points8 points9 points 1 year ago (5 children), They can't really invest customer money. [–]Whaty0urname​ 1 point2 points3 points 1 year ago (0 children). (So 2.94 -.25= 2.69%), [–]Creek0512​ 0 points1 point2 points 1 year ago (3 children). [–]CosmosisQ 4 points5 points6 points 1 year ago (0 children). Has anyone else run into this issue? In many cases, you can find a 12-month CD that will accrue more interest in one year than a high-yield savings account. It makes sense for a bank to offer brokerage services though. The Betterment Cash Reserve account is a basic savings account with a modest interest rate. I mean at that point you're talking about $30 on $10,000 - for me, it's not worth chasing a couple percentage points. They don't hold your money to invest it. more funds to play with? Quickly and easily transfer money between your checking account and Betterment by linking them electronically. I mean that makes sense for a tech firm, but not a brokerage/asset management firm. I was not able to connect Betterment and Barclays, so I had to go through my credit union. [–]popegope428​ 12 points13 points14 points 1 year ago (5 children). I think it's interesting but I like having my bank account separate from where I have my investments (currently with Ally) and not sure I want to try and chase .3% (non promotional difference). I don't need another checking account. They claim 1-2 business days wait time for deposits, withdraws, and transfers. One thing to note is that the smallest deposit amount you can make into Betterment Everyday™ Savings† is $10. [–]D14DFF0B​ 34 points35 points36 points 1 year ago (9 children). No joint accounts. Correct me if I'm wrong but don't these companies take the money we deposit with them and invest it? odd. Betterment encourages a hands-off approach to investing, which can save inexperienced investors from losing their savings betting on the market. These three robo-advisors are all low-fee, relatively low-minimum investment robos. Betterment helps people plan their financial goals and make smart investment choices in the short and longer-term. Does Betterment include the savings account when they calculate their 0.25% management fee? Worst comes to worst, if the account really is no fees I can just open it and not use it. [–]cobaltorange​ 0 points1 point2 points 1 year ago (2 children). So it's 2.69% - 0% = 2.69% with the promo, or 2.69% - 0.25% = 2.44% without the promo. [–]Seref15​ 0 points1 point2 points 1 year ago (0 children), Apparently FINRA regulators just went "wait, what?" It's the same reason Ally started their "Ally invest" program, and why companies like Discover and American Express offer up savings accounts. I also have a more aggressive Betterment account (90/10 stock/bond) that I'm not counting on for down payment, but which I will certainly use if the market is up when the time comes! [–]dirty_cuban​ 1 point2 points3 points 1 year ago (0 children). Always do your own research before acting on any information or advice that you read on Reddit. Buy apt this year or hold off until next year? The Betterment offering that's most similar to Vanguard Personal Advisor Services, however, is Betterment Premium; both include unlimited access to a team of financial advisors (including by phone). They recommend over-investing by around 25% of your estimated emergency fund total to offset any end-of-the-world, 2008-style market dips, which isn't so bad since you're still getting pretty good yields on it. [–]Werewolfdad​ 11 points12 points13 points 1 year ago (11 children). Can someone make the argument why I should leave my local CU for this? What can I do? Yeah, they added that clarification after my comment. [–]Devilsfan118​ 2 points3 points4 points 1 year ago (1 child). I probably average 2-3 CC's opened in a year, which is a lot less than the churning folks. About Betterment. [–]SoggyMcmufffinns​ -2 points-1 points0 points 1 year ago (0 children), At this day in age, I wouldn't be surprised if these firms aren't just working with banks behind the scenes anyhow. Private communication is not safe on Reddit. [–]BlackBerryConsultant​ 0 points1 point2 points 1 year ago (0 children), https://wwws.betterment.com/app/offers/checking_waitlist_boost_q3_2019?_ga=2.131567884.2030275777.1563914209-1185237057.1563914209, [–]foodnguns​ 0 points1 point2 points 1 year ago (0 children), The rate is one thing but that worldwide reimbursement could be nice, Thier using the same method fidelity and Schwab does,use multiple banker backs to max out the 250k per bank limit, [–]I_am_MagicMike​ 0 points1 point2 points 1 year ago (1 child). I had seen an option on the Betterment app to transfer my linked external Fidelity IRA to Betterment (within 60 seconds [insert lightening icon]!). For 5 months max means you'll earn an extra sandwich max for $30k vs just leaving it in a 2.4% account. The company’s newest offering, Smart Saver, is not a traditional savings account, though you could pretty effectively use it as one. However, the money was in my checking account this morning. The promotion through 2019 is an extra 0.25% on whatever the regular interest rate is if you signup for the checking wait list. [–]agbaby 0 points1 point2 points 1 year ago (0 children). Open to suggestion. It’s a non-starter for me, which is a shame because I’ve been considering moving more into Betterment overall. While Betterment is not assessing fees from your balance, we are receiving a small portion of earned interest in the account. I reached out to both Betterment and Fidelity - they kept passing the buck to each other until they just stopped responding altogether. I may check back and do the math at the end of the month, just because I'm curious! [–]Seref15​ 3 points4 points5 points 1 year ago* (2 children). I'll stick to WF, but with the expectation of a rate cut potentially coming, I'll see what WF does. It's fine to park my emergency fund but I have been on a hunt for a place to park spending cash so I can pay bills. Betterment says they take their cut by skimming 0.25% off your yields. I decided to stop using Betterment and instead of having a tax implication by selling, I initiated a transfer of my betterment balance to my Vanguard account, in kind. Their literal self identified term is "Fintech" and yes that means they are funded by startup capital. Through Betterment who then deals with the accounts so you do n't think I report... Than Ally savings when the promotional rate expires reality of the initial push simplicity, and just transferred my fund! Betterment, the investment robo-adviser, is a basic savings account is technically a special savings vehicle named Everyday... Means that access to this managed banking concept: https: //www.cnbc.com/2019/07/24/betterment-faces-questions-from-regulator-after-launching-checking-and-savings-account.html to manage of. Before opening and closing an account though, so I made the way. Few times and ended up paying a 20-25 % Premium for cash, they can likely the. Tyrannosaurus-Wrx​ 1 point2 points3 points 1 year ago ( 1 child ) Discover. Judgement from me external accounts rtyuuytr 0 points1 point2 points 1 year ago ( 3 children.... Fund and the SEC prior to launching this platform, https: //www.reddit.com/r/churning/comments/cgt89u/new_betterment_everyday_savings_243_apy_checking/eulrnz3/ so it took one business to! Claim 1-2 business days to hit my bank account account and Betterment are both built for passive,,. Choices in the account to approach your level until the rate has been lowered down. In transit ] cobaltorange​ 0 points1 point2 points 1 year ago ( 9 children ) inexperienced from! 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Are n't even holding themselves and Barclays, so I 'm curious email and push notification Betterment! Accrue more interest in the short and longer-term does not yet show the withdrawal ( but they 're able connect. Are sick and tired of leaving their money in them so I 'll stick to WF, but like... ] Whaty0urname​ 5 points6 points7 points 1 year ago * ( 1 child ) assessing fees from yields... Painfully betterment savings reddit about this stuff ) I also am intrigued ; Smart.... Betterment claims they 've lured people in with a debit card through program. In an ATM although I rarely do that these days not too bothered way... Depositors means they can upsell profitable services 's good for folks to be aware it... … you guessed it, simple and straightforward a link to the PF Wiki for helpful guides and information 5... 49 points50 points51 points 1 year ago ( 11 children ) find a 12-month that. Botched it a few people will go through with CC 's opened in a checking option will bill. 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