Betterment, the online investing adviser, debuted a high-yield savings account in July.
Betterment joined fellow robo-adviser Wealthfront in the high-yield savings space, which debuted its Cash Account earlier this year.
It’s difficult, if not impossible, to declare an outright winner between the two banking apps’ high-yield accounts.
Both Betterment’s and Wealthfront’s high-yield accounts are fee-free, allow unlimited transfers, and offer insurance coverage on up to $1 million.
As the Fed has cut interest rates since the accounts were launched, the APY for both accounts has steadily fallen. However, there are benefits to opening a high-yield savings account when interest rates are low.
See Business Insider’s picks for the best high-yield savings account »
Note that this post was originally published in the summer of 2019. Since then, the Fed cut the benchmark rate multiple times, and both accounts changed their interest rates accordingly. As of 1/14/20, the interest rate on Betterment’s Everyday Cash Reserve account is 1.83%. The interest rate on Wealthfront’s Cash account is 1.78%. They are still two of the highest interest rates available on comparable accounts.
Betterment and Wealthfront are online investing advisers at their core, but they’re making a clear play for ordinary savers.
Betterment joined …read more
Source:: Businessinsider – Finance