Interest rates change over time, but at Betterment, we are always working hard to help give you one of the best rates possible so you can make the most of your money. High-Yield Savings Accounts: The Ultimate Guide
According to the Federal Deposit Insurance Corporation (FDIC), the national average interest rate for a savings account is 0.09 percent. That means if you deposit $10,000 into an average savings account right now and don’t touch it, a year later it will only be $10,009.
Betterment offers both checking and savings accounts. The savings account is called Cash Reserve and it comes with an interest rate of 0.10%. (This interest rate is variable and may change.)
Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities.
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Compound interest rate of return is assumed to be 0.07% compounded monthly and is equivalent to the national average savings account interest rate as of March 31, 2021, as reported by the FDIC for deposits under $100,000. Annual investment return is assumed to be 7% each year.
<title>Betterment on Facebook</title> <title>Betterment on Twitter</title> <title>Betterment on LinkedIn</title> Contact Us Betterment 401(k) Betterment for Advisors 1 The average typical advisor fee of 1.15% was determined by AdvisoryHQ’s 2020 survey which states that the average advisor charges 1.15% on investment accounts with balances of $750,0001-$1,000,000.