Betterment Checking Review: ATM and Foreign Transaction Reimbursements

ATM and Foreign Transaction Reimbursements Betterment; Alyssa Powell/Business Insider

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

• Betterment Checking comes with an easy-to-use mobile app and reimburses ATM fees.
• The account is good for people who don't mind banking digitally and those who frequently travel.
• You don't need an opening deposit or minimum balance to set up an account.
• Click here to learn more or sign up for a Betterment checking account »

This post was reviewed and updated on April 9, 2021.

Should you open a Betterment checking account?

The bottom line: Betterment Checking is a good account for travelers, because it reimburses ATM and foreign transaction fees worldwide. But it isn't a good fit if you need to deposit cash, or if you want to deposit checks but don't qualify.

The pros of Betterment Checking

All ATM fees are reimbursed

Betterment doesn't have an ATM network, so when you withdraw money from an ATM, the provider will likely charge you a fee. Thankfully, Betterment immediately reimburses you for ATM fees. Betterment will send you a push notification to let you know the refund is being deposited, and you should see the money in your account.

Betterment

Not all banks reimburse out-of-network ATM fees. Those that do typically place a limit on the amount they'll refund per month, usually around $10 or $15 — but Betterment offers unlimited reimbursements. This makes Betterment a good choice if you use ATMs often.

Your Betterment debit card is a Visa card, so you can use the card at any ATM that accepts Visa.

Visa foreign transaction fees are reimbursed

When you travel abroad, Visa charges a 1% fee on transactions, ATM withdrawals, and debit card purchases. But Betterment reimburses these foreign transaction fees, making this a great debit card for traveling.

You'll earn cash back rewards

Betterment has teamed up with Dosh to offer cash back rewards. You can swipe your Betterment debit card at thousands of retailers to earn cash back. The percentage you'll earn will depend on a) which business you shop at, and b) whether there are any new cash back promotions — but you can typically expect to earn 2% to 20% cash back.

Scroll through your Betterment app to see how much you can earn at various retailers. Betterment will even track your debit card transaction history to recommend cash back deals at places you tend to visit.

You don't need any money to get started

You don't have to make an initial deposit to open your Betterment checking account, and there's no required minimum balance.

There are no monthly or overdraft fees

Betterment doesn't charge a monthly service fee. The company also won't charge you a fee if you overdraw from your checking account — Betterment will simply deny your purchase. These features make the account more affordable than many competing accounts.

The mobile app is easy to use

Before launching its checking account, the Betterment app received positive reviews in the Apple and Google Play stores.

The company added features to its app for checking account holders: You can set up your account, order a debit card, activate your card, and deposit paper checks through the app.

Betterment

Your account is secure

You can lock your debit card if you misplace it and reset your PIN through the Betterment app. It's good to be able to take these security measures quickly even if you aren't near your computer, and you don't have to call a customer service representative to take action for you.

To keep your account secure, Betterment has aggregated app passwords. This means you can create a budget with Mint, for example, by linking Mint and Betterment, but Mint doesn't actually have access to your login information. Or you could nest Betterment within TurboTax to file your taxes, but TurboTax can't access your Betterment password.

To keep others from accessing your account, Betterment requires two-factor authentication and a biometric login.

Betterment's two-way sweep helps you earn interest and avoid overdrafts

If you have both a Betterment Checking and Betterment Cash Reserve Account (Member FDIC), you can benefit from Betterment's "two-way sweep," a feature that transfers money between the two accounts.

Betterment regularly assesses your Betterment Checking account to determine whether you have extra money based on your usual spending habits. If so, Betterment sweeps the extra funds into your Cash Reserve account, where it earns interest.

You'll receive an email informing you of an upcoming sweep. If you decide you don't want to transfer the money to your Cash Reserve account, you have until 12 p.m. ET the following day to cancel the sweep by following the link in the email or by logging into your account.

If Betterment recognizes that you have less money than you'd need for the next 21 days in your checking account (based on your spending habits), it will sweep money from Cash Reserve to Checking to ensure you won't have a transaction denied because it would overdraw your account. The two-way sweep helps your two accounts work together.

The cons of Betterment Checking

There are no physical locations

Betterment doesn't have any brick-and-mortar offices. If you prefer speaking with a banker face-to-face, this account might not be the right fit for you.

If you don't have also have a Cash Reserve account, you won't earn interest

Betterment Cash Reserve pays interest on your savings. If you have both a Checking and Cash Reserve account, the two-way sweep will help you earn interest by moving money between the two accounts.

However, Betterment Checking does not pay interest on your money. If you don't have a Cash Reserve account, you won't earn interest through Betterment.

You can't deposit cash

Some online banking platforms let you deposit cash for a fee at GreenDot locations in places like Kroger, CVS, or 7-Eleven. But you can't deposit cash with Betterment.

There are rules about mobile check deposits

Betterment has rules restricting who can deposit paper checks with the mobile app. You can deposit checks if you've used Betterment for at least 30 days, and if you've received at least $500 in direct deposits into checking over the past month. You can also only deposit up to $1,500 per day with paper checks.

The rules surrounding cash and check deposits mean Betterment is probably the best fit for people who use direct deposit.

Betterment Checking Account features

Betterment is an online banking platform, so there are no physical branch locations. Betterment doesn't have an ATM network, but it reimburses 100% of ATM fees.

The Betterment app ranks as one of our top banking mobile apps. It has 4.8 out of 5 stars in the Apple store, and 4.6 out of 5 stars in the Google Play store.

To contact customer support, call or email Monday through Friday, 9:00 a.m. to 6:00 p.m. ET.

Betterment Checking and its Visa debit cards are provided by NBKC Bank. Your account is FDIC insured for up to $250,000, or $500,000 for joint accounts.

Is Betterment trustworthy?

The Better Business Bureau gives Betterment an A- in trustworthiness. A good BBB score indicates a company responds effectively to customer complaints, is honest in its advertising, and is transparent about business practices.

In 2018, the Financial Industry Regulatory Authority fined Betterment $400,000 for a) failing to maintain its books in accordance with FINRA regulations, and b) dishonestly calculating customer reserves information to financially benefit the company.

FINRA fined Betterment in 2018, but Betterment's dishonest activity took place from 2012 to 2015. You may decide you're comfortable using Betterment now that several years have passed.

How Betterment compares to similar checking accounts

We've compared Betterment Checking to checking accounts from two other online investment platforms: the Wealthfront Cash Account (Member FDIC) and the Acorns Spend Account (Member FDIC).

Betterment review vs. Wealthfront review

You'll probably prefer Betterment if you want to set up separate checking and savings accounts with the same company.

Related The Wealthfront Cash Account is a high-yield checking account that lets you get your paycheck up to 2 days early

The Betterment Checking Account (Member FDIC) doesn't pay interest like the Wealthfront Cash Account does, but its cash reserve account pays interest. Betterment's "two-way sweep" feature helps you earn more interest on your money. Betterment regularly assesses your Betterment Checking Account to determine whether you have extra money based on your usual spending habits. If so, Betterment sweeps the extra funds into your cash reserve account, where it earns interest.

However, if you only have a checking account and not a savings account with Betterment, then none of your money will earn interest. If you're only looking to open a checking account, then it might be better to go with Wealthfront.

Betterment review vs. Acorns review

Acorns is another online investment platform, and although it offers a checking account, it doesn't have a savings account option. Instead, Acorns focuses on putting your extra money into your investment and retirement accounts.

Acorns charges a $3 monthly fee; granted, that fee covers a checking, investment, and retirement account.

Related Investing app Acorns now has a checking account that funnels 'extra' money into investments

Basically, Acorns accounts all work together, and the company's main focus is clearly on investing. There isn't a point in having an Acorns Spend (Member FDIC) account without also using Acorns to invest and save for retirement.

Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.