Close Betterment cash account ?

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Topic Author
SlowMovingInvestor
Posts: 1850
Joined: Sun Sep 11, 2016 11:27 am

Close Betterment cash account ?

Post by SlowMovingInvestor »

I opened a Betterment account (only for cash reserve) when they were offering rates around 25 basis points higher than other banks last year.

Now they're down to 1.78% (not terrible, but others beat them out). I have no intention of using Betterment's portfolio management.

Any point in keeping the account open in the hope they might increase rates ? They have several back end banks and in theory they could offer a better rate by picking the best back end bank for rates, but it doesn't seem that way. Citi is one of their back end banks and has rates of up to 1.85% in many states, but Betterment rates are lower than that.
Topic Author
SlowMovingInvestor
Posts: 1850
Joined: Sun Sep 11, 2016 11:27 am

Re: Close Betterment cash account ?

Post by SlowMovingInvestor »

Bumping this -- any comments on whether it's worth keeping the Betterment account open just in case they start offering good cash rates again ?
Living Free
Posts: 542
Joined: Thu Jul 19, 2018 7:31 pm

Re: Close Betterment cash account ?

Post by Living Free »

I'd probably just use one decent online HYSA for my cash (or the savings portion of my cash, rather), whether it's betterment or someone else you're happy with. I personally use Ally. They don't usually have the absolute best rates but are near the top, and I've been happy with their customer service, website, app, and overall user experience. I could spend a lot of time chasing slightly higher rates and opening multiple accounts, but that just doesn't seem worth it to me.
On the other hand there are those who chase bank account, credit card, and brokerage account transfer bonuses.
ohai
Posts: 1327
Joined: Wed Dec 27, 2017 2:10 pm

Re: Close Betterment cash account ?

Post by ohai »

I'd probably want to put this cash where I have other financial services, as it's usually easier to move money around that way.
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Wiggums
Posts: 2958
Joined: Thu Jan 31, 2019 8:02 am

Re: Close Betterment cash account ?

Post by Wiggums »

ohai wrote: Fri Jan 03, 2020 3:40 pm I'd probably want to put this cash where I have other financial services, as it's usually easier to move money around that way.
I would do the same thing.
atdharris
Posts: 655
Joined: Wed Jan 02, 2019 3:18 pm

Re: Close Betterment cash account ?

Post by atdharris »

Doesn't Betterment charge a fee to have an account there? I use Amex for savings.. 1.7% APY, a bit lower than Betterment, but to the point where it would make a difference.
Topic Author
SlowMovingInvestor
Posts: 1850
Joined: Sun Sep 11, 2016 11:27 am

Re: Close Betterment cash account ?

Post by SlowMovingInvestor »

Living Free wrote: Fri Jan 03, 2020 3:34 pm On the other hand there are those who chase bank account, credit card, and brokerage account transfer bonuses.
I normally don't chase yield, but Betterment had a yield 25 to 40 basis points higher than anyone else last summer -- which was tempting.

Thanks for all the comment.
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