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Monday, October 20, 2025
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Betterment Increases the Variable Rate of Its Cash Reserve Product to 4.20%* APY

Betterment, the largest independent online financial advisor, today announced that it is raising the interest rate on its Cash Reserve product to 4.20%* APY (variable), which is 11 times higher** than the national average.

Cash Reserve was created by Betterment to offer our customers high yields on cash balances combined with higher FDIC insurance protection than a single bank can offer1 along with zero fees, no minimum balance and unlimited withdrawals. The product is designed to provide yield, liquidity and safety for customer cash in various market conditions. Betterment has also increased the FDIC coverage to $2m ($4m for joint accounts) once funds are at our program banks.

“Cash Reserve is a product that is really meeting the moment for our customers,” said Mike Reust, President of Betterment. “With continued market volatility and very low interest rates offered by traditional banks, Cash Reserve offers higher yields and FDIC protection. We are excited to further expand the reach of our platform to ensure customers have flexibility and choice.”

Customers can set up Cash Reserve with automated, easy-to-use tools, including setting up goals for multiple end uses. Accounts can be enhanced with recurring deposit features to keep growing balances regularly.

For Cash Reserve (“CR”), Betterment LLC only receives compensation from our program banks; Betterment LLC and Betterment Securities do not charge fees on your CR balance.

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