Fintech Betterment is pushing further into the traditional banking realm. The digital-only platform is will soon offer “Betterment Everyday” which includes an FDIC-insured checking and savings product that will have no account fees, overdraft fees, minimum balances or monthly maintenance fees.
The checking service will also provide a the Betterment Visa Debit Card. Betterment said that checking will be made available later this year, but consumers can sign up for the waitlist starting today to get early access.
Importantly, Betterment says it will reimburse all ATM fees, offering users unlimited ATM access worldwide.
For the savings account, which IS available today, Betterment offers an FDIC-insured vehicle with an industry-leading an introductory 2.69% APY. No minimum balance and no withdrawal limits. Without the promo APY the interest rate is 2.43% which is still pretty good.
Like most other Fintech banks, the services are provided by partnering with a regulated bank. Receiving a bank license in the US can take many years so digital banks piggy-back on the license of a regulated bank. Recently there have been announcements from several European digital banks that are launching in the US which will continue to put pressure on traditional banks with added competition.
Jon Stein, CEO of Betterment, said the majority of the traditional banks depend on extra fees, and encourage cash-holdings and upsell unnecessary products.
“Betterment Everyday is the solution to the longstanding industry problem. No matter where you are in your financial journey, Betterment lays the path for smart investing and now secure saving everyday,” Stein stated.
Betterment has made its name as feature-rich Robo-advisor. It simply makes sense to provide more features and services to its existing customer base.