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Learning, Sharing, and Teaching => Investor Alley => Topic started by: jc4 on August 16, 2018, 01:52:02 PM

Title: Betterment - Smart Saver
Post by: jc4 on August 16, 2018, 01:52:02 PM: Apparently Betterment not has an easy to withdraw account designed for holding cash short-term. They invest in bonds to avoid volatility, but still give better returns than a bank account.

Thoughts?

https://www.betterment.com/resources/short-term-investing-savings-account-alternative/?utm_medium=email&utm_source=ExactTarget&utm_campaign=20180816_SmartSaverLaunch_retail_couch_fun&utm_content=https%3a%2f%2fwww.betterment.com%2fresources%2fshort-term-investing-savings-account-alternative%2f
Title: Re: Betterment - Smart Saver
Post by: DS on August 16, 2018, 02:00:34 PM: They are referencing 1.78% yield and using .08% as the comparison for savings accounts. Ally has 1.8% on any deposit balance currently.

https://www.betterment.com/legal/smart-saver/
Title: Re: Betterment - Smart Saver
Post by: jc4 on August 16, 2018, 02:09:15 PM: I realize it's not really great returns (1.8%). I'm mostly wondering if the savvy people here think it's worth using. Or if theres any big downsides?
Title: Re: Betterment - Smart Saver
Post by: bjuser on August 16, 2018, 10:41:53 PM: Quote from: DS on August 16, 2018, 02:00:34 PM
They are referencing 1.78% yield and using .08% as the comparison for savings accounts. Ally has 1.8% on any deposit balance currently.

https://www.betterment.com/legal/smart-saver/

I was just reading about this too... bonds aren't state taxed but I'm assuming their yield projection of 1.78% is including that.

I use Ally as well. The 1.8% is also FDIC insured. So it appears Ally is going to beat Smart Saver for right now unless I'm missing something.
Title: Re: Betterment - Smart Saver
Post by: DS on August 17, 2018, 07:31:37 AM: Quote from: jc4 on August 16, 2018, 02:09:15 PM
I realize it's not really great returns (1.8%). I'm mostly wondering if the savvy people here think it's worth using. Or if theres any big downsides?

That is what I was getting at. If savings accounts with no minimums are giving guaranteed higher returns, there's no reason to invest in these bonds.

Also Betterment charges for advisory fees .25% forever, subject to change. You can make your own bond portfolio without paying advisory fees.
Title: Re: Betterment - Smart Saver
Post by: jc4 on August 17, 2018, 08:08:03 AM: Yea. I guess the advantage to me is I already have a betterment account, and I'd ahve to open in Ally account.

I also didn't realize Ally had an account that high.
Title: Re: Betterment - Smart Saver
Post by: wirednuke83 on August 17, 2018, 12:53:56 PM: I also saw another post where the author mentioned it was a nightmare to get funds out of betterment.

https://forum.mrmoneymustache.com/investor-alley/in-kind-asset-transfer-out-of-betterment-nightmare/
Title: Re: Betterment - Smart Saver
Post by: channant on August 17, 2018, 01:27:30 PM: CIT has a 1.85% money market account! https://www.bankoncit.com/ (https://www.bankoncit.com/)
Title: Re: Betterment - Smart Saver
Post by: shinn497 on August 17, 2018, 07:46:38 PM: I am mostly in betterment. I don't see the point. They have a goal for a safety net that is 40/60 stocks bonds and i am in that. Or you can do 100% bonds or one of their savings goals. REally its just a marketing thing? Dunno.
Title: Re: Betterment - Smart Saver
Post by: zazpowered on August 19, 2018, 06:18:29 PM: While it doesn't have the highest rates, I think it's a decent option for those wanting to keep their money in Betterment for convenience or during a downturn. I currently use Purepoint (http://purepoint.com/) which offers 1.9%