Betterment offers more than investment advice. The Betterment Checking offers unlimited ATM access, while Betterment Cash Reserve accounts provide interest on savings. Betterment's SmartDeposit transforms automatic saving by monitoring bank accounts and investing idle funds. It easily boosts user investment balances and addresses the dependability and safety concerns of automated savings tools. Users have worried about faults and whether these technologies will work as planned. Digit and SmartDeposit have had no issues or unexpected withdrawals.
Workings of SmartDeposit
SmartDeposit is like Digit, a wonderful utility. In this, an algorithm uses your maximum checking account balance to make money for you. After setting your checking account maximum in Betterment's SmartDeposit, tell it the maximum amount to withdraw in one transaction.
Lets assume that you never require more than $5,000 in your bank account. SmartDeposit monitors your bank account and raises it to $6,000 the next month, $1,000 over your limit balance. Even though your balance is $1,000 over the maximum you established, Betterment will send $200 because you authorized it never to remove more than $200.
Moreover, SmartDeposit checks your bank account weekly for an excessive amount and tracks your transactions to determine if you're leaving too much money in it and whether it may be used for something else. Betterment gives you numerous of front-end options to regulate when, where, and how SmartDeposit transfers money, but they added one more tool to provide you with more control.
Betterment emails you the day before a SmartDeposit transfer to cancel. Because Betterment doesn't know every bill you have coming up or if you're retaining a huge balance, SmartDeposits gives you full control.
Benefits of SmartDeposit
Beats the Savings Account
Betterment's SmartDeposit pays better rates on regular savings contributions, annual bonuses, gift money, and other cash than typical savings accounts. Because the bank is a middleman, your savings go into the money market (company debts, preference shares, treasury bills, government securities, etc.) and earn nothing. Because you invest directly in money markets, SmartDeposit yields larger profits.
Make a Single or Recurring Deposit
You can access SmartDeposit and your spare cash all at once or monthly. Activate the One Time Mandate to donate $500 to your Recurring Deposits. OTM allows automated monthly withdrawals without a debit card or online banking and no lock-in term applies. You can cancel anytime without penalty.
Quick Withdrawal
SmartDeposit's Instant Withdraw is another fantastic feature. Compared to other mutual fund investments, you don't need to wait days for your money with their rapid withdrawal service. You can withdraw your investment at any moment, day or night, year-round. After two steps, you can access smartDeposit, and the cash will be transferred to your bank account. The maximum daily withdrawal is $50,000, or 90% of the investment's clear value. You are advised to open a savings account online instead of in person.
Who Should Use SmartDeposit?
SmartDeposit is great for Digit users who want to boost their investment balances. Digit, another algorithm-based savings application, has sparked customer worries regarding inaccuracies and trustworthiness. People wonder, "What if something goes wrong? Will it work?" On the other hand, many users say Digit and Betterment's SmartDeposit work smoothly and dependably. Without faults or gimmicks, these platforms have never withdrawn more money than necessary.
SmartDeposit automatically invests idle cash, making it a good solution for people who want to optimize their savings strategy without continual supervision. SmartDeposit recognizes extra funds and transfers them to Betterment for investment, boosting profits by establishing a bank account balance threshold. This tool serves legacy account managers and investors looking to automate and improve their investment process. Betterment simplifies and improves automated investing with SmartDeposit.
Alternatives to New SmartDeposit Feature of Betterment
Acorns
Acorn is an alternative to Betterment's New SmartDeposit feature for automatic savings. With over 10 million members, Acorns has five products and three subscription levels beyond micro-investing. Acorns Personal offers an FDIC-insured bank account and debit card for $3 a month with real-time round-ups, no minimum balance or overdraft penalties, and unlimited free or fee-reimbursed ATM withdrawals.
Acorns Personal Plus subscribers get an emergency fund and investment match for $5 a month. Acorns Premium members get GoHenry debit cards for kids, extra investing options, and more for $9 a month.
Chime
Chime's Round Ups feature automatically rounds up debit card purchases to the next dollar and deposits the difference to your savings account. Direct deposit account holders can automatically transfer up to 10% of their deposits into their savings account using Save When You Get Paid.
Chime Savings Account offers a competitive 2.00% APY. Get Paid Early enables you to receive direct-deposited wages two days early via Chime. Direct deposit account holders can use SpotMe for fee-free overdrafts up to $200. Chime will hold your money until your next deposit and is one of the best alternatives to Betterment's SmartDeposit feature.
Oportun
Oportun Set and Save analyzes spending and income using automation and AI, not a "round-up" tool. It transfers money from your outside checking account to Oportun when you can afford it. Student loans or concert tickets might be your spending goals, and Oportun set and save will budget for you.
Your FDIC-insured Oportun account will receive a quarterly 0.10% yearly savings bonus for three months of savings. The company tries to prevent member overdrafts. It reimburses up to four monthly Oportun autosave overdraft fees.
Final Verdict
Betterment's SmartDeposit feature is powerful for automated savings and investment growth. It answers worries regarding the reliability of computerized savings tools by providing seamless and reliable service. SmartDeposit's capacity to monitor bank accounts, discover idle cash, and invest it automatically makes it useful for maximizing savings techniques without constant supervision.
Setting thresholds before you access smartDeposit can achieve comfort and security. For Digit users, SmartDeposit streamlines investment and financial management, making it a tempting option for automated savings and investment.
