Just a couple of weeks after introducing its new savings product, Betterment the investment robo-advisor, has lowered the promotional savings rate. The move comes after the Federal Reserve last week cut by a quarter-point its key benchmark rate that banks use to set borrowing and savings rates.
Betterment announced its new account with a lot of fanfare, offering the best rate in the market at 2.69%. But now that rate has been cut down to 2.44%.
The new rate on Betterment Everyday Savings is 2.44%, which includes a quarter-point promotional rate boost that expires at the end of 2019. After that, the rate will be just 2.19%. The email from the company explained that the rate is variable and is affected by any moves from the Fed. The rate change is also shown on the application page online.
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