Testing our Rails applications allows us to build features more quickly and confidently by proving that code does what we think it should, catching regression bugs, and serving as documentation for our code. We write our tests, called “specs” (short for specification) with RSpec and Capybara. Though there are many types of specs, in our workflow we focus on only three: model specs, request specs, and system specs. This blog post discusses the different responsibilities of these types of specs, and other related high level guidelines for specs. Model … [Read more...]

TABLE OF CONTENTS General Information What is Betterment Everyday Checking? How can I sign up? Are there any fees or account minimums? Do you charge a fee for overdrafts? Is my cash FDIC insured? Does my checking account earn interest? Is Betterment a bank? Eligibility Who is eligible to use Betterment Everyday Checking? Am I required to use both Checking and Cash Reserve? Will you run a credit check? Can I open more than one checking account? Can I open a joint account? Can I open an account for a company or LLC? Can I open an account for my … [Read more...]

Thanks to their convenience and competitive interest rates, many people are making the switch to online-only bank accounts. If you’re thinking of joining them, you might be overwhelmed by the many options to choose from. In this CIT Bank review, we’ll explore one of the most popular choices. If you’re shopping around for an online bank, you should consider these criteria: Brand recognition and trust Technology and features Interest rates Fees CIT Bank is a leader when it comes to several of these aspects. If you’re looking for a new online … [Read more...]

The third quarter of 2019 brought some very positive news for me on a personal level—I received my green card and am now a permanent resident of the United States. If that’s not enough to make me feel patriotic about my newly adoptive country, I needn’t look further than the U.S. equity markets to feel proud. Over the past decade, the American stock market has been incredibly strong, and by some definitions we qualify for having the longest bull market in history. For example, from September 5th, 2011 until September 5th, 2019, the total return of … [Read more...]

When it comes to investing, most folks concentrate mainly on the overall rate of return on their portfolio. Investment fees fall somewhere further down on the priority list. But let’s say you pay an average of 2% in investing fees on a $100,000 portfolio. Over 30 years, that will cost you $60,000 — to say nothing of how much you’ll lose if that portfolio increases in value. That’s why it’s critical to keep your investment fees low. Investing fees have the net effect of lowering your returns. Just by reducing — or eliminating — … [Read more...]

Money that’s been deposited into a bank is generally thought of as safe. This is partly because the FDIC insures bank deposits. But what exactly is FDIC insurance, and how does it work? First, we need to know how banks make money from deposits. Please note that Betterment is not a bank. When you put money in a deposit account at a bank—let’s say in a checking account or a CD—the money doesn’t just sit there. Instead, the bank turns around and lends it out to other parties who are in need of loans. The parties that borrow from the bank … [Read more...]

At Betterment, we are routinely evaluating our investment strategies to help you achieve your financial goals. As part of that routine evaluation process, we have recently updated our recommended portfolio allocation for our Safety Net goal. Our Safety Net goal is designed to be an account you can withdraw from in the case of an unexpected financial situation, such as a large medical bill or the loss of a job. If your emergency money is sitting out of the market and it’s not invested, it runs the risk of losing buying power over time because of inflation. The aim … [Read more...]

You may be familiar with the concept of an emergency fund, and you may have heard some of the rules of thumb about them. But emergency funds can be the bedrock of your entire financial plan. Because of that, we want you to go beyond just rules of thumb. We want you to feel confident your emergency fund is set up properly and matches your personal needs. In this article, we’ll cover what we believe to be the most important aspects of emergency funds. What is an emergency fund? What are the benefits of having an emergency fund? How big should your emergency fund … [Read more...]

What’s more American than apple pie? The answer might just be: the credit union. While the honor of the first credit union goes to Germany, the U.S. is now undoubtedly the home to the largest collection of credit union members worldwide, with over 117 million of the world’s 260 million. The number of nation-wide credit union members has been growing steadily for decades, but accelerated in the wake of the Great Financial Crisis of 2008, possibly signalling that consumer trust in traditional banks is waning. Indeed, one study from 2014 showed that Americans … [Read more...]