Betterment

Overview

Betterment combines cash management, guided investing, and retirement planning in a fiduciary financial service. Founded in 2008 and based in New York, New York, it offers automated portfolio management alongside self-directed trading in stocks and ETFs. Its reported scale is more than 1 million customers and more than $70 billion in assets under management.

For automated investing, Betterment uses expert-built portfolios and technology for trading, rebalancing, and reinvesting, with ongoing advice. Customers can connect external accounts for funding, net-worth tracking, and goal tracking; instant connections use Plaid. The service has a free plan, while the listed starting price for paid access is $5/mo.

Betterment may suit people who want investment management and financial goals in one place, as well as those who prefer to make some trades themselves. Its cash products, external-account links, and mobile tools extend beyond portfolio management.

Key features

Automated investing and tax features

The automated service combines portfolio construction with ongoing advice, trading, rebalancing, and reinvesting. Betterment also offers fully automated tax-loss harvesting and Tax Coordination across eligible accounts. These features are relevant to investors who want investment activity managed for them rather than placing each trade manually.

Self-directed investing and cash

Customers can trade stocks and ETFs with no trading commissions, and Betterment waives its management fee on self-directed accounts. Cash Reserve has no monthly management fee. Checking has no overdraft fees, and ATM fees are reimbursed.

Accounts, goals, and mobile access

Linked external accounts can be used for funding, net-worth tracking, and goal tracking. The Betterment mobile app supports deposits, transfers, withdrawals, external-account connections, goal tracking, and performance tracking, as well as dark mode. Scheduled transfers are available, interest is offered on savings, and withdrawals are manual.

Advisor connections, security, and support

Betterment Advisor Solutions integrations let advisors view client information, holdings, and activity across connected provider accounts. Security controls include two-factor authentication, encrypted connections, password hashing, app-specific passwords, and biometric authentication. Betterment Securities is a SIPC member; securities customers are covered up to $500,000, including up to $250,000 for cash claims. Betterment's Trust Center lists SOC 1 Type II, SOC 2 Type II, SIG, and U.S. Department of Labor Cybersecurity badges.

Phone support is available at (718) 400-6898 Monday–Friday, 8:00 AM–9:00 PM ET, and weekends, 9:00 AM–6:00 PM ET.

Pricing

Betterment uses a freemium pricing model. The free plan is listed as free, with no monthly management fee for Cash Reserve and a $10 minimum deposit. Paid plans are listed from $5/mo. The Digital plan entry specifies $200 in monthly recurring deposits or a $24,000 eligible balance, but does not list a price. Premium requires a $100,000 minimum eligible investment balance; its price is also not listed.

Self-directed accounts have no management fee, and stock and ETF trades carry no trading commissions. Cash Reserve has no monthly management fee. Checking has no overdraft fees, with ATM fees reimbursed.

Platforms

Betterment is available on Android, iOS, and the web. The mobile app covers common account activity, goal and performance tracking, and external-account connections, with dark mode available.

Who it's for

Betterment is suited to people looking for guided investing and retirement planning alongside cash management. Its automated investing and tax features may appeal to those who want managed portfolios, while commission-free stock and ETF trading and waived management fees on self-directed accounts offer an option for people who want to choose investments themselves. Account linking and goal tracking can also help users keep an eye on broader finances.

People comparing savings-focused tools can browse Automated Savings Apps, while those weighing planning tools can see Financial Planning Software.

Pros and cons

Pros

• Combines guided investing, retirement planning, and cash management.
• Automated trading, rebalancing, reinvesting, tax-loss harvesting, and Tax Coordination are available for eligible accounts.
• Self-directed stock and ETF trades have no trading commissions, and those accounts have no management fee.
• The mobile app supports deposits, withdrawals, transfers, linked accounts, and goal and performance tracking.
• Cash Reserve has no monthly management fee; Checking has no overdraft fees and reimburses ATM fees.

Cons

• Prices for the Digital and Premium plan entries are not listed, though each has an eligibility threshold.
• Premium requires a $100,000 minimum eligible investment balance.
• Withdrawals are manual.

Alternatives

For other savings and money-management options, consider finbee, PiggyVest, Chip, Goin, Plum, Piggo, SavingsBox, and Tunzi.

Verdict

Betterment brings automated investing, retirement planning, cash products, and self-directed stock and ETF trading together. Its management and tax tools provide a substantial set of options for people who want investment support, while account linking and mobile features extend its usefulness to goal and net-worth tracking. The main pricing caveat is that Digital and Premium eligibility criteria are shown without corresponding prices; Premium also has a substantial minimum eligible balance. Review those terms alongside the free Cash Reserve offering and the $5/mo listed starting point for paid access to decide whether the available options fit your needs.