Account minimum
$0 ($10 to start investing).
Account management fee
0.25% annual fee on balances over $20,000 or if you set up recurring monthly deposits totaling $250 or more. Otherwise, $4 per month.
Investment expense ratios
Average expense ratio of 0.05% to 0.24% for Betterment Core Portfolio as of August 2023.
Account fees (annual, transfer, closing)
$75 outbound transfer fee.
Portfolio mix
Core portfolio uses ETFs from 13 asset classes. Portfolio options include: Betterment Core, Goldman Sachs Smart Beta, Blackrock Target Income, Betterment Flexible Portfolio (where clients can adjust the weights of asset classes) and Innovative Technology. Portfolio mix is well-diversified but lacks exposure to non-market correlated assets like real estate investment trusts (REITs) and commodities.
Betterment also offers four cryptocurrency portfolios: Universe, Sustainable, Metaverse and Decentralized Finance.
Socially responsible portfolio options
Three socially responsible investing portfolio options: Broad Impact, Climate Impact, and Social Impact.
Accounts supported
Individual and joint taxable brokerage accounts. Roth, traditional, inherited, rollover and SEP IRAs. Trusts. Ability to link external accounts for better-informed advice (but not direct management).
Tax strategy
Tax-loss harvesting.*
Tax-Coordinated Portfolio (asset location) tool.
Tax Impact Preview tool.
Charitable giving tool.
Automatic rebalancing
Free on all accounts. Rebalancing generally triggered when drift passes 3%, considering tax impact. Also, Betterment uses any cash flow, such as a dividend or deposit, to partially rebalance your portfolio.
Human advisor option
Betterment Digital doesn't offer access to financial advisors. However, for a fee, anyone can buy an advice package that includes a consultation with an advisor, regardless of if they have a Betterment account or not. Prices start at $299.
Savings account/cash management option
Cash Account** with no fees or minimum balance requirements, unlimited transfers and FDIC coverage of up to $2 million in individual accounts or up to $4 million in joint accounts at program banks. Includes a feature that enables customers to save in separate buckets for different goals. Checking account that reimburses ATM fees and foreign fees and has a debit card with cash back. The cash account offers an interest rate of 4.75%. *Current promotional rate; annual percentage yield (variable) is 4.75% as of 7/31/23, plus a .75% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.
Customer support options (includes how easy it is to find key details on the website)
Phone support Monday-Friday 9 a.m.-6 p.m. Eastern time. Email support and questions also answered through social media.
