Betterment
hands-off automated investing with goal-based planning
How it works
Betterment builds and manages a personalized ETF portfolio based on your goals — retirement, a house down payment, or just growing your savings. It handles rebalancing, dividend reinvestment, and tax-loss harvesting automatically. You just set the goal, deposit money, and let it run.
Is it right for you?
Consider if you
- Hands-off investors who want a fully managed portfolio
- Goal-focused savers targeting a specific milestone
- Anyone who wants tax-loss harvesting without thinking about it
Skip if you
- Active traders wanting individual stock picking
- Investors who need responsive human support
- Balances under $24K hit with $4/month minimum fee
Your money and data
Betterment is an SEC-registered investment advisor and broker-dealer. Your invested assets are SIPC-protected up to $500,000. Cash deposits in Betterment Checking are FDIC-insured up to $250,000 through nbkc bank, and Cash Reserve balances are covered up to $2 million through its multi-bank sweep program.
Pros & Cons
Pros
- Low 0.25% management fee with no account minimum
- Tax-loss harvesting included at no extra cost
- High-yield Cash Reserve with competitive 3.25% APY
Cons
- Customer service widely criticized — long hold times
- $100K minimum for human Certified Financial Planner access
- $75 outbound account transfer fee
Pricing details
0.25% annual management fee ($4/month min for balances under $24K) · No account minimum · Premium: 0.65% for unlimited CFP access ($100K minimum) · Cash Reserve: no management fee
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